Free Essay

Budgeting with American Lives

In:

Submitted By SMOKE
Words 4292
Pages 18
“Many soldiers are led to faulty ideas of war by knowing too much about too little” (1944). “Americans love a winner and will not tolerate a loser. Americans play to win all the time. I wouldn’t give a hoot in Hell for a man who lost and laughed. That’s why Americans have never lost and will never lose a war. Because the very thought of losing is hateful to Americans. Now an army is a team. It lives, eats, sleeps and fights as a team. This individuality stuff is a bunch of crap. The Bilious bastards who wrote that stuff about individuality for the Saturday Evening Post, don’t know anything more about real battle than they do about fornicating” (1944). Part-time Warriors, Weekend Warriors, An Army of One? None of these notions would seem to pass the common sense test of General George S. Patton. Soldiers go to battle, not citizens. The idea that a soldier who has wholely commited his life and foresaken his personal freedom to the idea that he will spend each and every waking moment engaged in the pursuit of the defense of democracy by the means directed by the leaders of America appointed by the people of our nation, can be compaired to phrases such as; Part-time Warriors, Weekend Warriors, An Army of One is not only absurd but an outrage. Military service is not an occupation. It is a way of life. To give Reserve Soldiers the overwhelming responsibity of achieving the same level of proficiency as a Regular Army Soldier given a measly six weeks a year of preparation and training is not only irresponsible but criminal.
The history of the Reserve Army dates back to August 23, 1908 with the passing of Senate Bill 1424 (Brown 2008). The Reserve force was a Medical Corps and the first reserve force until 1912 when the Army Appropriations Act of 1912 allowed for Regular Army Reserve force (1913). The plan was to be a “constructive application to modern American conditions” (1913) as it should have been and should be today. At the onset of such a force we knew that the conditions of the time would dictate the force needed and the method in which it would and could be deployed. The plan called for Regular Army Reserves, Unorganized Reserves, Special Reserves and Reserves for citizen soldiery. Among other details and committee recommendations was the Council of National Defense which was to include the President of the United States, the Secretary of State, Secretary of War and the Secretary of the Navy; the Senate Appropriations committee chairman; foreign, military and naval affairs representatives; the House of Representatives also had the Appropriations committee chairman; foreign, military and naval affairs representatives; along with the Chief of general staff of the Army; an officer of the Navy, the president of the War college and the Navy college (1913). The meer magnitude of representation outlines the importance of such a decision in our military history. These decisions were not come by lightly nor were they measured by an evaluation of a period of conditions from a hundred years previous. The Reserve force had the frame work to be a force capable of maintaining a minimal level of military comprehension and an ability, that when faced with the neccessity to augment the size of the Regular Army, these forces would possess the basic skill sets to fulfill a gap in troop strength with adequate time to develop into a comprable force to that of their career oriented counterparts in the Regular Army. Further more the National Guard and its edict of the defense of the Union and execution of its laws, the suppression of insurrection and the ability to repell invasion prevented the use of the National Guard outside the continental United States in time of war or threatening periods. In 1913 the demand on the Regular Army force was high with trouble brewing in the Phillipines and a need for a substantial force in Panama with the progess of the Panamal canal.
The military force was faced with change. A significant change in structure and the leadership dynamic that was met with resistance and led to the removal of Major General Ainsworth from his post as Adjutant General of the United States, by the Secretary of War, Mr Stimson. Who took a more centralized approach to the execution of the changes in the force structure of the period not to mention the personal history of conflicts between the two men. The original intent of using the Army Reserve force as a medical force was exceptionally successful leading into World War I the reserve force had over 21,000 officers and some 35,000 enlisted. In fact the reserve doctor force was greater than the Regular Army force and the reserve nurses numbered almost half of the regular Army nurses (2011 ). From the onset of the design of the Army Reserve, to the present day conflicts facing our nation. The role of the Army Reserve has changed in purpose, design and employment. The major concerns however have been overridden by the neccessity to meet budgeting bottom lines. The use of the Army Reserve today is not the same in effect or importance as it was a century ago. Given the advances in technology and modern warfare; the additions of tactical techniques and advanced robotic machines, there simply is no way possible for a force of soldiers who have a tenth of the training, experience and knowledge of the fighting principles and practices of the twenty first centry battlefield, to adequately compare to the career soldier.
