DSC2006 Unofficial Mid-Term Mock Test Essay

DSC2006 Unofficial Mid-Term Mock Test 2010/11 Semester 2 Select the best answer 1. Business organizations consist of three major functions which, ideally: a) support one another b) are mutually exclusive c) exist independently of each other d) function independently of each other e) do not interface with each other 2. Revenue management is concerned with: a) a process designed to determine the best use of funds generated through sales. b) the use of marketing tools to increase revenue. c) the use of accounting tools to monitor cash flow. d) the use of pricing to increase the profit generated from a limited supply of supply chain assets. e) the appropriate use of operational tools to improve operational efficiency with a view to increasing revenue. 3. In order to make differential pricing effective, which of the following issues are to be dealt with? a) The firm must differentiate between the market segments and structure its pricing to make one segment pay more than the other. b) The firm must control demand such that the lower paying segment does not utilize the entire availability of the asset. c) The firm must secure enough capacity to meet demand from each segment. d) The firm should structure pricing according to different market segments and also control demand in such a way that the lower segment does not utilize the entire availability of the asset. e) The firm must secure enough capacity to meet demand of each segment and also control demand in such a way that the lower segment does not utilize the entire availability of the asset. 4. In order to differentiate between different market segments, the firm must: a) negotiate separately with different market segments that value product or service attributes differently. b) create barriers by identifying product or service attributes that the segments value differently. c) develop pricing structures based on the volume of various product or service attributes. d) eliminate barriers that identify product or service attributes that the segments value differently. e) create barriers by identifying product or service attributes that the segments value differently and also negotiate separately with different market segments. 5. Under which of the following condition(s) is the concept of revenue management is applicable? a) Capacity is perishable. b) The same unit of capacity can be used to deliver product or service to different submarkets having their own demand curves with different price elasticity. c) Using appropriate booking rules, a firm can create a fence among the relevant submarkets. d) Capacity is perishable, the same capacity can be used to different submarkets having their own demand curves with different price elasticity and also the firm can create a fence among the relevant submarkets. e) Capacity is perishable and the same capacity can be used to different submarkets having their own demand curves with different price elasticity 6. Throughput time cannot be reduced in a process by: a) Reducing the utilization of bottleneck equipment b) Performing activities using a serial approach c) Changing the sequence of activities d) Reducing interruptions e) All of the above are ways by which throughput time can be reduced 7. According to Little’s Law, which of the following ratios is used to find throughput time? a) Cycle time/Process time b) Throughput time/Process velocity c) Process velocity/Throughput time d) Work-in-Process/Throughput rate e) Value added time/Process velocity 8. A firm can participate in the quantity discount illustrated below when purchasing a product. It costs $20 to place an order each time. The holding cost rate is 20%. The annual demand for the product is 10,000 units. Lead time for the product is 1 month. Quantity 520 Cost $12 $10 $9 What is the minimum total cost that this firm can purchase and inventory this item while facing a quantity discount? a) 90,468 b) 90,853 c) 90,894 d) 100,000 e) 100,894 9. Which of the following determines the capacity of a production line? a) the takt time b) the throughput time c) the theoretical minimum number of work stations d) the efficiency 10. Which of the following types of manufacturing layout is considered a hybrid? a) Process layout b) Product layout c) Fixed-position layout d) Cellular layout 11. Compute the required cycle time for a process that operates 8 hours daily with a required output of 300 units per day. a) 0.625 minutes b) 1.6 minutes c) 37.5 minutes d) 0.027 minutes 12. Which of the following is NOT a mark of a good layout in manufacturing? a) Straight line flow patter (or adaption) b) Predictable production line c) Bottleneck operations d) Work stations close together e) Open plant floors (high visibility) 13. Revenue management is not especially useful where: a) Capacity is relatively fixed b) The market can be fairly clearly segmented c) The service cannot be sold in advance d) The service/product can be stored 14. Which is the correct order for process types starting with low volume/high variety and moving to high volume/low variety? a) Batch processes, project processes, job shop processes, mass processes, continuous processes b) Project processes, batch processes, mass processes, job shop processes, continuous processes c) Project processes, job shop processes, batch processes, mass processes, continuous processes d) Job shop processes, batch processes, mass processes, continuous processes, project processes 15. Which is the correct sequence in order of increasing process flexibility? a) Job shop / batch / project / continuous / product b) Project / job shop/ batch / continuous / product c) Job shop/ batch / project / product / continuous d) Project / job shop/ batch / product / continuous e) Continuous / product / batch / job shop/ project 16. Which of these statements is correct? The Economic Order Quantity (EOQ): a) Is a formula that calculates a realistic purchase price for an item b) Will depend on how many related parts are required in the same period c) Is used to calculate how much safety stock should be carried d) Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock e) Should be calculated once a year 17. Under the ABC system of inventory priorities a Class A item is: a) The 80% of high-value items that account for around 20% the total stock turnover value b) The 20% of high-value items that account for around 20% the total stock turnover value c) The 20% of high-value items that account for around 80% the total stock turnover value d) The 80% of high-value items that account for around 80% the total stock turnover value 18. The layout where the equipment, machinery, plant and people move as necessary is known as: a) Product layout b) Fixed-position layout c) Cell layout d) Process layout 19. A supermarket is usually positioned as: a) Cell layout b) Process layout c) Fixed-position layout d) Product layout 20. A self-service cafeteria is usually positioned as: a) Cell layout b) Product layout c) Fixed-position layout d) Process layout 21. Which of the following is usually considered a characteristic of a product or line layout? a) This layout can easily handle high volume but low variety b) This layout tends to be very flexible c) Transforming resources are costly to maintain d) This layout can easily handle high variety but low volume e) Transforming resources move to the work 22. A product layout: a) Groups transforming resources into dedicated cells b) Involves locating the transforming resources entirely for the convenience of the transformed resources c) Is appropriate for low volume operations d) Allows a wide variety of products to be manufactured on the same equipment e) Moves resources to the place where the operation is to be carried out 23. Cell layouts typically: a) Locate transforming resources entirely for the convenience of the transformed resources b) Cost more to run than other types of process layout c) Involve all the operations on a product being located adjacent to each other d) Are dominated by the transforming resources e) Are the most efficient form of process layout 24. Which of the following is the least likely decision to be made by Operations Managers? a) Designing and improving the jobs of the workforce b) Selecting the location and layout of a facility c) How much capacity is required to balance demand d) How to use quality techniques to reduce waste e) Deciding which market areas to manufacture products for 25. Which of the following would not normally be considered a general characteristic of a service? a) Many services involve both tangible and intangible outputs b) Production and consumption are simultaneous c) Production and consumption can always be spatially separated d) Low contact services can often be made more efficient than high contact services e) Production and sales cannot easily be separated functionally 26. Which of the following is not usually considered a characteristic of a fixed position layout? a) Fixed position layouts are often used for large or delicate products or services b) Transforming resources are grouped in cells c) The recipient of the process or the work being undertaken remain in the same place d) Fixed position layouts are able to offer high flexibility e) Transforming resources often move to the work 27. Operations management is: a) decision making involving the design, planning, and control of the processes that produce goods and services. b) decision making involving accounting, engineering, marketing, and strategy formulation that affect operations. c) decision making involving operations productivity and the reliability, durability, and manufacturability of products. d) decision making involving analyzing the competitive environment, appraising the organizations skills and resources, and examining the limitations of economics and technology on operations. 28. Inputs to the transformation process of operations include: a) Labour, capital, management, and material. b) Product design, materials planning, production planning, and product distribution. c) Strategic planning, marketing, engineering, and purchasing d) Steel, plastics, fibres, food crops, or other raw materials. 29. Some characteristics of services that differentiate them from goods (manufactured products) are: a) intangible, immediate consumption, high customer contact b) inventory, immediate consumption, options available c) delayed consumption, intangible, customer contact d) immediate consumption, options available, inventory 30. The concept of value-added means a) the customer must add value to a product by paying for it b) machines add value to the production process because of their low cost c) only service operations add value for the customer d) outputs of a process are worth more to customers than the sum of inputs 31. Computer-integrated manufacturing (CIM) differs from a flexible manufacturing system (FMS) in that: a) CIM usually includes one or more FMSs as components. b) An FMS does not use computers at all. c) CIM is only one component of an FMS. d) CIM is concerned only with data while FMS involves production processes. 32. A company is planning to produce a product that will compete in a high-volume market that is very price-competitive. What type of process would be most appropriate? a) project b) job shop c) batch d) continuous 33. Which of the following is NOT a characteristic of a product layout? a) standard product. b) high volume production. c) same sequence of operations for each unit. d) each order may require a unique sequence of operations. 34. The desired production rate for an assembly line is 120 units-per hour. What would be the cycle time? a) 30 seconds per unit b) 40 seconds per unit c) 0083 minutes per unit d) 2 minutes per unit 35. Which of the following is an advantage of a cellular layout? a) higher volume than an assembly line. b) greater f1exibility than a job shop. c) reduced material handling. d) use of more employees. 36. A company has a set of tasks that must be completed to assemble a product. The total time for these tasks is 96 minutes. The cycle time is 3 minutes and the company has found that 40 work stations are required to balance the line. What is the efficiency (or utilization) for this assembly line? a) 95% b) 90% c) 85% d) 80% 37. Which of the following IS NOT a use of inventory? a) Buffer against uncertainly b) Allow for large variations in production c) Decouple different processes d) Allow for smooth production 38. A retailer stocks a certain product that is sold at the rate of 10,000 units per year. Each replenishment order from the outside supplier costs $50. The price is $40 per unit and inventory carrying cost per year is 10% of unit price, how many units should be ordered each time to minimize total annual cost? a) 100 b) 250 c) 500 d) 1,000 39. Referring to the preceding problem, suppose the supplier requires that orders be placed for 2,000 units at a time. What would be the total annual variable cost of ordering and carrying inventory? a) $ 2,000 b) $ 2,500 c) $ 4,250 d) $ 8,000 40. A certain item is subject to quantity discounts as shown below: Quantity Price 1 – 49 50 – 999 1000 or more Purchased Per Unit $ 2.50 $ 2.00 $ 1.80 If 1,000 units are used per year and it costs $450 to place an order due to high shipping costs, how many should be ordered at a time to minimize variable costs if carrying cost per unit per year is 50% of unit value? a) 1000 b) 500 c) 100 d) 50 41. A company has 100 inventory items with total annual dollar usage of $3,000,000. Which of the following is most likely a C Inventory Item based on ABC analysis? a) b) c) d) Part # 1078 2365 1287 7864 Annual $ Usage $500,000 $250,000 $52,000 $1,000 42. A company manufactures repair parts. These parts are used at the rate of 5,000 units per year. It costs $100 every time more are produced. The cost of holding these parts in inventory is 20% of unit price, which is $25 per unit. The parts can be produced at the rate of 6,250 per year. How many units should be produced at a time to minimize total annual cost? a) 500 b) 1000 c) 1500 d) 2000

