Free Essay

Communication Media

In:

Submitted By tatz
Words 3423
Pages 14
A STUDY ON THE IMPLICATIONS OF CORPORATE RESTRUCTURING
Dr. Bernadette D’silva Director, K.G. Mittal Institute of Management, I.T & Research, Malad (West), Mumbai64, Email: Bernadette.dsilva@gmail.com Mrs. Annie Beena Joseph Associate Professor, K.G. Mittal Institute of Management, I.T & Research, Malad (West), Mumbai-64, Email: annie.b.joseph@gmail.com ABSTRACT Corporate Restructuring has become a major component in the financial and economic environment all over the world. It is the process of redesigning one or more aspects of a company. The process of reorganizing a company may be implemented due to a number of different factors, like positioning the company to be more competitive, survive a currently adverse economic climate, or poise the corporation to move in an entirely new direction and many more. Corporate restructuring is needed to counter challenges in competitive business environment. Most of the organizations carry out corporate restructuring as per the needs of the business. Some do it through mergers, acquisitions, and some by demergers as well; while some others make structural changes and carry out resource optimization in the organization. This paper analyses the success rate of corporate restructuring program (CRP) in India. It also tries to understand the implication of corporate restructuring program with the help of a case study. The present paper is mainly based on secondary data. The paper makes use of SPSS 16 and MS-excel for data Analysis Keywords: Corporate Restructuring, Challenges, Merger, Demerger INTRODUCTION Corporate restructuring is a multifarious phenomenon that management has to deal with. Every company has to choose either to diversify or to refocus on core business activities. Diversifying in simple terms is expansion of business domains while refocus is a deliberate attempt made by companies to become more alert on core business activities. From this point of view, corporate restructuring is thoughtful reduction followed by diversification. Corporate restructuring is an experience in itself which requires one or more of the following:  Pattern of ownership and control  Composition of liability It is a comprehensive process by which a firm can consolidate its business operations and strengthen its position for achieving the desired objectives: (A) synergetic (B) competitive (C) successful. It involves significant re-orientation, re-organisation or

39

A Study On The Implications Of Corporate Restructuring

realignment of assets and liabilities of the organisation through conscious management action to improves future cash flow stream and make more profitable and efficient. LITERATURE REVIEW Laura Horn (2012) have emphasized on the essentially political nature of corporate governance regulation and argues that the transformation of corporate governance regulation is part of a broader political project of economic restructuring and marketmaking in the EU and illustrated that how company law has become increasingly focused on the rights of shareholders, while worker rights have been relegated to the area of social policies and labor law. Desai; Klock; & Mansi (2011) have examined the role played by the parent's motive in undertaking a carve-out and found that the postIPO parent ownership significantly affects the acquisition likelihood and the level of acquisition premium. Zahid & Shah (2011) have stated that businesses from developing countries have started to buy out businesses of developed countries as their economies are doing better compared to the developed world due to low cost of production. Indian and Chinese businessmen are the most aggressive compared to rest in this regard. Owolabi & Dada (2011) has examined the role, nature, composition, objectives and functions of an effective audit committee in achieving reliable corporate governance and suggested that the recent business and governance failures demonstrated that a great step in corporate governance restructuring is a must. RESEARCH METHODOLOGY Research Objectives  To determine the success rate of corporate restructuring programme  To ascertain the implications of corporate restructuring programme Data Collection and Sample Size: The sample size comprises of 9 major companies which went through the process of corporate restructuring during the period 20002010. The sample composition is as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Hindustan Unilever Mahindra Satyam Wokhardt ITC GSK Shri Asthavinayak Arvind Mills Crompton Greaves Voltas

40

Prestige International Journal of Management & IT- Sanchayan, Vol. 2(1), 2013. ISSN: 2277-1689 (Print), 2278 – 8441 (Online)

Research Design: The paper makes use of SPSS 16 and MS-excel for data Analysis. Mean, standard deviation and Students’ test have been used as tools of analysis for evaluating the financial performance of firms. DATA ANALYSIS A. Success Rates H(0)1: There is no significant difference in pre and post profitability margins in companies which went for restructuring for the selected period H(1)1: There is a significant difference in pre and post profitability margins in companies which went for restructuring for the selected period Table (1): Paired Samples Statistics
Pair 1 Pre_year3 Post_year1 Mean 9.6244 12.9644 N 9 9 Std. Deviation 9.20107 7.83658 Std. Error Mean 3.06702 2.61219