Admirably a large number of Army Reservists stepped forward and offered to serve immediately after the attacks on the World Trade Center and the Pentagon (2008). The Army Reserve orginally planned for several purposes and branches in 1913 was not planning for such an event or for the use of the reserve force in the method in which the force is being used in today’s fight against terrorism. The design of the reserve force has a structure of training that does not give it the strategy it needs to meet the demands it is being asked to do. There quite simply is not enough organizational learning being conducted within the standard Army Reserve force to augment the Regular Army forces as they complete assignments on the battlefield and are relieved to recover and reconstitute from periods of deployment in battle. The typical Army Reserve unit conducts training two days a month and an additional fourteen days consecutively a year. That equates to a total of thirtyeight days of what most certainly should be high intensity, high impact training emphasizing military occupational specialty development and execution, as well as the most current and pertanent tactics, techniques and procedures being employed on the battlefield. There are several ways that the Army Reserve force can improve their knowledge of their part-time employment specialties. Utilizing Army Reserve forces in fields that are directly related to civilian fields is the method General Abrams used in Vietnam era (2004). Essentially reducing the combat support and combat service support forces of the Regular Army and using the Army Reserve forces in fields like engineering, supply, maintenance and medicine General Abrams reduced the troop strength and prevented an increase in troop size by the President who wanted to do so without the approval of Congress. He essentially hobled the Presidents design to bypass Congressional approval by eliminating the Regular Army’s ability to support itself. Today the Army Reserve is still primarily a combat support and combat service support organization that is utilizing mimicry of its Regular Army counterparts to assist their actions on the battlefield. By the process of forced exposure these units are now gaining experience not through well planned, financed and supported training but through trial and error. In the battle field environment, trial and error is not the preffered method of learning for any military force. Both Regular Army and Army Reserve units are utilizing grafting and scanning techniques to improve their unit success potential.
In the Vietnam war General Creighton Abrams assumed the command of the war from General William C. Westmoreland (Birtle 2008). General Abrams envisioned the Army Reserve force as a force that could perform the support roles for the Army with reserve soldiers that did similar jobs in their communities on a daily basis. That being, an accountant for a maketing firm could join the reserves as an accountant for the Army Reserves. This would minimalize the amount of training the individual needed in his career specialty and allow for minimal annual training on behalf of the Army Reserves. In theory the concept seemed to be a sound one. However, today that accountant is a Army Reservist with an occupational specialty in logistics. To make matters further from the specificity principal that should have eliminated the need for an intense training cycle on military specialty development. Today’s battle field is not a cold war era, linear battle field with a line in the sand that delinneates between friendly forces and the enemy. In reality the battle field of today has the enemy living among the soldiers in battle and in many cases working for our side. The antiquated idea that combat support and combat service support forces don’t see very much enemy contact is quite simply, wrong. Today there is no difference between the need for combat skills ability of an infantryman and a cook. There isn’t a difference in the need for a tanker to be able to use his side arm and a female to be able to close with and kill the enemy.
The combat environement has changed drastically since the inception of the Army Reserve and so has its mission:
The Army Reserve’s mission, undert Title 10 of the U.S. code, is to provide trained, equipped, and ready Soldiers and cohesive units to meet the global requirements across the full spectrum of operations. The Army Reserve is a key element in The Army multi-component unit force, training with Active and National Guard units to ensure all three components work as a fully integrated team.
• Enabling the Army to do more with fewer resources, by providing a flexible, will-trained, complementary force that can expand and contract to meet the specific needs and challenges of each new mission.
• Training Soldiers at the highets possible level in one of nearly 200 specific skills in order to support the Army on any air, land or sea mission.
• Maintaining a force that can mobilize rapidly and skillfully at any moment to respond to a crisis or situation, or to defend America’s interests at home and abroad.
• Building a stronger Army by drawing on the strength, support and success of all the diverse backgrounds and communities across America represented by the Soldiers in the Army Reserve.
• Anticipating the ever-evovling needs of today’s modern Army and helping it transform into a smaller, faster, stronger force wile continuing to protect the nation’s interests.
• Implementing national objectives.
• Keeping the Army mobile, efficient and complete by providing specialized technological and troop support when and where it’s needed most.
• Supporting national policies.
• Preserving the peace and security, and providing for the defense of the United Stated, the Territories, Commonwealths and Possessions, and any areas occupied by the United States.
• Overcoming aggressive acts from nations and terroriest groups that imperil the peace and security of the United States.
• Giving back to the community by providing civil support, i.e. food, shelter, safe drinking wated and medical attention to our citizens during emergenies and natural disasters. (AR)
This modernization of warfighting has seen a change in strategic context and effectiveness which is changing the definition of military service as the role and mission of the Army evolves (2007). What isn’t changing with all the advancements in technology and leadership understanding is the comprehension of the need to prepare the Reserve force adequately enough to perform to standard. U.S. Code Title 10 states the purpose of the Reserve force is:
