Euroland Foods Essay

Executive Summary: Euroland foods is a stable name in the market, it has grown well in the market over the years, but now it is planning to allocate the budget for the newly planned activities which are costing it more than 300 Million Euros but the company has to invest only 120 Million Euros. Various people from the upper management have come up with their suggestions for investment, few of them are very good and are acceptable in just a blink of the eye but many of them require greater search and evaluation for their validity. It is suggestible to first evaluate the alternatives and then rank them so that best of the activities could take place within the allocated budget. Strengths & Weaknesses: In replacement and expansion of the truck fleet, the company can increase the number of goods hauled on the truck and this could reduce the transportation costs in the long run, further it could possibly have a greater market coverage but it is very costly to go for this option as Klink is not doing any experiment and going directly for 100 new trucks. The acquisition of new plant is although a good option but yet it is not very useful option as the investment in the entire plant can be risky and can put a lot of burden on the entire company’s budget, it is suggested that the company should buy a warehouse to support the growing needs of the customers for ice cream and yogurt. Another problem would be related to the labor hiring which would result in more costs. The expansion of the plant is a good idea as the market needs are completely growing and cannot be supported by any other plant, the plant capacity would increase by 20% but the drawback is that it is supporting those products that are not having the highest share i-e mineral water and fruit juices. Morin has come up with a good suggestion as the processing of dried fruit and its launch would enhance the company’s portfolio and also it would be a brand extension, it has got a fair possibility of growth as Europe is a cold region, the IRR is also expected to be higher than the required but then again it is requiring company to spend much more then it should spend. Also it can take the company out of budget as the company’s current concern should be about the stability of its current activities. Leyden has come up with a good idea of plant automation and conveyer system, this could reduce the need of the labor and the threats of lawsuit due to any injury that may take place because of the old plant. The company cannot only reduce the labor requirements but also may increase the market penetration as the units would be produced more efficiently now. The drawback is again related to the high costs and further the company may disappoint the labor which could be unethical and can bring agitation in labor against the company. The effluent water treatment at four of the plants is again good action since it is categorizing the Euroland foods as environmental friendly. This would add itself as strength to the company as now company would be working ethically in many ways. The drawback is related to the issue of investing in a non-functioning area, which would not bring any profits. Ponti has although suggested to expand the market to southwards and eastwards, but it is dependent on many conditions such as if proposal of earlier plant extension would not accepted then it is possible for the company to incur greater costs for reaching those newly recognized areas, further it is not suggested to go for them because the company has already got itself in other hassles and it should look at those points which could further strengthen it position in the current positions. Morin has come under the pressure of competitors and is thinking about the company’s well being, but yet there lies the problem with such a heavy investment, the company should always test market the product. Although it would be the product development to some good extent but at the same time it can cause the company to loose big money in something which it is not sure about. Klink has come up with a wonderful suggestion of networking, these days the markets are based on programs such as SAP which can control every activity of the company, if the efficiency would be there then the company may take more initiatives as it would think ahead. The weakness is again related to the increased responsibility which can cause disturbance and further it can result in unemployment as many of the activities would be performed with the help of networking. Humbolt has given a solution which suits his nature and he has again provided the company with something that could increase the liability of the company and further create more complexed problems for it. However, it seems to be very lucrative but it is all about the management capability of the company which is not appropriate in relation to such extension. Ranking the Proposals: According to my analysis, proposal 3 (plant extension) should be ranked first as it has a fair possibility of increasing the market share for those products that are stable from a period and are not growing (mineral water, fruit juices). Proposal 4 (snack foods) should be ranked second as it has got a fair possibility of market acceptance due to weather condition in Europe. Proposal 5 (Plan automation) should be ranked third as it can reduce the number of employees and other threats and can bring more profits in. Proposal 10 (Networking) should be ranked fourth as it can increase efficiency and so can reduce the number of positions in the company. Proposal 6 (Effluent water treatment) should be ranked fifth as it is environmental friendly and â€Å"good ethics is good business†. Proposal 1 (Truck fleet) should be ranked sixth as it is requiring a direct investment for 100 trucks where as the company should look for such changes in a slow manner. Proposal 9 (Sweetened yogurt) should be ranked seventh as it is very risky as it would take a lot of research and can distract the firm from its other stability objectives. Proposal 2 (new plant) should be ranked eighth as it would associate exceeding costs with it such as new labor, transportation and many other costs. Proposal 7 & 8 (market extension southward and eastward) should be ranked ninth and tenth as it is again distracting the company from its current objectives and its too risky as the entering market characteristics are opposite and against the company’s favor. Proposal 11 (Schnapps) should be ranked eleventh as it is completing out of the scope of the company’s feasibility. Effluent Water Treatment: Since the effluent water is just something the company is willing to acquire as a mean to have good public relations and to be able to contribute to the environment. It is just something which cannot bring company the profits, it would cost 6 million Euros if the facility equipment would be purchased now but later on it can be costly and government at times does affect the company’s investing powers. So it is better to buy this equipment before the government makes it a mandatory for the company to buy it. Conclusion: The ranking shown above is itself suggesting what should be done. According to the analysis, proposal 1, 3, 4, 5, & 6 should be given utmost importance as it is feasible for the company to get them done within the allocated budget, so Mr. Verdin should give them more importance and recommend them to the board. They can also make the current position of the company stable and perhaps make it more efficient. Other projects have their own importance but they are not triggering the initial need of the company which is stability. The mentioned proposals would make the base of the company’s structure sounder and so it can look forward for other proposals in the future time period with more ease.