How much impact did Martin Luther King have in changing civil rights for black Americans? Essay

The struggle of black people in America for freedom, justice, and self-definition stretches from the colonial and early nineteenth-century slaveholding era to the twenty-first century, but its intensity has varied from one period to the next. One of the most intense periods occurred in the 1950’s and 1960’s, when struggling was usually associated with the psychological and strategic use of nonviolence. Martin Luther King (MLK) was one of many Civil Rights leaders that bought publicity to the movement and issued nonviolence through marches and boycotts. Nevertheless, the Civil Rights Movement (CRM) would have occurred with or without Martin Luther King Jr., but without King, the CRM would not have had the same impact on society. The first major campaign King was involved in was the Montgomery bus boycott, which occurred in the 1955-56. The bus boycott was started by the National Association for the Advancement of Coloured People (NAACP) who instructed Rosa Park to refuse to give up her seat for a white person. NAACP constructed a legal court case against the segregation laws and the black people of Montgomery began to take direct action against bus companies by refusing to travel on the buses. This was affecting bus companies because more than half of their consumers were black people and so profit would be lost. King bought publicity to the bus boycott with his leadership and took the limelight away from the NAACP, who were behind the success of integration of buses. It was not the bus boycott alone that integrated buses, the NAACP taking litigation to the Supreme Court was vital because it changed desegregated buses. The bus boycott alone wouldn’t have changed segregation laws. According to Sanders, King was being credited for the integration of buses when it should have gone to the NAACP for starting the bus boycott and the activist, â€Å"it was a protest of the people†¦ not a one-man show.† This portraying King in being a glory-seeker who was only interested in self-promoting and gaining fame because it was the NAACP, rather than King who bought success to Montgomery. If black Americans were going to escape poverty and second class citizenship they would need education. Segregation of schools was claimed to be fair and equal, however, the black children attending black schools had poor funding compared to white children attending white schools. Oliver Brown with the help of the NAACP, not MLK, challenged the integration of school by drafting a successful court case to the Supreme Court, who declared that segregation was against the law and the constitution of the USA. The Board of Education in Topeka and other education boards had to be forced to integrate public schools. However, according to River Editors, â€Å"101 Southern politicians vowed to fight the decision, arguing it was contrary to the Constitution.† This showing that Southern politicians refused to implement the constitution. This may be the reason why in 1956 that there were six Southern states that did not have a single black child attending schools where there were white children. The NAACP are significant to the CRM because the organisation presses for civil rights legislation. Without the NAACP, the success of integrating schools and buses would not have happened. The organisation is vital to the CRM. NAACP had a great impact in changing the civil rights for black Americans because they gave them the chance of being educated in schools that would be for whites and to seat on buses without having to get up their seats for white people. American democracy was a model for those countries struggling against Soviet oppression so the treatment of black Americans portrayed America into being brutal to minority within its borders. There were communist propaganda used against the capitalism America, majority of them mentioning Jimmy Wilson. Dudziak states that Jimmy Wilson was â€Å"the centre of international attention† for being sentenced to death in Alabama for stealing less than two dollars of change. This was thought to be the most severe consequence of American racism. The petty crime bought to surface international concern because Wilson’s case received international coverage. There were critical articles being published in newspapers all across the world and the communist used Wilson’s story as propaganda. The Jimmy Wilson case bought publicity all around the world due to communist propaganda and aided the CRM. This showing that King is not the only one to bring publicity to the CRM. The March on Washington which was organised and successfully lead by King without the support from President Kennedy and Roy Wilkins. The aim of the March was to encourage to pass a civil rights bill through public relations, media attention gave the March national exposure because it impressed people all around the world. The March may have had a part in passing the Civil Rights Bill (CRB) of 1964 as it showed a united nation. President Kennedy death could be also credited in passing the CRB. When President Kennedy was assassinated, the bill was left in the hands of Vice President Lyndon Johnson. The civil rights bill passed could be a way to honour President Kennedy. The situation in Selma was that only 23 black Americans were registered to vote when there were 29,000. King’s Southern Christian Leadership Conference (SCLC) made Selma, Alabama, the focus of its efforts to register black voters in the South. The March, protesters were attempting to March from Selma to the state capital of Montgomery and were met with violent resistance by state and local authorities. The world watched, the activists being attacked harshly when they were fighting for the right to vote. Selma made people at home feel uncomfortable with the state and local authorities’ treatment to innocent people. Along with the Civil Rights Bill, the Voting Rights Act was one of the most significance pieces of civil rights legislation. Its effects greatly reduced the disparity between black and white voters in the U.S. and allowed a greater number of African Americans to enter political life at the local, state and national level. According to Sanders, â€Å"Johnson a nd Congress probably would not have passed the Voting Rights Act without Selma.† This shows the importance of Selma had on the CRM because the Voting Rights Act is important because it takes away the second class citizenship and takes a leap to equality between the whites and blacks in America. Selma was about more than winning a federal act; it emphasised the political pressures King was negotiating between movement radicalism. Selma was a key to improving lives for black Americans since it was publicly televised around the world showing the treatment of innocence people making a stand for equality. It pushed the Voting Rights Act to enable black people the right to vote. However, Sanders also states that â€Å"Selma had raised a great deal of money because Selma was in the headlines, then the SCLC left and spent the money to the North.† The untrustworthy leadership of King had left the people in Selma to fund on their own for the right to vote. This shows that King cannot be trusted when he makes a public stand to help people in need. King and his SCLC were unsuccessful in Chicago, they overestimated the racism in the North. Coordinating Council of Community Organizations (CCCO) had encouraged and supported the SCLC in Chicago and were both out-witted by Mayor Daley. Black people living in Chicago lived in racial inequality, majority of black people in Chicago were living in slums. There were less press coverage on the Chicago Freedom Movement (CFM) and the federal government did not help the CFM because President Johnson was an ally of Mayor Daley, who threatened to fine people a great lot of money if they joined in the marches. This limited the activist because they couldn’t afford paying the fine when they are living in poverty. However, what occurred in Chicago was the purpose of the Civil Rights Act of 1968, which is a legislation to provide equal housing opportunities. It made it legal for someone to be decimated for their race, or national origin when buying a house. It was a federal crime to force o r threaten injure, intimidate, or interfere with anyone because of their race, colour, religion, or national origin. Overall, King is the one radiant name of the fight for racial equality that everyone knows, he stole the limelight from those that have been forgotten or who were not accorded the recognition they deserved. King played a wonderful leader for the CRM because he bought publicity through his peaceful protest and winning the Nobel Peace Prize. To have a day for himself shows the impact he made to the life of black Americans during the CRM. King may have helped the CRM before his assassination, but was given too much credit because others, such as Ralph Abernathy, Claudette Colvin, Kasturba Gandhi, Malcolm X and etc. where forgotten. After King’s death the life of black Americans did not brighten up because the fight for equality still occurring with new leaders.

Project proposal Essay Example | Topics and Well Written Essays - 2500 words

Project proposal - Essay Example Distance-learning and part-time students must have access to a workplace supervisor who holds an MSc or higher award or published in a referred journal. If the student wishes, an additional (second) workplace supervisor can be asked to fulfill this criterion. "I declare this is all my own work and does not contain unreferenced material copied from any other source. If it is shown that any material has been 3lagiarized, I understand that a mark of zero may be awarded and the reason for that mark recorded on my student record." To test the reliability of ADVIA 2120 in revealing accurate red blood cell parameters is the interest of this study. Stricture is critical when providing clinically relevant data on patients with abnormal indices in red blood cells. Red blood cell volume and red blood cellular hemoglobin on specified samples has been found to be accurately measured using ADVIA 2120 flow Cytometry. It was also found to be capable of showing through a histogram variance around the mean in the two measurements. The red cell matrix and the enumerated red cell sub-populations by their Hb and MCV indices or MCV variance are called the Red Cell Distribution Width (RDW). The cellular Hb variance is called the Hemoglobin Distribution Width (HDW). Increased RDW is commonly described morphologically as anisocytosis, and increased HDW is commonly known as anisochromia. In addition to the location of the abnormal red cells on the ADVIA 2120 erythrogram

Human Development Essay Example | Topics and Well Written Essays - 500 words - 1

Human Development - Essay Example Good mood is conducive for human development. Networking Good social relations are compulsory for human development in the contemporary age. Man is referred to as a social animal. This essentially means that a big part of our identity is derived from the social relations we cultivate. The society in which we live constitutes people from all professions. In order for an individual to grow, he/she needs to achieve more in less time. This is only possible when one knows the art of being in the right place in the right time. It does seem a bit odd, but it works! People use their links to get the works done in seconds that would otherwise take them days, months, or perhaps years to do. Networking connects people to others who can fulfill their needs. Reflection Reflection is a very useful exercise that is increasingly being made use of these days. People are encouraged to reflect upon their experiences on every level. For example, students are given assignments by their teachers in school s to reflect upon their experiences. By making it part of their education, educationalists are encouraging people to make reflection a necessary part of their life. â€Å"The process of reflection is an integral part of teaching practice† (une.edu.au, n.d.).