The purpose of each reserve component is to provide trained units and qualified persons available for active duty in the armed forces, in time of war or national emergency, and at such other times as the national security may require, to fill the needs of the armed forces whenever more units and persons are needed than are in the regular components (Cornell). The facts are clear, that in order to have a force capable of performing any task deemed needed, the Army must have a force in size that can fulfill that need but not when the need is not immediately at hand. Therefore a reserve force willing to perform the tasks of career soldiers with a tenth of the training and experience possed by the Regular Army force. The transformation is not working nor is the message getting from the executive level management down to the forces. The employee level and first to mid level management do not believe in the efficiency being projected or the promoted results of the success in the current and most recent conflicts. It would seem, that the process is using the significantly reduced numbers of fatalities as a measure for success in the implementation of the use of the Army Reserve force. This assessment ideology is not only deceiving but it is completely wrong. Advancements in technology and equipment are the primary factors for the drastic reductions in combat fatalities coupled with medical advancements in an array of trauma areas. Suffice it to say, the numbers do not tell the truth about the combat readiness and the capability of our Army Reserve force. In a pole fifty personnel, twenty five Regular Army and twenty five Army Reservists, the facts of just how far off the message is from the executive level leadership and the reality being experienced by the employee level depicts a completely different picture. In fact, given just five questions comparing Regular Army and Army Reservists the numbers here speak volumes about the five categories identified in this survey. The categories are training, proficiency, professionalism, management survivability. It would appear that Army Reserve soldiers believe their Regular Army counterpart are better trained with a score of 4.56 out of 5 when asked on a scale of 1 to 5 with 1 being strongly disagree, 2 being disagree, 3 being not sure, 4 being agree and 5 being strongly agree, are Regular Army forces trained adequately enough to face any conflict in the modern world today both foreign and domestic? That same question given to Regular Army soldiers resulted in a score of 4.64, a variance of just .08 in the Regular Army’s personal evaluation. When supplementing the target of the question with the Army Reserve the results are astonishing. The Army Reserve soldiers believe their training efficiency to be a 2.88 where the Regular Army thinks the Army Reserve training scores a 1.72. That’s a discrepancy of .16 but the bigger picture here is the idea that the Army Reserve forces do not believe they are capable of performing the required tasks due to the lack of preparation. Furthermore, the Regular Army soldiers think even less of the training quality the Army Reserve soldiers receive. This is a depiction of system breakdown. The mission statement of the Army Reserve simply does not meet the basic designs of making the mission statement short, linking highly desirable and socially appealing goals to the focus of the unit, and stating the contributions intended (2010 ). The goals are unrealistic and therefore not transfering to the targeted employees. In a hierarchical division of labor such as that of the Army Reserve, which is by design organized by vertical specialization. The transfer of information gets muted and losses its meaning. The ability for soldiers to get the message back up the breadth of the organization is as difficult if not more so than getting the message down to them. During the survey the same group of soldiers was asked; If Regular Army soldiers are proficient in the use of their personal equipment, vehicles and weapons? As in the case of training, the numbers indicate that Army Reserve soldiers believe that Regular Army soldiers are proficient in the use of their equipment, they are competent in maintaining and using their vehicles and are skilled in the use of their weapons scoring a 4.36 out of a perfect 5. The Regular Army soldiers self assessment resulted in a 4.20 revealing a disparity of .16. This would indicate that both Army Reserve soldiers and Regular Army soldiers value the amount of exposure Regular Army soldiers have with their equipment and the experience they gain from hands on employment of those tools on a daily basis. Whereas the lack of experience for Army Reserve soldiers is depicted in the 2.8 score in proficiency and supported in the 2.0 score given the Army Reserve by the Regular Army soldiers. Here we have a picture developing that says the Army Reserve soldiers do not feel they get enough training nor are they comfortable with the knowledge they possess of the equipment they are asked used. In comparison to the Army Reserve mission statement, these two categories alone preclude the fulfillment of any goal set forth by the executives of the organization. The third category of the survey is an evaluation of the general acceptance of Army beliefs, values and norms. In interpreting and assimilating to the ideology of service, a soldier indoctrinates his acceptance of these concepts into his own character. This process gives the soldier a sense of membership with the organization and ownership of its practices and principles. In the self assessing of themselves the Army Reserve soldiers evaluated their professionalism at 3.44, the highest category score for the Army Reserve soldiers of the five categories. The Regular Army soldiers viewed the Army Reserve soldiers at a 1.92 in professionalism scoring the highest difference in the survey at 1.52. In this case the impression of assimilation is in direct reflection of the ability for Army Reserve soldiers to give themselves to the organization and believe in the concepts and ideas they are being given by the executives. The problem with the mission statement of the Army Reserve is not just