Data Interpretation: Table (1) shows the descriptive statistics of the corporate restructuring process for the nine companies and the profitability margins are taken for the immediate years of corporate restructuring i.e. immediate preceding year and immediate consecutive year (Pre year 3& Post year 1). Thus the mean profitability scores for Pre year 3& Post year 1 is 9.6 &12.9 respectively which indicates a high difference due to the corporate restructuring process. Table (2): Paired Samples Correlations
Pair 1 Pre_year3 & Post_year1 N 9 Correlation .859 Sig. .003

Data Interpretation: Table (2) describes about the correlations between the variables and it has been found that the R stands at 0.859 at 90% confidence levels and is highly significant since the p value is 0.003 is quite lesser than 0.1. Thus there is very strong correlation between the pair. Table (3): Paired Samples Test
Mean Paired Differences Std. S.E Mean 95% Confidence Interval Dev. of the Difference Lower Upper 4.71 1.56903 -6.95820 .27820 t df Sig.

Pair 1

Pre_year3 - Post_year1

-3.340

-2.129

8

.066

Data Interpretation: Table (3) is very important since it actually states that whether corporate restructuring process has made any difference on profitability of the selected

41

A Study On The Implications Of Corporate Restructuring

firms for the above period. Further analysis of the data reveals that the T statistics is 2.129 with significant level of 0.066 which is quite lesser than 0.1 at 90% confidence levels. Thus it can be concluded that definitely the corporate restructuring process has brought significant difference in the profitability margins of selected companies. It was further analyzed that the change brought by the process was quite positive and it increased the profitability margins for most of the companies. Therefore we reject null hypotheses and accept alternative hypotheses that there is a significant difference in pre and post profitability margins in companies which went for restructuring for the selected period. H(0)2: There is no significant difference in pre and post profitability margins in companies which went for restructuring for pre and post first years H(1)2: There is no significant difference in pre and post profitability margins in companies which went for restructuring for pre and post first years Table (4): Paired Samples Statistics
Pair 1 Pre_year1 Post_year1 Mean -83.0533 12.9644 N 9 9 Std. Deviation 278.36795 7.83658 Std. Error Mean 92.78932 2.61219

Table (5): Paired Samples Correlations
N Pair 1 Pre_year1 & Post_year1 9 Correlation -.033 Sig. .934

Table (6): Paired Samples Test
Paired Differences t df Sig. (2tailed) Std. Error 95% Confidence Interval Mean of the Difference Lower Upper -96.01 278.73 92.91 -310.27 118.235 -1.033 8 .332 Mean SD

Pair 1 Pre_year1 - Post_year1

Data Interpretation: Table (6) is very important since it actually states that whether corporate restructuring process has made any difference on profitability of the selected firms for the above period. Further analysis of the data reveals that the T statistics is 1.033 with significant level of 0.322 which is quite higher than 0.05 at 95% confidence levels. Thus it can be concluded that the corporate restructuring process has not brought any significant difference in the profitability margins of selected companies. Therefore we accept null hypotheses that there is no significant difference in pre and post profitability margins in companies which went for restructuring for pre and post first years

42

Prestige International Journal of Management & IT- Sanchayan, Vol. 2(1), 2013. ISSN: 2277-1689 (Print), 2278 – 8441 (Online)

H(0)3: There is no significant difference in pre and post profitability margins in companies which went for restructuring for pre and post second years H(1)3: There is significant difference in pre and post profitability margins in companies which went for restructuring for pre and post second years Table (7): Paired Samples Statistics
Pair 1 Pre_year2 Post_year2 Mean 9.1056 13.7222 N 9 9 Std. Deviation 8.71151 7.53074 Std. Error Mean 2.90384 2.51025

Data Interpretation: Table (7) shows the descriptive statistics of the corporate restructuring process for the nine companies and the profitability margins are taken for the immediate years of corporate restructuring i.e. immediate preceding year and immediate consecutive year (Pre year 2& Post year 2). Thus the mean profitability scores for Pre year 2& Post year 2 is 9.1 &13.7 respectively which indicates a high difference due to the corporate restructuring process. Table (8): Paired Samples Correlations
Pair 1 Pre_year2 & Post_year2 N 9 Correlation .775 Sig. .014

Data Interpretation: Table (8) describes about the correlations between the variables and it has been found that the R stands at 0.775 at 95% confidence levels and is highly significant since the p value is 0.014 is quite lesser than 0.05. Thus there is very strong correlation between the pair. Table (9): Paired Samples Test
Paired Differences Std. Error 95% Confidence Interval of the Mean Difference Lower Upper Pair 1 Pre_year2 - Post_year2 -4.61 5.55 1.85 -8.89 -.34309 Mean SD t df Sig.