Practice skills Essay Example | Topics and Well Written Essays - 250 words

Practice skills - Essay Example Despite of his conceptual knowledge, he did not practice anything. He only verbalized the ideas. My best manager recorded a different trend from this. He linked the gap that would exist between knowing and doing. Therefore, this manager would focus on the implementation of his ideologies and strategies within the organization. For example, he ensured resilient performance amongst employees through channeling rewards such as salary increment and promotions. This manager also ensured a hiring process that upheld competence of the recruits. He also organized seminars and team-building activities to enhance affiliation amongst the workforce. The key difference is that the worst manager would only verbalize ideas, while the other would implement them. My best and worst managers also differed in their skills. The technical skills of my worst manager were impaired. He did not use tools and equipment competently to attain desirable objectives within the organization. Consequently, processes implementation within the organization was highly impaired. This manager also had an average performance in his interpersonal and problem solving processes. My best manager possessed an ideal capacity to use tools and equipment to implement processes. His interpersonal and communication skills were outstanding. This nurtured healthy relationships amongst the workforce and himself. He portrayed an elevated degree of analytical capability. This would enable him to make feasible recommendations for organizational

Hazard Essay Example | Topics and Well Written Essays - 4250 words

Hazard - Essay Example Therefore, hazardous chemicals should be appropriately labeled and stored in a place where they are not easily accessible to untrained staff. â€Å"A hazard communication program contains three basic components: labels, MSDS, and employee information and training† (106). Suppliers should provide labels on chemicals and each chemical should have a document describing its properties, hazards, and proper handling. Employees should be trained to know hazardous chemicals and how to protect themselves against physical or health hazards. This source is very important since it enables employers to know which provisions there are under the law, and gives employees the right to sue employers for non-compliance with hazard communication. This source compares to the book safety and the security professional: occupational safety and health strategies in the Annotated Bibliography (AB), in that they both base their interpretation of hazard communication on the Occupational Safety and Health Administration. This book, however, contrasts with the book Hazardous chemicals: control and regulation in the European market, because the latter centers on the classification of hazardous chemicals, while the former focuses on the legal aspects of hazardous substances. ... The author states that, â€Å"the entire safety program is driven to ensure that accidents are avoided, that workers remain healthy, and that productivity is maximized† (105). This can be achieved through staff training to ensure adequate disaster preparedness, and prompt emergency response and self protection. According to Wyman, â€Å"communicating chemical hazards starts with employers assessing the presence of hazardous chemicals in the workplace and establishing safety programs to minimize those hazards† (205). Ideally, hazard communication should, therefore, serve to notify employees of the hazardous nature of chemicals found at their place of employment. The work is imperative in the annotated bibliography, since it sheds light on how employees at all levels- ranging from directors to supervisors and subordinates - can ensure protection at the workplace, through hazard communication. This book compares to Hazardous chemicals: control and regulation in the Europea n market, in that both books provide information on how members of staff is supposed to protect themselves from physical and health hazards, for example, irritants and carcinogens. This source differs from the book A Guide for Safety And Loss Prevention Professionals in that the latter focuses more on the legal aspects of hazard communication, while the former emphasizes on safety maintenance at the workplace. Disaster management is indeed a practice that cannot be alienated if hazards have to be handled in the workplace. California Department of Industrial Relations. Guide to the California Hazard Communication Regulation. California: California Department of Industrial Relations, 2000. Print. In this guide, the

Research protocol for Master's level 'Alzheimer disease ' Essay

Research protocol for Master's level 'Alzheimer disease ' - Essay Example la, T., Arai, H., Blennow, K., Andreasen, N., Hofmann-Kiefer, K., DeBernardis, J., Kerkman, D., McCulloch, C., Kohnken, R., Padberg, F., Pirttilà ¤, T., Schapiro, M.B., Rapoport, S.I., Mà ¶ller, H-J., Davies, P., Hampel, H., (2002). Differential Diagnosis Of Alzheimer Disease With Cerebrospinal Fluid Levels Of Tau Protein Phosphorylated At Threonine 231, Arch Neurol; 59: pp. 1267 – 1272. De La Monte, S.M. and Wands, J.R., (1994). Diagnostic Utility of Quantitating Neurofilament –immunoreactive Alzheimer’s Disease Lesions, The Journal of Histochemistry and Cytochemistry, Vol. 42. NO. 12, pp. 1627-1634. De La Monte, S.M. and Wands, J.R., (1994). Diagnostic Utility of Quantitating Neurofilament –immunoreactive Alzheimer’s Disease Lesions, The Journal of Histochemistry and Cytochemistry, Vol. 42. NO. 12, pp. 1625-1634. Kohler, J., Riepe, M.W., Jendroska, K., Pilartz, H., Adler, G., Berger, F.M., Calabrese, P., Frolich, L., Gertz, H.J., Hampel, H., Haupt, M., Mielke, R ., Paulus, H.J., and Zedlick, D., (2002). Early diagnosis and treatment of Alzheimers disease. Implementation in the doctors office, Fortschr Med Orig; 120(4): pp. 135-41. Lopez, O. L., Swihart, A. A., Becker, J. T., Reinmuth, O. M., Reynolds, C. F., III, Rezek, D. L. and Daly, F. L., III, (1990), Reliability Of NINCDS-ADRDA Clinical Criteria For The Diagnosis Of Alzheimers Disease, Neurology; 40: 1517. Tapiola, T., Lehtovirta, M., Ramberg, J., Helisalmi, S., Linnaranta, K., Riekkinen, P., and Soininen, H. (1998). CSF tau is related to apolipoprotein E genotype in early Alzheimers disease, Neurology; 50: pp. 169 -

World Povery Causes and Role of Foreign Aid Essay

World Povery Causes and Role of Foreign Aid - Essay Example However, this development is seen only in the developed countries. There is a strong reason behind it. The developed countries have resources, education and most importantly money. They have all the factors which are necessary for a normal citizen to fulfill his needs. On the other hand many countries of the world are struggling with the issues of overpopulation and unemployment that eventually cause poverty. The cause of world poverty are many but it has been unveiled that the foreign aid provided to the deprived countries is usually not sufficient enough to fulfill their basic demands and thus inefficacy of foreign aid has evolved as one of the major factor behind the world poverty. Everything has a side effect and in the same way, the overuse of these resources and foreign aid by the developed countries tend to leave less for the other under developed countries that then face poverty. Poverty is a problem that cannot be solved instantly. It has to be a combined effort of everyone working together. However, before the solutions, there has to be proper knowledge about the main causes of poverty. There are many causes, big or small, that result in world poverty and give rise to the many problems caused by poverty (Bauer, 1992). Firstly, the main cause of poverty is overpopulation. When there are limited resources and too many people, it becomes hard for all the people to benefit from those resources thus causing poverty. This can be applied to many of the cases such as places to live. If there is limited property, it is obvious that the elite class will get the chance to utilize the area as they can afford it. The ones who are left unsheltered are the ones attacked by poverty. Overpopulation is closely linked to the literacy rate. Literacy rate plays an important role in managing the poverty levels of a country. If there is a low literacy rate, there will be less people to earn and fulfill their demands. The illiterate people are, however, engaged in agricultur al activities that can never fulfill their needs for a comfortable life. Illiteracy results in high birth rate, and thus more need of limited resources. The developing countries have more urban areas where the environmental degradation causes poverty as these areas have shortage of clean water, food and shelter (Mitchell, 2007). Another cause of poverty closely linked with the literacy rate is employment. In many developed countries, life is getting too fast like technological based. They use manufactured goods so there is less demand for natural resources. In developing countries, the people employed for the extraction of natural resources need to be highly professional, again leaving behind the illiterate population. Moreover, these employees are paid less wages with which they can only support their basic needs. Apathy is another major problem in poor countries which leads poverty levels to rise. The people feel so powerless and hopeless that they refuse to improve conditions, fi x problems and judge between right and wrong. When they see someone in their family or society rising above or trying to make a change, they get jealous and discourage them. This results in tension and suspicion in the society. An individual or a group of people feel so helpless that they start to depend on help from outside and forget about making a change on their own. Ignorance is another major factor as lack of education is the trigger that leads to poverty. The main contribution in the increase of poverty levels is from the government. The government of developing countries has become powerless. The government is influenced by the external influence of rich people who formulate the

