Hypnosis Method Research Paper Example | Topics and Well Written Essays - 500 words

Spellbinding Method - Research Paper Example The strategy segment of the trial has been all around depicted so as to allow different specialists to rehash the examination or investigation. The strategy portion should utilize subheading to isolate different subsections. These subsections normally comprises members, materials, structure, and strategy. The members were the understudies College. These members were ordered into numerous gatherings and occupied with a test for a timespan of about fourteen days. A few gatherings were directed. Around 16 gatherings were held, every one comprising of around 15 understudies. The materials incorporate a rundown of polls or structures which were practiced for the point of our analysis. The materials required are worried to gauge hypnotisability {accomplished in a split second after mesmerizing induction]. The entrancing capacity was assessed with the Harvard Group Scale of Hypnotic Susceptibility: Form. They are recorded alongside the references. The section An of the structure contains the configuration of bio information alongside certain questions identified with clinical foundation, for example, psychotropic medicine, consideration issues previously, visual impairment, head injury, saw any spellbinding, alluded any book in regards to somebody who was mesmerized, knowing anyone who was entranced and have you at any point spellbound yourselves. After this the understudy is approached to take a gander at an objective and record the things that occurred while he was taking a gander at the objective. In the subsequent stage the understudy is approached to record what he recall as of now which he couldn’t recollect beforehand. In the subsequent stage the understudy is given a survey containing three pages that incorporate 12 uncommon proposals which were directed to him during the normalized strategy of hypnosis.â

Die Opvoeder as Leier, Bestuurder En Administrateur

Question 1. 1. Compose a section where you talk about the job of correspondence in creatinga maintainable positive environment in your study hall. Correspondence is the transmission of a thought by somebody, thesender, and the seeing thereof by another, the beneficiary. Correspondence is imperative to the achievement of any relationship,without it the relationship is bound to come up short. So as to build thequality of the relationship the correspondence should be effective.Effective correspondence between the teacher and the students Inhis/her class is basic so as to make and keep up a positiveatmosphere in the study hall. 1. 2. Compose a passage wherein you talk about the significance of establishingpositive instructor student connections in the production of a sustainablepositive environment in your study hall. A positive teacher student relationship is significant as it enablesboth the instructor and the students to chance being straightforward with one another, care about one an other, it advances reliance, ensuresmutual needs are met and permits every person to create theirâ own individuality.The making of the above prompts trust between the teacher andlearners and as such will bring about a constructive homeroom climate. Making a decent teacher student relationship includes the following(Coetzee 2010:87): ? Making open, expertly suitable discourse with students. ?  Systematically assembling better associations with students. ?  Maintaining a high pace of positive to negative explanations. ?  Communicating exclusive standards. ?  Creating open doors for individual discussion.Guidelines that can be utilized to keep away from the negative impacts of educatorâ expectations are as per the following (Coetzee 2010:87): †¢ Use delicate data on students cautiously. †¢  Be adaptable in your utilization of gathering techniques. Be cautious how you react to low-accomplishing students duringclass conversations. ? Use materials that show a wide scope of ethnic gatherings. Be reasonable inyour assessment and disciplinary methods. ? Impart to all students that you accept that they can learn. ? Include all students in learning assignments and benefits. ? Screen your non-verbal correspondence. . 3. Examine how you would advance student cooperation in a multiculturalclassroom by making a learning situation that supports mingling andintercultural collaboration . ? I would initially peruse all the learning materials for that givensubject so as to decide whether there is any part of the work orâ activities which might be socially uncaring toward any of thelearners in the class. ? I am mindful that psychological learning styles are socially dependentand thusly will utilize an assortment of showing styles, techniques andstrategies in my educating of the class. ?All together for the students to take an interest and effectively coordinate witheach other it is important to know about any occasions ofâ cultural harshness quickl y and make a move, an approach to avoidthese circumstances, I could permit those individuals from differentcultures to clarify about specific parts of their way of life to theother individuals from the class. Along these lines I as the instructor and theclass will find out about different societies. ? I expect all the students in my group to accomplish to the best of theirâ ability as all individuals can learn gave they put in the timeand exertion to do so.I am additionally mindful that the scholastic andlearning capacity of students vary, so they toward the start of theacademic year are required to set their very own objectives whichthey then work towards. These objectives set are at levels slightlyabove what every student accepts they can accomplish all together tochallenge them. When checking work done in exercises the class needs to assistthe student who is responding to the particular inquiry in the event that they makean blunder so as to address it, on the off chance that the y can't distinguish orâ correct the mistake, I as the instructor help with managing them to thecorrect answer. Question 2. 1.Name five manners by which instructors can improve student inspiration in theclassroom . a) Make the learning task all the more testing. b) Place less accentuation on instructing and grades. c) Move from outward to natural inspiration. d) Have elevated standards of every student. e) Increase the learnersâ ¶ observation that they control the learningsituation. 2. 2. Draw up the accompanying of a study hall strategy: 2. 2. 1. Points and targets of our group . Class Aims: To accomplish our scholarly and scholarly potential through hardwork as an agreeable gathering, while at the same time advancing the acknowledgment ofâ others and regard for others.Individual Objectives: Each individual defines their own objectives to accomplish toward the finish of theyear (long haul) so as to add to the general class point. So as to accomplish their own finish of year objec tives the students setshorter term objectives so as to help them in accomplishing their drawn out objectives. 2. 2. 2. Rules for our study hall . 1) We should regard ourselves, others and the instructor. 2) We should be on schedule. 3) We should enter the class discreetly, and prepare to work. 4) We have to bring all our fixed and books to class. 5) We should lift our hands to pose inquiries in class. ) We should not eat nor drink in class7) We should never upset another learnerâ ¶s work. 8) We donâ ¶t leave litter on the floor, we put it in the canister. 2. 2. 3. Errand division . Instructor: ? Continuously arranged and dependable. ? Give help to students. ? Deal with the study hall fittingly. ? Order students fairlyLearners: ? Guarantee all work is finished on schedule. ? Keep up a perfect learning condition. ? Regard each other. ? Ensure all learning materials are brought to class. 2. 3. Characterize the accompanying ideas: 2. 3. 1. L eadership The capacity of a person to impac t others or a groupto accomplish objectives. 2. 3. 2. C ntrol Assessment of work done and where important to realign andcorrect work done which is inaccurate or not up to norm. 2. 3. 3. I ntrinsic inspiration An internal want to be effective at a specific assignment (self-inspiration) 2. 3. 4 . C ommunication The transmission of a thought by somebody, the sender, and theunderstanding thereof by another. Correspondence can be verbal orâ non-verbal. 2. 3. 5 . Co-employable learning A group way to deal with realizing where every individual from the gathering isdependent on different individuals to achieve a particular learningtask on a task. 2. 4 . Portray the absolutist and popularity based styles of study hall the executives .Autocratic administration style: Autocratic initiative is an instructor focused way to deal with theclassroom which is described by the solid position of authority of theeducator. The fundamental focal point of this sort of authority is on thecompletion of assi gnments and the learnersâ ¶ capacity to tune in, work and do. Theadvantages of this kind of initiative incorporate the advancement of goodorder and a set up routine where a few students feel moresecure. The disadvantages of this sort of administration incorporate one-waycommunication, inflexible control, inactive student support, a morereserved and aloof instructor and no place for creativethinking.Democratic initiative style: This authority style is portrayed by teachers that have goodsubject information, who are genial, useful, reasonable, and warm. Instructors who practice this administration style empower learnerâ participation. The benefits of this kind of administration incorporate learnerâ confidence to partake in study hall exercises, a loose positiveatmosphere and students continually being associated with learningactivities. 2. 5 . Clarify how a message is passed on by alluding to the correspondence processmodel . With the end goal for there to be correspondence there f irst should be apurpose for correspondence or a message to be conveyed.Thismessage is then encoded by the sender and passed onto the receiverâ via a correspondence medium. The message is then decoded by thereceiver. This outcomes in an exchange of significance from the sender to thereceiver, who at that point may give criticism back to the sender. Question 3  µ A delict is an unlawful, at fault (deliberate or careless) act (or omission)committed by an individual, which encroaches the privileges of another or causes himor her damage.  ¶ (Coetzee 2010:188) ? To establish delict, one individual more likely than not made mischief or harm another byhis or her activity or direct .The lead must be deliberate human activity and possibly either a positive activity or an oversight .  µ regarding this component of delictual risk the school can be held at risk asthey neglected to evacuate the bit of steel or possibly unmistakably delineate thearea around the bit of steel, so as to make i ndividuals mindful of it. Thecoach, realizing that there is a likelihood that players could fall during thewarm up because of the idea of the game, could likewise be considered capable asthe groups were liable for picking a warm up territory and the coachshould as such have checked the region for any items that could causeharm to colleagues. The demonstration which causes hurt must be unjust, that is, it must be legallyreprehensible or nonsensical as far as the legitimate feelings of the network . To test for unlawfulness, the boni mores standard is applied . The inquiry here iswhether the damage caused was unjustified in the conditions . I n the nonattendance ofâ wrongfulness a respondent may not be held at risk .  µ The school can be held at risk as they ought to have avoided potential risk tohelp to forestall a physical issue of this nature to any individual on their schoolgrounds.Knowing that they were facilitating a ball competition theyshould have evacuated any articles tha t could make wounds any playersor unmistakably differentiate the regions where there could be worries over theplayerâ ¶s security. The mentor in being answerable for the wellbeing of his teamshould have altogether assessed the zone picked for the get ready for anydangerous objects. ? The demonstration must be the consequence of issue as plan (dâ olus) or negligence(culpa) . Issue alludes to culpable demeanor or co