-2.49

8

.037

Data Interpretation: Table (9) is very important since it actually states that whether corporate restructuring process has made any difference on profitability of the selected firms for the above period. Further analysis of the data reveals that the T statistics is 2.491 with significant level of 0.037 which is quite lesser than 0.05 at 95% confidence levels. Thus it can be concluded that definitely the corporate restructuring process has brought significant difference in the profitability margins of selected companies. It was further analyzed that the change brought by the process was quite positive and it increased the profitability margins for most of the companies. Therefore we reject null hypotheses and accept alternative hypotheses that there is significant difference in pre

43

A Study On The Implications Of Corporate Restructuring

and post profitability margins in companies which went for restructuring for pre and post second years H(0)4: There is no significant difference in pre and post profitability margins in companies which went for restructuring for pre and post third years H(1)4: There is significant difference in pre and post profitability margins in companies which went for restructuring for pre and post third year Table (10): Paired Samples Statistics
Pair 1 Pre_year3 Post_year3 Mean 9.6244 13.5544 N 9 9 Std. Deviation 9.20107 9.05731 Std. Error Mean 3.06702 3.01910

Data Interpretation: Table (10) shows the descriptive statistics of the corporate restructuring process for the nine companies and the profitability margins are taken for the immediate years of corporate restructuring i.e. immediate preceding year and immediate consecutive year (Pre year 3 & Post year 3). Thus the mean profitability scores for Pre year 3& Post year 3 is 9.6 &13.5 respectively which indicates a high difference due to the corporate restructuring process. Table (11): Paired Samples Correlations
N Pair 1 Pre_year3 & Post_year3 9 Correlation .860 Sig. .003

Data Interpretation: Table (11) describes about the correlations between the variables and it has been found that the R stands at 0.860 at 95% confidence levels and is highly significant since the p value is 0.003 is quite lesser than 0.05. Thus there is very strong correlation between the pair. Table (12): Paired Samples Test
Mean Std. Deviation Paired Differences t df Sig Std. Error 95% Confidence Interval Mean of the Difference Lower Upper 1.60962 -7.64179 -.21821 -2.442 8 .040

Pair 1 Pre_year3 - Post_year3

-3.93000 4.82886

Data Interpretation: Table (12) is very important since it actually states that whether corporate restructuring process has made any difference on profitability of the selected firms for the above period. Further analysis of the data reveals that the T statistics is 2.442 with significant level of 0.040 which is quite lesser than 0.05 at 95% confidence levels. Thus it can be concluded that definitely the corporate restructuring process has brought significant difference in the profitability margins of selected companies. It was

44

Prestige International Journal of Management & IT- Sanchayan, Vol. 2(1), 2013. ISSN: 2277-1689 (Print), 2278 – 8441 (Online)

further analyzed that the change brought by the process was quite positive and it increased the profitability margins for most of the companies. Therefore we reject null hypotheses and accept alternative hypotheses that there is significant difference in pre and post profitability margins in companies which went for restructuring for pre and post third years. B. CASE STUDY CORPORATE RESTRUCTURING AT ARVIND MILLS The case provides an overview of the Arvind Mills’ expansion strategy, which resulted in the company’s poor financial health in the late 1990s. In the mid 1990s, Arvind Mills’ undertook a massive expansion of its denim capacity in spite of the fact that other cotton fabrics were slowly replacing the demand for denim. The expansion plan was funded by loans from both Indian and overseas financial institutions. With the demand for denim slowing down, Arvind Mills found it difficult to repay the loans, and thus the interest burden on the loans shot up. In the late 1990s, Arvind Mills ran into deep financial problems because of its debt burden. As a result, it incurred huge losses in the late 1990s. The case also discusses in detail the Arvind Mills debt-restructuring plan for the long-term debts being taken up in February 2001. ISSUES Debt driven expansion plan, financial restructuring of Arvind Mills KEYCONCERN  Global recession will dampen the demands.  Depends highly on the movement of cotton and denim price. INTRODUCTION In the early 1990s, Arvind Mills initiated massive expansion of its denim capacity. By the late 1990s, Arvind Mills was the third largest manufacturer of denim in the world, with a capacity of 120 million meters. However, in the late 1990s, due to global as well as domestic overcapacity in denim and the shift in fashion to gabardine and corduroy, denim prices crashed and Arvind Mills was hit hard. The expansion had been financed mostly by loans from domestic and overseas institutional lenders.