Europe and the Suez Crisis 1956 Essay Example for Free

Europe and the Suez Crisis 1956 Essay To what extent was the military action undertaken by the British and French in the Suez Crisis 1956 really necessary? This historical investigation seeks to evaluate and compare the factors influencing the relationships and discussions between France and Britain during the Suez Crisis and thereby provoked them to commit military force to the region. The mainbody will look at the differences and similarities in Britains and Frances intentions in the Middle East, the internal situation (mainly in Britain), Nasserà ¯Ã‚ ¿Ã‚ ½s actions, public opinion in Western Europe as well as American and UN policies on the crisis. In order to carry out his investigation a variety of sources will be consulted primary and secondary, from which relevant information will be selected. Carltonà ¯Ã‚ ¿Ã‚ ½s Britain and the Suez Crisis and Thomas The Suez Affair will be of particular use. The sources used reliability (date of publication, author etc) will be discussed. An analysis of the main arguments of the authors as well as an evaluation of different historical interpretations will be carried out. B. Summary of evidence When Britain and France cancelled the loans to the Egyptian president, Nassers hydropower project, the Aswan dam, Nasser responded by nationalizing the Suez Canal Company on the 26th of July 1956. Information given in the book The Suez Affair tells us that the company was largely owned by British and French shareholders.1 Britain and France saw the Nasserà ¯Ã‚ ¿Ã‚ ½s nationalization as a violation of international law and feared that this could create a power of vacuum, which could be filled by the Soviets, who were their communist enemy in the Cold War. Along with this, the nationalization of the canal directly threatened British and French influences in the area, which was rich on oilsupplies and secured Britains way to India. In a letter to the US President in September 1958, the British Prime Minister Eden wrote: We ought in the first instance to bring the maximum political pressure to bear on Egypt (but) my colleagues and I are convinced that we must be ready, in the last resort, to use force to bring Nasser to his senses. 2 In Mastering Modern World History it is revealed that a secret Anglo-American plan called Omega suggested to overthrow Nasser by using political and economic pressure3. Despite of this plan, the issue of using military force in Egypt remained a burning issue among the British Conservatives. According to Carlton, the British Cabinet, appeared divided on the matter of straight bash on the Canal issue by early September.4 The public opinion was strongly pro-military actions and called Nasser a new Hitler.5 The French Minister Mollet, did not attempt to keep in good terms with any Arab, whom he felt distrust towards, and was to be a strong supporter of the decision to use military force. They believed that the money of the Algerian rebels, which they fought against, came from Cairo. Both the French and the British associated Nasserà ¯Ã‚ ¿Ã‚ ½s nationalization of the Canal with historical analogies, which was not going to be repeated: Hitlerà ¯Ã‚ ¿Ã‚ ½s occupation of The Rhineland as well as his take over of Czechoslovakia. The US-president, Eisenhower, strongly expressed his hostility on the matter of forces being used in Egypt. According to Peter L. Hahn, Eisenhower viewed Nasser as a danger of Western threat but believed that force only would facilitate Soviet infiltration in the region.6 So the Americans proposed an association of canal users, the SCUA, when it was revealed that the British and French tried to seek approval in the UN, where their actions could be justified due to the Soviet veto. The British did accept the SCUA, but its impact on Nasser was destined to be negligible. With the end of the SCUA Conference, French and British Ministers, engaged in negotiations with their Egyptian counterpart and agreed to the Six Principles7 (see Appendix). Although this seemed to suggest a peaceful settlement, French and British military preparations to invade Egypt continued. On 24 October the British and the French Foreign Ministers held a secret meeting with the Israeli Prime Minister who was determined to force Egypt to recognize the state of Israel. Five days after this meeting, Israeli forces invaded Egypt. When Egypt refused to withdraw from the Suez Canal, British and French bombed Egyptian airfields and landed troops at Port Said. The British-French attack on Egypt was greeted with angry protests all over the world. According to Keith Robbin, the UN unanimously condemned the Franco-British action on 2nd November8 At last, the UN proclaimed cease-fire on November 6 and British and French forces withdrew. C. Evaluation of sources The Suez Affair was published in 1966 (latest edition published in 1986), and was written by Hugh Thomas who resigned from the British Government after the Suez Crisis. Thomas stated purpose for this book is that It is an interim Report.9 in which he has used materials available and interviewed people, mainly British, involved in the Crisis. The value of this book is that it is a detailed and fascinating description of the British governments handling of the Crisis, professionally narrated by Thomas who himself experienced the Suez Crisis has an insight in the internal situation in Britain during this period of time. However, this may also make the source biased as it is very much written from a British standpoint. This method has certain limitations as memories can alter and are not reliable. David Carlton, who also has written a bibliography about Anthony Eden, published Britain and the Suez Crisis in 1988. The book is aimed at undergraduates; school students and other interested in post war British history. The purpose of the book is to inform people about the recent past, in order to prevent recent political indoctrination. Although it is acknowledged in the preface that there are problems of bias, subjectivity and perspectives in studying the past, the value of reading history outweigh the drawbacks10. Carltonà ¯Ã‚ ¿Ã‚ ½s book is far more analytical than Thomasà ¯Ã‚ ¿Ã‚ ½ and includes different historical interpretations of the Crisis, which is of usefulness when studying the crisis from a broader perspective. However, Carltonà ¯Ã‚ ¿Ã‚ ½s book might be quite biased as it is very much written from a British perspective. Although both Carltonà ¯Ã‚ ¿Ã‚ ½s and Thomasà ¯Ã‚ ¿Ã‚ ½s books are British, they present a different view of the Suez Crisis, probably due to the different date of publication of the sources first edition. Although Thomas rewrote some parts of the book in his latest edition, the most substantial parts of his book, are based on sources available when the condemnation of the military action after the crisis made the propaganda turn against the British and French. In Carlton case, he has made an extensive use of materials released in the 80s, which seem to be friendlier towards he British and the French. By taking both sources in account they tell us how the history of the Suez Crisis has been reshaped due to political controversy and propaganda. D. Analysis If the Suez problem possibly could have been solved in a more diplomatic way, British and French prestige during the Cold War would doubtlessly have been more favorably after the crisis. According to the American journalist Donald Neff the Suez Crisis was a hinge point in history as it discredited France and Britain as participators in the Cold War: it strained the Anglo-American alliance, intensified Egyptian nationalism and increased Soviet influences in the region. Along with that, the attention was driven away from the Hungary uprising, for the Soviets advantage, as the shadow of Europe fell over the Suez. Hugh Thomas presents a view in his book The Suez Affair that the French and the British initially were determined to use military force in Egypt. He suggests that they acted in an opportunistic way: Nassers nationalization of the Suez Crisis gave them the opportunity to justify the use of military force. He suggests that the British and the French had strong intentions in the Middle East and to weld as many countries of the area as possible into an anticommunist defense pact. This can to some extent be true, as the Suez Crisis was an event in the Cold War, when the British and French democracies tried to, together with America, contain the expanding Communist bloc. However, other possible interpretations of the Crisis and the British and French intentions contradict this view. The historian Lowe presents evidence of the Omega plan, which suggests that Britain intended to get rid of Nasser by more peaceful means. Other evidence also supports this view. For example Eden, as quoted in section B, wanted to use military power as only a last resort. As we can see from the evidence given, the Americans tried to pursue a more peaceful policy in Suez. The Six Principles, as well as the acceptance of the SCUA, showed signs that the British were approaching a peaceful settlement, on Americas initiative which, perhaps, could have saved them from an international defeat. However, one can argue that these diplomatic negotiations can be seen as prolonging the process in order to convince America to accept the use of military force. They were not real but merely a facade, which covered the militant intentions of Britain and France. The more contemporary view suggests different circumstances drew Eden take the fatal decision to use military force. Eden was faced with unprecedented pressures (). 11. According to Carlton, the conspiracy between France and Israel was not really in the hands of Eden. Eden didnt know with certainty that Israel would attack Egypt.12 The role of France in the Suez Crisis must not be underestimated as she actually, in contrast to Britain, wanted to undermine Arab influences in the Middle East. Hahn and Carlton suggests that France and Britain didnt fully understand that the Americans were going to fear that military action would open Egypt and other Middle East states to Soviet influences, undermining the policy of containment. They didnt calculate with the fact that the Americans were going to choose to, in the first place, pursue containment rather than endorse the allys action. One can argue that if the American standpoint had been clearer for the French and the British, perhaps the course wouldnt have taken the militant direction that it took. E. Conclusion Whether the military action undertaken by the French and the British was really necessary is a mere question of speculation. It is difficult to make a valid judgement on the issue as different sources present different information, which is one of the major difficulties in studying contemporary history and finding its truth. Sources published not a very long time after the Crisis, such as Thomas first edition The Suez Affair indicate that the military action undertaken by the British and the French was inevitable: the countries were highly determined to use force against Egypt. More recent materials about the Suez Crisis, presented by historians such as Lowe and Carlton, suggest that Britain and France could have solved the Suez Crisis with more peaceful means. However, it is most likely that the British and French response to the nationalization of the Suez Canal will remain an issue of controversy among the historians for the nearest future. F. List of sources Robbins, Keith, The eclipse of Great power, Modern Britain 1870 1975, Longman, New Work, U.S, 1983 Eden, Anthony, Memoirs: Full Circle, Book three: Suez, Cassell Company Ltd, London, 1960 Carlton, David, Britain and the Suez Crisis, Basil Backwell, Northern Ireland, 1968 Calhoun, Daniel F. , Hungary and Suez, 1956: An exploration of who makes history, University Press of America, United States of America, 1991 Thomas, Hugh, The Suez Affair, Wiedenfeld Nicolson Limited, London, 1967 Hahn, Peter L., The United States, Great Britain and Egypt, 1945-1956 Strategy and Diplomacy in the early Cold War, The University of North Carolina Press, United States of America, 1991 Bowne, Colin and Mooney, Peter J., Cold War to Dà ¯Ã‚ ¿Ã‚ ½tente 1945-85, Second Edition, Heinemann Educational Books, printed by Richard Clay Ltd in Great Britain 198i Calvacocoressi, Peter, World politics since 1945, sixth edition: The Arabs and Israel to the Suez War, Longman, New York, 1991 Cornwell, R.D, World History in the twentieth century, Longman, England, 1984 Lowe, Norman, Mastering Modern World History, Third Edition, Macmillian Master Series, Biddles Ltd, Britain, 1997 Gildea, Robert, France since 194, Oxford University Press, Oxford, 1996. Appendix The Six Principles: 1. There should be free and open transit through the Canal without discrimination, overt or covert. 2. The sovereignty of Egypt should be respected. 3. The operation of the Canal should be insulated from the politics of any country. 4. The manner of fixing tolls and charges should be decided by agreements between Egypt and the users. 5. Unresolved disputes between the Suez Canal Company and Egypt should be settles by arbitration. 1 Hugh Thomas, The Suez Affair, page 39 2 Ibid., page 41 3 Norman Lowe, Mastering Modern World History, page 230 4 David Carlton, Britain and the Suez Crisis, page 50 5 Hugh Thomas, The Suez Affair, page 40 6 Peter L. Hahn, The United States, Great Britain, and Egypt, 1945-1956, page 211 7 David Carlton, Britain and the Suez Crisis, page 52 8 Keith Robbins, The Eclipse of a Great Power, page 195 9 Hugh Thomas, The Suez Affair, page 7 10 David Carlton, Britain and The Suez Crisis, General Editors Preface 11 David Carlton, Britain and the Suez Crisis, page 109 12 Ibid., page 63

The modern-day visual age Essay Example for Free

The modern-day visual age Essay One of the major influences of the modern-day visual age today was Eadweard J. Muybridge. He was truly a revolutionary thinker during his time and gave ideas that was fantastic and at the same time ingenious. A photographer with supreme skills, Helios, as his pseudonym, was an acclaimed landscape photographer showing the extravagance of the West. He singlehandedly created photographic icons of his era, a movement captured in time. Muybridge’s method of taking these moving photos involved chemical formulas for the processing of the photos and an electrical trigger that was designed by Muybridge himself. During his time, basic sequential photography was at the boundaries of technology and photography. Hence, Muybridge became a photographer and a motion picture inventor as well. He â€Å"froze† the movements by his way of capturing the photograph during the act of motion. Boxes, camels, elephants, all captured in time. Today this may not be a feat never heard of, but Muybridge’s ideas and technology evolved to what we know today as the cinema and television. Indeed a master of photography, he was able to pioneer motion capture of animal locomotion. Through his ideas of capturing motion with multiple cameras and using different cameras on different angles, he was able to start a revolution. Thought first ever movie star was not Muybridge, it was Occident – Stanford’s racehorse, and it made him famous overnight and started the revolution of cinema movement. Works Cited Clegg, Brian. The Man Who Stopped Time: The Illuminating Story of Eadweard Muybridge. Joseph Henry Press, 2007.

