Symbolism In Buddhism The Symbols Of Buddhism - 1009 Words

Buddhism is a very peaceful religion with many worldwide followers. Buddhism also has a lot of symbolism within the folds and paths. These symbols play a big part in helping to understand the religion and what it is truly about. Siddhartha Gautama was prince, a very peaceful man who viewed life as a beautiful, loving place-- at least before he left the palace walls. When Siddhartha went to go discover new life outside of his kingdom, he saw people suffering and in pain. He saw death and illness, and he knew that this is not what was right and he had to fix it. He first thought the way to end this suffering was asceticism. He would fast extremely and torture himself, and so would his followers. One day he realized that this was not the†¦show more content†¦The eight spokes symbolize each fold on the Eightfold Path and how this is was Buddhism is really about. Another quote comes from the same article, and it states â€Å"The Dharmachakra has eight spokes, symbolising the Eig ht-fold Noble Path. The 3 swirling segments in centre represent the Buddha, Dharma (the teachings) and Sangha (the spiritual community).† This wheel determines life on earth and the peace within. The wheel spokes stand for each fold on the path, and the segments in the wheel represent aspects of Buddhism. This wheel gives us an insight on the religion and its a very important figure for Monks and Buddhists. This wheel gives us an insight on Buddhism and hints us to what it the true meaning of this religion is. Another important symbol in Buddhism is Buddha’s footprints. Followers believe that the footprints symbolize his presence in their lives. This is important because it is a reminder to them why they are following the teachings of Buddhism. According to the article Brief History of Symbolism in Buddhism, it states Footprints of the Buddha traditionally symbolize the physical presence of the Enlightened One. This image was reproduced from a rubbing of an ancient stone imprint at Bodh Gaya, India, site of the Buddhas enlightenment. These footprints date all the way back to when Siddhartha was alive and was enlightened, andShow MoreRelatedSimilarities Between Buddhism And Islamic Religion1272 Words   |  6 Pagesanother, if even in the smallest ways. Buddhism and Islam are religions that demonstrate similarities in ethical standards artistic works despite they emerged 1000 years apart. Buddhism and Islamic artwork expresses similar feelings on icons placed on art, yet these relig ions have different reasons why. The spread of Buddhism and Islamic religion once illustrated similarities in their artwork however; they began to branch off showing differences. Buddhism is a religion that worships more than oneRead MoreThe Vajra Of Vajrayana Buddhism1372 Words   |  6 PagesThe Vajra in Vajrayana Buddhism As Buddhism developed different schools or sects began to branch out taking the main component of Buddhist belief, called Dharma, but coming up with different ways to practice their own distinct view of Buddhism. Vajrayana Buddhism is of Indian tantric origin but it developed in the â€Å"Himalayan nations of Tibet, Nepal, and Bhutan† because of this many Vajrayana’s tantras, rituals, have woven into Tibetan Buddhism making it difficult to differentiate between the twoRead MoreJapanese Gardens : A Garden Style1450 Words   |  6 PagesJapanese Gardens is a garden style that originated in Japan with a design elements that in line with the Buddhism belief. Buddhist teaching is symbolized in the different elements are make up the garden as a whole. 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A Buddhist approach is a naturalistic one and the sole purpose of the followers is to end or reduce suffering (dukkha) and attain a state of liberation or enlightenment and the freedom from the cycle of death and rebirth (Nirvana). BuddhistRead MoreJapanese Gardens And The Garden1490 Words   |  6 Pages Japanese Gardens is a garden style that originated in Japan with a design elements that in line with the Buddhist belief. Buddhist teaching is symbolized in the different elements are make up the garden as a whole. Buddhism belief are used in the inspiration of various element through the use of water, stone, and architectural pieces. The specific element that will be focused on in this paper is water, stone, architectural elements. The Japanese Garden that used to break down the broad scopeRead MoreJapanese Gardens And The Garden1589 Words   |  7 PagesJapanese Gardens are a garden style that originated in Japan with design elements that are in line with the Buddhist belief. Buddhist teaching is symbolized in the different elements that make up the garden as a whole. Buddhism belief is used in the inspiration of various elements through the use of water, stone, and architectural pieces. The Japanese Garden that used to break down the broad scope of all the different elements is a Japanese Garden. I chose to use this Japanese Garden as my primary

Fudged Accounting Theory Free Essays

Fudged Accounting Theory and Corporate Leverage Audra Ong and Roger Hussey Abstract This paper is a follow-up of the article ‘Fudged Accounting Theory: Evidence from the UK’ in the Journal of Management Research (Ong, 2003). In that article, an analysis of the flexibility within the UK regulations, which allowed companies to use different accounting treatments for intangible assets, was illustrated to support fudged accounting theory (Murphy, 1990). This paper extends that earlier work by examining the association between corporate leverage and accounting choice in the UK at a period when the extant accounting standard for goodwill, SSAP22 Accounting for Goodwill (ASC, 1989), permitted two very different accounting treatments. We will write a custom essay sample on Fudged Accounting Theory or any similar topic only for you Order Now As a result, other intangibles, particularly brands, could avoid the regulatory strictures. For the present study, a series of hypotheses relating to corporate leverage and capitalization of intangible assets were tested. The results of the present study support fudged accounting theory by providing evidence that there is a relationship between the widespread capitalization of goodwill/brands and the relationship with leverage. The results demonstrate that financial managers will tend to adopt accounting practices that result in stronger balance sheets. Keywords: Leverage, Fudged Accounting, Intangible Assets, Brands/Goodwill, Food/Drink/Media Industries, International Accounting Introduction The importance of Fudged Accounting Theory in understanding