the confusing goals and miscommunication of those goals but the fact that the employees do not believe in the organizations principles. Management is the fourth category of the survey that asks the question: Is the Regular Army managed well through performance, promotions, schools and assignments in a way that meets mission needs? Army Reserve soldiers using a varied system in these areas than that of Regular Army soldiers, had a score of 2.88 for the Army Reserve but felt that Regular Army did a better job of managing their soldier’s careers with a score of 4.28. The Regular Army soldiers presented data scores of 1.92 and 4.08 respectively for Army Reserves and Regular Army. Again these results show a lack of confidence in the Army Reserve system and its leadership by the Army Reserve soldiers and that the Regular Army soldiers do not value or give much merit to the Army Reserve education system and promotion system. Given that Army Reserve soldiers attend Regular Army schools in some cases and in other cases they attend short versions so as to not exceed their annual requirements for training, it stands to reason that soldiers who attend a school designed for a purpose would expect all others fulfilling that purpose to attend the school in the same manner. The fifth and final survey question poses the most revealing and significant question of all: If you were deploying to combat today, would you have full confidence in the successful accomplishment of the mission and survival if deploying with a Regular Army unit? The results of this survey question detail the need for change in practices and procedure for the Army Reserve. It is not surprising to think that Regular Army soldiers would have little to no confidence in the Army Reserve forces in this scenario. Regular Army forces evaluated the Army Reserve with a score of 1.92 and a self evaluation of 4.60 while the Army Reserve soldiers rated the Regular Army with a higher vote of confidence scoring 4.72 and a self assessment of 2.68. To think we send soldiers into combat with the honest belief that they don’t think they are going to survive or even have a great chance of survival with the soldiers they are with is wrong. This survey proves that not only are the leaders of the Army Reserve and Department of the Army not getting the message from the employees of the Army Reserve but that they are allowing such things as defense spending budget cuts to determine whether or not a Army Reserve soldier is ready to overlook that 90% preparedness differential between himself and the Regular Army soldier he is going to replace. In a time period where senior leaders of the Army are persecuted for following the instructions of the civilians appointed over them, it would seem America needs another soldier of moral courage and ethical fortitude like General Abrams, the leader who would not just nod his head and acknowledge defeat if he knows it is not the right thing to do. Perhaps we could even use another shoot them in the belly and continue to attack General like George S. Patton who did not let the barriers of twenty five levels management stand in the way of getting down to the place where the rubber meets the road and giving the employee base the idea of what is to come straight from his mouth, face to face. Without question there must be something done to modernize a force we have depended on so heavily for the past millennium plus years and yet come to neglect and dispel as inept and inefficient. The Army Reserve force has a long and illustrious history of supporting our nation in its time of need. With a change in training requirements that could be supported through Congress, this deficiency could be corrected and improve every category evaluated as derelict in this survey. By increasing the annual requirement to equal a 64 day training requirement increase for Army Reserve soldiers, thus reservists would then be required to conduct 104 days of annual training. This would be facilitated by conducting two weekend drills a month totally 48 days. Along with an increase in two week training requirements where Army Reserve soldiers are currently conducting one annually to a total of four training periods of two weeks consecutively for a sum of 56 days of training.
As we draw near the conclusion of our current conflict in the Middle East we must learn from the lessons of our history that a reduction in defense spending is the catalyst to the conclusion to tactical operations. This conclusion is followed by a reduction in troop strength of Regular Army forces, where the reliance on a strong and ready Army Reserve force is greatest. However, this is also the time period where proficiency across the force is reduced and experience is diminished through natural attrition of retirement or separation. Within a decade or less, our nation will again be forced to exert our beliefs of freedom and liberty through a show of force and resolve. In our effort to move forward and advance the Regular Army forces with technology and machinery, individualization and education, we have forgotten to consider the force that stands in waiting for the balloon to go up and the call to arms to go out. They drop their careers and leave their love ones to answer the call. They deserve the same consideration of preparedness, training and education as the forces they are asked to augment and or replace on the battlefield.
References
Brown, J. S. (Brown 2008). The Army Reserve at 100. Army, 58(4), 94-95. Retrieved from EBSCO host.
National Guard/Reserve Report. (2008). Army, 58(4), 88-89. Retrieved from EBSCO host.
Pullen, R. (2001). Army Reserve responds to terrorist attacks. Army Reserve Magazine, 47(3), 6. Retrieved from EBSCO host.
Birtle, A. J. (Birtle 2008). PROVN, Westmoreland, and the Historians: A Reappraisal. Journal of Military History, 72(4), 1213-1247. Retrieved from EBSCO host
Tomes, Robert R. (2007). US Defense Strategy From Vietnam to Operation Iraqi Freedom: Military Innovation and the New American Way of War, 1973- 2003. London, New York Taylor & Francis Routledge. Retrieved from Net Library