Relationship Between Learning and Growth in Business

Relationship Between Learning and Growth in Business Introduction The introductory chapter begins with a description of the context of the present study and a presentation of the fundamental issue addressed in this empirical investigation. The significance of intangible assets in knowledge era, objectives, conceptual framework and contribution value of this study is also addressed in this chapter. 1.1 Research Context This section presents the broad context within which this empirical investigation is undertaken. The current problems and significance of intangible assets in knowledge era are explained. Traditionally, profit and loss figures in the balance sheet and annual financial reports are used as the main financial performance indicators for the action previously taken monitoring and crafting short term strategies. Accounting for intangible assets starts with documenting the various categories of expenses. Profit (or loss) is derived from the financial difference between sales revenue and operating cost. The costs include the expenses in brand building, customer database, training, product development, information technology, etc. These are usually treated as part of the operating cost and marketing expenses. The investment of tangible assets such as equipment, machinery, building, etc. is also recorded in balance sheet. This simple accounting record mechanism is no longer sufficient in the knowledge based economy. There is no linkage with long term strategies to compete with global competitors and survive in dynamic economic. Since an increasing share of market value in this era is not represented by inventory or physical assets. Investments in intangible assets are usually not documented in a proper systematic manner because of data non-availability. Consequently, reasonable estimates of the future performance potential of an organization could not be provided to the management. It is intriguing to note that the cause-effect relationships between marketing, production and human resource and financial performance have not so far been made operational. Prior to the knowledge era, business lived in the world of tangibles, which worked well with the traditional accounting practices. However, things are different in todays world of intangibles. Modern management style and strategic crafting have adapted in response to global competition and volatile economic environment. The industrial age management has been replaced by the knowledge age leadership, with corresponding transformational effects on the economy and workplace (Figure 1.1). The focus on tangible assets in the industrial age has shifted to intangible assets in the knowledge age. This paradigm shift encourages organizational employees to utilize their knowledge in line with organizational goals. Globalization is the main driver of knowledge economy. Toffler (1990) proposed knowledge as the key success factor in the present competition. Knowledge can be transferred by information flow from manufacturers to customers. Organization knowledge could be frequently managed by well- organized people in organization. Knowledge and information technology form an important part of intangible assets. With the realization of this paradigm shift, issues concerning intangible assets are now more widely researched and practiced. Figure 1.1 The shift in management style from industrial age to the knowledge age Intangible assets are of increasing importance for the corporate value creation  processes of all kinds of organizations. In 1978, intangible assets were determined to constitute only 5% of all assets, while they become 78% of all assets today. Some 50 to 90 percent of the value created by a firm in todays economy is estimated to come from the management of the firms intellectual capital rather than from the use and production of material goods (Guthrie and Yongvanich, 2004). Some public and private sector organizations do not attempt to incorporate the value of intangible assets. Sonnier et al. (2007) examined 150 high technology companies and found that management may want to reduce the level of disclosure to conceal sensitive strategic information in order to maintain a competitive advantage. As such, management reporting and financial statements will become increasingly irrelevant as a tool supporting meaningful decision making. Forward-thinking management has to ensure that in tangible assets are identified, monitored, built and leveraged. Financial profit alone could not guarantee the long term survival of companies. To be sustainable, companies need to understand and be able to manage intangible factors, including organizational learning and growth, internal process and external structure. Management that aspires for sustainable business growth and industrial leadership in the twenty-first century has to focus on superior management skills and knowledge under limited resources. Augier and Teece (2005) and Johanson (2005) reported that human capital, knowledge and other intangible assets have emerged as key to business performance in the economic systems. The intangible assets are the competitive edge over competitors. Srivastava et al. (1998) suggested the framework linking market-based assets to shareholder value which could be considered as the subset of present study. The market investment in brand and customer-profile databases leads to cash flows via a combination of price and share premiums, faster market penetration, reduced distribution, sales and service costs, and increased loyalty and retention. Brands are economic assets which are to create value shareholders and develop competitive advantage (Doyle, 2001). During the last three decades, brand is widely recognized as playing the key role in business. Brands influence customer choice, but the influence varies depending on the market in which the brand operates. Ittner (2008) suggested several pre vious studies that provided at least some evidence that intangible asset measurement is associated with higher performance. Several previous studies are limited by over-reliance on perceptual satisfaction or outcome variables, inadequate controls for contingency factors, simple variables for capturing complex measurement practices, and the lack of data implementation practice. In this study, the Balanced Scorecard strategy map (Kaplan and Norton, 2004) is chosen to provide a framework to illustrate how strategy links intangible assets to value creating processes. The reasons for choosing Balanced Scorecard as the stage to build the framework for the present research are as follows: First, Balanced Scorecard is a practical approach to measure the intangible assets that has been widely used in a variety of organizations over the past two decades. Second, through the strategy map concept, Balanced Scorecard provides the linkage the relationship between intangible assets and business performance including the interrelationship between intangible assets elements: 1) Learning and growth affect internal process 2) Internal process affects external structure 3) External structure affects business performance. The measures in the four perspectives are linked together by cause-effect relationships. The company builds the core competence and training to support the i nternal process. The internal process creates and delivers the customer value proposition. When the customers are satisfied, the sales and profit are delivered in terms of financial performance which is the key measure of business performance. 1.2 Research Objectives Since developed economies have become knowledge-based and technology intensive, view of the firm has significantly changed and intangible assets have become fundamental determinants of value and control. There are three fundamental elements of intangible assets which are learning and growth, internal process and external structure (Sveiby, 1997; Kaplan and Norton, 2004). The ultimate goal of firm is to maximize the business performance (financial performance, sales performance and customer fulfillment). This study aims to establish empirically the cause-effect relationship between learning and growth, internal process, external structure and business performance, including the interrelationships between the elements leading to business performance. 1.3 Expected Contributions of the Study There are two key areas of expected outcomes of the study. First, the impact of intangible assets on business performance is expected to be empirically established. In particular, the cause-effect relationship between learning and growth, internal process and external structure would be identified and analyzed. This is so that the detail underlying the relationships can be implemented in practice. Second, it is expected that the effect of business size, business sector and establishment age on the causal links between intangible assets and business performance would be established. As there are various types of firms business (service and non-service), sizes of business (large and SME), establishment age in the industry, this study would provide the pattern of cause-effect relationships between intangible assets and business performance in each business characteristic. Given the expected outcomes, the expected academic contributions of the present study would be to encourage similar studies to establish the causal links between intangible assets and business performance in other types of economies. The study would also provide the foundation for the field of intangible asset management For business practitioners, top management will benefit from the understanding of cause-effect relationship and the realization of the importance of intangible assets (learning and growth, internal business process and external structure) and business performance. With the clearer understanding, proper budget allocation and intangible assets management will be more properly focused and controlled to increase sustainable competitive advantage. The intangible assets are the strategic key to a sustainable competitive advantage and future economic profit. 1.4 Conceptual Framework During last decade years, intangible assets are widely expanded and researched. The value of intangible assets is likely to grow over time if the firm undertakes successful intangible assets management. The intangible assets in each fundamental element (learning and growth, internal process and external structure) are selected and classified as shown in Table 1.1. More detail explanation is given in Chapter 2. Table 1.1 Framework of intangible assets indicators The cause-effect relationship is covered in strategic mapping (Kaplan and Norton, 2004). There have also been several studies, e.g. Huselid and Becker (1997), Hitt et al. (2001), Liu and Tsai (2007), that examined the relationship between learning and growth and business performance as explain in more detail in Chapter 2. The main hypotheses in the present study are shown in Figure 1.2. Figure 1.2 Research hypotheses testing model H1: Learning and Growth is positively related to Internal Process H2: Internal Process is positively related to External Structure H3: External Structure is positively related to Business Performance H4: Learning and Growth is positively related to Business Performance 1.5 Outline of Methodology The research hypotheses formulated in this study were tested in the mail survey or questionnaire of registered company at the Thai Chamber of Commerce. The initial step in the analysis of the data collected focuses on examining the frequency distribution and the mean and standard deviation for each item or variable considered in this research. The next step in data analysis is to assess the validity of measures. Here the study uses item-total correlation, confirmatory factor analysis and the Cronbach alpha coefficient. The initial data analysis, and reliability and correlation analyses are performed using the SPSS statistical package. Furthermore, the structural equation modeling (SEM) EQS program (Bentler, 1995) is used to perform the confirmatory factor analysis, discriminant validity tests and testing of the structural model. The entire step-by-step model fit process from data collection by field survey questionnaires is shown in Figure 1.3. More details of research methodology ar e provided in Chapter 3. 1.6 Structure of the Thesis The thesis is structured on the basis of five chapters, which represent the different stages that are involved in the overall research process. Chapter 1 has covered the research context, current problems, purpose and expected contribution of the studies. Chapter 2 provides an extensive review of definition of intangible assets, intangible assets value and the Balanced Scorecard strategic mapping. This detail provide support to conceptual model of the study and the set of research hypotheses of the study which links learning and growth, internal process and external structure to business performance through cause-effect relationship. Chapter 3 presents the step-by-step research methodology used to conduct the study. It illustrates a range of important methodological issues including the research design, sampling, questionnaire development process, data collection and measurement of model variables. The Structural Equation Modeling (SEM) technique is briefly explained. Chapter 4 provides results of validity testing of the constructs and hypotheses of the present study by using EQS program for SEM technique and Statistical Package for Social Science (SPSS) program. Not only the results of the main research hypotheses testing model, but also other possible models are explored. Chapter 5 presents a summary of the major findings and conclusions of the study. It also suggests the long-term strategic implications of the study finding for top management. Finally, consideration is given to the limitations of this empirical investigation and suggestions are made for potential directions and strategies for future research. Literature Review This chapter reviews the definition of intangible assets and its value. The previous correlation empirical research between intangible assets and performance are reviewed. 