45

A Study On The Implications Of Corporate Restructuring

As the denim business continued to decline in the late 1990s and early 2000, Arvind Mills defaulted on interest payments on every loan, debt burden kept on increasing. In 2000, the company had a total debt of Rs 27 billion, of which 9.29 billion was owed to overseas lenders. In 2000, Arvind Mills, once the darling of the bourses was in deep trouble. Its share price was hovering between a 52 week high of Rs 20 and low of Rs 9 (in the mid 1990s, the share price was closer to Rs 150). Leading financial analysts no longer tracked the Arvind Mills scrip. The company’s credit rating had also come down. CRISIL downgraded it to “default” in October 2000 from “highest safety” in 1997. In early 2001, Arvind Mills announced a restructuring proposal to improve its financial health and reduce its debt burden. The proposal was born out of several meetings and negotiations between the company and a steering committee of lenders. As a result of the restructuring plan the interest burden came down substantially and got Arvind Mills the distinction of becoming the first Indian corporate to restructure its entire debt in a single go. Also, post restructuring, Arvind has reported a profit of Rs. 10 crore for the first quarter of the financial year 2002, after a gap of three years. The sheer instinct of Sanjay to survive in the business coupled with some bold and frank decisions had enabled Arvind Mills to come out of its problems and stand again on its feet. FINDINGS 1. 2. By late 1990s, Arvind Mills was in deep financial trouble because of its increasing debt and interest burden. Its total long-term debt was estimated at Rs 27 billion, out of which the total overseas debt was Rs 9.29 billion and debt to Indian institutional lenders was Rs 17.71 billion. Arvind Mills had defaulted on interest payments on every loan. ICICI was the largest Indian institutional lender, with a loan of over Rs 5 billion to Arvind Mills. In 2000, the company reported a net loss of Rs 3.16 billion against a profit of Rs .14 billion in 1999.

3. 4.

Solutions 1. 2. In February 2001, Arvind Mills announced a debt restructuring Plan for its long term debt. While the company set itself a minimum debt buyback target of Rs 5.5 billion, the management was hopeful of a larger amount, possibly Rs 7.5 billion.

46

Prestige International Journal of Management & IT- Sanchayan, Vol. 2(1), 2013. ISSN: 2277-1689 (Print), 2278 – 8441 (Online)

3. 4.

In mid-2001, Arvind Mills got the approval of a majority of the lenders for its debt restructuring scheme. Forty-three out of fifty-four lenders approved the plan. Some of the banks agreed to the buyback at a 55% discount on the principal amount, while some agreed to a five year rollover for which they would be entitled to interest plus the principal. Some banks also agreed to a ten year rollover for which they would be paid a higher rate of interest plus principal. The debt revamp was expected to reduce Arvind Mills’ interest burden by 50%.

Arvind Mills board Debts restructuring plan Company has drawn major restructuring plan, which involves: 1. Entry into industrial or performance fabric. 2. Focus on growing the existing brands and retail vertical. 3. Unlocking value from the real estate. 4. De-leveraging of the balance sheet. 5. Outsourcing of non-core activity. FINDING OF RESEARCH  Most of the company’s profitability margins are affected after corporate restructuring.  Companies mostly increase their profitability margin after their corporate restructuring. LIMITATIONS  The study is done on the basis of secondary data.  There is enough scope to identify more Indian companies which have done Corporate Restructuring at different time periods and hence can arrive at a more authentic conclusion. CONCLUSION The results from the study reveal that there has been significant change in profitability post restructuring program. Most of the companies have responded favorably to post corporate restructuring process. It was also found that CRP in some companies did not help in revive their position. Whereas in certain other situations it was found that the CRP helped the firms to in a positive way by way of increasing their profitability margin. Hence restructuring program should be undertaken in case a company faces problems but the restructuring should be done in systematic manner. Overall the analysis has indicated that most of the companies have successfully implemented restructuring program. Hence from the above study, it is suggested that companies at primary route level should identify the problems and accordingly plan for restructuring of the required

47

A Study On The Implications Of Corporate Restructuring

processes for achieving success in terms of profile and also for enhancing shareholders value. REFERENCES
    Chintal A. Desai; Mark S. Klock; Sattar A. Mansi (2011), On the Acquisition of Equity carve-outs, Journal of Banking & Finance, Vol.: 35, No.: 12, December 2011, pp. 3432-3449 Laura Horn (2012), Corporate Governance in Crisis? The Politics of EU Corporate Governance Regulation, European Law Journal, Vol.18, No. 1, Jan 2012, pp. 83-107 Nauman Zahid; Asif Mujtaba Shah (2011), Mergers and Acquisitions in International Business, European Scientific Journal, Vol.: 22, August 2011, pp. 43 Owolabi; S. A. ; Dada; S. O (2011), Audit Committee: an Instrument of Effective Corporate Governance, European Journal of Economics, Finance and Administrative Sciences, No.: 35, pp. 173-183