the accounting treatment of intangible assets has been discussed in an earlier paper by Ong (2003) in the Journal of Management Research. The purpose of the present paper is to investigate whether there is statistical evidence that companies capitalize intangible assets for the betterment of their balance sheets in a period of lax accounting regulations or ambiguity in regulations. This has been identified as fudged accounting theory (Murphy, 1990; Tollington, 1999). Audra Ong Roger Hussey University of Windsor, Odette Business School, 401 Sunset Avenue, Windsor, Ontario, N9B 3P4 Canada In this study, the UK was chosen because accounting for goodwill was regulated under SSAP 22 Accounting for Goodwill issued by the Accounting Standards Committee (ASC) in 1984, which was later revised in 1989. This standard allowed contradictory treatments: companies could either write goodwill directly against reserves in the balance sheet thus bypassing the profit and loss account; or capitalize it as an asset on the balance sheet subject to amortization. To add to the confusion, the standard did not apply to other intangible assets and some companies chose to distinguish brands from goodwill and treat them as permanent items on the balance sheet with no amortization (Barwise et al. , 1989; Paterson, 2003). This presented a stronger balance sheet with no impact on the income statement. To conduct the study, the annual reports and accounts for the five-year period 1993-97 for 143 companies listed on the London Stock Exchange were analyzed. Using the earlier work of Archer et al. (1995), a series of hypotheses were established and tested. As the sample is relatively small and is non-parametric in nature, the chi-squared test using Yates’ correction was employed to test the hypotheses. After a brief review of the literature, the research design of this study is explained. The main part of the paper, falling under the heading of Results and Discussion, is concerned with testing a number of hypotheses. Previous Research Consideration of intangible assets has been dominated by uncertainty over the appropriate accounting treatment of goodwill (Egginton, 1990). In the UK, the somewhat acrimonious debate is fuelled by strong opinions rather than facts. The depth and range of opinions has been well documented in the academic literature (Damant, 1990; Napier Power, 1992; McCarthy Schneider, 1995; Hussey Ong, 1997, Ong; 2001; Oldroyd, 1998; Joachim Hoegh-Krohn Knivsfla, 2000; Cravens Guilding, 2001) as well as in professional reports (Coopers Lybrand, 1990; Tonkin Robertson, 1991; Hussey, 1994). The publication of SSAP 22 did little to calm the debate. Under that standard, companies faced the unpalatable alternatives of writing off goodwill against reserves and weakening their balance sheets or amortizing against earnings. Consequently, intangible assets such as brands and publication titles began to appear on the balance sheets of a number of well-known companies. Identification of such items as intangible assets, separate from goodwill meant that they did not fall under the requirements of SSAP 22. The intangible assets could remain on the balance sheet indefinitely, unless there was a permanent impairment in value. This contention that the appearance of brand valuations on the balance sheet had been motivated by the desire to correct or improve the balance sheet has been evident in several studies. Emanating mainly from the debt covenant approach and the early work of Zmijewski and Hagerman (1981), studies have found support for the debt covenant hypothesis (Mather and Peasnell, 1991) and evidence that a company’s decision to Volume 4, Number 3 †¢ December 2004 capitalize brands was influenced by London Stock Exchange rules on acquisitions and disposals (Muller, 1999). There has been some debate on the importance of intangible assets in private debt contracts (Citron, 1992; Day and Taylor, 1995). The study which most closely relates to the present research and shares the same theoretical foundation was published by Archer et al (1995) and was based on work conducted on 71 annual reports of UK and French companies for the period 1988-92. This earlier research concluded that a group with high leverage is more likely to capitalize goodwill and/or brands than a group with low leverage. The results, however, were stronger where goodwill and brands were amalgamated although it is possible that the differing regulations in the two countries may have distorted the data. Research Design The annual reports and accounts for the five-year period 1993-97 of 143 companies in the food, drink and media industries were obtained. Such period of time is chosen as the debate on the most appropriate accounting treatment for goodwill and intangible assets was at its greatest and accounting practices were the most varied during this period. It also immediately preceded the changes to accounting introduced by FRS 10 Goodwill and Intangible Assets issued by the ASC’s successor, the Accounting Standards Board (ASB, 1997) and FRS 11 Impairment of Fixed Assets and Goodwill (ASB, 1998). Industries for the study have been chosen whose products are highly branded and also where companies in the industries have been strong in acquisitive activities. The company profiles and published financial information of these 143 companies were checked to see which companies capitalized intangible assets for the entire five-year period 1993-97. The relevant population, which capitalizes intangible assets, is 15 food and drink companies and 28 media companies, resulting in a total of 43 companies. It should be noted that the remaining 100 companies either did not capitalize intangible assets in any one year, or only capitalized intangible 157 assets for part of the five-year period post -1993. Care has been taken above in explaining the sample used in this study because of its relatively small size. Although this may be regarded as a limitation of the subsequent analysis, a non-parametric test is used in the analysis of individual industries and this is generally regarded as defensible and acceptable in such circumstances. Yates’ correction has also been applied to the chi-square tests to achieve conservatism in establishing significance so that the results can be regarded as conservative and less likely to overstate the importance of the findings. Correlation tests are only conducted on the aggregate sample of both industries. The leverage ratio was defined as debt expressed as a percentage of capital employed (Reid and Middleton, 1988) because this definition was used in previous studies and it provides a high degree of