Schermerhorn, J, Hunt, J, Osborn, R, & Bien, M. (2010). Organizational behavior. Hoboken, NJ: John Wiley And Sons Bibliography
General Patton Jr., George S., (1944). The Speech of June 5, 1944. England, Retrieved January 21, 2011, from: http://www.pattonhq.com/speech.html

Colby, Frank Moore M.A., (1913). The New international year book: a compendium of the world’s progress. New York, Dodd, Mead & Company. Retrieved February 2, 2011.

Creighton W. Abrams, (2004). Encyclopedia of World Biography. Retrieved February 20, 2011 from: Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3404700034.html Global Security, (2011). Retrieved February 8, 2011 from: http://www.globalsecurity.org/military/agency/army/usar-history.htm

Army Reserve, (AR). The Mission of the Army Reserve. Retrieved February 13, 2011 from: http://www.usar.army.mil/arweb/mission/Pages/default.aspx

Cornell University Law School, (Cornell). U.S. Code Title 10. Legal Information Institute. Retrieved February 18, 2011 from: http://www.law.cornell.edu/uscode/uscode10/usc_sec_10_00010102----000-.html

Appendix A
Survey Questions

Appendix B
Army Reserve Survey Results

Appendix C
Regular Army Survey

Similar Documents

Premium Essay

Business

...Venture Budgeting and Forecasting Many Americans live with self-care disabilities. The Americans who chose to remain home is increasing as the cost of assisted living facilities increases. The decision to remain in home stimulates from the increasing cost of assisted living facilities as well as the ease of remaining in a familiar environment. Though the decision brings challenges, many Americans chose to seek in-home assisted living services. As the demand for assisted living requirements increases it is evident that there is a consumer need and a business opportunity to meet the needs of those consumers, (US Census Bureau, 2006). Despite how excellent of an idea or opportunity, there is a cost to start a business. Because the agency will conduct business in the comfort of the client’s home; the cost for start-up is minimal for the agency and the main concerns that require start-up capital consists of marketing, labor, website construction, insurance, office technology. After researching the average cost of opening an assisted living and personal care agency, the idea became clearer and more feasible financially as well as profitable. The first step in opening the agency consists of acquiring a business line for an in-home office. The business line is solely for the business of Under One Roof, and the cost for setting up a line is $150. The agency will need a separate computer, printer, and software for management in the effort to maintain financial and personal records...

Words: 403 - Pages: 2

Premium Essay

Young Adults

...face today. The specific purpose is to persuade young adults to make better choices in life. Because of the challenges young adults face today; I feel that you adults have to better them by learning from their mistakes and the mistakes our elders has made. Introduction How many young adults will like higher paying jobs? One of the challenges young adults face today is education. Young adults lack a bit of education, because I know I have. So many young adults lack career skills and knowledge. Many young adults have no clue about budgeting. In the world we live in today, we need education. A lot of young adults are 2 stereotyped so let’s prove them wrong with good education. Education may not be the key to happiness, but it definitely is the key to a lot of other things which come together to make us happy. Learning the importance of an education can help motivate you to learn and achieve great things. Body You have to have a good education to make it in life. A direct effect of education is knowledge gained...