What is This Divinity That Surrounds Us?

Should we embrace it or fear it's intelligent design? In the poems, â€Å"The Tyger† by William Blake and â€Å"Design† by Robert Frost they marvel and fear this design, ultimately leaving the reader with more questions than answers. Each poet portrays irony, figurative language, imagery, and intelligent design while trying to understand God and and his creations. Let's explore the similarities between each poets poem, first beginning with imagery. The use of this particular animal and insects provides a vivid in depth analysis. This appeals to the readers senses to help them understand what the writer is trying to convey. Blake's statement, â€Å"Burnt the fire of thine eyes†, illustrates a sense of fear of the tiger. He wants to know by whom such a creature was created. Surely God would have not created something so feared. In the third stanza Blake asks, In what distant deep or skies.† Deep in this sense we assume is being applied to the underworld. Frost states something similar to this, â€Å"What but design of darkness to appall?† The â€Å"designer† or â€Å"immortal hand† must have bad intentions because he seems to be associated with some sort of darkness. The imagery both poets left in my mind was the use of nature to illustrate there point. I could not help but to think the animals were a metaphor for humans. Some people live nice quiet lives while others are are murders and rapists. How can both sets of people come from one God who is purely full of goodness? They are seeking to see if in some way God's design is flawed; but how can that be coming from a divine being? The imagery can be seen as frightful yet beautifully realistic, and the language used to describe the animals are simplistic and powerful. There's an emphasis on the animals power but at the same time this could be seen as God's power being conveyed through this animal and insects. Ultimately, the violence and ferocity of the tiger and spider are vivid, terrifying, and has a deep, dark undertone to them.Figurative language is used by both poets as well. According to Webster's dictionary, figurative language is a language that uses words or expressions with a meaning that is different from the literal interpretation. We see examples of this all throughout both poems. Starting with Blake's poem, it reads â€Å"Tyger! Tyger! burning bright in the forest of the night.† Here the tiger is not actually boring, it's more so used as a metaphor to demonstrate its ferociousness, or it can also be seen as the tigers appearance. The yellowness of its eyes mixed with its orange fur in the night could remind one of fire. In design the word white is mentioned several times. This is unique because white is usually associated with good and purity, yet all throughout this poem it alludes to something dark and evil. â€Å"Like a white piece of rigid satin cloth†, the spider holds up the moth as in some sort of victory it has obtained. The spider who is seen as evil has now triumphed over the moth who is viewed as good. This ties back into that design is either flawed or has a dark side to it. Another place we see an example of this in the poem is when Frost states, â€Å"On a white heal-all, holding up a moth.† After doing some research I discovered a heal-all is actually blue in appearance and is known for its medicinal use. This demonstrates irony because the spider is preparing the moth for its death on something that is meant to heal. Later on in the poem, line ten, the heal-all is now blue. â€Å"The wayside blue and innocent heal-all.† Initially the poet just describes the flower, here he proclaims its innocence, implying the flower had nothing to do with it being white. Therefore this was the work of its designer. Figurative language as well as irony is seen throughout both poems as a way to hyperbole and understand the poets outlook more vividly.Lastly, we come to intelligent design, which seems to be the overall theme of both poets. Each questions God's purpose from a Christian's viewpoint. They ask a series of questions seeking to find or understand this divine design seen in nature. To the readers dismay though, the questions go unanswered. The questions are only presented, I believe it was left up to the reader to truly seek, in a philosophical way, the answers to the questions. The real philosophical question seems to be, â€Å"Why?† Did all these events happen by chance or did a complex entity bring it all about? We get the sense from each poet that there is a higher being behind the spider and the tiger, be he deems to be far to complex for our understanding. In conclusion, I leave you with a quote from Hamlet that draws into what I feel both poets were fundamentally trying to get at. â€Å"There is nothing either good or bad, but thinking makes it so.† Just perhaps it is not our creator and his design who is flawed, but us from our outlook on nature that is flawed.

