The Tragedy of the Commons Theory Analysis

The Tragedy of the Commons Theory Analysis In The Tragedy of the Commons, Garrett Hardin argues that appeals to conscience are not effective in solving common problems. First, I will explain Hardins arguments against appealing to conscience and why he thinks it is ineffective, and then show what he thinks will work instead of appeals to conscience. After that, I will describe why I dont think his reasoning is correct and offer an alternate proposal for why appealing to conscience can solve commons problems. Next, I will respond to my proposal to make a reasonable case for it. Finally, I will show that I make a stronger case than Hardin and that appealing to conscience is very effective means of solving common problems. Hardin states that conscience is self-eliminating (Hardin, p. 1246). He references Charles Galton Darwin who shows that persons who appeal to conscience would when confronted with appeals to limit breeding, would respond by limiting breeding. C.G Darwin argues that this does not fit with the theory of natural selection and these people would, after hundreds of generations, cease to exist. Hardin argues that based on natural selection and the heredity of conscience, persons who are more susceptible to appeals to conscience have a system set up to eliminate that trait form the race. He uses heredity generally to include germ cell transmission of traits and exosomatical transmission of traits. Hardin also discusses how asking someone to stop doing something, he uses exploiting the commons as an example, in the name of conscience (Hardin, p. 1246) is a contradiction. He describes the two different messages being sent as intended and unintended communication. This is referred to as the double bind by Bateson. When one makes a request for an appeal to conscience what is intended to come across is that If you dont do as we ask we will openly condemn you for not acting like a responsible citizen. (Hardin, p. 1246). The unintended message one receives is that If you do behave as we ask, we will secretly condemn you for a simpleton who can be shamed into standing aside while the rest of us exploit the commons. (Hardin, p. 1246). This unintended message, Hardin claims, triggers guilt and anxiety. While this can be effective, Hardin questions whether the ends justify the means. He doesnt think it is acceptable to use techniques that are psychologically pathogenic. His response to t his is that instead of psychologically manipulating persons who exploit commons we should adjust the social arrangements in regards to responsibility. His response leads from the philosopher Charles Frankel who defines responsibility as the product of definite social arrangements. (Hardin, p. 1247). Hardin explains that to keep a bank robber from using the bank as a commons, you dont reprimand him or aim to psychologically coerce him you change the social arrangements. If you say the bank is not a commons then the social arrangements will keep it from becoming a commons. According to Hardin the way in which we can alter social arrangements is through privatization and taxes. I dont think that Hardins view that conscience is self-eliminating is valid. If one can make the appeal to conscience to limit breeding, than they should also be able appeal to their conscience to increase population when necessary. This is to say that persons who appeal to conscience can adhere to many appeals to conscience, not only ones that would decrease their population. Take into account religious organizations that preach that persons are put on this earth solely to reproduce and that by not doing so they will face disapproval or judgment. This is an appeal to conscience. Having as many kids as you can is the right thing to do; it is your obligation to have as many children as possible. This works as well with many people as appealing to conscious to save the earth and decrease our population does with another type of persons. His argument that being susceptible to conscience will cause them to go extinct does not hold for all persons of conscience. In relation to common problems I believe that appeals to conscience can provide a solution so long as it is paired with education. I think it is unreasonable to say that there can only be one way to solve common problems, allowing for appeals to conscience be paired with education. By incorporating an educational piece into an appeal to stop exploiting commons it solves the problem of the double bind. You are able to clearly convey the intended message as before. However, the unintended message is cleared because you are actually showing facts and figures on why people should stop exploiting commons. If you have the evidence that shows that the pros out way the cons to cutting back on usage, then people wont feel like they are being swindled. While this may take more time than privatizing land or charging taxes because you may have to try multiple time to get people to fully understand the facts it can still work. People that are more susceptible to appeals of conscience will agree more readily to stop exploiting the commons. As more people make appeals to conscience the persons that are less susceptible can see the improvements that are being made by those that have stopped exploiting the commons. The research and education piece will build on itself making a stronger case for everyone to appeal to conscience. An objection that can be made is whether it is morally acceptable to come at people on a psychological level. Exposing a person as irresponsible citizen can still cause stress and make some people appeal to conscience when they are merely afraid of being judged. This can cause a problem when the actions and advocacy of individuals that have appealed to conscience is a large part of appropriately educating people. If this happens it will be less effective than originally thought. I think that because of the psychological pathogen that is conscience, Hardin makes a better argument for staying away from using it to solve commons problems. While appealing to conscience while appropriately educating can work, it would take more time and effort than merely changing the social arrangements. I also believe that his claim that conscience is self-eliminating is not accurate. This however, does not affect the larger issues of using conscience to solve common problems. In The Tragedy of the Commons, Garrett Hardin argues that appeals to conscience are not effective in solving common problems. Hardins argues against appealing to conscience because he thinks that conscience is self eliminating and that using a psychological pathogen is ineffective and morally problematic. He suggests changing the social implication of a commons by using privatization and taxes to solve commons problems. I disagree that conscience is self eliminating and that appeals to conscience can work as long as people are properly educated at the same time to solve the problem of the double bind. Unfortunately, this does not solve the problems that may come up as conscience is still a psychological tool and may have negative effects to the plan. I think that Hardin makes a stronger case that taxation and privatization are the most effective ways to solve commons problems.