Words: 590 - Pages: 3

Free Essay

Dear President

...important do you think civic and political participation is? I think it’s very important Mr. President, because Civic and political participation prevents decisions from being made by a few people. In my opinion participation by the masses insures greater freedom. Mr. President, I believe you are familiar with Booker T. Washington. The brave intelligent man who started a college for African Americans after the civil war. He taught African Americans how to live successfully as free people. He also promoted education for African Americans all over the country, and gave instructions in subjects like taking initiative, buying or building houses, building a competitive business, budgeting, keeping a house, all kinds of things nobody learned while in bondage. Booker T. Washington was influenced by disfranchisement and the Jim Crow discriminatory laws enacted in the post-Reconstruction Southern states in the late 19th and early 20th centuries. So tell me, why don’t we have a national holiday celebrating and honoring Booker T? Washington sir? He has done so much for African Americans like me. Thanks to him your daughters and I can go to college and get a higher education. He definitely deserves a holiday celebrating just him and his accomplishments. So, start working on making that happen Mr. President. Sincerely, Britt Ray Works Cited “Bio.” Booker T. Washington Biography, 2015. Accessed February 19, 2015 at http://www.biography.com/people/booker-t-washington-9524663 ...

Words: 257 - Pages: 2

Premium Essay

Teaching Kids About Money

...services, a promise of easy financing, and the "Hollywood" spin on the advertisements all make spending hard to resist. Understandably an individual's attitudes, behaviors, and decisions ultimately affect their financial and social well-being; parents need to take responsibility for providing early instruction on financial literacy and responsibility. Because of gross overconsumption, student loans, and a lack of adequate parental guidance on financial literacy; children are facing a lifetime of debt and little to no understanding of how to handle it. Overconsumption Americans have made some progress, since the financial crisis of 2008, which is considered, by some economists, to be the worst since the great depression (Haverman, 2008). Debt is still nearly double than that of 1989 (Editorial Board, 2015) and private debt overshadows government debt by one hundred and fifty percent (Nutting, 2014). American debt is in part due to overconsumption. Our parents were largely one income families. They lived in modest homes, most drove one car and had minimal educations. Today’s upper class is constantly getting bigger and better homes and cars, and taking lavish vacations, and a strong desire for those amenities has driven some in the middle class to incur unreasonably high debt. Thomas Naylor, a professor emeritus of economics at Duke University, believes that a marketing sway of consumer goods and services have a part in this out of hand behavior as well (Billitteri, 2010)...

Words: 1366 - Pages: 6

Premium Essay

Typical Minimum Wage Workers

...I completely agree that not all minimum wage workers come from a poor house hold. In a article called "Typical Minimum-Wage Earners Aren't Poor, But They're Not Quite Middle Class" it says, "Close to half a million minimum-wage earners are in households with six-figure incomes, and a million more are in those that earn at least $60,000" (Casselman pg. 3). Casselman then goes on to say that "about 1.6 million people, or about half of all minimum-wage workers" (Cassleman pg. 2) can support there-self. So even with minimum wage being so low as some might say there are people in this world who are making it work. They are budgeting and saving what they can. Sherk even got an expert opinion form Ohio University Economist it says, "the overall Poverty...