The Ultimate Exercises to Improve Posture (Simple and Effective)

The Ultimate Exercises to Improve Posture (Simple and Effective) How many times in your childhood did your mother yell at you to stand upright or stop slouching?Back then, it might have seemed like they were just being nagging, but in reality, our mothers were trying to prevent us from developing the habit of bad posture.Today, a lot of people suffer from problems related to poor posture, and the worst part is that many of them do not even realize that they have poor posture.How many times have you caught yourself slouching or hunching over your computer, looking down at your smartphone, cradling the phone between your head and shoulders, or sliding forward on your office seat?All these are examples of poor posture, yet we engage in many of them without even realizing it.Essentially, poor posture is any position where there is musculoskeletal distortion in the neck and back due to the spine being in unnatural positions for long periods of time.WHY YOU SHOULD STRIVE FOR PROPER POSTUREEven when we know that some of our habits lead to poor posture, m any of us do nothing to correct our posture.This is because we don’t know the negative impact of poor posture.Apart from making you look unattractive and self-doubting, poor posture also has several negative effects on your health and wellbeing. These include:Soreness and pain: Poor posture puts your body’s support system (your muscles and skeleton) in unnatural positions.This unnatural position causes misalignment of the spine, resulting in pain in the affected areas.Poor posture also misaligns your body’s natural weight distribution, which means that some of your muscles and bones have to bear more weight than they are supposed to.They have to work harder to support this extra weight, leading to pain and soreness in these areas.The areas that commonly experience pain and soreness include the lower back, the shoulders, the neck and the wrists.In extreme cases, poor posture can lead to problems such as a herniated disc and text neck.Increased risk of cardiovascular diseases: P oor posture, such as slouching, puts pressure on the ribcage and diaphragm, which can put more pressure on the heart.The misalignment of the spine can also result in constriction of blood vessels, resulting in poor circulation and conditions like deep vein thrombosis.If left untreated, these conditions greatly increase your risk of suffering from cardiovascular diseases.Poor breathing: Apart from putting more pressure on the heart, pressure on the ribcage and diaphragm also prevents your lungs from expanding properly as you breathe in.This in turns prevents your lungs from taking in as much oxygen as they should.Negative mood: You might think that there is no connection between your body posture and your mood, but studies show otherwise.According to a study conducted by researchers from the University of Auckland, poor posture is associated with lower self-esteem, more fear, worse moods and greater use of negative words.Increased stress: Poor posture has also been shown to lead to i ncreased physical and mental stress.Apart from the physical stress resulting from body pain and soreness, poor posture also increases the levels of cortisol (the stress hormone) in your body, leading to increased mental stress.A study by the San Francisco State University asked students to walk down a hallway either in a slouched position or by cross-crawl skipping.The group that walked in a slouched positions experienced decreased energy levels and higher feelings of depression.Carpal tunnel syndrome: The function and sensitivity of your arms, wrists and hands is controlled by the nerves stemming from your upper back and neck.Since poor posture largely affects these areas (the upper back and neck), it can result in pinching of these nerves, leading to carpal tunnel syndrome, which is a condition where someone experiences tightness, pain, tingling or numbness in the muscles throughout the arm.Tension headaches: This is another problem caused by poor posture that is commonly experien ced by office workers.Sitting all day in a poorly set up workstation â€" a monitor or desk that is too low or too high, computer accessories that are not ergonomically designed, a chair that does not provide adequate support, and so on â€" puts a lot of strain and tension on your neck and shoulders.Eventually, this tension works its way up your head, resulting in tension headaches.Decreased motivation: I mentioned that poor posture often makes you feel less confident in yourself. This in turn causes you to lose motivation in going after your goals and ambitions.Due to the appearance of self-doubt, others will also consider you as shy or timid, which will negatively affect you both in work-related and social situations.Poor digestion: Just like it squeezes up your rib cage and diaphragm, hunching over and slouching also bunches up the organs around your abdomen together.This leads to decreased ability to digest food, causing you to feel constipated. If left unaddressed for a long per iod of time, this can result in life-changing metabolic problems.Fatigue: Poor posture unnaturally shifts your body weight, which means that some of your muscles have to work much harder to keep you upright.This extra work is tiresome and requires more energy, therefore it leaves you feeling fatigued.EXERCISES TO IMPROVE YOUR POSTURETo avoid experiencing any of the negative effects discussed above, you need to actively work on correcting and improving your posture.Good posture ensures that all the bones, muscles, tendons and ligaments within your body are properly aligned in their correct position and that they are working optimally.Good posture also helps your body to develop proper strength, balance and flexibility.There is less strain on your body and you are less likely to experience any of the negative effects discussed above. In this section, we are going to look at some great exercises that can help you improve your posture.Most of these exercises are easy to perform and do n ot need any complicated equipment, which means that you can easily perform them within the privacy of your home and without the need to invest a lot of money in expensive equipment.The PlankA strong core is very important for developing good posture, and this simple exercise is one of the best ways to strengthen your core.The plank strengthens the several abdominal muscles, including the internal and external obliques, the rectus adbominis (the six pack muscles), as well as the erector spinae muscles on your back, the glutes, and the muscles on your shoulders.Below are the steps on how to correctly perform the plank: Start by lying face down on the floor, with your legs and feet together and your palms alongside your shoulders in pushup position.Raise yourself up onto your forearms, such that your elbow and the rest of your forearm is touching the ground. Your forearms should also be parallel to each other.Lift up your lower body and knees such that only your forearms and toes remai n touching the ground.Lock your abdominal and pelvic muscles to ensure that the middle part of your body does not sag. At this point, your legs, your spine, your shoulders, and your neck should be held straight, with your head facing downwards.Hold the position for a while as your breathe in through your nose and breathe out through your mouth. For starters, try to hold the position for about 30 seconds. You can gradually increase the length of time as your core becomes stronger.Back ExtensionsThis exercise helps you develop a strong back, which is also an important element for maintaining proper body posture.This exercise works the erector spinae muscles, the muscles of the lower back as well as the glutes.This exercise also improves the mobility and flexibility of the spine. Below are steps on how to properly perform back extensions. Start by lying face down on the floor, with your legs and feet together and your hands stretched outwards. Your feet should be outstretched, such tha t the tops of your feet are pressed against the floor.Using only your back muscles, slowly lift up your head and chest off the floor as you simultaneously lift up your feet off the floor. Don’t push down into your arms to lift up. At this point, only the middle section of your body (your stomach and hip bones) should be in contact with the floor. Hold the position for a few seconds and go back to the starting position.Repeat 10 â€" 15 times, increasing the number of reps as your back becomes stronger.If you find it to perform the exercise, start off with an easier variation of the exercise where you lift up your head, chest and arms off the floor while your feet remain in contact with the floor.You can later move on to the advanced variation as your back becomes stronger.Wall AngelsThis is another simple exercise that you can do from anywhere, even inside your office.This exercise is a great way to test your posture as well as to combat against rounded shoulders.The exercise stret ches out your shoulders and chest and helps strengthen a number of back muscles, including the trapezius, the rotator cuffs and the lats.All you need to perform this exercise is a roomy wall space.Follow the steps below to properly perform the wall angels. Start by standing with your back against the wall, with your heels a few inches from the base of the wall and your knees slightly bent.Make sure that your entire upper body â€" your head, shoulders and back â€" is touching the wall.Raise your arms with your elbows bent such that your lower arms are pointing upwards while your upper arms are parallel to the floor. The whole of your arms should also be leaning against the wall, with the palms facing outwards.Straighten your elbows to raise your arms above your head, such that they form a letter Y, with your head protruding from the center of the letter Y. As you raise your arms, make sure that they remain in contact with the wall.Hold the position for a few seconds and bring your ar ms back to the starting position, once again ensuring that contact with the wall is not lost.Repeat the arm movement 10 â€" 15 times.Chin TuckThe chin tuck is a great exercise for keeping your head aligned above the spine and reversing the poor, forward-head posture.It is also one of the best exercises for combating the neck pain that results from poor posture.The chin tuck exercise strengthens the upper thoracic extensor muscles, which are responsible for pulling the head back into alignment over the shoulders.This exercise also stretches the suboccipital and scalene muscles.The chin