Starbucks Corporation & Tully’s Coffee Corporation

Starbucks Corporation & Tully’s Coffee Corporation MBA 522: Financial Management December 9, 2008 Tully’s Coffee Corporation Established in 1992, Tully’s Coffee Corporation is a Seattle based coffee retailer and wholesaler. The main products offered by the company are baked food items, coffee products and pastries. Additionally, their coffee beans have exceptional sales in regional supermarket and grocery stores. The company currently operates over 100 stores in the western region of the United States and they have embarked upon a business venture in Japan where Tully’s is creating quite a coffee presence, they are also investigating expansions into other foreign markets. The Corporation started generating profits in the year 2006 (About Tully’s, 2007). Starbucks Corporation Seattle-based Starbucks Corporation is the leading coffeehouse chain in the world. The company currently has operations in more than 44 countries. The main products offered by Starbucks include a wide variety of beverages, coffee beans and brewing equipment, and a wide assortment of snacks and sandwiches. The company also branched into marketing music and books (The Company, 2008). Ratio Analysis RatiosStarbucksTully's Coffee Current Ratio0. 790. 51 Quick Ratio0. 300. 30 Debt Equity Ratio1. 345. 22 Proprietary Ratio0. 430. 24 Solvency Ratio0. 571. 24 Inventory Turnover Ratio12. 1311. 27 Gross Profit Ratio (%)23. 3444. 96 Net Profit Ratio7. 1515. 76 Return on Proprietors' Funds29. 45- Earning Per Share0. 910. 004 Current Ratio Current ratio may be defined as the relationship between current assets and current liabilities. It is also known as the working capital ratio (2: 1 ratio). It is calculated by dividing current assets by current liabilities. Current assets of a firm represent those assets which can be, in the ordinary course of business, converted into cash within a period not exceeding one year. Current liabilities are those obligations which are to be paid within a period of one year of current assets or by creation of current liabilities (Van Horne, Wachowicz & Bhaduri, 2005). Current ratio of the Starbucks Corporation and Tully’s Coffee Corporation is . 79 and . 51 respectively, during the year 2007. There is a difference in the current ratio of both companies, reflecting the weak liquidity position of both companies – and it illustrates that neither company has short term solvency. Liquidity position can be improved to some extent and can be made equivalent to industry average. The industry average of current ratio is . 90: 1. The current ratio of Tully’s is unsatisfactory and reflects weak position of the company. Quick Ratio This ratio is also helpful in analyzing the short term financial position of a business. Quick ratio is the measure of the instant debt paying ability of the business enterprise, hence, it is called quick ratio (Van Horne, Wachowicz & Bhaduri, 2005). A quick ratio of 1:1 is considered as an ideal ratio. If the liquid ratio is more than 1:1, the financial position of the firm is deemed to be sound. On the other hand, if the ratio is less than 1:1 the financial position of the firm is unsound. Quick ratio of Starbucks is . 30:1 and Tully’s ratio is . 30:1. There is no difference between the quick ratios of Starbucks & Tully’s Coffee. Overall, the short term liquidity position of both firms is quite poor because the ratios are less than the desired norm. For instance, current ratio should be 2:1 whereas, it is less than 1:1. Similarly, the liquidity ratio is much less than 1 as compared to ideal standard of 1:1. Therefore, the companies will face difficulties in paying current obligations on maturity. Debt Equity Ratio This ratio indicates the relative proportion of debt and equity in financing the assets of a firm. Debt Equity ratio reflects the relative claims of creditors and shareholders against the assets of a firm. The industry average of ratio is . 42:1. Debt equity ratio of Tully’s is 5. 22:1. This figure is not at all satisfactory; the ratio of 1:1 is considered within norms and reasonable. The Starbucks ratio is 1. 