Consultancy Report Essay Example | Topics and Well Written Essays - 1000 words

Consultancy Report - Essay Example Further, the practice of recommendations through incentives is a major ethical issue that needs to be curtailed. It is important for the three firms to reorganize their acts and put on a higher degree of professionalism when it comes to competitiveness. It is this way that will lead to lesser unethical practices where there will be lesser stealing of product formula and incentive recommendation practices by the three firms leading to a civilized pharmaceutical industry that other firms will look up to as their model industry. The three companies selected for this discussion are: Novartis AG, GlaxoSmithKline Plc and Pfizer Inc. These companies are the three largest pharmaceutical companies in the world employing over 300,000 people across the world and sharing more than $150 billion in revenues in between them. The three firms are very innovative and compete with each other on their brand equity and image. Ethics is defined as the standards that enable one to tell the difference between right and wrong. Thus, ethics is a standard that can vary for each individual, company or entity. The ethics standards of a truthful and honest person will be higher than that of a regular liar. Ethics is what enables one to judge something as right or wrong. It is highly qualitative and as mentioned earlier, can differ greatly for two entities (Framework for ethical thinking, 2009). Focusing constantly on innovation and quality, it is not possible for any of these firms to engage in quality compromise as it would not only be detrimental to human life but would also endanger there future existence in the market. Thus, ethics is one of the most important pillars of operations in the pharmaceutical industry. However, this quality is not religiously practiced when it comes to competition. Novartis, Pfizer and Glaxo manufacture a wide variety of medicines and drugs that are cures for the same diagnosis: the only differences lie in

Mac9.11 Essay Example | Topics and Well Written Essays - 1000 words

Mac9.11 - Essay Example DCM=1/RR=1/.10=10 DMS Therefore total reserves are equal to total money supply. So money supply = 10*12 million=120 million. Alternatively, The formula of geometric progression with a common ratio R which is equal to .90: $12,000,000 + $10,800,000 + $9,720,000 + †¦ $12,000,000 x (1 + 0.90 + 0.81 + 0.6561 + †¦) $12,000,000 x (1 + 0.90 + 0.902 + 0.903 + †¦) $12,000,000 x 1/1 – 0.90 = $12,000,000/0.10 = $120,000,000 The chain of deposit creation ends only when there are no more excess reserves to be loaned out, i.e. when the entire $12,000,000 is tied up in required reserves. Therefore, with a reserve ratio of 10%, excess reserves disappear only when checking deposits expand by $120,000,000. At RR=25% DCM=1/.25= 4 DMS= 12million*4= 48 million. At RR=100%. The DMS will be 12 million. Answer 3 The value of M1 is checkable deposits + currency= 743+633= $1376 billion. The value of M2 is M1+ Small time deposits+ Money-market mutual funds held by businesses+ Money-market mutual funds held by individuals+ Savings deposits, including money-market deposit accounts. The value of M2 is 1376+3649+1014+744+1190= $7973 billion. Answer 4 The diagram below shows the structure of the Federal Reserve System. The board of governors are appointed by the President. The function of the component is to oversee the system operations, takes decisions of regulations and sets the target level of requirements. The key monetary policy making body within the system is Federal Open Market Committee. The committee is responsible to seek decisions to stimulate monetary growth with price stability as well as influences the flow of money and credit. The board is composed of seven members of the board of governors and five presidents of Reserve Banks. Among the five presidents, one of them is the president of the Federal Reserve Bank of New York. The other members hold the voting position for one year terms on rotational basis. The Federal Reserve Banks are independently incorp orated with nine boards of directors. The function of the Federal Reserve Banks is to set the rate of interest although subjected to approval by Board of Directors. They monitor the economy and provide financial services to the U.S. government and depository institutions. The member banks hold stock in their local Federal Reserve Bank. The advisory committees carry out various responsibilities within the system. Lesson 11 Answer 1 The change is the reserve ratio is one such tool and is probably the most powerful. The term reserve deposits are used to define the percentage of reserves the banks are required to keep against deposits. A decrease in the reserve ratio will provide the banks to lend more and the money supply in the economy will increase. The effect is just the opposite in reserve ratio is increased. The discount rate is another tool. It is defined as the rate of interest that central bank charges the commercial banks when need to borrow additional reserves. The interest r ate is monitored by the Fed and does not depend on the market rate. Much of the rate is dependent on the signal Fed sends to the financial markets. The interest rates in the short term tend to depend on the movement of the market rate. The open market operations consist of buying as well as selling of securities of the government. The money supply within the economy increases when Fed buys back the securities from the banks and dealers. Answer 2 The increase