tuck exercise can be done in seated or standing position.Below are the steps on how to correctly perform the chin tuck exercise. Sit or stand upright with your shoulders rolled back and down. Make sure that your head is looking straight ahead and that your ears are directly above your shoulders.Place one finger on your chin.Without moving your finger, slightly tuck in your chin and pull your head strai ght backwards until you feel a good stretch at the top of your neck and the base of your head. At this point, there should be a gap between your chin and finger. The finger merely acts as reference for the starting point.Hold the position for a few seconds and go back to the starting position.Repeat the movement 10 â€" 15 times.You should perform about 5 to 7 sets (15 rep each) of the exercise throughout the course of the day.This not only strengthens your neck muscles, it also helps you create a habit of maintaining good head posture.The best part about this exercise is that it can be done anytime and anywhere â€" as you eat breakfast, lunch or supper, on the train, while waiting at a red light, in the office, basically anywhere.Kneeling Hip Flexor StretchThe kneeling hip flexor stretch is a great exercise for loosening the hip flexor muscles.These are a group of five muscles that connect to the pelvis and the femur.These muscles play a huge rule in our standing posture.Since the p elvis is the base of the spine, tight hip flexor muscles can lead to muscular imbalance in the lower back, leading to poor posture and sometimes lower back pain.Your hip flexor muscles usually become short and tight when you spend a lot of time in seated positions.Follow the steps below to correctly perform the kneeling hip flexor stretch. Kneel down with your left knee and stretch out your foot so that the top of your foot is against the floor. Place your right leg in front such that your thigh is parallel to the floor while your lower leg is perpendicular to the floor, with your knee bent at a 90 degree angle.Place your hands on your right knee, while ensuring that your back remains straight upright.Without getting your left knee off the floor, push your hips forward as your squeeze the muscles in your right buttock. Hold this position for about 30 seconds and go back to the starting position.Repeat the movement for about 10 â€" 15 times and then switch sides, placing your right k nee down and bringing your left leg up.Once you incorporate this exercise into your daily routine, you will notice that it becomes easier to stand or sit with a straight spine.Child’s PoseThis exercise is actually a resting pose borrowed from yoga.The child’s pose helps release tension in the muscles of your neck and lower back.This position also lengthens your spine and stretches your hamstrings and glutes.Follow the steps below to correctly perform the child’s pose. Start by kneeling down with your knees together and your big toes together. The upper part of your feet should be against the floor, with your heels pointing slightly outwards.Keeping your knees together and maintaining the position of your feet, sit down on your shin bones.Bend your body at your hips so that your face is almost touching the floor.Stretch your arms in front of you or bring them backwards such that your hands are next to your feet.Remain in this position for up to five minutes, while taking deep b reaths that expand your ribcage.Reverse Plank BridgeThis exercise is a variation of the plank, which we came across earlier.The reverse plank bridge is one of the most effective exercises for straightening your lower back and getting rid of rounded shoulders.The reverse plank bridge works on several muscle groups, including your erector spinae, the middle trapezius, the rhomboids, the front deltoids, the hip flexors, hip adductors, hip abductors and the lumbar spine.This exercise also works your neck extensors. All in all, it is one of the best exercises for improving body posture.Below are the steps for correctly performing the reverse plank bridge. Start by sitting down on the floor, with your legs in front of you. Place your hands behind you with your palms on the ground. You can have your fingers pointed backwards or forward.Press your palms and heels on the floor and lift your pelvis off the floor. Ensure that your knees, your pelvis and your shoulders are in line.Pull your sho ulders back such that the shoulder blades come together while pushing your chest up.Hold this position for 30 seconds. As your core and shoulders muscles become stronger, you can gradually increase the time.The Cat-Cow StretchThis is another exercise that is borrowed from yoga.The exercise consists of repeatedly moving the spine from flexion (a rounded position) to extension (an arched position).The cat-cow exercise is great for increasing abdominal strength and spinal flexibility.The movement of extending and flexing the spine also helps increase circulation in the discs of the spine.This exercise is great for preventing and reducing back pain. It is also a great exercise for those who spend a lot of time in sitting positions.Below are the steps on how to correctly perform the cat-cow stretch: Start by going down on your hands and knees. Your wrists, elbows and shoulders should be directly aligned below each other. Similarly, your knees should be directly below your hips. Your feet should be stretched out with the top of your feet against the floor. Spread out your fingers for better stability.Make sure that your spine is straight, with your shoulders and hips at the same level. Your head should be look down towards your fingers, such that your neck is also in line with your hips, spine and shoulders. This is the neutral position of the spine.Breathe in as you tilt your pelvis upwards and backwards such that your tailbone sticks up.Relax the abdominal muscles so that your belly moves towards the floor and at the same time arch your back downwards.Push your shoulders upwards and at the same time lift your head so that you end up gazing at the ceiling. Hold this position for a few seconds.Exhale as you now tilt your pelvis downwards and inwards, tucking in your tailbone.Follow by drawing your navel towards your spine and at the same time round your back upwards.Drop your head downwards as if you are trying to look at your navel. You want to end up with your ear s between your biceps.Hold this position for a few seconds and then go back to step 3 as you inhale.Repeat the cycle as you inhale and exhale about 5 â€" 10 times.Once you are done with your last repetition, go back to the neutral spine position and hold it for a few seconds.WRAPPING UPGood posture is very important for your health and wellbeing, and the eight exercises discussed in this article will help you improve your posture and reverse any negative effects you might be experiencing as a result of poor posture.It’s good to note that for you to achieve results using these exercises, you should make them a part of your routine.Poor posture is brought about by activities that are part of your daily routine, such as sitting all day at work and driving, therefore you should also perform these exercises every day.If you perform them for only a few weeks and stop, you will soon go back to where you started.Finally, I want to urge you to start performing these exercises today.The old er you get, the more pronounced the effects of poor posture become and the harder it is to reverse them, so don’t waste any time.Get started right away.

Erotic Romance Madhumalati, Manjhan s 16th Century...

Madhumalati, Manjhan’s 16th century Indian Sufi Romance, tells the story of two lovers: Manohar, and Madhumalati. Nymphs bring Prince Manohar to Princess Madhumalati, to determine which of whom are more divinely, perfectly beautiful. Even though this text appears, at times, to be a secular, erotic romance, the Shattari Sufi tradition from which such romantic stories originated uses romantic and sexual love to illustrate the relationship between a Sufi and God. These mystical romances were used as â€Å"spiritual exercises† to â€Å"[cultivate] their taste for things spiritual ... through a ritually controlled  ¯ exposure to music and poetry,† (xiii). This paper will examine the role of these mystical erotic romances in understanding the spiritual path to the Beloved, as symbolized by a female object of desire. After Manohar, who allegorically represents a Sufi believer along the path to understanding God, awakens and sees Madhumalati, who represents the divine Beloved (God), he is filled with desire: The moment that he saw Madhumalati she possessed his heart completely. His soul bowed down to her beauty. Seeing her lying in sweet sleep, the fire of love engulfed his body, consuming him utterly, from top to toe. Like a lotus opening towards the sun, he blossomed as he saw her face. Primeval love, like a new green shoot, sprouted in the Prince’s heart. (page 32, passage 75, lines 9-16) Manohar looks onto Madhumalati as she sleeps, and her physical beauty is enough to

The Benefits of Nursing Homes Essay - 1192 Words

In the early twentieth century, what we now call nursing homes did not exist. If elderly citizens had nowhere else to go, they were sent to live in rundown poor farms. On August 14, 1935 President Roosevelt signed the Social Security Act, which provided matching grants to each state for Old Age Assistance (OAA). This in turn set in motion the opening of private homes that allowed people to live in a care facility and collect the OAA payments as well. It was not until the 1950’s when nursing homes started developing into the facilities most of us are familiar with today. It was then that nursing homes were required to follow state set standards for licensing and some even received Federal grants if they possessed a hospital like†¦show more content†¦During her stay, we witnessed firsthand all of the fun activities that take place in the home. In the United States, there are 17,000 elderly care facilities in which 1.6 million people reside in (PBS, 2012). Even though there are one bed private bedrooms available in most homes, they tend to be a bit on the expensive side and so most have to settle for staying in public rooms of up to four beds. This can give people the impression that nursing homes are overcrowded and that it can result in a greater risk of neglect and lack of privacy for their loved ones. As a person grows older, there is a higher possibility of becoming ill. At an old age where it’s hard to take care of yourself, it is very important to be around people who can do the job for you. Nursing homes are filled with highly trained doctors and nurses that can give seniors the medical treatments that are needed. Almost all nursing homes, including the Four Seasons, provide health services like physical therapy and round the clock nurse to their residents. This ensures that if there is any medical attention needed at any time of day, it will be administered right away with no need to wait for ambulances or in emergency rooms to be attended. With crowded facilities, as stated above, the risks of medical errors are high. According to Marshall B. Kapp, â€Å"a substantial amount of drugs are ordered and dispensed daily in this [nursing home] setting† (2003). Most would agree thatShow MoreRelatedBenefits Of Being A Nursing Home1466 Words   |  6 Pagesgrandmother is in a nursing home also my grandfather was in the same nursing, but a different company owned it when my grandpa was there. I was three years old when my grandpa was there and now grandmas there twenty seven years later. Nursing homes have changed a lot in twenty seven years. There are a lot of restrictions; Medicare and Medicare are very involved in the treatment of the residents. Social services involve the family in the treatment and well-being of each resident. 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Factor Affecting People Investing in Mutual Fund Free Essays