Words: 287 - Pages: 2

Premium Essay

Healthcare

... Blekinge Institute of Technology THE IMPORTANCE OF THE PAYBACK METHOD IN CAPITAL BUDGETING DECISION. By Alaba Femi, AWOMEWE & Oludele Olawale, OGUNDELE Supervisor: Anders Hederstierna Thesis for the Master’s degree in Business Administration Fall/Spring 2008 THE IMPORTANCE OF THE PAYBACK METHOD IN CAPITAL BUDGETING DECISION. By Alaba Femi, AWOMEWE & Oludele Olawale, OGUNDELE A thesis submitted in partial fulfillment of the requirements for the degree of MBA (Master of Business Administration) Blekinge Institute of Technology 2008 Supervisor Anders Hederstierna ii Abstract Title: The importance of the Payback method in Capital budgeting decision. Authors: Alaba Femi, Awomewe and Oludele Olawale, Ogundele Supervisor: Anders Hederstierna Department: School of Management, Blekinge Institute of Technology Course: Master’s thesis in business administration, 15 credits (ECTS). Background and Problem Discussion: The capital budgeting decision has been a very typical issue in the sustenance of a company. Several companies have lost their identity or liquidated due to wrong capital budgeting decision they made at one particular time or the other. Based on these prevalent problems in industries and the effect of globalisation on industries, it is important to use effective method to analyse investment before decision is made. Capital budgeting is extremely important because the decision made involve the direction and opportunity...

Words: 17797 - Pages: 72

Free Essay

Civics - Final Project

...Name Instructor Course Date Civics - Final Project Summary An Amendment calling for mandatory military service after high school graduation should be passed to help all students be successful upon graduation. Military services should be allowed to recruit in high schools which would give high risk students an opportunity to be successful. Besides, it offers students who will not attend college a way to gain skills as well as provide an opportunity for low-income students a way to pay for college. If the government does not allow military services to help educate students about their options after graduation, it will be doing an injustice to the future generations leaving a child left behind. Make a difference in the future and someone’s life and allow the military services to recruit in high schools. There are many benefits that people take for granted daily that many would do not worry about in the military. Health care is not a topic many 18-year-olds think about because the majority are still covered by their parents to the age of 21 and sometimes further than that with the right plan (Simon and Lovrich 372). Enrolling in the military service is a feasible option to earn money, gain technical skills and training as well as leadership skill that will assist one for the rest of his or her life. One of the difficulties in getting a job fresh out of college is lack of experience consistent with the working knowledge in their field. After the compulsory military service...

Words: 1860 - Pages: 8

Premium Essay

How People Fall Into Debt

...bike using his credit card. It took Chris six months to pay the bike off and he winded up pay thirty percent of the bikes total price back just as interest. Needless to say this made Chris much more cautious about using his credit card and when he does use he pays it off as fast as he can to prevent the interest from racking up. However not everyone learns this lesson, many times the interest compounds and people can’t pay back the interest let alone the actual price of the item causing them to fall into debt, which is only made worse you buy big ticket items like cars and houses. Living outside of your means just to have nice things is also a bad habit which can lead to even more debt problems. Instead of being fiscally responsible and budgeting and purchasing items that they can afford based off their income people tend to think there income...

Words: 798 - Pages: 4

Premium Essay

Capital Budgeting

...Capital Budgeting Introduction A logical prerequisite to the analysis of investment opportunities is the creation of investment opportunities. Unlike the field of investments, where the analyst more or less takes the investment opportunity set as a given, the field of capital budgeting relies on the work of people in the areas of industrial engineering, research and development, and management information systems (among others) for the creation of investment opportunities. As such, it is important to suggest that students keep in mind the importance of creativity in this area, as well as the importance of analytical techniques. Because a project is financially sound, it must be ethically sound, right? Well . . . the question of ethical appropriateness is less frequently discussed in the context of capital budgeting than that of financial appropriateness. Consider the following simple example: The American Association of Colleges and Universities estimates that 10 percent of all college students cheat at some time during their postsecondary education careers. You might pose the ethical question of whether it would be proper for a publishing company to offer a new book How to Cheat: A User's Guide. The company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5,000 volumes in each of the following two years. The immediate printing costs for the 20,000 volumes would be $20,000. The book would sell for $7.50 per copy and...

Words: 3451 - Pages: 14

Premium Essay

Finance

...Name: Institution: Course: Date: Introduction Since there are many definitions of management accounting, this paper will stick with the definition formulated according to the American Accounting Association. It defines accounting as a process of providing both financial and non-financial to decision makers. The varying nature of business characteristics implies that also techniques used in managerial accounting for each business differ as the business grows. During start up the business rely on capital investment and budgeting techniques. A mature business relies upon quality control and cost management. Techniques used ultimately assist the business to achieve its long-term and short-term aims via efficient decision-making. The objective of this paper is to study each concept available in the accounting definition and provide a framework needed for deep understanding of aspects and issues involved in the process of accounting. The paper will have two part. The first part will look at the first aspect that is to define managerial accounting and look at its role, techniques and ethical issues facing managerial accountant. We will also highlight the role of a managerial accountant. In the second part, three topics will be covered. The three topics are; cost investment techniques, budgeting, and quality control. In the selected topics, real-world cases will be presented in relation to how they relate to managerial accounting techniques. Managerial accounting is defined as process...