Change management - elaboration on points highlighted with blue text Essay

Change management - elaboration on points highlighted with blue text - Essay Example This is because the strategy is short-term and assumes a simple link of cause and effect. On the other hand, systemic thinking attempts to structure a long-term solution. Using outside consultants, for example, may be a good reductionist response but in systemic thinking terms it limits the opportunities for that system to learn to solve its own problems. Another example is that of a departmental manager who focuses solely on his tackling issues by looking into the resources in his own department without ever considering external agents that could be responsible for any of the undesirable results. This limits the scope and efficiency with which the problems can be solved. Senge explains the different responses from reductionist and systemic views in chapter 4. Whether understanding a city or a living creature, he argues that a holistic approach is the only effective cure for problems. However, Senge does not mention that complex systems could benefit from short and long term solutions. In nature and in business, some things do develop in separate units and short-term changes are possible in some cases without unintended long-term effects. Manufacturing units, for instance, are complex units made up of many interacting units such as people, departments, technology, routines and structure (Fernandez, McCarthy & Rakotobe-Joel, 2001). The whole system or the whole organization is reduced to manageable individual parts. By studying the individual manageable parts, the leaders or the managers can formulate rules about the behaviour of the whole system. Thus, adopting a reductionst approach can at times be beneficial for organization such as Delap & Waller because it has several functional departments with dispersed locations. In simple terms, the tradeoff between the reductionist and systemic views can be described

Job eveluation Research Paper Example | Topics and Well Written Essays - 2250 words - 1