precision. Results and Discussion Leverage and Capitalization The following two hypotheses were established in respect of the possible association between leverage and brands: H1: A company with high leverage is no more likely to capitalize intangible assets than a company with low leverage. H2: A company with high leverage is no more likely to capitalize goodwill/brands than a company with low leverage. To test these hypotheses the median leverage was established for the aggregation of companies capitalizing intangible assets, and for those companies not capitalizing the same. In some instances the median leverage did not provide a division of the sample to provide a sufficient number in each cell. In those instances a cut-off leverage level was selected to ensure cells of sufficient size and this is explained where it occurs. Contingency tables were constructed for the chisquared test and the results are described below. In all instances, Yates’ correction was applied. Media Industry Hypotheses 1 and 2 were tested separately on the Media industry and on the Food and Drink Industry. The results for the media industry for all intangible assets are shown in Table 1. In this test, the median leverage for the media industry was 28%. The chi-square test was significant at the 0. 01 level with a chi-square factor of 6. 86447 and 1 degree of freedom. The null hypothesis can therefore be rejected and we can accept that high-leveraged companies are more likely to place intangible assets on the balance sheet than low-leveraged companies in the media industry. Table 2 carries out the same test for the same industry but analyzes only those companies capitalizing goodwill and/or brands. In this instance the median leverage was 31% and this was increased to 32% to ensure cells of adequate size. The chi-square test was significant at the 0. 01 level with a chi-square factor of 7. 286 and 1 degree of freedom. The null hypothesis can therefore be rejected and we can accept that high-leveraged companies are more likely to place goodwill/ brands on the balance sheet than low-leveraged companies in the media industry. Table 1: Contingency Table for Media Industry Showing Leverage and Capitalization of all Intangible Assets Capitalizing Leverage 28% Leverage ? 28% Observed Expected Observed Expected 914. 26 1913. 74 Not capitalizing 1812. 74 712. 6 Total 27 26 158 Journal of Management Research Table 2: Contingency Table for Media Industry Showing Leverage and Capitalization of Goodwill and/or Brands Capitalizing Leverage 32% Leverage ? 32% Observed Expected Observed Expected 59. 93 149. 07 Not capitalizing 1813. 07 711. 93 Total 23 21 Table 3: Contingency Table for Food and Drink Industry Showing Leverage and Capitalization of all Intangible Assets Capitalizing Leverage 26% Le verage ? 26% Observed Expected Observed Expected 510. 74 104. 26 Not capitalizing 4842. 26 1116. 74 Total 53 21 Table 4: Contingency Table for Food and Drink Industry Showing Leverage and Capitalization of Goodwill and/or Brands Capitalizing Leverage 18% Leverage ? 18% Observed Expected Observed Expected 59. 80 72. 20 Not capitalizing 5348. 20 610. 80 Total 58 13 Food and Drink Industry The next two tables are concerned with the Food and Drink Industry. The median value for leverage was calculated at 18% for all intangible assets and in the following table an arbitrary cut-off point of 26% has been selected to ensure cells of adequate size and Table 3 shows the result for those companies capitalizing all intangible assets. The chi-square test was significant at the 0. 01 level with a chi-square factor of 11. 292 and 1 degree of freedom. The null hypothesis can therefore be rejected and we can accept that highly leveraged companies are more likely to place intangible assets on the balance sheet than low-leveraged companies in the food and drink industry. Table 4 shows the results for those companies capitalizing goodwill and/or brands in the food and drink industry. In this instance the median leverage level of 18% was accepted for the calculations. Volume 4, Number 3 †¢ December 2004 The chi-square test was significant at the 0. 1 level with a chi-square factor of 7. 604 and 1 degree of freedom. The null hypothesis can therefore be rejected and we can accept that highly leveraged companies are more likely to place goodwill/ brands on the balance sheet than low-leveraged companies in the food and drink industries. Capitalization as a Function of the Level of Leverage Two further hypotheses had been established based on the premise explored by Archer et al. (1995) that the value of intangible assets was a function of leverage, in other words the higher the leverage ratio the higher the value of intangible assets. H3: The value of intangible assets will be associated with the level of leverage. H4: The value of goodwill and/or brands will be associated with the level of leverage. 159 These hypotheses have been tested in previous research with somewhat contradictory results. It was considered that this study with its larger sample and separate focus on two industrial sectors might provide more conclusive results. Additionally, it was decided to extend the variables. Earlier studies have concentrated only on the absolute value of intangible assets i. e. the absolute amount appearing in the balance sheet. For the resent study a new variable of relative value was introduced and to test these hypotheses two aspects of the value of intangible assets were considered i. e. : a) its absolute value, i. e. the amount capitalized in the balance sheet (INTASS); b) its relative value, calculated by expressing intangible assets as a percentage of total fixed assets (INTFIX). Both Industries Table 5 shows the correlation based on our 43 companies, which capitalize all intangible assets: Table 5: Leverage as a Function of All Intangible Assets (Both industries) Gear Gear 1. 0000 (43) P=. .0179 (43) P= . 909 . 3229 (43) P= . 035 Intass . 0179 (43) P= . 09 1. 0000 (43) P= . .1876 (43) P= . 228 Intfix . 3229 (43) = . 035 . 1876 (43) P= . 228 1. 0000 (43) P= . appears to have stronger explanatory power. It is therefore possible to state that a relationship does exist between the level of leverage and the relative value of intangibles. In addition to looking at the sample of companies capitalizing all intangible assets, the same analysis has been conducted on the sample of 31 companies capitalizing only goodwill and/or brands. The results are shown below in Table 6. Table 6: Leverage as a Function of Goodwill / Brands (Both Industries) Gear Gear 1. 0000 (31) P= . -. 0176 (31) P= . 24 . 3275 (31) P= . 067 Intass -. 0176 (31) P= . 924 1. 