34:1, which is quite reasonable. A high debt equity ratio has serious implications from the firm’s point of view. A high proportion of debt in the capital structure leads to the inflexibility in operations of the firm as creditors would exercise pressure and interfere in management. Tully’s has high debt-equity ratio which is unfavorable for the company. Proprietary Ratio Proprietary ratio establishes a relationship between proprietors or shareholder’s funds and total assets of the business. This ratio highlights the general financial strength of the firm. It is of great importance to creditors since it enables them to find out the proportion of shareholder’s funds in the total assets used in the business. The ratio of Starbucks is . 43:1 and for Tully’s it is . 24:1. The proprietary ratio is low for both companies. Although there is little difference in performance of both corporations, it is Starbucks that is in better position. Solvency Ratio This ratio measures the long term solvency of the business. It reveals the relationship between total assets and total external liabilities. This ratio measures the proportion of total assets provided by the creditors of the firm, i. e. what part of assets is being financed from loans (Van Horne, Wachowicz & Bhaduri, 2005). The total assets of Starbucks are more than their total liabilities, which indicates that the company is solvent. Tully’s liabilities are more than their total assets, reflecting that the firm is not solvent. In this instance the higher the ratio, the greater the amount of creditors that are being used to generate profit for the owners of the firm. The difference in both the companies’ ratio is very high, although Starbucks has better performance than Tully’s in terms of solvency. Inventory Turnover Ratio The ratio indicates the number of times inventory is replaced during the year. It measures the relationship between the cost of goods sold and the inventory level. The inventory turnover ratio measures how quickly inventory is sold (Van Horne, Wachowicz & Bhaduri, 2005). The inventory turnover ratio of Starbucks is 12 times while Tully’s ratio is 11 times. Starbucks and Tully’s both have similar ratios, below that of the industry average. Thus, both corporations have inefficient inventory management. Generally speaking, a high inventory turnover ratio is better than a low ratio. A high ratio implies good inventory management. A very low level of inventory has serious implications, as it adversely affects the ability to meet customer demand. Gross Profit Ratio The ratio expresses the relationship of gross profit on sales to net sales in terms of percentage (Van Horne, Wachowicz & Bhaduri, 2005). Goss profit is the result of the relationship between prices, sales volume and costs. Gross profit margin of Starbucks Corporation is 23%, whereas the ratio for Tully’s is 45%. Tully’s ratio is high as compared to Starbucks, which is a sign of good management. It implies that the cost of production for the firm is relatively low. Tully’s has reasonable gross margin which ensures adequate coverage for operating expenses and sufficient return to the owners of the business, which is reflected in the net profit margin. Net profit Ratio This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable compensation to the owners for providing their capital at risk (Van Horne, Wachowicz & Bhaduri, 2005). Net profit ratio of Tully’s Coffee and Starbucks is -15. 67% and 7. 15%, respectively. Starbucks Corporation is generating adequate returns for its owners. On the other hand, Tully’s net profit margin is negative. The company is suffering from huge losses and has incurred net losses in the year 2007. Overall efficiency and profitability of Starbucks is higher than Tully’s Coffee. Return on Proprietary Funds The ratio expresses the percentage relationship between net profit and proprietors funds or shareholder’s investment (Van Horne, Wachowicz & Bhaduri, 2005). It is used to ascertain the earning power of shareholders investment. Return on proprietors’ fund for Starbucks is 29. 