2.1 Introduction There have been a large number of studies in intangible assets during the last two decades (see Figure 2.1). Intangible assets are involved in the customers, external structure, human resources, and internal process. The intangible assets are defined as non-financial assets without physical substance that are held for use in the production or supply of goods or services or for rental to others, or for administrative purpose (Epstein and Mirza, 2005). Intangible asset is an accounting term, but intellectual capital is a noun used in the management field. They both refer to the same thing. Therefore, Edvinsson and Malone (1997) and Tseng and Goo (2005) pointed out that intangible assets and intellectual capital are synonyms. Intangible assets are identifiable and controlled by the enterprise as a result of past events, and from which future economic benefits are expected to flow. Figure 2.1 Research development on intangible assets 2.2 Intangible Asset Element Classification Several studies have variously attempted to categorize intangible assets as summarized in Table 2.1. Some categorizations are in more common use than others. Table 2.1 Approaches for the categorization of intangible assets The purpose model of the above intangible assets researchers is summarized by Bontis (2000) in Table 2.2. Table 2.2 Purpose of intangible model In Table 2.1 and Table 2.2, there are the intangible elements correspond in each study. Wingren (2004) proposed that framework the correspond to intangible assets framework presented by Sveiby (1997) and Kaplan and Norton (1992) in Figure 2.2. Wingren (2004) mentioned that the Balanced Scorecard is primarily tool for internal development and evaluating the market value of the company for long run. Bose and Thomas (2007) implemented the concept of Balanced Scorecard to a company and they claimed that the formulating of Balanced Scorecard fits the strategic interest of the organization to achieve sustainable competitive advantage. The Balanced Scorecard encapsulates the short and long-term strategies. The motivation and evaluation of employee to achieve goal in BSC is rather than using it just as a measuring tool. When intangible assets are addressed and defined, there are four practical approaches to measure the intangible assets (Luthy, 1998): 1. Direct Intellectual Capital Method (DIC) Estimate the value of intangible assets by identifying its various components. Once these components are identified, they can be directly evaluated, either individually or as an aggregated coefficient. 2. Market Capitalization Method (MCM) Calculate the difference between a companys market capitalization and its stockholders equity as the value of the intellectual capital or intangible assets. 3. Return on Asset Method (ROA) Average pre-tax earnings of a company for a period of time are divided by the average tangible assets of the company. The result is a company ROA that is then compared with its industry average. The difference is multiplied by the companys average tangible assets to calculate an average annual earning from the intangibles. Dividing the above value of average earnings by the companys average cost of capital or an interest rate once can provide an estimate of the value of its intangible assets or intellectual capital. 4. Balanced Scorecard Method (BSC) The various components of intangible assets or intellectual capitals are identified and indicated. Indices are generated and reported in scorecards or graphs. Wingren (2004) has chosen to use the BSC concept because BSC contains outcome measures and the performance driver of outcomes, linked together in cause-effect relationships. There are linkages between customer, internal process and learning/growth with financial performance. The financial performance is the outcome and visible to the observers. 2.3 Intangible Assets in Balanced Scorecard Among the above four approaches, the Balanced Scorecard is by far the most well-known, although its original intent was not meant to be the measure for intangible assets, as discussed by Marr and Adams (2004) and Mouritsen et al. (2005). The Balanced Scorecard may be used to measure all the intangible assets in Table 2.1. Bose and Thomas (2007) recently applied the Balanced Scorecard in an empirical study of the Foster Brewing Group. The formulating of a scorecard that best fits the strategic interest of the organization is considered vital. In their view, the Balanced Scorecard is never really complete because the business environment (new competitors, changing customer demand, etc.) is dynamic and constantly evolving. As is already well-known, the Balanced Scorecard was introduced by Kaplan and Norton (1992) as a tool to link financial performance with non-financial performance dimensions: learning and growth, internal process and customer perspectives. Linkages and relationships between customers, internal process and learning/growth with financial performance are shown in Figure 2.3. The Balanced Scorecard acts as a measurement system, a strategic management system, and a communication tool. Seggie et al. (2007) made an argument for the Balanced Scorecard to be the measurement tool in marketing to measure non-financial assets and provide the organization with a long-term perspective. The Balanced Scorecard is at least partially forward-looking and partially geared toward the long-term performance of the firm. The Balanced Scorecard concept has been examined the performance measurement of bonus plan in major financial services firm. Ittner et al. (2003) recommended that the future research on Bal anced Scorecard adoption and performance consequences must move to encompass the entire implementation process. . The concept of cause-effect relationship separates the Balanced Scorecard from other performance management systems. The measures appearing on the scorecard should be linked together in a series of cause-effect relationships to tell the organizations strategic story. Increasing promotional expenses will lead to the increase in brand value. Increased brand value will lead to higher sales revenue The investment of human capital will create the continuous learning and growth in the organization. When the employees have more experience and knowledge, they can create the internal process which serves and fulfills customer satisfaction. The profit and revenue are the final outcomes of this causal chain. Heskett et al. (1994) explained that the linkage of the above model that investment in employee training leads to improvement in service quality. Better service quality lead to higher customer satisfaction. Higher customer satisfaction leads to increased customer loyalty. Increased customer loyalty generates increased revenues and margins. The following are five principles of successful Balanced Scorecard users (Kaplan and Norton, 2004): 1. Mobilize change through executive leadership 2. Translate the strategy into operational term 3. Align the organization to the strategy 4. Make strategy everyones job 5. Make strategy a continual process Intangible assets can be considered very much part of the Balanced Scorecard. Intangible assets are linked mainly to the marketing and human resources. Following is the review of intangible assets in Balanced Scorecard by Kaplan and Norton (1992) and intangible asset monitored by Sveiby (1997) are reviewed. By using the categories developed by Hall (1993), Sveiby (1997), Shaikh (2004) and Roos et al. (1997) reviewed and classified the intangible assets into a framework of internal structure, external structure, and employee competence as shown in Table 2.3. Table 2.3 Framework of intellectual capital/ intangible assets indicators From the above table, the intangible assets are reviewed as follows. 1. Learning and Growth The learning and growth is the capacity of employee to act in a wide variety of situations. Employee is the most valuable asset of the company in the highly competitive market. It is the one asset that creates uniqueness to the company and differentiates the company from the competitors. Sveiby (1997) emphasized employee capability as a key asset for organization growth. Employee satisfaction refers primarily to job and what employees perceive as offerings. Employee satisfaction is positively related to organizational commitment. There are several studies mentioned that human resource is effect to business performance. Huselid (1999) and Hand (1998) have reported the existence of a positive and significant relationship between investments in human resources and the market value of companies. Huselid and Becker (1997) found that there is a strongly positive relationship between a high performance human resource systems and firm performance. Bontis et al. (2000) found that human capita l had positive effect on customer retention and loyalty regardless of industry type. Hitt et al. (2001) and Hurwitz et al. (2002) found that human capital has a positive effect on performance. Also, human capital is shown to have moderate cause-effect relationships with strategy and firm performance. Moon and Kym (2006) confirmed that human capital, structural capital and relational capital have direct impact on intellectual capital. Liu and Tsai (2007) surveyed 560 managers from major Taiwanese hi-tech companies and found that knowledge management has a positive effect on operating performance. Lin and Kuo(2007) also investigated that human resource management influences operational performance indirectly through organizational learning and knowledge management capability. Knowledge is one of learning and growth perspective. In knowledge era, the knowledge management has been widely studies. The knowledge is lost by the organization when the employees leave the firm (Ordonez de Pablos, 2004). McKeen et al.(2006) founded that knowledge management was positive significant to overall organization performance (product leadership, customer intimacy and operational excellence) which is part of internal and customer perspectives in Balanced Scorecard. Organization performance was significant to financial performance. There was no significant direct relationship between knowledge management and financial performance. The knowledge sharing is a key issue in order to enhance the innovation capability that is one of internal process (Saenz et al., 2009). There is also the linkage of learning and growth and internal process. Forcadell and Guadamillas (2002) studies a firm used knowledge management to develop a process of continuous innovation which is in the inter nal business process perspective. 2. Internal Process The internal process includes patents, concepts, models, information technology systems, administrative systems and organizational culture (Aaker, 1991). Such leading companies as GE, Sony, IBM, or Ford used to cover a wide variety of products, but after finding that they could not sustain all product lines, they switched to selective products, while improving the intangible factors, quality and innovation. Deng et al. (1999) suggested that patent attributes are statistically associated with stock return and market to book ratio. Research and Development is one of intangible assets which is the most importance performance. Chu et al. (2008) founded that the valuation of assets and long-term focused in operation of US ICs firms are higher than the firms in Taiwan. 3. External Structure The external structure includes relationship with customers and suppliers. The Balanced Scorecard is concerned only customer value proposition, but the external structure covers supplier. The external structure also encompasses brand-names, customer loyalty, customer satisfaction and the companys reputation or goodwill. In the brand valuation terminology, brand is a large bundle of trademarks and associated intellectual property rights. Cravens and Guilding (1999) reported that brand valuation is one of the most effective means for business to bring accounting and marketing closer for the purpose of strategic brand management and effective means of communication between marketing and accounting. A branded business valuation is based on a discounted cash flow analysis of future earnings for that business discounted at the appropriate cost of capital. The value of the brand business is made up of a number of tangible and intangible assets. There are 2 brand evaluation models 1) research-based approaches measure consumer behavior and attitudes that have an impact on the economic performance of brands. No financial value on brands is in this model 2) purely financially driven approaches. Relationship Between Learning and Growth in Business Relationship Between Learning and Growth in Business Introduction The introductory chapter begins with a description of the context of the present study and a presentation of the fundamental issue addressed in this empirical investigation. The significance of intangible assets in knowledge era, objectives, conceptual framework and contribution value of this study is also addressed in this chapter. 