0000 (31) P= . .1573 (31) P= . 390 Intfix . 3275 (31) P= . 067 . 1573 (31) P= . 390 1. 0000 (31) P= . Intass Intfix Intass Once again, Table 6 does not demonstrate a significant relationship between leverage and the absolute value of goodwill/brands. However, the association between leverage and the relative value of intangible assets is significant at 6. 7% level. It is therefore possible to state that a relationship does exist between the level of leverage and the relative value of goodwill/brands although it is less strong than that with all intangible assets. The above testing of the four hypotheses provides evidence that there is a relationship between leverage and the capitalization of intangible assets and there are differences between the two industries used in this study. The present research has also extended previous work of Archer et al b y introducing a new variable INTFIX and demonstrating that capitalization of intangible assets is a function of the relative value of intangible assets to fixed assets. The evidence from this study therefore provides support for the fudged accounting theory. Intfix Table 5 does not demonstrate a significant relationship between leverage and the absolute value of intangible assets. However, the association between leverage and the relative value of intangibles is significant at 3. 5% level. This would suggest that the measure of relative value 160 Journal of Management Research Implications: The International Dimension Given the debate on the appropriate accounting treatment of intangible assets and the obvious deficiencies of the provisions of SSAP 22, it is not surprising that the national accounting standard body in the UK was compelled to introduce a substantial regulatory change. FRS 10 and FRS 11 have replaced SSAP 22. Essentially, FRS 10 requires goodwill and intangible assets to be recognized and capitalized over 20 years. This presumption can be rebutted, however, and a longer life or an indefinite life can be selected. In these circumstances, an annual impairment review must be conducted as specified under FRS 11. At the international level, goodwill and intangible assets were first addressed by IAS 22 Business Combinations and IAS 38 Intangible Assets by the International Accounting Standards Board (IASB) respectively. IAS 22 was issued in 1993 and revised in 1998. IAS 38 was issued for the first time in 1998. In March 2004, however, the IASB published IFRS 3 Business Combinations (which supersedes IAS 22) together with related amendments to IAS 36 and IAS 38 as part of Phase 1 of the IASB’s project on Business Combinations. IFRS 3 contains some significant differences compared to FRS 10 (Simmonds and SleighJohnson, 2003) as the former proposes that goodwill will only be subject to impairment testing and must not be amortized. In addition, goodwill and other identified intangibles, which are similar in nature, will be subject to different accounting treatments. This reduces comparability and reliability and creates a serious risk of accounting arbitrage or fudged accounting. The current IASB proposals in IFRS 3 represent only Phase 1 and, thus, the ASB will consider replacing UK standards only when both Phases 1 and II are complete. Therefore, UK companies should not have to change to the IFRS 3 based on Phase 1. Although IFRS 3 differs from FRS 10, the former achieves a high degree of convergence with FAS 141 Business Combinations (FASB, 2001) and FAS 142 Goodwill and Other Intangible Assets (FASB, 2001) in the US. With respect to managers, the introduction of IFRS 3 is expected to have important implications for brand managers and owners as well as the way trademarks are valued and accounted for (Haigh and Rocha, 2004). In particular, the separate recognition of trademarks and other acquired intangibles, together with annual impairment tests, will require companies to establish robust valuation methodologies for intangible assets in order to withstand increased scrutiny in the market. Conclusion This study compares practices in accounting for intangible assets in two industries known for their propensity to capitalize those assets in their balance sheets. The study covered the period from 199397 when the debate and uncertainty on appropriate accounting treatment was at its height. The annual reports of 143 UK companies were selected to investigate whether there was an association between leverage and capitalization of intangible assets. The results demonstrate that companies with high leverage in both industries are more likely to capitalize intangible assets, particularly goodwill and brands. A relationship between capitalizations of intangible assets as a function of leverage when the absolute value of intangible assets is used was not established. However, the present study added to our knowledge by demonstrating that the use of the relative value of intangible assets to fixed assets as a variable reveals that capitalization is a function of leverage. The findings from this study both confirm and extend the earlier research by Archer et al. It demonstrates that the topic of capitalization of intangible assets remains a fruitful area for the accounting researcher. The present study establishes that there are industry differences and one can speculate that these may be due to a number of factors such as acquisition activity within the industry, marketing strategy in relation to brands and financial structures and motivations. An extension of the work using the variable Volume 4, Number 3 †¢ December 2004 161 INTASS could lead to illumination of the underlying reasons. A study of present practices in the same industries may reveal what changes, if any, have occurred References following the adoption of FRS 10 and FRS 11. For future research, it would also be interesting to see the effects of IFRS 3 and the applicability of fudged accounting. Accounting Standards Board (1997), FRS 10 Goodwill and Intangible Assets, London. Accounting Standards Board (1998), FRS 11 Impairment of Fixed Assets and Goodwill, London. Accounting Standards Committee (1989), SSAP 22 Accounting for Goodwill, London. Archer, S. , Alexander, D. , Collins L. , and Pham, D. (1995), The Treatment of Goodwill and Other Intangibles: Theory, Standards and Practice in France and the UK, Institute of Chartered Accountants England and Wales (ICAEW,) London. Barwise, P. Higson, C. , Likierman, A. and Marsh, P. (1989), Accounting for Brands, ICAEW/London Business School. Citron, D. (1992), Accounting Measurement Rules in UK Bank Loan Contracts, Accounting and Business Research 23(89): 21-30. Coopers and Lybrand (1990), Intangible Assets: A Survey