Words: 2450 - Pages: 10

Premium Essay

Edward Verne Roberts Case Summary

...This sit for Civil Rights for the handicapped in was one of the longest one’s in the history of a federal building in American History, lasting 28 days. A day prior to the sit-in, Roberts gave a motivational speech to his fellow people which fueled those there with passion for what they were doing: without his speech, the sit-in may have not been as successful as it was. Their perseverance directly led to forcing the San Francisco HEW office into signing the Section 504 into...

Words: 892 - Pages: 4

Premium Essay

Capital Budgeting

...Handouts for Corporate Finance 1 Capital Budgeting Introduction A logical prerequisite to the analysis of investment opportunities is the creation of investment opportunities. Unlike the field of investments, where the analyst more or less takes the investment opportunity set as a given, the field of capital budgeting relies on the work of people in the areas of industrial engineering, research and development, and management information systems (among others) for the creation of investment opportunities. As such, it is important to suggest that students keep in mind the importance of creativity in this area, as well as the importance of analytical techniques. Because a project is financially sound, it must be ethically sound, right? Well . . . the question of ethical appropriateness is less frequently discussed in the context of capital budgeting than that of financial appropriateness. Consider the following simple example: The American Association of Colleges and Universities estimates that 10 percent of all college students cheat at some time during their postsecondary education careers. You might pose the ethical question of whether it would be proper for a publishing company to offer a new book How to Cheat: A User's Guide. The company has a cost of capital of 8% and estimates it could sell 10,000 volumes by the end of year one and 5,000 volumes in each of the following two years. The immediate printing costs for the 20,000 volumes would be $20,000. The...

Words: 3456 - Pages: 14

Free Essay

Miss

...1. Introduction The purpose of this PDP module is helping people gain the personal, academic, reflective and professional skills. In this report, I am going to reflect on what I have learnt and I need to improve. In academic area my strongest skills are note-taking, referencing and information skills. However, in presentation skills, academic writing and learning skills are the area that I still need improving. In career-related skills, I am good at self-management, adaptability and team-working. On contrary, I still need to learn how to manage time efficiently, budgeting and communication well. 2. Academic skills Three strongest skills: * Note-making. By taking e-lesson from PDP, I know how to do note-making effectively last term and keep practice during this study period. In terms of me, I need to point out the key words from the messy information and then focus and re-organize the key words to the pattern that I am familiar with. Finally, I need to revise it and concise it times and times again to make a higher and more depth understanding of my notes. After I tried again and again, I realized that I can revise quiet easy by focusing on the main parts teacher referred in class. As note-making is pretty useful, I use it almost every day and now I can make notes quickly and precisely, which plays a vital part in my university study. * Referencing Referencing, this can be seen as a basis of academic writing (Neville, C. 2012). During term two periods, we had...

Words: 2299 - Pages: 10

Premium Essay

America Is Like An Airplane Essay

...He focuses on nine courses on the basics of budgeting, dumping debt and planning for the future. Dave has a huge following and one thing that I notice the followers sharing is the most ridicules things people say about paying off debt. Paying off debt is not a norm. Why would you want to throw your money away on your debts, just obtain more stuff. There is a major difference from a person with great money management skills compared to the person that has very little knowledge. Money managers have morals and standards with their finances. They are frugal, give great thought to their purchases, and have peace of mind. They can look upon the first class and not fleshly desire what they...

Words: 669 - Pages: 3

Premium Essay

Social Class Debt

...Examining the Correlation between Social Class Position and Debt Introduction This paper looks into the correlation between social class and the prevalence of debt. More specifically, it examines the debt level of the American middle class. The middle class is a broad term given to American households whose yearly income measures from ~$25,000 to ~$100,000 according to the non-profit organization, The Drum Institute for Public Policy. Depending on the model used, the middle class makes up somewhere between 25 to 66 percent of all households in America. Due to the far-reaching nature of the class, most sociologists divide the middle class into two sub-classes: the upper or professional middle class and the lower-middle class. The professional...

Words: 1696 - Pages: 7