48

Similar Documents

Free Essay

Media and Communication

...ICOM101 Major Essay Does Media Discourse Reproduce Social Inequality? Student Name : Pratama Robin Rachel Discourse denotes to the various forms of representation, codes, habits, conventions associated with language are responsible for producing specific culturally and historically located meanings. Media discourse can be described as an interaction through a media platform with the help of verbal or non-verbal communication. It has been found that media can potentially influence the public. The objective of this essay is to find out the role of media discourse in reproducing social inequality. In order to meet this objective, in the following sections the concept of discourse is explained vividly along with its style of operations. A relationship between media discourse and social inequality will be established in this essay. Discourse can be referred to the manner or way of communication between individuals or group. Discourse plays a major role in determining how an individual will understand and interpret a specific thing based upon ideas, thoughts and beliefs. According to Michel Focault, discourse is an entity of sequences, codes and signs in that they are enouncements. Media discourse includes various media outlets such as radio, television, newspaper, magazine, internet etc. The inevitable power of media has been discussed in discourse studies. Many research studies have shown that media plays an important role in influencing the thought process of individuals...

Words: 2427 - Pages: 10

Premium Essay

Mass Media Communication

...The education of our children has always been emotive and when the mass media is added to the mix, volatility is inevitable. Hardly a country in the world is spared controversy in education, but when one looks behind the sometimes anarchic scenes, there is a lot about which to be optimistic and hopeful. Traditionally, the mass media and education have enjoyed a love-hate relationship. On one hand television and newspapers particularly, have provided extensive and extremely useful education content. On the other, however, their newsrooms never seem to hesitate when controversy rears is ugly head. In theory, it is absolutely vital for the mass media to keep an eye on the way in which governments administer and develop education, but it has to be said that in this day and age of a battle for survival within the mass media industry, the watchdog does tend to become somewhat rabid at times. Like most businesses the mass media often takes a line of least resistance when problems occur and a first step always seems to blame the trades union movements. In South Africa the South African Democratic Teachers Union (SADTU) inevitably faces tremendous criticism from the mass media when its members protest the enormous challenges and deprivations they face in the classrooms. Many of those challenges having very little to do with actual teaching. Regrettably, the relationship between the mass media and education involves a lot of indulgence in blame-games and reaction by...

Words: 830 - Pages: 4

Premium Essay

Media and Communication in Nigeria

...MEDIA AND COMMUNICATION TABLE OF CONTENTS: INTRODUCTION/ OVERVIEW TRENDS AND OPPORTUNITIES SKILLS AND LICENCES REQUIRED ENTRY AND PROGRESSION TRAINING AND DEVELOPMENT PROFESSIONAL BODIES INVOLVED SOURCES OF REFERENCE LINKS TO RESOURCES INTRODUCTION/ OVERVIEW The large and diverse media and communications industry assumes a central role within most economies. The industry covers a range of occupations and media, including: radio, television and film; print media; internet content development; advertising; public relations; speech writing; and design. The industry is highly concentrated and production is dominated by a small amount of large firms that are able to shape the industry’s direction and price levels The media and communications industry encompasses a wide variety of establishments. The media segment includes motion picture/video producers who create movies, television shows, and other videos to sell to broadcasters; publishers who produce and distribute items such as books, newspapers, magazines, and CDs, excluding software; and television and radio broadcasters. Telecommunications is another segment of the industry. It includes both equipment from cables to telephones to services such as wireless carriers or cable providers. Telecommunications is what makes voice, data, and video communication possible, resulting in the information age. A new, quickly rising segment is the use of the internet for new media...

Words: 4987 - Pages: 20

Premium Essay

Social Media and Communication

...Social media and communication Reading one: Is Social Media Sabotaging Real Communication? Is Social Media Sabotaging Real Communication? Was published online at forbes.com on the Thirtieth of April 2012. Forbes.com is a reputable online journal affiliated with the business magazine of the same name. The author, Susan Tardanico is the CEO and founding partner of the Authentic Leadership Alliance (ALA), a leadership and communications consultancy group and an executive in residence at the Center for Creative Leadership. Tardanico is well respected and recognised public speaker and consultant on communications, her experience and wealth of knowledge regarding communication in the workplace strongly contribute to the credibility of this article. Reading two: The Internet and Social Life. The Internet and Social Life. Written by John A. Bargh and Katelyn Y.A. McKenna and published in Annual Review of Psychology, Volume 55, 2004. Annual Reviews is a non-profit organisation that has been in publication since 1932. Annual review is a highly recognised source of scientific information and is considered a reputable journal amongst the scientific community. Both authors are faculty members of the New York University at the time of publication. This article is very comprehensive and is able to cite valid references to support their claims. As both authors are highly qualified and respected within their fields, and the publication it is reported in is reputable this contributes the credibility...