of Businessmen’s Views, London. Cravens, K. and Guilding, C. (2001), Brand Value Accoun ting: An International Comparison of Perceived Managerial Implications, Journal of International Accounting, Auditing and Taxation 10: 197-221. Damant, D. (1990), Brands, the Balance Sheet and Company Value, Accountancy, October: 29. Day, J. and Taylor, P. 1995), Evidence on Practices of UK Bankers in Contracting for Medium-Term Debt, Journal of International Banking Law 10 (9): 394-401. Egginton, D. (1990), Towards Some Principles for Intangible Asset Accounting, Accounting and Business Research 20 (79): 193-205. Financial Accounting Standards Board (2001) FAS 141 Business Combinations, Connecticut. Financial Accounting Standards Board (2001) FAS 142 Goodwill and Other Intangible Assets, Connecticut. Haigh, D and Rocha, M. (2004), The Standards Have Landed, Managing Intellectual Property, June 1: 1. Hussey, R. , Undervalued Intangibles (London: Touche Ross, 1994) Hussey, R. nd Ong, A. (1997), Food, Drinks and the Media: Accounting for Goodwill and Intangible Assets, The Journal of Brand Management 4 (4): 239-247. International Accounting Standards Board (2003) IFRS 3 Business Combinations, London. International Accounting Standards Committee (1998), IAS 22 Business Combinations, London. International Accounting Standards Committee (1998), IAS 38 Intangible Assets, London. Joachim Hoegh-Krohn, N. and Knivsfla, K. (2000), Accounting for Intangible Assets in Scandinavia, the UK, the US and by the IASC: Challenges and a Solution, The International Journal of Accounting 23: 243-265. Mather, P. and Peasnell, K. (1991), An Examination of the Economic Consequences Surrounding Decisions to Capitalize Brands, British Journal of Management 2: 151-164. Muller, K. (1999), An Examination of the Voluntary Recognition of Acquired Brand names in the United Kingdom, Journal of Accounting and Economics 26: 179-191. Murphy, J. (1990), Brand Valuation – Not Just An Accounting Issue, ADMAP (April): 36-41. Napier, C. and Power, M. (1992), Professional Research, Lobbying and Intangibles: A Review Essay, Accounting Business Research 23(89): 85-95. Oldroyd, D. 1998), Formulating an accounting standard for brands in the ‘market for excuses’, The Journal of Brand Management 5(4): 263-271. 162 Journal of Management Research Ong, A. (2001), Changes in Brand Accounting for UK Companies, Journal of Brand Management 9(2): 116-126. Ong, A. (2003), Fudged Accounting Theory: Evidence from the UK, Journal of Management Research 3(1), April: 23-30 Paterson, R. (2003), Hidde n Strengths, Accountancy, June: 98-99. Reid, W. and Myddelton, D. R. (1998), The Meaning of Company Accounts, Gower Publishing, Aldershot, UK. Simmonds, A. and Sleigh-Johnson, N. 2003), Fundamentally impaired, Accountancy, June: 100-101. Tollington, T. (1999), The Brand Accounting Sideshow, The Journal of Product and Brand Management 8(3): 204-218. Tonkin, D. Robertson, B. (1991), Brands Other Intangible Fixed Asset in Financial Reporting 1990-91, ICAEW, London: p. 328. Zmijewski, M. and Hagerman, R. (1981), An Income Strategy Approach to the Positive Theory of Accounting Standard Setting/ Choice, Journal of Accounting and Economics 3: 129-149. Volume 4, Number 3 †¢ December 2004 163 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. How to cite Fudged Accounting Theory, Essay examples

Marketing Tourism Preparing Hospitality Managers

Question: Discuss the Case Study for Marketing Tourism of Preparing Hospitality Managers. Answer: Introduction The term Mcdonaldised was given by the scholar George Ritzer, he defines that Mcdonaldised as a method by which the values and ethics of fast food restaurants are coming to dominate most of the sectors of society not only in the United States but the rest of the world also. According to Ritzer Mchdonaldised not only affects the restaurant and tourism business, but also in other aspects of society (Harrington et al., 2011). We live in culture of value efficiency, quantity and predictability and contribution of all these three aspects make the world Mcdonaldised Efficiency: In McDonald restaurant services are too fast and effective to deliver the products fast and quick. Everyone uses the efficiency of McDonald model in daily and modern society such as doing banking and completing tax formalities on the net, easy weight loss programs, using fast technology in online shopping g and so on (Holjevac, 2003). In the tourism sector, we can see the example of Walt Disney fast services like online booking, passes and so on. Predictability: In predictability aspect, every consumer in McDonald can predict the restaurants deign, food menu uniformly is almost same in every country. Similarly, the other sectors also we have seen same stores in different places. There are many popular websites that have the same layout and it becomes easy for the customers as they know about the products and how can they deal with any situation (Cho, 2002). In the tourism sector, we have seen many theme parks for children and other activities can be predicted by the customers which help him to choose the destination. Calculability- McDonald highlights quantity over quality. In every store, the consumer can buy the same level of weight and size of burgers and other eatable product of McDonald. Every product is standardized and of high quality to satisfy the expectations of the consumers. The consumer always wants to know the quantity they are offering is good quality and their cost is according to their standard (Ingram, 2003). In the competitive market, other business also applies the calculability aspect to maintain the image in the market. There are many stores which are open 24 hours to give qualitative products to the customers. Controlling- The fourth principle of Mcdonaldised is controlling. Control of non-human technology, includes computers, bar coding scanners other techniques that remove human inconsistency from procedures and control people (Salazar, Costa, Rita, 2010). So, according to Ritzer, we can apply the term Mcdonldised in every aspect of our daily life. In this essay, we are analyzing the aspects of Mcdonaldised in tourism, their positive and negative impacts hospitality. This analysis shows the impact of the tourism industry in the 21st century. Impact of Mcdonaldised The hospitality sector encourages to study of host and guest and motivated by a public relation. In hospitality you make every possible aspect of delivering services to the customers feel at home and satisfied with your services. It is related in all the sectors of domestic and commercial. Analyzation of Hospitality In the modern world, the term