1.1 Research Context This section presents the broad context within which this empirical investigation is undertaken. The current problems and significance of intangible assets in knowledge era are explained. Traditionally, profit and loss figures in the balance sheet and annual financial reports are used as the main financial performance indicators for the action previously taken monitoring and crafting short term strategies. Accounting for intangible assets starts with documenting the various categories of expenses. Profit (or loss) is derived from the financial difference between sales revenue and operating cost. The costs include the expenses in brand building, customer database, training, product development, information technology, etc. These are usually treated as part of the operating cost and marketing expenses. The investment of tangible assets such as equipment, machinery, building, etc. is also recorded in balance sheet. This simple accounting record mechanism is no longer sufficient in the knowledge based economy. There is no linkage with long term strategies to compete with global competitors and survive in dynamic economic. Since an increasing share of market value in this era is not represented by inventory or physical assets. Investments in intangible assets are usually not documented in a proper systematic manner because of data non-availability. Consequently, reasonable estimates of the future performance potential of an organization could not be provided to the management. It is intriguing to note that the cause-effect relationships between marketing, production and human resource and financial performance have not so far been made operational. Prior to the knowledge era, business lived in the world of tangibles, which worked well with the traditional accounting practices. However, things are different in todays world of intangibles. Modern management style and strategic crafting have adapted in response to global competition and volatile economic environment. The industrial age management has been replaced by the knowledge age leadership, with corresponding transformational effects on the economy and workplace (Figure 1.1). The focus on tangible assets in the industrial age has shifted to intangible assets in the knowledge age. This paradigm shift encourages organizational employees to utilize their knowledge in line with organizational goals. Globalization is the main driver of knowledge economy. Toffler (1990) proposed knowledge as the key success factor in the present competition. Knowledge can be transferred by information flow from manufacturers to customers. Organization knowledge could be frequently managed by well- organized people in organization. Knowledge and information technology form an important part of intangible assets. With the realization of this paradigm shift, issues concerning intangible assets are now more widely researched and practiced. Figure 1.1 The shift in management style from industrial age to the knowledge age Intangible assets are of increasing importance for the corporate value creation  processes of all kinds of organizations. In 1978, intangible assets were determined to constitute only 5% of all assets, while they become 78% of all assets today. Some 50 to 90 percent of the value created by a firm in todays economy is estimated to come from the management of the firms intellectual capital rather than from the use and production of material goods (Guthrie and Yongvanich, 2004). Some public and private sector organizations do not attempt to incorporate the value of intangible assets. Sonnier et al. (2007) examined 150 high technology companies and found that management may want to reduce the level of disclosure to conceal sensitive strategic information in order to maintain a competitive advantage. As such, management reporting and financial statements will become increasingly irrelevant as a tool supporting meaningful decision making. Forward-thinking management has to ensure that in tangible assets are identified, monitored, built and leveraged. Financial profit alone could not guarantee the long term survival of companies. To be sustainable, companies need to understand and be able to manage intangible factors, including organizational learning and growth, internal process and external structure. Management that aspires for sustainable business growth and industrial leadership in the twenty-first century has to focus on superior management skills and knowledge under limited resources. Augier and Teece (2005) and Johanson (2005) reported that human capital, knowledge and other intangible assets have emerged as key to business performance in the economic systems. The intangible assets are the competitive edge over competitors. Srivastava et al. (1998) suggested the framework linking market-based assets to shareholder value which could be considered as the subset of present study. The market investment in brand and customer-profile databases leads to cash flows via a combination of price and share premiums, faster market penetration, reduced distribution, sales and service costs, and increased loyalty and retention. Brands are economic assets which are to create value shareholders and develop competitive advantage (Doyle, 2001). During the last three decades, brand is widely recognized as playing the key role in business. Brands influence customer choice, but the influence varies depending on the market in which the brand operates. Ittner (2008) suggested several pre vious studies that provided at least some evidence that intangible asset measurement is associated with higher performance. Several previous studies are limited by over-reliance on perceptual satisfaction or outcome variables, inadequate controls for contingency factors, simple variables for capturing complex measurement practices, and the lack of data implementation practice. In this study, the Balanced Scorecard strategy map (Kaplan and Norton, 2004) is chosen to provide a framework to illustrate how strategy links intangible assets to value creating processes. The reasons for choosing Balanced Scorecard as the stage to build the framework for the present research are as follows: First, Balanced Scorecard is a practical approach to measure the intangible assets that has been widely used in a variety of organizations over the past two decades. Second, through the strategy map concept, Balanced Scorecard provides the linkage the relationship between intangible assets and business performance including the interrelationship between intangible assets elements: 1) Learning and growth affect internal process 2) Internal process affects external structure 3) External structure affects business performance. The measures in the four perspectives are linked together by cause-effect relationships. The company builds the core competence and training to support the i nternal process. The internal process creates and delivers the customer value proposition. When the customers are satisfied, the sales and profit are delivered in terms of financial performance which is the key measure of business performance. 1.2 Research Objectives Since developed economies have become knowledge-based and technology intensive, view of the firm has significantly changed and intangible assets have become fundamental determinants of value and control. There are three fundamental elements of intangible assets which are learning and growth, internal process and external structure (Sveiby, 1997; Kaplan and Norton, 2004). The ultimate goal of firm is to maximize the business performance (financial performance, sales performance and customer fulfillment). This study aims to establish empirically the cause-effect relationship between learning and growth, internal process, external structure and business performance, including the interrelationships between the elements leading to business performance. 1.3 Expected Contributions of the Study There are two key areas of expected outcomes of the study. First, the impact of intangible assets on business performance is expected to be empirically established. In particular, the cause-effect relationship between learning and growth, internal process and external structure would be identified and analyzed. This is so that the detail underlying the relationships can be implemented in practice. Second, it is expected that the effect of business size, business sector and establishment age on the causal links between intangible assets and business performance would be established. As there are various types of firms business (service and non-service), sizes of business (large and SME), establishment age in the industry, this study would provide the pattern of cause-effect relationships between intangible assets and business performance in each business characteristic. Given the expected outcomes, the expected academic contributions of the present study would be to encourage similar studies to establish the causal links between intangible assets and business performance in other types of economies. The study would also provide the foundation for the field of intangible asset management For business practitioners, top management will benefit from the understanding of cause-effect relationship and the realization of the importance of intangible assets (learning and growth, internal business process and external structure) and business performance. With the clearer understanding, proper budget allocation and intangible assets management will be more properly focused and controlled to increase sustainable competitive advantage. The intangible assets are the strategic key to a sustainable competitive advantage and future economic profit. 1.4 Conceptual Framework During last decade years, intangible assets are widely expanded and researched. The value of intangible assets is likely to grow over time if the firm undertakes successful intangible assets management. The intangible assets in each fundamental element (learning and growth, internal process and external structure) are selected and classified as shown in Table 1.1. More detail explanation is given in Chapter 2. Table 1.1 Framework of intangible assets indicators The cause-effect relationship is covered in strategic mapping (Kaplan and Norton, 2004). There have also been several studies, e.g. Huselid and Becker (1997), Hitt et al. (2001), Liu and Tsai (2007), that examined the relationship between learning and growth and business performance as explain in more detail in Chapter 2. The main hypotheses in the present study are shown in Figure 1.2. Figure 1.2 Research hypotheses testing model H1: Learning and Growth is positively related to Internal Process H2: Internal Process is positively related to External Structure H3: External Structure is positively related to Business Performance H4: Learning and Growth is positively related to Business Performance 1.5 Outline of Methodology The research hypotheses formulated in this study were tested in the mail survey or questionnaire of registered company at the Thai Chamber of Commerce. The initial step in the analysis of the data collected focuses on examining the frequency distribution and the mean and standard deviation for each item or variable considered in this research. The next step in data analysis is to assess the validity of measures. Here the study uses item-total correlation, confirmatory factor analysis and the Cronbach alpha coefficient. The initial data analysis, and reliability and correlation analyses are performed using the SPSS statistical package. Furthermore, the structural equation modeling (SEM) EQS program (Bentler, 1995) is used to perform the confirmatory factor analysis, discriminant validity tests and testing of the structural model. The entire step-by-step model fit process from data collection by field survey questionnaires is shown in Figure 1.3. More details of research methodology ar e provided in Chapter 3. 1.6 Structure of the Thesis The thesis is structured on the basis of five chapters, which represent the different stages that are involved in the overall research process. Chapter 1 has covered the research context, current problems, purpose and expected contribution of the studies. Chapter 2 provides an extensive review of definition of intangible assets, intangible assets value and the Balanced Scorecard strategic mapping. This detail provide support to conceptual model of the study and the set of research hypotheses of the study which links learning and growth, internal process and external structure to business performance through cause-effect relationship. Chapter 3 presents the step-by-step research methodology used to conduct the study. It illustrates a range of important methodological issues including the research design, sampling, questionnaire development process, data collection and measurement of model variables. The Structural Equation Modeling (SEM) technique is briefly explained. Chapter 4 provides results of validity testing of the constructs and hypotheses of the present study by using EQS program for SEM technique and Statistical Package for Social Science (SPSS) program. Not only the results of the main research hypotheses testing model, but also other possible models are explored. Chapter 5 presents a summary of the major findings and conclusions of the study. It also suggests the long-term strategic implications of the study finding for top management. Finally, consideration is given to the limitations of this empirical investigation and suggestions are made for potential directions and strategies for future research. Literature Review This chapter reviews the definition of intangible assets and its value. The previous correlation empirical research between intangible assets and performance are reviewed. 