Words: 1053 - Pages: 5

Free Essay

Social Media Is a Communications Tool

...Lately I've been seeing more and more articles discussiing which department controls the message of Social Media: Marketing or PR? I actually was asking that question a year ago in an article entitled "Who leads the charge in Social Media? Marketing, PR, Sales, Customer Service, Who Knows?" It's a year later and the various Social Media platforms have evolved with massive increases in adoption rates and a larger glaring problem has emerged: The very concept that Social Media is 'Marketing'. It's not. It's a communications tool. As the platforms like Facebook, Twitter, Linkedin, and now G+ have evolved more and more marketing people have started to develop strategies to utilize the various platforms functionality. Strategy is useless without a tactical implementation plan. So marketers have developed Social Media editorial calendars that are built with the hope that the platforms don't change their API's and the dashboards actually post the message. The concern is more about will the technology continue to work when the real tactical quesiton is "how will it be utilized by our COMPANY. This is where large company heirarchical structures tend to impede rather than help the effort. The reason Social Media works so well for smaller companies is because of the mere fact that they are smaller. The decision making and internal communications structure all lie with one or two people wearing multiple hats. Large corporations tend to silo who controls what. The idea that...

Words: 532 - Pages: 3

Premium Essay

Social Media Destroys Communication

...smiley faces giving the impression that she was happy. To Sharons surprise, her daughter attempted suicide later that same night. In the days that followed, it came to light that she’d been holed up in her dorm room, crying and showing signs of depression — a completely different reality from the one that she conveyed in texts, Facebook posts and tweets.As human beings, our only real method of connection is through communication. Studies show that only 7% of communication is based on the written word and a staggerring 93% is based on nonverbal body language. Evidently, it’s only when we can hear a tone of voice or look into someone’s eyes that we’re able to know when the typical response of “I’m fine” doesn’t mean they’re fine at all. Goodmorning Ms.Phillip and class. Today, I would like you to ask yourself at what cost has technology replaced personal interactions? and I will present the reasons why the use of social media is sabatoging the ability of teenagers to properly communicate with one another. First and foremost, texting as a form of regular communication is dangerous, because how well can one communicate via text?Yes, it`s quicker than calling or getting together with eachother but because of sacrificing time for convenience, we miss out on the flow of conversation. Without the face to face interaction, we don`t get to listen to the tone of their voice, or watch the change in their facial expressions or the movement of their gestures. In doing so, we are limiting...

Words: 1224 - Pages: 5

Premium Essay

Effects of Mass Media Communication

...Discussion Question No. 1: How does advertising shape our consumer patterns? Give specific examples of your own experience. Even though it may seem hard to admit, advertising does indeed impact our consumer patterns in many ways. For example, have you ever bought an item because it is the latest model? Have you ever purchased an item because a famous celebrity has promoted it? Have you ever become suddenly hungry at midnight while watching a fast food commercial? These are merely examples of how advertising has shaped our lives, culture and personal needs. In my case, I had recently purchased an Iphone 3gs when the 4g was launched to the market and I suddenly had the immediate need of having the newest version even though I did not qualify for the discount. I was willing to pay whatever. Another example is that I have plenty of shoes but if I see one on sale, I most definitely will need that pair as well. Discussion Question No. 2: What issues arising from advertising do you think are the most problematic? Why? One of the most important issues that arise from advertising are manipulation and appealing to personal feelings or emotions when trying to convince an individual to purchase any given item. Manipulation is one of the most odd and insensible techniques that arise from advertising. Salesmen particularly use this technique most often. Advertising has indeed and increasingly promoted consumerism. Consumerism may be good for companies or sellers...

Words: 343 - Pages: 2

Free Essay

The Displacement Effects on Online Media on Family Communication

...active user sa Facebook With the growing popularity of the Internet and World Wide Web, there is increasing interest in the impact these new communication technologies have on our society and social institutions. Computers have evolved from the bulky, expensive and mysterious equipment owned by large corporations to affordable, functional tools for work and fun, at the office or at home. As a consequence of technological developments that enabled computers to exchange data using regular telephone lines, a revolutionary medium of communication has emerged. Computers, connected to the global telecommunication network, have become powerful tools of instantaneous communication around the world. Two distinct functions of this connectivity are: (1) online media--new agents of information and entertainment, similar to traditional media such as television, radio and print, and (2) computer mediated communication (CMC)--new channels for interactive, two-way communication that rival telephone conversations in their capacity to sustain conferencing and asynchronous communication. For the purposes of this study, the researchers treat online media and CMC as online media. Traditionally, families and households have been defined as social systems. However, modern households possess an additional technological dimension brought about by several media technologies--television sets, videocassette recorders, telephones, answering machines, radios, and now computers. Both the social and technological...