hospitality has become popular and may be interpreted in different ways, whether it is public services or commercial based. The key of the successful hospitality in both the commercial and private embraces facts of what suggest the pleasure in the guest and hospitality as a process that includes arrival, providing comfortable services and fulfill and satisfied the customers need (Edwards Meiselman, 2005). In tourism sector the different components that relate to hospitality like food, accommodation, place of attraction, and other useful information, hospitality must be applied in all these components to feel the customer satisfied. The customer always wants the best utilization of resources with minimum cost, and when they offered a little bit higher cost with the satisfied hospitality they will not hesitate to pay for good and the best hospitality in tourism sector and they tell others, which benefit from the whole tourism industry (Frochot, 2010). The hospitality industry can be analyzed and debated in cultural, domestics and commercial domains. Let us discuss one by one. Cultural domain- The cultural domain of hospitality includes the act of hospitableness that takes place in social forces on the production and consumption of accommodation, and food, etc. It suggests the requirement to study the social context in which particular hospitality activities take place. Domestic domain- The Domestic domain helps the issues related to the meaning of hosting and hospitableness. The provision of accommodation and food shows the feeling of friendship and special bonds among the people who believes in sharing hospitality (Gross, 2010). Commercial domain- The commercial provision of hospitality used in most of the societies in the United State of America where hospitality does not occupy the main position in the value system. There is always an issue related to the commercial, hospitability an argument that restaurants and hotel facilities are really economic and contain in management activity (Sean et al., 2011). Fig: Understanding of commercial, hospitality industry According to the Ritzer process of Mcdonaldised the efficiency of hospitality in commercial domain increase by adopting the principles of predictability, calculability, and efficiency. These processes help in generating customers emotions and feeling of being undervalued as individual personalities (Christou, 2002). Standardizing and the systemizing procedures are a central characteristic of the approach to dealing with hospitality services in hotels and bars. Positive and negative aspects of the Mcdonaldised Hospitality Industry Hospitality Industry explores the delivery of host and guest experiences. This is also very vast industry in which services are varied from accommodation, food, drink and other services. Hospitality sector considers small firm providers operating a bed and breakfast accommodation, guest house, where the domestic and commercial aspects of the hospitality and hospitableness get mixed (Davidow, 2001). There are lots of service providers, Hotels, Restaurants, eateries come into the picture. Generally, a guest requires touch base approach when he approaches a hotel, restaurant or an eatery. As the globalization or McDonaldization happens in every industry, the hospitality industry is also not untouched. This industry demands labour cost reduction with the increased use of technology. The world is witnessing a positive aspect of it in the area of making a reservation for accommodation. Currently, there are lots of mobile and internet applications that are available through which guests can make bookings of hotels, guest houses or even small rooms which are available for bed and breakfast. As the whole process is user-friendly and efficient (which is one of the McDonaldization factors) is increased, customer experience is also good (K Kang, 2015). The impact is so positive now there is no much requirement of staff for business promotions and bookings, so there is a decrease in service levels, and increase in customer self-service. Perhaps the core of the hospitality industry essentially requires hosts welcoming the guest into their space that means this industry demands a personal touch. Guests or customer empathy is totally moved on with respect to given quality of services where the personal touch is required. Efficiency cant be increased with decreasing people (Gross, 2010). There have been many adverse customers reactions to McDonaldization trend in this industry that has resulted in some hospitality organizations returning to service personalization for their competitive advantage. No doubt there is a need to provide quick and quality services to the customers that mean Bigger the Better but all buyers are different and their requirements and desires are also different, so the general rule of Predictability and Control cant be applied in every situation (Stierand Wood, 2012). Designing and exploring the customer experience require a thorough research as it does touch base with different formats and dimensions. The future of hospitality wants to be well thought-out as a symbol for receiving people into not- hospitality industry spaces. In this century, a tendency of Mcdonaldised, where the labour cost is reduced through the faster and increased use of technology that diminishing service levels, and increasing customer self-service are functioning among all the sectors of the hospitality industry (Mohsin, 2010). Tourism has always been the main prospect for people to get in touch and connected with different cultures and customs. There is a need to study the tourism industry and its impacts on the customers the large -scale nature of the tourism industry necessitates the aspects of McDonaldization with examples like the efficiency of short and packaged activities, the calculability of tour time frame, the predictability of activities with certainty and the control through different higher technology (Gustavo, 2013). The suggestion of flexibility and customization, included in Mcdonaldised, is an independent booking, explanation, and customizable tour. Ritzier used Mcdonaldised as a prime example because according to him McDonald model is used not only in the tourism industry, but it can be applied in other business also. In the world of the 21ST century, everything is becoming more Mcdonaldised and it is necessary to analyze the impact of Mcdonaldised (Edwards Meiselman, 2005). Here we are discussing the positive and negative impact of Mcdonaldised in Tourism industry. The Mcdonaldised model captures the marketable transactions and different activities within the tourism industry. AS