Factors affecting people investing in Mutual Fund in Malaysia: An application of the Theory of Planned Behavior Kuah Kean Lam Research report in partial fulfillment of the requirements for the degree of MBA 2008 ACKNOWLEDGEMENTS I would like to thank my supervisor, Dr. Nabsiah Abd. Wahid and my co-supervisor, Dr. We will write a custom essay sample on Factor Affecting People Investing in Mutual Fund or any similar topic only for you Order Now Datin Joriah for their invaluable guidance in helping me with this research. Special thanks also go to Associate Professor T. Ramayah for his kind assistance and consultants in my statistical analysis. My sincere thanks to all the lecturers in the MBA programs. I also want to thank my family for their patience, support and encouragement during the period of my study. I am also grateful to my friends for their help and encouragement. Lastly, I wish to accord my appreciation to all the respondents who had so kind to respond my questionnaire in time. i TABLE OF CONTENTS Page ACKNOWLEDGEMENT i TABLE OF CONTENTS ii LIST OF TABLES vii LIST OF FIGURES viii LIST OF APPENDICES ix ABSTRAK xi ABSTRACT xii Chapter 1 INTRODUCTION 1 1. 1 Introduction 1 1. 2 Background 1 1. 2. 1 Benefits of Unit Trust Scheme 2 1. 2. 2 Disadvantages of Unit Trust Scheme 1. 2. 3 Types of Unit Trust Funds 4 1. 2. 4 Growth of Mutual Fund in Malaysia 6 1. 3 Problem Statement 8 1. 4 Research Objectives 10 1. 5 Research Question 10 1. 6 Definition of Key Terms 11 ii 1. 6. 1 Mutual Fund / Unit Trust Fund 1. 6. 2 11 Federation of Malaysia Unit Trust Managers (FMUTM) 12 1. 6. 3 Net Asset Value (NAV) 12 1. 6. 4 Islamic Mutual Fund 12 1. 6. 5 Attitude 13 1. 6. 6 Subjective Norms 13 1 . 6. 7 Perceived Behavioral Control 14 1. 6. 8 Behavioral Intention 14 1. 7 14 1. 8 Chapter 2 Significance of Study Organization of Remaining Chapter 15 LITERATURE REVIEW 16 2. Introduction 16 2. 2 Literature Review 16 2. 2. 1 Emerging Market Research 17 2. 2. 2 International Research 20 2. 3 Model Explanation (TRA, TAM, TPB, and DTPB) 22 2. 3. 1 Theory of Reasoned Action (TRA) 23 2. 3. 2 Technology Acceptance Model (TAM) 25 2. 3. 3 Theory of Planned Behavior (TPB) 26 2. 3. 4 Decomposed Theory of Planned Behavior (DTPB) 28 2. 3. 5 Inclusion of other variables in the TPB iii 31 2. 4 33 2. 5 Theoretical Framework 33 2. 6 Chapter 3 Gaps in Literature Hypothesis Development 35 METHODOLOGY 41 3. 1 Introduction 41 3. 2 Research Design 41 3. 2. 1 Type of Study 1 3. 2. 2 Data Collection Method 42 3. 2. 3 Population and Sample 42 3. 2. 4 Data Collection 43 3. 3 Data Analysis 43 3. 3. 1 Descriptive Analysis 45 3. 3. 2 Factor Analysis 45 3. 3. 3 Reliability Test 45 3. 3. 4 Correlation Analysis 46 3. 3. 5 Multiple Regression Analysis 46 3. 4 48 3. 5 Chapter 4 Summary Expected Outcome 48 RESULTS 50 4. 1 Introduction 50 4. 2 Profile of Respondents 50 4. 3 Goodness of Measures 52 iv 4. 3. 1 Factor Analysis 52 4. 3. 1. 1 Factor Analysis for Relative Advantage, Compatibility and Ease of Invest 53 4. 3. 1. 2 Factor Analysis for Efficacy and Facilitating Condition 54 4. 3. 1. 3 Factor Analysis for Past Behavior, Attitude, SN and PBC 4. 3. 2 4. 4 Reliability Test 57 Descriptive Analysis 4. 4. 1 55 58 Analysis of Independent Variable Explanatory Role 58 4. 5 Correlation Analysis 60 4. 6 Hypotheses Testing 62 4. 6. 1 Multiple Regression Analysis (Stage 1a) 62 4. 6. 2 Multiple Regression Analysis (Stage 1b) 64 4. 6. 3 Multiple Regression Analysis (Stage 1c) 66 4. 6. 4 Multiple Regression Analysis (Stage 2) 68 4. 6. 5 Multiple Regression Analysis (Stage 3) 70 4. 7 Chapter 5 Summary of Results 73 DISCUSSION AND CONCLUSION 76 . 1 Introduction 76 5. 2 Recapitulation of the Study Findings 76 5. 3 Discussion of Major Findings 77 v 5. 3. 1 Attitude towards the Behavioral 78 5. 3. 2 Past Behavior 79 5. 3. 3 Subjective Norms 80 5. 3. 4 Perceived Behavioral Control 80 5. 3. 5 Behavioral Intention 81 5. 3. 6 Actual Investment 82 5. 3. 7 Relative Advantage, Compatibility and Ease of Invest 5. 3. 8 Efficacy and Facilitating Condition 83 5. 3. 9 5. 4 82 Normative Influence 84 Implications 84 5. 4. 1 Theoretical Implication 84 5. 4. 2 Practical Implication 85 5. 4. 2. 1 Marketing Strategy for Mutual Fund 85 5. 5 Answering the Research Questions 87 5. 6 Limitations 89 5. 7 Future Research 90 5. 8 Conclusion 90 REFERENCES 91 APPENDICES 97 vi LIST OF TABLES Page Table 4. 1 Respondents Demographic Profile Table 4. 2 Rotated Component Matrix for relative advantage, Compatibility and ease of invest Table 4. 3 54 Rotated Component Matrix for efficacy and facilitating Condition Table 4. 4 51 55 Rotated Component Matrix for Attitude, SN, PBC and Past Behavior 56 Table 4. 5 Reliability Coefficients of Variables 57 Table 4. 6 Descriptive Statistics 59 Table 4. 7 Pearson’s Correlation Analysis of Variable 1 Table 4. 8 Result of Multiple Regression of H8, H9 and H10 63 Table 4. 9 Result of Multiple Regression of H13 65 Table 4. 10 Result of Multiple Regression of H11 and H12 67 Table 4. 11 Result of Multiple Regression of H1, H2, H3 and H5 69 Table 4. 12 Result of Multiple Regression of H4, H6 and H7 72 Table 4. 13 Summary of Hypotheses Testing Results 73 vii LIST OF FIGURES Page Figure 1. 1 Total NAV vs Bursa Malaysia Market Capitalization as at 31st Dec 2006 6 Figure 2. 1 Theory of Reasoned Action 24 Figure 2. 2 Technology Acceptance Model 25 Figure 2. 3 Theory of Planned Behavior 26 Figure 2. 4 TPB with belief de-composition 29 Figure 2. 5 Theoretical Framework 35 Figure 4. 1 Stage 1a Multiple Regression 62 Figure 4. 2 Stage 1b Multiple Regression 64 Figure 4. 3 Stage 1c Multiple Regression 66 Figure 4. 4 Stage 2 Multiple Regression 68 Figure 4. 5 Stage 3 Multiple Regression 71 Figure 4. 6 Model Summaries with Significant Relationship and Beta Value 75 viii LIST OF APPENDICES Page Appendix A Questionnaire 97 Appendix B Coding of Variables 103 Appendix C Respondent Frequency Results 104 Appendix D Factor Analysis – Relative Advantage, Compatibility and Ease of Invest 08 Appendix D1 Factor Analysis – Relative Advantage, Compatibility and Ease of Invest. (After removal of RA_2) Appendix E 111 Factor Analysis – Efficacy and Facilitating Condition 114 Appendix E1 Factor Analysis – Efficacy and Facilitating Condition (After removal of FC_2) 117 Appendix E2 Factor Analysis – Efficacy and Facilitating Condition (After removal of FC_2 a nd EF_2) Appendix F 120 Factor Analysis – Past Behavior, Attitude, Subjective Norm And PBC 123 Appendix F1 Factor Analysis – Past Behavior, Attitude, Subjective Norm And PBC (After removal of Att_3) 128 Appendix G Reliability Analysis – Behavioral Intention 133 Appendix H Reliability Analysis – Actual Investment 134 Appendix I Reliability Analysis – Attitude 135 Appendix J Reliability Analysis – Subjective Norm 136 Appendix K Reliability Analysis – PBC 137 Appendix L Reliability Analysis – Relative Advantage 138 ix Appendix M Reliability Analysis – Ease of Invest 139 Appendix N Reliability Analysis – Normative Influence 140 Appendix O Reliability Analysis – Efficacy 141 Appendix P Reliability Analysis – Facilitating Condition 142 Appendix Q Descriptive Analysis Results 143 Appendix R Correlation Analysis Results 44 Appendix S Stage 1a Multiple Regression Analysis 145 Appendix T Stage 1b Multiple Regression Analysis 148 Appendix U Stage 1c Multiple Regression Analysis 151 Appendix V Stage 2 Multiple Regression Analysis 154 Appendix W Stage 3 Multiple Regression Analysis 157 x ABSTRAK (MALAY) Faktor-faktor yang mempengaruhi pe laburan dalam dana bersama di Malaysia: Applikasi dengan Teori Perlakuan Terancang. Dana Bersama (Mutual Fund) di Malaysia mengalami perkembangan pesat dalam beberapa tahun yang lepas. Perkembangan pesat ini menandakan kesesuaian pelaburan secara berkumpul di Malaysia. Hari ini, dana bersama telah menjadi satu bahagian penting dalam bidang ekonomi Malaysia. Perkembangan sihat dalam bidang tersebut telah memberi manfaat kepada ekonomi negara dan para pelabur. Tujuan kajian ini adalah untuk menentukan faktorfaktor yang mempengaruhi orang ramai untuk melabur dalam dana bersama di Malaysia dengan menggunakan Teori Perlakuan Terancang (TPB) yang diubahsuai. Sebanyak 400 soal selidik telah diedarkan kepada orang dewasa di negeri Pulau Pinang dan 211 soal selidik yang boleh diguna telah dikutip balik. Berdasarkan analisis, didapati model yang diguna dapat menerangkan 47. % varian dalam Keinginan (Intention). Sikap (Attitude), Perlakuan Lepas (Past Behavior) and Norma Subjektif (Subjective Norms) mempunyai hubungan positif yang ketara dengan keinginan untuk melabur dalam dana bersama. Analisis seterusnya mendapati kedua-dua kelakuan lepas dan keinginan mempunyai hubungan kesan positif yang ketara dengan pelaburan sebenar. Sungguhpun model ini dapat meneran gkan varian agak tinggi dalam keinginan, tetapi didapati Tanggapan Kawalan Perlakuan (Perceived Behavioral Control) tidak mempunyai hubungan kesan positif yang ketara dengan keinginan dan pelaburan sebenar. Keputusan ini mencadangkan model teoretikal lain tanpa pembolehubah (variable) ini mungkin akan lebih sesuai untuk mengkaji sikap pelaburan dana bersama. xi ABSTRACT Mutual Funds in Malaysia have experienced phenomenal growth in the past few years. This growth reflects the suitability of collective investments in Malaysia. Mutual fund forms an important part of the Malaysian economy today. The healthy growth of the industry seems to benefit the country’s economy and the investors. The aim of this study is to determine the factors affecting people investing in Mutual Fund in Malaysia using the modified decomposed Theory of Planned Behavior. Structured questionnaire was used in this study. Four hundred questionnaires were distributed to the adults in Penang state and two hundred eleven useable questionnaires have been collected back. Based on the analysis, it was found that the model has explained 47. 4% of the variance in Behavioral Intention. Attitude towards behavior, Past Behavior and Subjective Norm have positive significant influence on investors’ Intention to invest in mutual fund. Further analysis on the Actual Investment, it was found that the both Past Behavior and Intention have positive significant influence on investors’ actual investment behavior. Even though the model has explained considerable high percentage of variances in Behavioral Intention, however, the findings that Perceived Behavioral Control is not a significant contributor to both Behavioral Intention and Actual Investment suggests that other theoretical model without this variable might be more suitable to study mutual fund investment behavior. ii Chapter 1 INTRODUCTION 1. 1 Introduction This chapter introduces the research outline of the study. The chapter begins with an overview of the Mutual Fund industry in Malaysia, followed by brief discussion of the benefits and disadvantages of the Unit Trust Scheme, their growth and different types of Mutual Funds. Besides that, this chapter also includes the problem statement, research objectives and research questions. The key terms and si gnificance of the study will also be highlighted. 