Discuss the agency problem relating to multinational companies, and in Essay

Discuss the agency problem relating to multinational companies, and in particular multinational banks, and how, they differ from - Essay Example The situation of agency problem is such in many of the organizations that the agents or the management of the organization makes use of their authority for deriving personal benefits rather than benefits of the principals or the shareholders. In other words, agency problem arises due to the conflicting interests among the management, creditors and shareholders’ regarding the goals of the organization as well as that of the concerned parties (Investopedia, 2011). The agency problem in multinational companies can be appropriately discussed by focusing on the ways as to how the supervision and regulation affects the risk-taking measures of the banks in the host-country (Ongena & Et. Al., 2011). This research paper is aimed to present the discussion on agency problem in multinational companies, particularly banks, through review of various aspects related to the evolution of the problems. The research also aims to present a comparative study of the agency problems faced by the mul tinational organizations and domestic organizations. Two Most Common Agency Problems in Banks In the non-financial corporations, an incentive is provided to the shareholders through limited liability that allows them to seize bondholders’ wealth by increasing the level of risk. The government is indulged in protecting the bond holders from the outcome of risk taking activities of the banks. Thus, the shareholders’ incentive to supervise and restrain risk taking is low. In the banking literature, such situation of absence of discipline is known as the â€Å"moral hazard problem associated with deposit insurance†. A second very common situation of agency problem arises due to the limits on the wealth of managers that forces a separation of control and ownership. This forces the managers to consider their own objectives to be more important than that of the shareholders (Demsetz, 1997). Agency Problems and Risk Taking at Multinational Banks The root cause of agency problems in multinational companies, particularly banks is related to the structuring of regulations for multinational banking units. The host country is more interested in structuring the regulations in such a way that would provide disadvantage to the foreign firms to compete with the domestic firms. But this notion would result in inconsistency with the objective of a single market (Baum, 2002). The consequence of leaving the supervision and regulation in the home country, as evident from the case of the European Union, is that the member countries adopted different structures of regulation and supervision for the financial institutions. Thus, if the multinational banks are faced with similar regulatory issues, they would either split according to functions or would consolidate regulation into one agency. In that case, in certain situations the Central Bank will be involved, whereas in other cases, it would not. Hence, it is evident that considering these regulatory issues, the multinational banks would select policy trade-offs on the basis of their degrees of responsibilities and

Microsoft Windows 7 Research Paper Example | Topics and Well Written Essays - 4000 words

Microsoft Windows 7 - Research Paper Example Data indicate that Windows 7 helped Microsoft to increase its market share to some extent although some users are dissatisfied with the features of this new version operating system. It offers a number of packages including Starter, Home basic, Home premium, Enterprise, Ultimate, and Professional. The company is using a distinct marketing strategy to promote the sales of Windows 7. This paper will analyze the various feature of Windows 7 on the ground of its market strengths and supply chain management. MS Windows 7 Microsoft Windows 7 was released on 22nd July 2009. It is interesting to note that the company made Windows 7 available to general retail outlets within less than three years after the launch of its predecessor, Windows Vista. By the release of Windows 7, the company aimed to be more compatible with numerous other technologically developed applications and hardware. This new operating system focuses on multi-touch support, a redesigned Windows shell with a Superbar, and a home networking system named HomeGroup (Microsoft Windows, para: 3-5). It contains several measures to promote performance improvements. It must be noted that some standard applications included in the previous versions of MS Windows including Windows Movie Maker, Windows Mail, Windows Photo Gallery are excluded in Windows 7. Microsoft has added numerous new features to Windows 7 including handwriting recognition, virtual hard disk support, improved multi-core processors and boot performance, DirectAccess, and kernel modifications; and in addition to this, a new version of Windows Media Center, highly developed media features, and a new calculator with multiple capabilities have been added to Windows 7(InfoWorld). Similarly, Windows 7 is characterized with notable Control Panel feature changes. It integrates improved features such as Display Color Calibration Wizard, Recovery, Gadgets, Workspaces Center, Credential Manager, ClearTye Text Tuner, System Icons, Biometric Services, and Location and Other Sensors to Control Panel; and the addition of Windows Imaging Component enables Windows 7 to support images produced in the RAW image format. Significant changes to taskbar functions have been also made (InfoWorld). This product strictly complies with US and European antitrust regulations and provides users with safe internet browsing options. Following the launch of Windows 7, the company got exciting response from the market. Within 8 hours of Windows 7 launch, its pre-orders at amazon.co.uk surpassed the number of those had with Windows Vista in its first 17 weeks. It became the highest pre-order level in the history of Amazon, breaking the record of seventh Harry Potter book. Windows 7 took only less than three weeks to reach a 4% market share whereas its predecessor Windows Vista took nearly seven months to achieve the same. As of 23rd April 2010, Microsoft sold more than 100 million Windows 7 operating systems across the globe and the sales volume grew to 5 25 million copies by 19th January 2012. Reviews of Windows 7 reflect increased usability and functionality as its major advantages attracting users. The CNET rated Windows 7 Home Premium 4.5 out of 5 stars whereas it was rated 4 out of 5 by the PC Magazine. The CNET stated that â€Å"it is more that what Vista should have been, [and] it is where Microsoft needed to go† (â€Å"The City is Alive†, para: 5). Another catching feature of Windows 7 is