Words: 298 - Pages: 2

Premium Essay

Health Care Communication with Social Media

...Health Care Communication with Social Media Tila Newbery-Sorrell HCS/490 May 13, 2013 Dan Crawley HEALTH CARE COMMUNICATION WITH SOCIAL MEDIA The demand for transparency and consumerism in health care has opened the doors for the involvement of social media. There is an increasing use of social media for communication between consumers and health care providers. The use of social media has advantages as well as disadvantages. Medical information can be disseminated quickly, over distances, and cost effectively through the use of social media like Facebook Pages. Marketing of health care products and services is made possible through the use of social media. Confidentiality and security are issues with the use of social media. Due to a need for regulations, recent policy has set guidelines for the use of social media by physicians. American Medical Association Policy The American Medical Association (AMA) released new policy in 2010 to assist physicians in the use of social media. The AMA Board Member Mary Anne McCaffrey, M.D. said, “Using social media can help physicians create a professional presence online, express their personal views and foster relationships, but it can also create new challenges for the patient-physician relationship” (American Medical Association, 2013, para. 2). The AMA policy on social media guidelines for physicians suggests: 1) The use of privacy settings 2) Routine monitoring of their...

Words: 1244 - Pages: 5

Premium Essay

Social Media & Cross Cultural Communication

...Head: SOCIAL MEDIA & CROSS CULTURAL COMMUNICATION 1 SOCIAL MEDIA & CROSS CULTURAL COMMUNICATION SHAWN MYERS SSC 101 HUMAN BEHAVIOR PERSPECTIVE SAINT LEO UNIVERSITY SOCIAL MEDIA & CROSS CULTURAL COMMUNICATION 2 Abstract Social media technologies are important tools in our lives. They make it possible to maintain social relationships with existing friends and family, while at the same time building new relationships. The social lives of different cultures affect how they use this technology such as the social life of those living in the United States might benefit more from using communication technologies to build new relationships, while another social life such as those living in Germany might benefit more from using communication technologies to maintaining existing relationships. The influence the technology has on these new and existing relationships affects those lives as well. The use of communication technology such as calling, texting, instant messaging and emailing more frequently with an existing social network of friends is associated with a higher sense of belongingness to a strong and supportive social network. Calling, texting and instant messaging more frequently to new social network may be associated with an increased sense of belongingness but e-mailing to a new social network is associated with a decrease in belongingness. SOCIAL MEDIA & CROSS CULTURAL COMMUNICATION 3 Social Media & Cross...

Words: 1046 - Pages: 5

Free Essay

Host Communication Competence and Mass Media Use - Schoolanduniversity.Com

...HOST COMMUNICATION COMPETENCE AND MASS MEDIA USE AMONG A SAMPLE OF CHINESE ESL STUDENTS by JUN QIAN A thesis submitted to the Faculty of Education in conformity with the requirements for the degree of Doctor of Philosophy Queen’s University Kingston, Ontario, Canada August, 2009 Copyright © Jun Qian, 2009 ii ABSTRACT This qualitative study investigated Chinese ESL students’ use of host mass media and how such use enabled them to acquire host communication competence and acculturation from their perspective. It was grounded on Kim’s theory of communication and cross-cultural adaptation and the uses and gratifications theory, and employed a phenomenography approach. Nine participants at a university in Ontario were involved in this study. Data obtained from media use logs, think-aloud protocols, and follow-up interviews provided a fairly far-reaching and detailed description of the participants’ uses, reasoning, and effects of using host mass media. The analysis of data illustrated that these students used a variety of media as sources of information, language acquisition, culture learning, entertainment, and communication. Findings suggest that host mass media were the major influence on these students’ acquisition of host communication competence, perceptions of and acculturation to Canada. Their reliance on mass communication went into the later years of their acculturation process, and complemented their language and culture learning, which was somewhat...