1. 2 Background A Unit Trust Scheme (UTS) or Mutual Fund (MF) is a form of collective investment that allow investors with similar investment objectives to pool their savings, which are then invested in a portfolio of securities or other assets managed by investment professionals. Investors in Unit Trust Scheme or Mutual Fund do not purchase the securities in the portfolio directly. Securities or stocks are purchased by the Unit Trust Management Company (UTMC) following the authorized investments guidelines by a group of professional fund managers. Ownership of the portfolio is divided into units of entitlement and each investor is known as a ‘unit holder’. In this case, unit holders in Unit Trust Scheme (UTS) are not shareholders in the company but are rather beneficiaries under a trust set up by the company. Under the Unit Trust Scheme constitution or ‘deed’, there must be a trustee looking after the interest of the investors. The trustee is the legal owner of all the assets of UTS on behalf of the unit holders, and must act for the benefit of the unit holders. Unit holders in UTS have a eneficial interest in all the assets of those UTS, but are not entitle to direct UTMC on how to invest the portfolio of investments (Dealing in Unit Trust, FMUTM 2005). The return on investment for unit holders in UTS is usually a combination of a regular income payment (a ‘distribution’) and capital appreciation derived from the pool of investments held within those UTS. Each unit represents an entitlem ent to an equal amount of income and capital appreciation or depreciation that is normally reflected in the unit price of those UTS (Dealing in Unit Trust, FMUTM 2005). 1. 2. Benefits of Unit Trust Scheme For investor who is unable or unwilling to research and analyze investment markets by their own effort, Unit Trust Scheme is an ideal way of investing. To maintain a portfolio of directly held investments, an individual needs to keep up-to-date with market information and sentiment. This means keeping track of a wide range of information from many sources. For many individual investors, this is difficult, time consuming and expensive. Investing in UTS transfers most of the stress of investing to those best equipped to handle it – professional fund managers. Other significant benefits of investing in UTS are listed as below: (i) Diversification A larger pool of funds from many small investors allows the fund manager to purchase a wide range of investments. (ii) Liquidity of funds Most investors require that their investment be liquid. The investor can redeem their unit trust fund and receive their money in the specified time frame. In the case of Malaysia, the guideline is within 10 days. 2 (iii) Professional Management Investment decisions are made by professional fund managers. The investment process adopted is structured and follows basic investment principles outlined in the prospectus and deed. (iv) Investment Exposure For small investor (with RM1000), it is sometimes difficult to invest in particular asset class or certain securities, for example real estate or corporate bonds. UTS make this possible with pool investments from many small investors. (v) Investment Cost When making direct investments, the smaller investors will pay higher transaction cost if compare to large institutional investors due to prenegotiated fees on large purchase. 1. 2. Disadvantages of Unit Trust Scheme Some of the disadvantages of Unit Trust Scheme are list as follows: (i) Risk Any investment involves risk. Investment in UTS also has its risk of losing all of the money invested. (ii) Loss of Control Investors in UTS lose their right to direct how their savings are invested. If the fund manager invests the portfolio in accordance with the prospectus and deed, there is little that the unit holders can do if they disagree with the investment decisions made by the fund manager. 3 (iii) Fees and Charges The services provided by the UTMC are not without cost. Hence there are fees and charges payable by investors in UTS. (iv) Opportunity cost As with any decision, an investor who invests in UTS may have produced better returns by investing directly in the markets. This excess represents the ‘opportunity cost’ of investing in UTS. 1. 2. 3 Types of Unit Trust Funds Mutual funds are referred to as open-end funds for two main reasons: (i) they are required to redeem (or buy back) outstanding shares at any time upon a shareholder’s request, at a price based on the current value of the fund’s net assets; and (ii) irtually all mutual funds continuously offer new fund shares to the public. A closed-end fund is an investment company that issues a fixed number of shares that trade on a stock exchange or in the over-the-counter market. Assets of a closed-end fund are professionally managed in accordance with the fund’s investment objectives and policies, and may be invested in stocks, bonds, or a combination of both. Like other publicly traded securities, the market price of closed-end fund shares fluctuates and is determined by supply and demand in the marketplace. 4 Based on Lipper’s fund investment objectives, Unit Trust Funds in Malaysia have been grouped into the following seven types (FMUTM Annual Report, 2006): (a) Exchange Traded Funds-Bond General funds. (b) Guaranteed/ Protected funds : Comprises Capital Guaranteed funds and Capital Protected funds. (c) Money Market funds : Include all Money Market funds. (d) Mixed Asset funds : Include Mixed Asset Asia, Mixed Asset Emerging Markets Asia, Mixed Asset Global, Mixed Asset Growth funds and Mixed Asset Income funds. (e) Islamic funds : Bond Islamic/Syariah funds, Equity Islamic/Syariah funds and Mixed Asset Islamic/Syariah Balanced funds. f) Bond funds : Include all General Bond funds. (g) Equity funds : Include Equity ASEAN fund, Equity Asia Pacific Ex-Japan funds, Equity, Equity Europe, Global funds, Equity Growth funds, Equity Income funds, Equity Index Tracking funds, Equity Info Technology funds, Equity Sector Real Estate Asia funds, Equity Sector Real Estate Global funds and Eq uity Small Companies funds. 1. 2. 4 Growth of Mutual Fund in Malaysia In Malaysia and throughout the world, Mutual Trust funds have experienced phenomenal growth in the past few years. This growth reflects the suitability of collective investments in Malaysia, as a means for the smaller investor to accumulate capital over the longer term. 5 Figure 1. 1 shows the growth trend of mutual fund and total NAV versus Bursa Malaysia Market capitalization. Figure 1. 1. Total NAV vs Bursa Malaysia Market Capitalization as at 31st Dec 2006 Source: Securities Commission (2007) Although the mutual fund industry in Malaysia started as far back as 1959 with the establishment of the Malayan Unit Trust Ltd, the development of the industry did not take-off until 1980s with the launching of the Amanah Saham Nasional (ASN). The major growth of the industry can only be seen in the 1990s when Malaysia, together with other Asian Tigers, saw a high and consistent growth in their economies. For Malaysia, the growth in the mid-1990s was very much due to the boost given by the government in the area of tax relief and allowing withdrawal on Employee Provident Fund (EPF) to invest in the mutua l fund. With these incentives the mutual fund industry increased in size from RM15. 7 billion in 1992 to RM60 billion in 1996. The Asian crisis of 1997 had brought a sudden halt to this and we have seen even negative growth. However, the signs of recovery after that are becoming evident. Growth of the unit trust industry in Malaysia continued at a rapid pace in 2006. Total Net Asset Value (NAV) of the industry gained 23. 6 per cent, the net asset value of the managed funds increased to RM121. 8 billion. This amounts made-up of only 14. 35 per cent of the total market capitalization of the Bursa Malaysia, which stood at RM848. 7 billion. (FMUTM Annual Report, 2006) Different from the developed countries, an important characteristic of the Malaysian mutual fund industry is the dominant role of the government. As of 2006, more than 58% of these funds are affiliated with the government, i. . either owned by state governments or quasi-government agencies. Nevertheless, the number of private sector funds is increasing, in particular bank-owned funds. The NAV of the private unit trust funds (excluding federal and some state funds) in year 2006 stood at RM50. 7 billion, an increase of RM 6. 6 billion over previous year. (FMUTM Annual Report, 2006) The double digit growth was observed. The type of funds included Equity Funds, Bond Funds, Islamic Funds, Mixed Asset Funds, Money Market Funds, Guaranteed Funds and Exchange Traded Funds. All these funds are the â€Å"open-end† Mutual Funds. 7 Unit Trust industries are well established in developed financial markets like United States and European Union. The extent to which research, both at the theoretical and technical level, has been conducted in developed markets indicates the stage of maturity of mutual funds in these markets. In emerging markets, however, mutual funds are a recent phenomenon. Nevertheless, growth has been robust. Emerging Asian economies like China, Indonesia, the Philippines, India and Malaysia are expected to grow by double digits annually and projected to reach US$ 12 trillion by the year 2030 (PR Newswire, 2000). The phenomenon growth in the mutual fund industry in these emerging markets has resulted in an increase in the number of investment companies offering a wide range of different mutual funds (Ramasamy Yueng, 2003). Faced with a wide range of mutual funds, how does one made choices and what are the factors affecting the intention of an investor investing in Mutual Funds? 1. 3 Problem Statement Growth, both in terms of size and number of funds categories, in the mutual fund industry among emerging markets has been impressive. Most researches, be it domestic or international, were on the mutual funds performance compared to the market (Don, Galagedera Silvapulle, 2002), comparison of funds performance in different regions (Otten 2002), Islamic Funds performance (Abdullah, Hassan Mohamad, 2007), aggregate funds performance (Taib Isa, 2007), qualification, experience and investment style of fund manager, asset size and transaction cost (Ramasamy Yeung, 2003), price linkage with index in emerging market (Low Ghazali, 2007) and performance of funds during different economic cycles (Low, 2007). All the researches are conducted on the nature and 8 characteristics of the mutual funds it selves and not for one of the most important components of the mutual funds, the â€Å"investors† or â€Å"mutual fund purchasers†. Thus, in this research, we will study the individual investors’ intention and factors affecting investment decision in the emerging market like Malaysia. This paper intends to fill this gap. Mutual fund forms an important part of the Malaysian economy today. As of 31st December 2006, the total registered mutual trust agent was 31060 people (FMUTM annual report, 2006). Many peoples’ livelihoods are depending on this industry, directly or indirectly. Besides the mutual trust agents, the mutual trust management companies, and regulatory bodies in Mutual Fund industry, investors play the utmost important role in the growth of the industry as they are the one who provides the required capital in the industries. Investors have numerous choices to invest their savings; there are many benefits and disadvantages to invest in the mutual trust funds. Investors have to weight the benefits and disadvantages, and to consider their investment objectives before deciding to invest in the Mutual Funds. In many developed countries, Mutual Funds investment has become the preferred vehicle for savings and retirement. The healthy growth of the industry seems to benefits the country’s economy and the investors. For the continuous growth of the industries in Malaysia, it is utmost important to study the behaviors of the investors, their intention, and the other factors motivating investors investing in Mutual Fund. Many theories have been developed and evolved through time for the research of behaviors and intentions in many domains. Among the few popular theories re Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB) and Technology Acceptance 9 Model (TAM). The theoretical models and their comparison will be discussed in detail in section 2. 