Job eveluation - Research Paper Example The data collected by means of job evaluation and recapitulated in job descriptions has an array of uses in human resource management, neither of them more fundamental to the entire program of human resource than job assessment and pricing (Reda, 2002). Jointly, job evaluation, and job pricing determine what every job ought to pay. This guarantees that the pay is fair in two manners: internally, so that occupations that are moderately of larger value to the firm are paid more as compared to those of minimal value; and externally, So that rates rewarded to jobs in the firm are competitive with those remunerated by other organizations in the labor market for equivalent work. Job assessment establishes the comparative worth of a job with a different job or several others. It does not place pay rates that are the function of job pricing; relatively, it contrasts jobs with each other or gauges them against an average for instance, an Executive Secretary compared to a Stenographer, the Secretary is at a higher rank than the Stenographer. This sort of information is of importance to the firm since it acts as the basis for many elements in the program of human resource. Foremost, it carries over into the job pricing stage, with the outcome that, occupations of comparatively minimal value are awarded less pay (Rynes and Gerhart, 2000). Secondly, job evaluation identifies present wage inequalities. Job assessment exposes circumstances whereby occupations are not being paid in proportion to their comparative worth. Additionally, job evaluation offers the organization a system for allocating rates of wage to lately generated occupations compliant with their contribution to the organization (Kay, 2005). A novel occupation, for example, an E-mail Order Clerk, can be assessed and put in the apposite grade. This makes certain that the E-mail Clerk Order employed by the organization will be

Politics Essay Example | Topics and Well Written Essays - 2000 words - 4

Politics - Essay Example World has been changing enormously hardly looking at damage it is been doing to the environment. The ecological balance of the planet has been destructed greatly due to the industrial waste and carbon emission from transport system. The first world countries have polluted the planet deeply and it is ironical that the same countries encourage third world countries to cut down on pollution. Some have even criticized that sustainable development is provoking the world to step back to pre modern style of living. â€Å"Sustainable Development is often an over-used word, but goes to the heart of tackling a number of inter-related global issues such as poverty, inequality, hunger and environmental degradation† (Shah, 2010).This idea arose from various movement for protecting the nature and environment from the past. This concept gives different meaning to different people and we can see that lot of countries have various policies which encourage environmental sustainability. The sustainable development has been given more importance since the emergence of global warming issue which has threatened the world lately. Global warming has been a phenomenon which has raised much eye brows in recent years. It is an increase in the planets temperature since 20th century and its continuation. The increase of Greenhouse gas has led to the detoriation of the ozone layer .Scientist have found out that the carbon emission have led to the creation of hole in the ozone layer. â€Å"Under the George W. Bush administration, the USA government framed climate change as a threat to core economic interests, questioning the scientific basis for limiting CO2 emissions. Many political leaders in Washington agreed with this†(Humphreys,Pg. 44).Even though a very positive vibe can be seen among governments little is seen towards the practice. Coal and oil usage have made difficult for the US economy to cut the carbon emission. If the rich and

Out Line for Nursing Course Essay Example | Topics and Well Written Essays - 3500 words

Out Line for Nursing Course - Essay Example The proceeding text enlightens the interested candidates about the objectives of the course along with how the students will work, what will be expected of them, and how will they be assessed (Excite Education, 2001). Course Description â€Å"Tell me, and I will forget. Show me, and I may remember. Involve me, and I will understand.†Ã‚  Ã¢â‚¬â€ Chinese Proverb The proverb mentioned above, sometimes accredited to Confucius, encapsulates a core constituent of educating and training nurses: the utilization of simulation labs during clinical rotation. Previously, the nursing students had were expected to implement their book knowledge directly on to a human, during those times they had no â€Å"Sim Man† to practice on. This built a great deal of pressure on the student since the students had to perform well under the supervision of the doctor or other supervisors; it also meant that one mistake on their part and the patient they are dealing with can be harmed. Nevertheless , simulation nursing allows the individual students to apply their text book knowledge without pressure building. It allows the user to practice their knowledge and to perform better with confidence (Clavreul, 2012). The course has been thoughtfully designed and is functional for all nursing students who have lucratively completed their Level III requirements. In other words, all Level IV, Level V, APO, or RN-MSN nursing students are entitled. Any non-nursing students interested in learning about nursing simulation are advised to communicate with the instructor as well. Enrollment for the course is limited to 20 students in order to keep this course to a controllable size. The academic health science centre UCL Partners, which comprises more than 30 NHS organisations and education bodies, is establishing the course (Nursing Nimes, 2012). Learning objectives The objective behind designing a course is to educate nurses and also train them before they step in to the field and start pra cticing in the nursing career. It is also aimed at building the confidence and release the student from the pressure that was built previously. The students will be more confident while working in the real situations after they have worked with the created scenarios. Since, the course offers training as well the nurses will be more competent in their work. That is the course will aim at providing the nurses with the capability of dealing with situations in the real work environment after practicing upon the dummies (Galloway, 2009). Nevertheless, there is a possibility that students may feel confident while working with the dummies but may feel lost when they come across a real environment. In order to curb this problem the course has developed certain activities that will overcome such short comings in the course. Another objective of the course is to polish the nurses while taking care of the patients. In order to fulfill this objective nurses will be taught how to pass the inform ation to the patient in terms of its progress. Usually nurses are well skilled when it comes to technicalities of their job. But when the nurse is to deliver of communicate a certain information they falter behind (Galloway, 2009). Moreover, the objective of the course also involves the process of briefing and debriefing the patients or the attendants of the patient.