Words: 289 - Pages: 2

Free Essay

The Rise of Social Media in the 21st Century and Its Advent as a Legitimate Form of Communication

...The Rise of Social Media in the 21st Century and its Advent as a Legitimate Form of Communication John Santry Embry Riddle Aeronautical University Abstract Social Media offers an exciting new area for individuals and business to explore relationship building and communication on a grandiose scale. This study explores how the tools and opportunities afforded by social media sites are enabling and legitimizing a new form of communication. While social media is beneficial in numerous ways, greater audience engagement increases the possibility of misperception. Therefore, a new category of social network related etiquette and ethical responsibility is warranted. This paper will look at some of those reasons for increased awareness and attention to being politically correct when publically participating in social media, and how those elements can affect ones personal or professional perception. Keywords: social media, social network, Facebook, Twitter, communication, etiquette, ethics The Rise of Social Media in the 21st Century and its Advent as a Legitimate Form of Communication Introduction Social media has broken the barriers of space and time, enabling 24/7 communications on a scale unlike any before. Most people alive today can recall a time when not too long ago, we primarily communicated via hand written mail, spoke on landline telephones, and shared updates face-to-face. Today, technology enables us to send text messages; leave voice mail; instant message...

Words: 2691 - Pages: 11

Premium Essay

Mas Communication, the Impact of Advertising on Media Bias

...Topic: The impact of advertising on media bias The Impact of Advertising on Media Bias. (2012). Journal of Marketing Research: February, Esther Gal-Or, Tansev Geylani, Tuba Pinar Yildirim (2012). Journal of Marketing Research: February 2012, Vol. 49, No. 1, pp. 92-99. Retrieved from http://dx.doi.org/10.1509/jmr.10.0196 The authors in this study investigate the effecting of advertising in the media bias, the marketers evaluate the size and composition of the difference outlets of the readership when they making advertising choices. They also demonstrate their right target market with the advertising supplements subscription fees and it may serve as a polarizing or contingent on the extent of distinctiveness among advertisers to readers who have difference preference in politics. Each advertiser will have to choose a single outlet for placing their ad when manifoldness is large and the greater of polarize rises compare to when media outlet relies on subscription fees only for revenue. If the distinctive is small, advertiser chooses multiple outlets and the polarization results are reduced. Media bias and advertising: Evidence from a German car magazine (2014). Dewenter, Ralf; Heimeshoff, Ulrich (2014). DICE Discussion Paper, No. 132, ISSN 2190‐9938 ( online). Retrieved from http://fgvwl.hsu-hh.de/wp-vwl This paper analyzing the impact of automobile reviews in manufacturer's ...

Words: 429 - Pages: 2

Free Essay

Evolution and Media Naturalness: a Look at E-Communication Through a Darwinian Theoretical Lens

...EVOLUTION AND MEDIA NATURALNESS: A LOOK AT E-COMMUNICATION THROUGH A DARWINIAN THEORETICAL LENS Ned Kock Lehigh University/Temple University Bethlehem, PA/Philadelphia, PA USA nfk2@Lehigh.edu Abstract Modern theories of human evolution converge on the belief that our brain has been designed to cope with problems that occurred intermittently in our evolutionary past. Evidence suggests that, during over 99 percent of the evolutionary process leading to the emergence of our species, our ancestors communicated in a synchronous and colocated manner, and employing facial expressions, body language, and oral speech (what we refer to here, generally, as “face-to-face” communication). Thus, it is plausible to assume that many of the evolutionary adaptations our brain has undergone in connection with communication have been directed at improving the efficiency and effectiveness of face-to-face communication, which begs the question: What happens when we selectively suppress face-to-face communication elements (e.g., colocation, the ability to employ/observe facial expressions) through e-communication technologies? This paper tries to provide an answer to this question by developing a hypothesis, called the media naturalness hypothesis, which builds on modern human evolution theory. The media naturalness hypothesis argues that, other things being equal, a decrease in the degree of naturalness of a communication medium (or its degree of similarity to the face-to-face ...

Words: 7491 - Pages: 30

Premium Essay

How Will the Advancement of Cyber Security Affect Communication on Social Media?

...plans and procedures or maybe the best way to demonstrate the needs for those procedures is to perform a Cyber Security audit and implement the resulting recommendations. Moreover, work in conjunction with IT departments can ensure that implementing the resulting recommendations will make both sides of the social media communication more secure. Like most criminals, hackers look for easy targets. If your media has simple security issues that are easy to exploit, hackers will dive right in. If your infrastructure is strong on your end, hackers will become frustrated and move on to the next easy mark. Furthermore, in these days it is almost impossible to be in an online business with an organization that does not collect or hold personal identifying information like names, addresses, Social Security numbers, credit card numbers, or other account numbers. So, how comprehensive is Cyber Security if it cannot protect us? Would it be better if we do not exist online? 2 Research Question: My research will be guided by the following question: How will the advancement of Cyber Security affect communication on social media? Literature Review Social media encompasses a variety of online...

Words: 2159 - Pages: 9