3. 1. 4 Research Objectives We have seen that NAV of Mutual Funds invested in Malaysia on 2006 was at RM 121. 8 billion. This has formed an important part of the Malaysian economy. This study is to investigate factors influencin g Malaysian consumers’ intentional behavior to invest in Mutual Funds using modified Decomposed Theory of Planned Behavior (DTPB). In line with this, four specific objectives have been developed. The four main objectives of this study are therefore to: (1) determine significant contributing factors to Attitude, Subjective Norm and Perceived Behavioral Control, (2) determine the most significant factors among Attitude, Subjective Norm and Perceived Behavioral Control that lead to Behavioral Intention to invest in Mutual Fund, (3) identify the relationship of Intention and Actual Investment (Behavior). (4) In line with the 3 objective above, an additional objective will be drawing the implications for the marketing of Mutual Fund products. . 5 Research Question This research attempts to answer the following research question: (1) What are the factors that significantly affect Attitude, Subjective Norm and Perceived Behavioral Control? 10 (2) Attitude, Subjective Norm, Perceived Behavioral Control and Past Behavior – which of these factors significantly contribute to Intention to invest in Mutual Funds? (3) Will Intention turn into actual Investment in Mutual Funds? (4) What are the conclusions and implications of the study for the marketing of Mutual Fund products? 1. 6 Definition of Key Terms In order to share common understanding of the concepts and for better understanding of further discussion, the following key terms’ definition were referred specifically. 1. 6. 1 Mutual Fund / Unit Trust Fund Mutual Fund is a form of collective investment that allow investors with similar investment objectives to pool their savings, which are then invested in a portfolio of securities or other assets managed by investment professionals. Investors in Unit Trust Scheme or Mutual Fund do not purchase the securities in the portfolio directly. Ownership of the portfolio is divided into units of entitlement and each investor is known as a ‘unit holder’ (Dealing in Unit Trust, FMUTM, 2005) 11 1. 6. 2 Federation of Malaysian Unit Trust Managers (FMUTM) Federation of Malaysian Unit Trust Managers – an organization with the vision to develop unit trust as the preferred vehicle for saving and retirement. The objectives of the organization are (Dealing in Unit Trust, FMUTM, 2005): ? To improve the regulatory, fiscal and legal environment of unit trust; ? To formulate sound and ethical business practices, to promote the interest of the unit trust industry and provide investor protection; ? To provide information, assistance and other services to its Member; and; ? To promote public awareness of the benefit and risk of investing in unit trust. 1. 6. 3 Net Asset Value (NAV) The net value of the assets invested in the portfolio of the mutual fund. It’s a way to assess the net worth of the mutual fund. The value is computed every day after the closing of the share market. The NAV will be used to determine the price of buying and redemption of units trust. Dealing in Unit Trust, FMUTM, 2005) 1. 6. 4 Islamic Mutual Fund Islamic investing can be defined as investment in financial services and other investment products, which adhere to the principles established by the Shari’ah. These principles require that (Dealing in Unit Trust, FMUTM, 2005): (a) Investment must be made in ethical sectors. In other words, profits cannot be ge nerated from prohibited activities such as alcohol production, gambling, 12 pornography etc. In addition, investing in interest (riba)-based financial institutions are not allowed. b) All wealth creation should result from a partnership between an investor and the user of capital in which rewards and risks are shared. Returns in invested capital should be earned rather than be pre-determined. 1. 6. 5 Attitude The extent to which one views a behavior as favorable or unfavorable, if a person perceives that there are positive outcomes resulting from an activity, then his or her attitude towards performing that behavior is likely to be positive (Ajzen, 1991). Attitude can be measure either through direct or belief-based measure. Belief-based measure of attitude is the weighted average of the strengths and outcomes evaluation of person’s behavioral beliefs (Ajzen, 2002b). 1. 6. 6 Subjective Norms An individual’s perception of social normative pressures, or relevant others’ beliefs, that he or she should or should not perform such behavior. It can be measured either through direct or belief-based measure. Belief –based measure of subjective norms is the weighted average of the normative expectations of others such as from family, friends or doctors and motivation to comply with their expectations (Ajzen, 1991 2002b). 3 1. 6. 7 Perceived Behavioral Control An individual’s perceived ease or difficulty of performing the particular behavior (Ajzen, 1985). It is assumed that perceived behavioral control is determined by the total set of accessible control beliefs. It can be measured either through direct or belief-based measure. Belief –based measure of subjective norms is the weighted average of the strength of control beliefs and facilitation power of these beliefs (Ajzen, 1991, 2002b). 1. 6. 8 Behavioral Intention An indication of an individual’s readiness to perform a given behavior. It is assumed to be immediate antecedent of behavior (Ajzen, 2002b). It is based on attitude toward the behavior, subjective norm, and perceived behavioral control, with each predictor weighted for its importance in relation to the behavior and population of interest (Ajzen, 1991). 1. 7 Significance of the study Mutual fund has become one of the important investment vehicles for the world’s economy. The launching of the Amanah Saham Nasional (ASN) in 1980 in Malaysia is part of the government efforts to increase the stakes holding of native Malays’ in Malaysian economy. The Unit Trust industry is an important component of the Malaysian economy. The industry serves to mobilize the saving of the average, small investors by funneling these savings into areas where capital is required. Investors want good returns on their savings, Mutual Fund provides an ideal way for them to gain exposure to investment that in the long run can produce returns superior to those from traditional savings accounts and fixed deposits. Study on the factors influencing the intention to invest and investment decisions will help the 4 industry formulate marketing strategies to further stimulate growth of this industry and eventually help in the healthy growth of the country’s economy. 1. 8 Organization of Remaining Chapter This research is presented in five chapters including this introduction chapter. The next chapter (Chapter Two) is the review of literature that outlined previous studies, from the review of literature; gaps are identified and new research framework is formulated for study in Malaysia context. Chapter Three will illustrate the research design, methodology used for data collections, and data analysis techniques to be used to analyzed and test the variables. Chapter Four will present the analyses done for the study and also the findings of the study. Chapter Five will discuss the interpretation and recapitulation of the study, implications of the findings, limitations of the study and suggestion for future research. It then concludes the whole research. 15 Chapter 2 LITERATURE REVIEW 2. 1 Introduction For better understanding of the present study, a comprehensive search of previous literature has been undertaken. As such, this chapter was organized in the manner to give an overview of literature, identify gaps, formulated theoretical framework and the hypotheses development. 2. 2 Literature Overview Mutual funds offer investors the advantages of portfolio diversification and professional management at low cost. These advantages are particularly important in the case of equity funds where both diversification and professional management have the potential to add value. For bond and money market mutual funds, the main advantage is transactional efficiency through professional management. There are many literature about the mutual funds in the developed countries. Literature are limited in the emerging market but are gaining popularity recently due to the tremendous growth in this industry. We will examine some literature in the emerging market, especially Malaysia as well as the international market. 16 2. 2. 1 Emerging Market research Investors made investment in the mutual funds with various investment objectives. Selecting mutual funds that will offer high returns with acceptable risk is a complex task. Literature shows that there are multiple factors that determine the performance of a mutual fund. Study by Ramasamy and Yeung (2003) on mutual fund purchaser in emerging country, Malaysia, shows that among the factors dominating the selection of mutual funds are consistent past performance, size of funds and cost of transactions. Qualification and investment style of fund manager seems to be relatively less important. This means that in emerging market, the final performance of the funds is what matters. A study by Taib and Isa (2007) on Unit Trust Funds performance of Malaysian market from period 1991-2001 showed that unit trusts have not performed well over the share market index on the period of study. In most of the instances, unit trust trail behind the performance of the market portfolio except during the crisis period when the unit trust market adjusted returns yields positive results. Of the various types of unit trust under investigation, they found the bond funds showed very superior performance over and above the market and equity unit trusts. The high interest rate kept throughout majority of the period particularly during the crisis period in year 1997 has tremendously benefited the bond funds. The study also found no meaningful inter-temporal correlation between current performance and past performance. Low (2007) had studied on the Malaysia’s unit trust performance during the up and down market conditions has shown that the Malaysia mutual fund performance from 1996 to 2000 reported that the manager’s poor timing ability contributes significantly to the fund’s 7 negative overall performance. Such