Walmart's Implementation, Strategic Controls, and Contingency Plans Essay

Walmart's Implementation, Strategic Controls, and Contingency Plans - Essay Example One of the main issues that had become the root of all problems was its core values of providing low prices always. Some of the strategies that the company had implemented into achieving these policies were called into question. One of the important objectives of implementing the strategy for change management was to revive the falling sales and get the company back on growth platform. One of the turnaround factors for wall mart that is going to lift it out of the stage that it is currently in is to grow leaders at all stage. To grow leaders at all stage of the organizations among both the managerial and non managerial workforce is to impart them adequate training. Since wall mart is a large multinational organization so to impart training at large scale will require adequate planning. The plan to grow leaders at all stage of the organization should be done step by step (Walmart Inc, 2006b). The plan should be first inducted as a training module for a single branch and then slowly spread into other branches at first in a country, then in a continent and then through all the continents. Before going into next step of the process the company must first ensure that the first step has been successful with clear and positive results. The company by utilizing its innovative CRM tools has huge pile of customer data that it has collected over the years. A simple strategy would be look into what has changed in the customers buying behavior. If the customers are moving towards other store why on earth are they doing so? The key is to analyze the key lacunas and fix them. One of the key areas where wall mart might be lacking as compared to its competitors is that in a drive to give its customers â€Å"Always low prices. Always† the company gives discriminatory wages to its employees. So the company suffers from low employee productivity as compared to many of its competitors (Cascio, 2006b). Costco produced $21,805 in operating profit per hourly employee. This is

Street art and political revolution Essay Example | Topics and Well Written Essays - 1000 words

Street art and political revolution - Essay Example Freedom of expression speech is assumed as the only channel of expression, but art also plays a big role in it. Political revolutions tend to have beliefs and stand for a particular cause that the people concerned are willing to die for. Revolutionist should have a symbol or an art figure that represents this cause, which tends to motivate and keep them focused on the eventual cause of their struggle. Noam’s face which is used as a symbol by Iran activists represents anger and suffering which people find familiar. The result of the picture is Iranians in the dark of night shout slogans imitating Noam’s scream in darkness. The visual representation that these people look for is mainly found in the street from artists who feel aggravated by the prevalent conditions that affect them, which they transform into art. In many revolutions where people fight against their oppression, the Che Guevara portrait is common in many flags of the revolutionary organizations. This is a s ymbolic representation of Che Guevara’s struggles against oppression, which he succeeded in the end. Street art is not only used in showing the struggle, but also there are those that show a new day will come where action will be taken and the oppression will end (261). In a revolution, the people reclaim control of infrastructure, national resources, social amenities from the governing body. In Tunisia, street art was elemental in reclamation of public spaces where the oppressed were given an opportunity for them to express themselves.