5%. The ratio could not be calculated for Tully’s Coffee as net profit and shareholder’s funds, both are negative. Starbucks has better performance and a higher return than Tully’s Coffee. Earning Per Share The rate of dividend on shares depends upon the amount of profits earned by the firm. Whatever profit remains, after meeting all expenses and paying preference share dividend, belongs to equity shareholders (Van Horne, Wachowicz & Bhaduri, 2005). These are the profits earned on equity share capital. The earning per share is calculated by dividing the profit available to equity shareholders by the number of shares issued. This is a popular ratio as it measures the profitability of a firm from the owner’s standpoint. Starbucks EPS is higher than Tully’s, which shows that the market price of the firm would be greater. Earning per share of Tully’s Coffee has no value, it is almost negligible. Higher EPS helps the company to raise additional capital without difficulty. This ratio plays an important role in comparison of the two companies from an investment point of view. Investment Decision It would be my choice to invest in Starbucks Corporation, as the overall performance and productivity is higher. The liquidity analysis performed through current ratio and quick ratio reveals that the Starbucks is positioned better in terms of liquidity; the company also has superior position in term of long-term solvency. Though gross profit ratio of Tully’s Coffee is high, overall Starbucks has a favorable financial position in that they would be able to quickly convert various assets into cash. Starbucks Corporation is generating adequate returns and reasonable profits which are sufficient for effectively running their operations. The corporation is generating higher returns for their shareholders, illustrating that the resources are effectively utilized. EPS is very high at Starbucks, which is necessary for the investment. Thus, I feel that an investment in Starbucks Corporation is a better choice, as it would yield higher returns for this investor. References About Tully’s. (2007). Retrieved November 21, 2008, from http://www. tullys. com/company/ Starbucks Corp: Financial Statement. (2008). MSN Money. Retrieved November 21, 2008, from http://moneycentral. msn. com/investor/invsub/results/statemnt. aspx? Symbol=SBUX&lstStatement=Balance&stmtView=Ann The Company. (2008). Retrieved November 21, 2008, from http://www. starbucks. com/aboutus/overview. asp Tully's Coffee Corporation. (2008, November). Hoovers. Retrieved November 21, 2008, from http://www. hoovers. com/free/co/secdoc. xhtml? ID=58100=6157151-141335-231989 Van Horne, J. C. , Wachowicz, J. M. , & Bhaduri, S. N. (2005). Fundamentals of Financial Management (12th Ed. ). (pp. 130-133). United Kingdom: Pearson Education

Mahatma Gandhis Path to peace Essay examples - 788 Words

Mahatma Gandhi once said, â€Å"I wish for equality for all people, except for photographers and journalists† (â€Å"Mahatma Gandhi biography†). Gandhi was commonly known for his loving personality and his passion for life and equality. It was his mission to free India from the clutches of the British Empire and he will be remembered as one of the greatest pacifists to walk this earth. However, to achieve all of his objectives for truth and equality, he would have to overcome many adversities and hardships during his life. Mohandas Karamchand Gandhi was born on October 2, 1869 at Porbandar, Kathiawar agency, British Indian Empire. He is better known today as Mahatma meaning great soul or Bapu meaning father (â€Å"Mahatma Gandhi biography†). In†¦show more content†¦In 1915, he returned to his home in India to rally peasants, farmers, and laborers to protest against discrimination and high taxes. He was treated poorly due to the color of his skin a nd his activities in organizing protests (â€Å"Mahatma Gandhi biography†). This was just the beginning of more adversities to come. One of the adversities Gandhi faced was financing. As a child, Gandhi’s life wasn’t the easiest. His family did not have a lot of money, so he didn’t live his life without difficulty. He was soft-spoken and only an average student. However, he conquered this problem by working hard, investing his money wisely, and saving up (â€Å"Mahatma Gandhi biography†), but his troubles were far from over. A large group of people attacked Gandhi in South Africa while he was there for the civil rights movement. The authorities arrived and pulled the attackers off Gandhi and asked if he would like to press charges against the mob. However, Gandhi said that he would not dare and that it was against his beliefs (Rosenberg). With most of his adversities conquered he focused on his protests and quest for equality. 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The Iranian Revolution Of 1979 Essay - 1812 Words

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