results suggest no economic benefit accrues to the average fund manager involving in market timing activities. The other study by Low and Ghazali (2007) examines the price linkages between unit trust funds and the stock market index during the period of 1996-2000. He finds in the short run, the prices of unit trust funds are related to the stock market index, but finds the nonexistence of long run relation ship between the unit trust funds and the stock market index. This could possibly due to fund managers that are obliged to adhere to their investment policies with the aim of maintaining a long term allocation strategy. One recent study by Lau (2007) on the investment style of fund managers of emerging market, Malaysia, indicates that most of the funds do not outperform the passive style benchmarks. Fund managers invest in large-cap stocks with cash enhances the performance of funds. Besides having a relatively high degree of style, funds that hold large-cap stocks together with a relatively high portion of liquid asset class tend to have higher alpha, translating into higher information ratio. It could be implied that liquid asset class enables fund managers to invest in stocks that improve their values in economic cycles. It is obvious that most of the funds concentrated on large-cap stocks, followed by medium-capital and government bonds. The Islamic Mutual Fund is gaining popularity in the emerging market like Malaysia and China. In the study by Abdullah, Hassan and Mohamad (2007) on the performance of Islamic mutual fund over three different economic periods namely pre, during and post economic crisis in year 1997 compared to the conventional mutual funds has shown that 18 Islamic funds performed better than the conventional funds during bearish economic trends while, conventional funds showed better performance than Islamic funds during bullish economic conditions. In addition to that finding, both conventional and Islamic funds were unable to achieve at least 50 per cent market diversification levels, though conventional funds are found to have a marginally better diversification level than the Islamic funds. The results also suggest that fund managers are unable to correctly identify good bargain stocks and to forecast the price movements of the general market. In the past decades, there were wide variety of studies in consumer behaviors indicated a considerably consistent successful findings using the application of TPB model (Ajzen Madden, 1986). The model was wide used in the emerging market to study the consumer behaviors. Study by Mohamed (2004) on consuming herbal supplement in Malaysia has indicated the suitability of the model. In his study, Attitude was found to be the strongest predictor of behavioral intention. Study by Chai (2006) on consumer behavioral intention to choose functional foods in Malaysia was also based on TPB model. The results showed that intention was strongly predicted by subjective norms followed by perceived susceptibility to illness, health value, attitude towards behavior and finally perceived behavioral control. Interesting finding in this study was perceived importance of taste did not have significant impact on intention. The other study by Muniandy (2006) using the integrated Decomposed Theory of Planned Behavior on internet stock trading showed that attitude, subjective norm, perceived behavioral control, descriptive norm and perceived usefulness have a direct significant 9 positive relationship towards behavioral intention. In his study, the model was also compared to other intention based model like TAM, TPB and DTPB and found that IDTPB has better explanatory power. 2. 2. 2 International Research. In the research on the global growth of mutual funds by Fernando, Klapper, Sulla and Vittas (2003) indicate that the growth of mutual funds was likely to be determined by a number of fac tors. First and foremost is the level of income and wealth of the residents of a country. Conceptually, investing in mutual funds, like purchasing life insurance and saving for retirement, should be seen as a luxury good with a positive income elasticity of demand. In practice, however, the relationship between per capita income (used as an indicator of economic development and wealth) and holdings of mutual fund assets (expressed as a percentage of national income) is not always positive. In the same research on the global growth of mutual funds also indicated that the availability or not of substitutes as well as complements also greatly affects the growth of mutual fund assets. For example, houses are distant substitutes of mutual fund shares in household wealth but most other instruments are either close substitutes or close complements, in some cases both at the same time. Bank deposits, both the traditional form of checking accounts and savings deposits and the more modern money market deposit accounts, are close substitutes of money market mutual funds. The interest rate spread between bank deposits and money market funds would be expected to play an important part in determining the demand for money market mutual funds (Fernando et al. , 2003). 20 The study by Otten (2002) to analyze the development and performance of the European mutual fund industry and compared it with the industry in the United States, found that Europe was lagging the American mutual fund industry when it comes to total asset size, average fund size, and market importance. Furthermore, it appears that a few large domestic fund groups dominate the mutual fund markets in the individual European countries. The study also showed that the performance of US equity funds was relatively poor compared to the European funds, and the outperformance of small cap mutual funds. In one of the extensive research by Fortin (2005) on international mutual fund management, he examined the international mutual fund returns for each category and overall returns for the 25-year period (1976-2000). The result of the study showed that there is no relationship between total return and expense ratio, but there is a significant positive relationship between total return and turnover, and a significant positive relationship between total return and fund size. Study by Huhmann and Bhattacharyya (2005) on Mutual Fund advertisement in Canada and United States has found that Mutual fund advertisements are not providing the information necessary for optimal investment decisions. In another word, mutual fund advertisements do not contain all the requisite information on the risk-return trade-off, principal-agent conflict, and transaction costs that consumers need to optimize their investment decisions. Mutual funds used techniques known to increase the likelihood that their advertisements are noticed, but they also use techniques known to decrease the readership of their advertisements. Also, they rarely included convenience information. 21 Philpot and Peterson (2006) study on the Real Estate Mutual Fund (REMF) found that team-managed funds have lower risk-adjusted returns than solo-managed funds. Managers with longer tenure on job tend to pursue higher market risk levels, and there was no relation between manager characteristics and management fees. Researchers have begun to recognize the importance of understanding consumers’ or investors’ intention and behavior and consequently, there has een an increase in the number of studies in this area. Many theories have been developed and evolved through time and situational change. Each has its strengths and weaknesses. Among the few popular theories are Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), DecomposedTPB and Technology Acceptance Model (TAM). There are many more theories in the literature, however this research will concentrate only on the theories as listed above as they are r elated and well within the scope of study. . 3 Models Explanation (TRA, TAM, TPB and DTPB) The objective of the study is to determine the factors affecting the purchasing behavior of the investors in the Mutual Trust funds. Four alternative models – the Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB) and the Decomposed Theory of Planned Behavior (DTPB), primarily adapted from Taylor and Todd (1995) – are here examined and compared. 22 2. 3. 1 Theory of Reasoned Action (TRA) The Theory of Reasoned Action was developed by Fishbein and Ajzen in 1975. TRA suggests that a person’s behavioral intention depends on the person’s attitude about the behavior and subjective norms. If a person intends to do a behavior then it is likely that the person will do it. Furthermore a person’s intentions are themselves guided by two things: the person’s attitude towards the behavior and the subjective norm. Behavioral intention measures a person’s relative strength of intention to perform a behavior. Attitude consists of beliefs about the consequences of performing the behavior multiplied by his or her valuation of these consequences. Subjective norm is seen as a combination of perceived expectations from relevant individuals or groups along with intentions to comply with these expectations. In other words, â€Å"the person’s perception that most people who are important to him or her think he should or should not perform the behavior in question† (Azjen Fishbein, 1980). The TRA is popular in applied to explain use or adoption behavior. Research by Buttle and Bok (1996) on hotel marketing strategy reveals the two predictor constructs contained in the theory, attitude-towards-the act and subjective norm, jointly explain about 65 per cent of the variance in the criterion variable intention to stay in the hotel on the next business trip. Other example of research is consumption of alcohol free beer (Thomson Thomson, 1996). In his research, it was found that the main determinant of behavior was Attitude followed by the subjective norm. Control factors failed to improve the basic model. The basic framework of TRA is shown in Figure 2. . 23 Figure 2. 1. Theory of Reasoned Action One shortcoming of the theory of reasoned action is the consideration of behaviors over which people do not have complete control. Therein lies the notion of perceived behavioral control, or â€Å"the perceived ease or difficulty of performing the behavior† (Ajzen, 1991). As Hagger et al. (2001) note, this concept â€Å"reflects the perso n’s assessment of the capacities (e. g. , skills and abilities) and the limiting or facilitating factors (e. g. , barriers and access to facilities) regarding behavioral engagement†. Theory would predict that perceived behavioral control influences both intentions (Ajzen, 1991) and actual behavior (Ajzen Madden, 1986). Another limitation of the theory is that the theory stems from the assumption that behavior is under volitional control. It means that this theory could only be applied if the person can decide at will to perform or not to perform a certain behavior (Ajzen, 1991). The limitations of TRA lead to the development of Theory of Planned Behavior (TPB). TPB is an extension of TRA to include the dealings of behaviors when people do not 24 How to cite Factor Affecting People Investing in Mutual Fund, Essay examples

The rise and fall of Krispy Kreme doughnuts