Political Science Essay Example for Free

Political Science Essay Non-governmental organizations and Inter-governmental organization are defined as actors in the international level which operate and they carry out their activities without any state control. Non-governmental organizations are formed voluntarily by citizens, with the aim of charitable participation within the organization. They are independent within the laws of society and are managed by those elected or the appointed board. Its legal status is based on freedom of association, one of the most basic human rights. This paper will focus on various aspects of these two kinds of organizations and their effects on the international relations of a state. NGOs are not established with the purpose of making profit rather they are engaged in revenue-generating activities. The revenue obtained is used in pursuit of the organization’s mission. Employees get the proper reward for relevant work done. Nevertheless, boards are not paid for the work they do but are reimbursed for any expense they incur in executing board duties. In addition, NGOs aims at improving the circumstances and prospects of people and to act on issues detrimental to the well being of the society as a whole (Ahmed Potter, 2008). There exists great diversification in terms of independence, size of business, source of funding, international reach and operating procedures. These organizations can execute projects, shield or promote specific causes and seek to manipulate policy. NGOs are not subject to international law and include organizations like Amnesty international, the International chamber of Commerce and International Red Cross. IGOs  Intergovernmental organizations, commonly abbreviated as IGOs, comprise of sovereign states that are positioned to carry out projects and plans in common interest. NGOs act in conjunction with IGOs by complimenting IGO- initiated and funded programmes, as operational partners. IGOs include organizations like the European Union and the international financial institutions, World Bank. Most of IGOs work for and are financed by rich corporations and some state governments (Beigbeder, 1991). They are important aspect of public international law and are formed by treaty that acts as a bond creating the group. IGOs plays a major role by providing means of cooperation and multiple channels of communication between and among states in fields which cooperation and communication provides advantages for almost all nations. With the major roles of IGOs as rule making, data collection and agenda setting, they decrease uncertainty between states and explore cooperative solution for international problems. IGOs may manipulate norms of international relations and preferences of nation-states; for instance, the United Nations Environment Program which played key role in the conception of regimes such as the protection of the Mediterranean Sea. A well known case is the International Atomic Energy Agency which evidenced that IGOs play a significant role in monitoring principles, norms and rules of international institutions and international regimes. Infrastructure has developed within states as IGOs are greatly concerned with technical issues like telecommunication, postal services, transportation and environmental management. Economic development has been witnessed with IMF and the World Bank being successful in money flowing, debt management and financing debt issues between rich and poor states. States are able to obtain information about the international society and politics. Decisions made by IGOs are as a result of negotiations among the governmental agents assigned to them. Activities of IGOs such as the UN and the IMF are seen to be more influential for most diminutive countries as compared with countries with very big powers as they are not constrained too much by their principles. NGOs exists in many kinds such as transnational, governmental organized, governmental regulated and initiated, business and industry, transnational social movements and anti-governmental. For the recent decade their effectiveness for transnational politics has become pertinent and their number increased. NGOs mobilize universal networks by creating transnational organizations, gathering data on local conditions through associates around the world, creating immediate response and drum up pressure from the outside states. NGOs work hand in hand with IGOs by participating in their conferences and engaging in social appointments, building communal coalitions, raising new agendas and addressing IGOs meetings (Beigbeder, 1991). They also maintain inter-state collaboration by preparing backing papers, reports and refining delegates of states to narrow technical gap, intensifying policy options and bringing delegates together. They carry out activities within states such as linking to local partners and transnational movements, providing humanitarian aid protecting persons in danger. NGOs promote public participation within states by bringing awareness to the government delegates that they are being watched. This is achieved through the endless effort in increasing transparency and honesty of international negotiations and public institutions and aggravating public protest. They do mobilization of international community to fight against oppression, afflict, group and personal rights. Effects of NGOs and NGOs on international relations of a state Non-state actors have caused great transformation in international relations as they have become the major determinants of foreign policies of nation states as they have remained active in playing their major roles in more than one state. They are involved in both domestic and international settings. Through their personal connection with their employees, they help nation states to solve problems such as climatological changes, shortage of food, poverty, and insufficient natural resources. In many cases of political conflicts like the cold war which resulted to tribalism and other cultural cleavages, many non-state actors have been involved to solve them and shape national, regional and international policies and thus their role has been widely accepted by many political scientists. However, these scientists only differed on the level of relevance and effectiveness of non-state actors. Intergovernmental organizations and Non-governmental organizations are included in the part of world system and are source of effectiveness in international politics. In today’s world, it has become quite difficult to evaluate international politics and pattern without attaching the great influence of non-state actors which are gaining position. Moreover, non-state actors have shown concern with the rural poor and have managed to maintain field presence in distant locations where it quite difficult to keep government staff in station. They have identified the needs of the rural poor in terms of agricultural developments. They have also implemented new systems for testing new technology such as soya production in Bangladesh (Ahmed Potter, 2008). In other cases, non-state actors have assisted to organize landless labourers to get and operate water pumping technology and irrigation schemes. Concisely, they have sustained joint efforts in soil and water conservation whether is on private land or on micro-watershed areas. Conclusion  In conclusion, increased transactions, awareness and common concern on regional and global problems require collaboration between states and non-state actors so as to maintain their welfare. These organizations will also require further cooperation and communication among themselves to strengthen their effectiveness as actors in the implementation of sustainable achievement. Nation-states including the most powerful one, the United States, have to attach great significance to non-state actors in order to improve and achieve their main interests.