the study of Mcdonaldised it shows more negative aspects of the model, but to analyze the situation effectively, we must study the positive and negative from all perspectives and through all frames. The two main positive sides of Mcdonaldised tourism sector are convenient and affordable. It is convenient in both points of view for the customer and for the tourist businessman. There are many websites where customers can see all the details related to their destination point (Davidow, 2001). The customer can do himself an online booking for the tickets, accommodation, transport facility, food, and other important information in one place without wasting time and it also saves the money of the consumers. It is easy to manage the business by net banking with keeping all the business records which would probably not easy without the quick aspect of Mcdonaldised. Mcdonaldised is also helpful in affordability point of view. It allowed, the middle-class people to afford their earning in tourism sectors as get the best cheaper tourism plan on the website with direct dealing in the absence of any middlemen. It also helps to increase the growth and development rate of the tourism industry, as more people engaged themselves in preparing a holiday plan. For the business purpose also it is easily able to make the clients with online basis. The business gets successes by giving full information about their hotels, their services to the customers (Gustavo, 2013). As the Mcdonalidised model has standardized facts of running the business it is easy for the tourist industry to maintain the standards of the business. In Ritzier thesis people travel for a different experience of what could experience at home. They want vacations that are more controllable, predictable, and efficient for them. The impact of Mcdonaldised must be clear by recalling the main aspects Mcdoladised which we have discussed above. Efficiency is the ideal method of completing the task in an easy and quick way. As consumers get every information in one place with less effort, similarly tourism workers also perform less effort to find the clients. The owners of the business get successes as their business runs faster and more efficiently. This system offers comfort and constancy in the rapidly changing world. Efficiency aspect is the advantage to its holders, as what the consumers wants they get it quickly, workers has to do less effort and holder get benefits in his business (Kang, Lee, Huh, 2010). In the tourism sector, we can see the example of Walt Disney fast services like online booking, passes and so on. As we take the example of theme parks, it has an efficiency to deal with a large number of people with highly rationalized machines. In the parking area, they will manage the number of cars with an organized and systematic manner as in Disney parking is the best example of quick effectiveness. Such a high level of effectiveness is required to deal with the traffic of modern theme park and encourage the tourist sector by giving comfort services. ATM is the best example of quick service at any place because money transactions are important in every field (Ladkin, 2002). It can lead to certain drawbacks, also as ATM force the customers to perform their own work that was originally performed for them not by them. The efficiency for the tourism industry owners become inefficient for the consumers and they have to do lots of efforts in searching the sites and have to pay for the privilege of making your own plan (Tse, 2012). There is lots of hidden information and sometimes it will create lots of confusion. So its better to handle the Mcdonaldised model carefully. According to the calculability aspect, consumers prefer quantity and quick delivery instead of quality bases. This is generally not true. Today, consumers expect quality services. In tourism sectors also if the services are good and comfort of the consumers they will manage their financial transactions, but they will not adjust in terms of quality services. It is a difficult task to regulate the quantitative suggestions with quality aspects (Mia, 2002). If ignore the quality aspect, its not easy to attain the number of people. The tourist gets attracted in terms of neatness, friendly staff and other visible indicators of quality. All the tourist attraction places show the image of quality and to handle the huge amount of people in a systematic manner. In the tourism sector, we have seen many theme parks for children and other activities can be predicted by the customers which help him to choose the destination. Consumers simply know what they are going to get before the vacations. They know everything about the destination place like safety point of view, food availability, traffic free areas and other information that saves the time as consumer predicts before about the time duration so its easy to organize their plan (Marianne et al., 2014). The Predictability concept is looking great in some restaurants and store, but it cant be attractive and applied in every field of tourism. In holiday destinations, places consumers always excited about the new adventures and doing innovative things they will more curious in doing unpredictable things rather than predicted. For the tourist industry doing and creating innovative ideas is helpful in competing for market strategy. As they have different and creative options to serve their clients in a more systematic way. In control aspect, the practice of technologies minimizes the inefficiency and unpredictability in human nature. To control, a large number of people in the huge, crowded area needs high technologies to control. Fewer workforces hired to control the machine work and employers in the industry maintain tighter control over their employees. The control system includes the transportation, tour packaging and other tourism products. Everything is pre-measured and automatically controlled. The people no need to think, just push the button and get all the desired information and simply follow the instructions. For example, radio taxi at your service within 5 minutes, through net banking you can know all the information at any place and at any time. For tour planning, you need not worry about the bookings and so on. Everything is done so quickly that you even not need to waste even a single second (Walsh et al., 2014). In a the21st century, its not bad to use high techniques to get the things easily and comfortably, but our lives are becoming more Mcdonaldised which gives adverse effects. The main drawback of controlling model is itself as it is totally technologically based, there is no need for manpower