2.1 Introduction There have been a large number of studies in intangible assets during the last two decades (see Figure 2.1). Intangible assets are involved in the customers, external structure, human resources, and internal process. The intangible assets are defined as non-financial assets without physical substance that are held for use in the production or supply of goods or services or for rental to others, or for administrative purpose (Epstein and Mirza, 2005). Intangible asset is an accounting term, but intellectual capital is a noun used in the management field. They both refer to the same thing. Therefore, Edvinsson and Malone (1997) and Tseng and Goo (2005) pointed out that intangible assets and intellectual capital are synonyms. Intangible assets are identifiable and controlled by the enterprise as a result of past events, and from which future economic benefits are expected to flow. Figure 2.1 Research development on intangible assets 2.2 Intangible Asset Element Classification Several studies have variously attempted to categorize intangible assets as summarized in Table 2.1. Some categorizations are in more common use than others. Table 2.1 Approaches for the categorization of intangible assets The purpose model of the above intangible assets researchers is summarized by Bontis (2000) in Table 2.2. Table 2.2 Purpose of intangible model In Table 2.1 and Table 2.2, there are the intangible elements correspond in each study. Wingren (2004) proposed that framework the correspond to intangible assets framework presented by Sveiby (1997) and Kaplan and Norton (1992) in Figure 2.2. Wingren (2004) mentioned that the Balanced Scorecard is primarily tool for internal development and evaluating the market value of the company for long run. Bose and Thomas (2007) implemented the concept of Balanced Scorecard to a company and they claimed that the formulating of Balanced Scorecard fits the strategic interest of the organization to achieve sustainable competitive advantage. The Balanced Scorecard encapsulates the short and long-term strategies. The motivation and evaluation of employee to achieve goal in BSC is rather than using it just as a measuring tool. When intangible assets are addressed and defined, there are four practical approaches to measure the intangible assets (Luthy, 1998): 1. Direct Intellectual Capital Method (DIC) Estimate the value of intangible assets by identifying its various components. Once these components are identified, they can be directly evaluated, either individually or as an aggregated coefficient. 2. Market Capitalization Method (MCM) Calculate the difference between a companys market capitalization and its stockholders equity as the value of the intellectual capital or intangible assets. 3. Return on Asset Method (ROA) Average pre-tax earnings of a company for a period of time are divided by the average tangible assets of the company. The result is a company ROA that is then compared with its industry average. The difference is multiplied by the companys average tangible assets to calculate an average annual earning from the intangibles. Dividing the above value of average earnings by the companys average cost of capital or an interest rate once can provide an estimate of the value of its intangible assets or intellectual capital. 4. Balanced Scorecard Method (BSC) The various components of intangible assets or intellectual capitals are identified and indicated. Indices are generated and reported in scorecards or graphs. Wingren (2004) has chosen to use the BSC concept because BSC contains outcome measures and the performance driver of outcomes, linked together in cause-effect relationships. There are linkages between customer, internal process and learning/growth with financial performance. The financial performance is the outcome and visible to the observers. 2.3 Intangible Assets in Balanced Scorecard Among the above four approaches, the Balanced Scorecard is by far the most well-known, although its original intent was not meant to be the measure for intangible assets, as discussed by Marr and Adams (2004) and Mouritsen et al. (2005). The Balanced Scorecard may be used to measure all the intangible assets in Table 2.1. Bose and Thomas (2007) recently applied the Balanced Scorecard in an empirical study of the Foster Brewing Group. The formulating of a scorecard that best fits the strategic interest of the organization is considered vital. In their view, the Balanced Scorecard is never really complete because the business environment (new competitors, changing customer demand, etc.) is dynamic and constantly evolving. As is already well-known, the Balanced Scorecard was introduced by Kaplan and Norton (1992) as a tool to link financial performance with non-financial performance dimensions: learning and growth, internal process and customer perspectives. Linkages and relationships between customers, internal process and learning/growth with financial performance are shown in Figure 2.3. The Balanced Scorecard acts as a measurement system, a strategic management system, and a communication tool. Seggie et al. (2007) made an argument for the Balanced Scorecard to be the measurement tool in marketing to measure non-financial assets and provide the organization with a long-term perspective. The Balanced Scorecard is at least partially forward-looking and partially geared toward the long-term performance of the firm. The Balanced Scorecard concept has been examined the performance measurement of bonus plan in major financial services firm. Ittner et al. (2003) recommended that the future research on Bal anced Scorecard adoption and performance consequences must move to encompass the entire implementation process. . The concept of cause-effect relationship separates the Balanced Scorecard from other performance management systems. The measures appearing on the scorecard should be linked together in a series of cause-effect relationships to tell the organizations strategic story. Increasing promotional expenses will lead to the increase in brand value. Increased brand value will lead to higher sales revenue The investment of human capital will create the continuous learning and growth in the organization. When the employees have more experience and knowledge, they can create the internal process which serves and fulfills customer satisfaction. The profit and revenue are the final outcomes of this causal chain. Heskett et al. (1994) explained that the linkage of the above model that investment in employee training leads to improvement in service quality. Better service quality lead to higher customer satisfaction. Higher customer satisfaction leads to increased customer loyalty. Increased customer loyalty generates increased revenues and margins. The following are five principles of successful Balanced Scorecard users (Kaplan and Norton, 2004): 1. Mobilize change through executive leadership 2. Translate the strategy into operational term 3. Align the organization to the strategy 4. Make strategy everyones job 5. Make strategy a continual process Intangible assets can be considered very much part of the Balanced Scorecard. Intangible assets are linked mainly to the marketing and human resources. Following is the review of intangible assets in Balanced Scorecard by Kaplan and Norton (1992) and intangible asset monitored by Sveiby (1997) are reviewed. By using the categories developed by Hall (1993), Sveiby (1997), Shaikh (2004) and Roos et al. (1997) reviewed and classified the intangible assets into a framework of internal structure, external structure, and employee competence as shown in Table 2.3. Table 2.3 Framework of intellectual capital/ intangible assets indicators From the above table, the intangible assets are reviewed as follows. 1. Learning and Growth The learning and growth is the capacity of employee to act in a wide variety of situations. Employee is the most valuable asset of the company in the highly competitive market. It is the one asset that creates uniqueness to the company and differentiates the company from the competitors. Sveiby (1997) emphasized employee capability as a key asset for organization growth. Employee satisfaction refers primarily to job and what employees perceive as offerings. Employee satisfaction is positively related to organizational commitment. There are several studies mentioned that human resource is effect to business performance. Huselid (1999) and Hand (1998) have reported the existence of a positive and significant relationship between investments in human resources and the market value of companies. Huselid and Becker (1997) found that there is a strongly positive relationship between a high performance human resource systems and firm performance. Bontis et al. (2000) found that human capita l had positive effect on customer retention and loyalty regardless of industry type. Hitt et al. (2001) and Hurwitz et al. (2002) found that human capital has a positive effect on performance. Also, human capital is shown to have moderate cause-effect relationships with strategy and firm performance. Moon and Kym (2006) confirmed that human capital, structural capital and relational capital have direct impact on intellectual capital. Liu and Tsai (2007) surveyed 560 managers from major Taiwanese hi-tech companies and found that knowledge management has a positive effect on operating performance. Lin and Kuo(2007) also investigated that human resource management influences operational performance indirectly through organizational learning and knowledge management capability. Knowledge is one of learning and growth perspective. In knowledge era, the knowledge management has been widely studies. The knowledge is lost by the organization when the employees leave the firm (Ordonez de Pablos, 2004). McKeen et al.(2006) founded that knowledge management was positive significant to overall organization performance (product leadership, customer intimacy and operational excellence) which is part of internal and customer perspectives in Balanced Scorecard. Organization performance was significant to financial performance. There was no significant direct relationship between knowledge management and financial performance. The knowledge sharing is a key issue in order to enhance the innovation capability that is one of internal process (Saenz et al., 2009). There is also the linkage of learning and growth and internal process. Forcadell and Guadamillas (2002) studies a firm used knowledge management to develop a process of continuous innovation which is in the inter nal business process perspective. 2. Internal Process The internal process includes patents, concepts, models, information technology systems, administrative systems and organizational culture (Aaker, 1991). Such leading companies as GE, Sony, IBM, or Ford used to cover a wide variety of products, but after finding that they could not sustain all product lines, they switched to selective products, while improving the intangible factors, quality and innovation. Deng et al. (1999) suggested that patent attributes are statistically associated with stock return and market to book ratio. Research and Development is one of intangible assets which is the most importance performance. Chu et al. (2008) founded that the valuation of assets and long-term focused in operation of US ICs firms are higher than the firms in Taiwan. 3. External Structure The external structure includes relationship with customers and suppliers. The Balanced Scorecard is concerned only customer value proposition, but the external structure covers supplier. The external structure also encompasses brand-names, customer loyalty, customer satisfaction and the companys reputation or goodwill. In the brand valuation terminology, brand is a large bundle of trademarks and associated intellectual property rights. Cravens and Guilding (1999) reported that brand valuation is one of the most effective means for business to bring accounting and marketing closer for the purpose of strategic brand management and effective means of communication between marketing and accounting. A branded business valuation is based on a discounted cash flow analysis of future earnings for that business discounted at the appropriate cost of capital. The value of the brand business is made up of a number of tangible and intangible assets. There are 2 brand evaluation models 1) research-based approaches measure consumer behavior and attitudes that have an impact on the economic performance of brands. No financial value on brands is in this model 2) purely financially driven approaches.