\Yale University Investment Essay Example for Free

\Yale University Investment Essay Summary: The Case is about the decision of the Yale Investments Office whether to continue to allocate the bulk of the universitys endowment to illiquid investmentshedge funds, private equity, real estate, and so forth. Important is to consider the risks and benefits of a different asset allocation strategy. Before the choice between different subclasses, e.g., between venture capital and leveraged buyout funds would be analyzed it is advantageous to get first background information. Effective management of a university endowment requires balancing fundamentally competing objectives. On the one hand, the University requires immediate proceeds to support the current generation of scholars. On the other hand, investment managers must consider the needs of generations to come. In order to understand the behavior of the Yale University would be a view thrown in the past helpful. In the 20th Century the growth of the Yale endowment was accelerated rapidly due to enormous bequests and big investments in equity. In 1930 equities represented 42% of the Yale endowment this was in comparison to other universities (11%) very high. Because of the Great Depression severe erosion of its endowment was avoided in 1930, but in the end of this decade reduced a treasurer of Yale the share of equities. The reason was that higher taxes expropriate profits. He assumed that bonds better perform than stocks. For the next two decades, treasurer selected individual bonds high yield or income orientated stocks for the portfolio. In the 1950s and 1960s this strategy was less useful for the bull market so they had to change their policy. First Yale decided to increase substantially the university ´s exposure to equity investments and second Yale decided to contract out much of the Portfolio Management function to an external adviser. The plan was the external company Endowment Management Research Corporation (EMR) would function as a quasi-independent external firm would be free to recruit additional clients. At the same time Yale would be its largest client and would have priority over other clients. But the expectations were not realized. So in 1979 due to the plummet of the inflation-adjusted Endowment value by 46%, terminated Yale its relationship with EMR. They followed working with a variety of external advises in its envolving asset management framework. Now, David Swensen was in 1985  hired to the Head of Yales ´s Investment Office and the whole Investment Committee consists of a well-diversified team. Besides Yale could develop its investment philosophy from 5 principles. These are the principles: 1). Strong believe in equities. Equities are a claim on areal stream of income while the bonds have low expected returns but poor performance with uncertain inflation. The long-run returns of equity is tremendous than the long-run return of bond. This principle is reasonable for the equity can bring risk premium return for the portfolio.2.) Diversify Portfolio. Risk could be more effectively reduced by diversify the portfolio to different kinds of asset classes rather than pile on the single asset class. With the diversified strategy, the portfolio can prevent extremely loss when the market is down unexpected.3.) Seek opportunities in less efficient markets. There are far greater incremental returns in nonpublic markets with incomplete information and illiquidity through selecting superior managers. Therefore, The Investment Office devote large portion of fund in illiquid investments. This principle sounds good but the Investment Office should pay attention to potential large risk.4.) Utilize outside managers for all but the most routine or indexed of investments. For the outside managers can be given considerable autonomy to implement their strategies with relatively little interference from Yale. However, it’s not an easy task in finding excellent managers in foreign equity market, especially in emerging market. Also, we will face the problem of interest conflict between Yale and the external managers.5.) Focus critically on the explicit and implicit incentives facing outside managers. Because rarely asset management business