Table of Contents Introduction Failures that hurt Krispy Kreme Aggressive Growth Rapacity Fudging the numbers A Fresh Start Reference List Introduction Krispy Kreme refers to an intercontinental string of donut shops that was established by Vernon Rudolph in North Carolina in 1937. The parent corporation of Krispy Kreme is Krispy Kreme Doughnuts, Inc. While vending various sorts of doughnuts, Krispy Kreme’s theme detail is a candy doughnut that is customarily served warm.Advertising We will write a custom term paper sample on The rise and fall of Krispy Kreme doughnuts specifically for you for only $16.05 $11/page Learn More Alongside their own Krispy Kreme trademark shop locations their commodities are put up for sale in superstores, foodstuff shops, corner shops, petrol stations, Wal-Mart and Target stores in the United States (Krispy Kreme Doughnuts, 2008). Globally, Loblaws superstores and Petro-Canada petrol stations in Canada do sell the se commodities. In Australia they can be found in BP service stations and tour centers. Tesco superstores and Moto service stations deal in Krispy Kreme products in the United Kingdom. The corporation’s expansion was stable before its first public offer but gains have dropped off in latest times. Growth began in the 50s decade, taking into account an early on shop in Savannah, GA and elsewhere in the south of the United States. By the 60s, Krispy Kreme was well-known all the way through the south east of the US. Growth into other regions then began. The year 1976 marked a significant time in the corporation’s history as this was the time when it became an entirely owned ancillary of Beatrice Foods of Chicago, Illinois. In 1982 a cluster of franchisees bought the firm back from Beatrice Foods. Sometime in 2003 a test venture was carried out in California to vend donuts through car windows and sunroofs at a full of activity junction. Payments were to be made through wire less technology. Unfortunately the venture turned out to be unsuccessful. In the early 2007 Krispy Kreme started vending whole glazed doughnuts in a bid to attract the health mindful. These ones contain 20 kilocalories and more fiber. The United States Food and Drug Administration authorized firms to truncate to 0 grams in nutrition contents marker even when the commodity hold as much as 0.5 grams or less. The corporation gained from this authorization in its marketing ventures, publicizing their products as having no trans fat. After mid 2010 Krispy Kreme launched a doughnut that comprised the soft drink Cheerwine, which was to be vended in foodstuff shops in the larger Carolina in the month of July. The product was well-accepted. Failures that hurt Krispy Kreme What could be more ideal as compared to a Krispy Kreme donut? Straight from the pullet and sugared, the products are virtually alluring. In a period, Krispy Kreme’s stock appeared alluring as well. The time when the firm went public in 2000, at the height of the World Wide Web whirlwind, capitalists gathered to purchase into a venture they could identify with (The rise and fall of Krispy Kreme in New England, 2006). The firm had concrete basics, adjoining stores at a fast rate and exhibiting bit by bit rising vending and income.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However Krispy Kreme as well had an air of mystery. Its commodities, available for several years only in the Southeast, had caught the attention of a dedicated, even passionate client base. When the corporation decided to go national, it put up franchises in regions assured to spawn buzz. Some of these areas were Manhattan, Los Angeles, Las Vegas, among others. Figures showed that Krispy Kreme was dealing almost $50 on the New York Stock Exchange by August 2003. This represented a 235 % growth from the first public offering v alue. The Fortune magazine is remembered for its categorization of the corporation as the hottest trademark in the land at the time. For the financial year ending early 2004 the firm had a staggering $94.7 million in operating turnover from its near 400 locations. And then, just as speedily as its status grew, the firm set on an abrupt downhill spiral that may eventually end in insolvency. The corporation’s problems came out in May of 2004. This was when the Chief Executive Officer Scott Livengood put fault on low-carbohydrate diet inclinations for the corporation’s first-ever missed quarter and first deprivation as a business (The rise and fall of Krispy Kreme in – Boston.com, 2009). That did not go down well with the analysts, as it came out that the CEO’s faulting of the Atkins diet for below par income implied that desperation was to an all high. The Securities and Exchange Commission looked into the activities of the corporation later that year in Ju ly, focusing on the buybacks of a number of dealerships. As the stock value went down, stockholders filed suit. Franchisees claimed direct filling, alleging that some shops were receiving double their normal consignments in the closing weeks of a quarter so that headquarters could make its numbers. Mean weekly sales, a vital trading gauge, went down even as the firm kept on totting stores. At the beginning of 2005, the company decided to reaffirm its financials for the larger part of 2004. Stephen Cooper took the CEO’s job from Livengood. In February of the same year the corporation stated that the US Attorney’s Office was to also get involved. This move strongly implied a probable unlawful delinquency. In April of the same year the new CEO propped up the enterprise by securing $225 million in new funding. The firm publicized that it anticipated a loss for its most-up-to-date quarter, and cautioned shareholders against depending upon its put out financials for years 20 01, 2002, 2003, and the first three quarters of 2004 and those of 2005. In the following month of May the firm still had not filed its reaffirmed financials, with its stocks trading at an all time low of $6. There are drawbacks in the franchise set up, and for this firm, by way of a blend of aspiration, insatiability, and ingenuousness managed to slip into a majority of them.Advertising We will write a custom term paper sample on The rise and fall of Krispy Kreme doughnuts specifically for you for only $16.05 $11/page Learn More Aggressive Growth From its modest initial stages in 1937 as a family-owned enterprise, Krispy Kreme bit by bit expanded its paw marks in the Southeast. The firm was sold to Beatrice Foods three years later after its founder passed away, as illustrated earlier in the introduction. Later on a collection of franchisees bought it back and in the more recent 90s, it began to project itself as a nationwide franchise. When Krispy Kreme went public it experienced the usual huge demands, as is the case for all corporations that develop very rapidly and uphold expansion quarter after another. Sorry to say, this was not the form of venture that was going to uphold such form of incessant expansion (Krispy Kreme: Rise and fall of a doughnut empire – The Patriot, 2008). These are sentiments form Steven P. Clark who is a subordinate professor of economics at the University of North Carolina. Krispy Kreme laid emphasis on expanding proceeds and gains at the primary-firm stage, at the same time as its outlets went through harsh times. Business experts argue that one can make a set up to expand really great even when given outlets are not gainful in actuality. They say that franchises are majorly affected by aspiration conflict. At the same time as the franchisor endeavors to get the most out of sales, and consequently enhance royalty gains, the franchise requires to capitalize on profits. When a franchisor sets a ma rket with ventures to augment its own expansion, the way Krispy Kreme did, it harms the set up in the long-term through compelling units to contend with one another. Experts give an example that can be followed in McDonald’s Corp, which has over time set the standard in franchising. Productivity has been expanded to individual units and new entrants are enthusiastic to get into the system and adhere to the firm’s strict working regulations. The management failed to realize that one may add an extra unit in a market and grow their sales by 50 %, while at the same time he or she will have turned dealers in that investment from money-making to loss-making (The rise and fall of Krispy Kreme – Digg, 2008). Analysts cite that Krispy Kreme had a close to 15% growth in second quarter proceeds from 2003 to 2004 financial period, however same-store sales grew a mere tenth of a percent in the same time. The proceeds went down as the additive quest of each new retail shop f ell upon market saturation. Rapacity Sharing of markets with other units is just one of the letdowns for franchisees. Far and above the normal franchise charges and royalty fees, Krispy Kreme calls for franchisees to purchase paraphernalia and ingredients from center of operations at fixed costs. This tactic, while not new, has the possibility of hurting franchisees in the long-term. This has been one of the corporation’s pitfalls.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Opportunely, management experts have a way of dealing with such kind of a set up. Steve Hockett, an expert in pairing probable franchisees with franchisors, states that most flourishing franchise firms build their enterprise just about the royalty payment, as opposed to equipment sales. With time, the mother company is more expected to triumph by bringing up cost-effective franchisees that can make royalty recompenses. Illustrations have been given from challengers in the same business as Krispy Kreme on how this has turned out to be successful. For instance, at Dunkin’ Donuts, they have a firm royalty flow that is founded exclusively on store sales (Krispy Kreme Doughnuts, 2008). The corporation’s CEO asserts that this maintains the firm and franchisee sakes aligned. Krispy Kreme might have made a whopping $152.7 million from sales in 2003, which was 31 % of total sales that year. However, what is favorable for the franchisor is not necessarily the case for the franch isee. The elevated margin at which ingredients and paraphernalia are sold to franchisees has to go down for operations across the board to run smoothly. Fudging the numbers At the same time as Krispy Kreme chased its expansion policy, it was making bloopers in the finance section also. With the exception of the firm’s arrangement to fund a $35 million shuffling factory in Illinois with an off-balance-sheet synthetic let out, the firm’s bookkeeping appeared unremarkable until late 2003 (Krispy Kreme: Rise and fall of a doughnut empire – The Patriot, 2008). The firm did away with the Illinois plan in early 2002 as a result of the post-Enron distrusts. A Fresh Start Observers and management experts insist that the firm can recapture momentum and remain on an upward motion. It still holds much worth in its name and in its commodities. At the end of the day, the firm needs to go back to what inspired its remarkable expansion in the first place; truly first-rate donut s. Reference List Krispy Kreme Doughnuts. (2008). Retrieved from https://www.slideshare.net Krispy Kreme: Rise and fall of a doughnut empire – The Patriot. (2008). Web. The rise and fall of Krispy Kreme in – Boston.com. (2009). Retrieved from https://www.boston.com The rise and fall of Krispy Kreme – Digg. (2008). Retrieved from http://digg.com/channel/news The rise and fall of Krispy Kreme in New England (2006). Retrieved from https://www.boston.com/ This term paper on The rise and fall of Krispy Kreme doughnuts was written and submitted by user Josie Mayo to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.