which creates unemployment and if there is any technical problem arises, it is not easy to handle as it will be time-consuming as well as lots of money is required to sort out the controlling system of any new technology. There are some more Dimensions of Mcdonaldised that did not include the four aspects, but they are equally important- Deskilling -To do work with the minimum abilities as all the bookings, tour packaging, related information is easily available on the sites. As there is no need to give extra efforts and training to workers as they are cheaply trained and easily replaceable (Lynch, 2015). It creates the situation of unemployment in the field of the tourism sector and skilled labour is almost diminished. Consumer Worker- The main trickiest logic about the Mcdoladised is that consumer becomes an unpaid employee. The best examples are the various food chain restaurants applies self-services and take your own order. The irrationality of Rationality- As the craziness of most the attractive tourist spot having a large number of people creates the irrationality of rationality and thus the Mcdonaldised efficiency normally leads to inadequacy for the place. At some time, it is very difficult to manage the time limits of the place (Lyck, 2002). Customer purchases passes and tickets for the different attractive activities. They spend lots of time in standing large queue which resultant either they got the tickets or its too late for other activities and this is a very crucial situation in customer point of view as they will not enjoy the full activities and they already pay for the whole activity. These situations often arise in amusement parks, sports water parks. It is not good for the customers, but it gives an advantage to the tourist owner as they get their price whether customer enjoyed or not. Its not false to say that the efficiency aspect of Mcdonaldised works for the industry, not for the cus tomers or guest. This creates a wider impact on tourist destinations. MCdonaldised is not an issue. The problem is handled with care. Mcdonaldised affects the tourism industry in positive as well as negative aspects. It is beneficial for those who properly manage its aspects and brought wealth to them. Without Mcdonaldised the tourism industry does not take the benefits of higher technology, which lead to the growth and development of the industry. Conclusion Thus Mcdonaldised is a process of breaking the major task into the smaller task and the process continues till they reach in the active method. The work is done in a rapid and effective manner with predicted thought all aspects are controlled and quantity becomes the measurement of good presentation. We deeply studied the Mcdonaldised given by Ritzier in terms of hospitality and in tourism Industry. As the tourism industry is incomplete without effective hospitality. The theory of Mcdonaldised used in many food industries in order to provide the best quality of food and services to the customers (Magnini, 2009). Mcdonaldised helps in adopting the best use of modern technology not only in the tourism sector but in every field of life. It helps in providing quick and fast services to the customers with different options. It increases the efficiency of the industry; the as large amount of products is available in one roof with good quality. The products that are costly are now affordabl e by the customer. Along the positive results, every aspect has a negative image also. Ritzier also explains that internal issues and problems only give rise to incompetence and the fast development of the fast food restaurants not only affects the health related issues to the customers but also affect the whole environment. It also points out the issues that are linked to the quality and services offered by the hotels and restaurants, which affect the whole tourism industry. This presentation divides organizations into two approaches given by Ritzer. Organizations like local eatery shops, art and craft galleries, small business centers, etc., follow "Something" approach. Organizations like McDonald's, Walmart, Starbucks, credit cards, the Internet follow "Nothing" approach. Organizations believe in "Something" approach are derived by locally conceived and controlled social form which is rich in social values are in danger. On the other hand, the organizations follow "Nothing" are centrally conceived and controlled are getting flourished and pushing former organizations out of society. Due to globalization, customers are demanding customization so the increase in market fragmentation and actual movement is happening to mass customization from mass production. Should the hospitality and tourism industry adopt more customization? Should both sectors completely adopt McDonaldization Society? If the answer is yes, then how does it go about achieving it? The Author believes it is not possible to have a standard formula for mass customization for both industries. The Author believes complete McDonaldization is organization specific and successful adoption of this model by one company can't work for another one. On the other hand, it will be foolishness to disregard McDonaldization approach completely. The company itself needs to understand where or in which areas it can bring customization and adopt new technologies without compromising its core values otherwise they may lose their business. The author believes that organization, which are well prepared for accepting new technologies and doing customization as per customer demands will be rewarded with customer loyalty, market leadership, productivity, and profitability. As we see the impact of Mcdonaldised it has its own positive and negative aspects. With the implication of Mcdonaldised in tourism sector increase the number of tourists, decrease duration and helpful in the growth of the company, but side by side, it gives adverse effect in terms of quality, uncertainty, and controlling techniques. At last, after discussing the term Mcdonaldised it is true to say that its a great thing if we apply it carefully. It gives the tourism sector and other business a great advantage and a use the new techniques with proper attention help the tourism industry to grow worldwide. In the 21st century, Mcdonaldised enables us to do different things in an easy manner that we are not able to do in the past. References Cho, W. (2002). Preparing Hospitality Managers for the 21st Century: The Merging of Just-in-Time Education, Criticalthinking, and Collaborative Learning.Journal Of Hospitality Tourism Research,26(1), 23-37. Christou, E. (2002). 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