had good incentive alignments built into typical client-manager relationships. It is necessary for Investment Office to construct good innovative relationships and fee structures with various external managers to consist the manager interests with Yale’s. Yale ´s Investment Committee annually reviewed its endowment portfolio. For the choice between different asset classes we will consider the actual allocations in 2006. *2006 (current Target allocation)*Considered only the last 2-3 years The consideration of the expected returns and risks from its current allocation and compared them with those of past Yale allocations and the current mean allocation of other universities reflected the need of university to diversify its holdings.In August 2006, Swensen and Takahashi believed that they probably wanted to continue with investments in less efficient markets. But Private investments were important in contributing to Yale ´s highest returns. How should Yale allocate its new commitment? Compelling category to invest in Venture Capital/ Real estate/ Real assets, choices today? Mix between new groups and established organizations? Should Yale expand its international program to include a greater emphasis on Asia and other emerging markets? Overview: Advantage DiadvantagePrivate Equity(Venture Capital/ Real estate/) -consists with investment philosophy-long-term relationship with limited number of organizations-Excess Returns (15,4%) by portfolio ´s active Manager-greater exposure than other schools-scale on which PE operated-VC midmarket BO-relationship with key manager – competitive advantage -Yale has understanding of the private equity process -boom and bust cycle (high risk)-defections of key personnel-manager risk-avoid VC: obtaining access to the best firms nearly impossible-Yale should invest with a top-tier firm International PE Funds -good, because of the increasingly competitive in the U.S market-they have general partners on site (e.g China) -more planning-subsidiaries or affiliates of large financial institutions-difficult to evaluate foreign private equity organizations and selecting manager Real Assets (Real Estate/oil and gas) -interesting set of investment opportunities-avoid mortgages and other debt -only attractive if they could find the right manager with the right strategies and the right incentive structures-transaction fees or fees based upon assets-less attractive oil-and-gas, because it is difficult to find well-designed oil-and-gas partnerships Foreign equity/ Emerging markets -Undervalued  securities-provide portfolio diversification-grow rapidly, provide opportunities for active managers to earn superior returns- 7 active emerging market manager in the PF-(well diversified) -Slow development of institutional investing-Leading foreign manager appeared to work for large institutions -returns low correlation with those of the US-link between growth and profitability is weak Bonds / Foreign fixed-income securities -low risk -Skepsis, if returns are enough for compensation of default risk and callability of corporate issues-low expected returns perform poorly Approach (regard to the table above):Yale should stay committed to private equity (e.g high returns, Yale ´s hedging strategies reduces risk in private equity, enough important benefits to being in the private market). Besides it consists with the investment philosophy (principles). They should diversify portfolio with international private equity funds, it allows to break into new markets and get new opportunities, key managers are on site. Yale shouldn ´t invest in real estate (Real estate industry is dominated by firms that were compensated through transaction fees or fees based upon assets under management. These firms have every incentive to keep their investors ´ capital toed up over long periods of time. Besides less attractive is also oil-and-gas industry not enough knowledge and key manager). They have 7 key manager in the Portfolio for emerging markers, so it is a great opportunity to expand in emerging markets and find undervalued securities. The link between growth and profitability, which is weak can change with good manager decisions. They could diversify the risk with the high Private Equity returns.