Social Networking Sites Problems and Benefits

Introduction In the past century, the world has experienced great achievements that have facilitated growth and development in many countries. The invention of computers and the creation of the internet have been among the epic accomplishments made during this period. These two entities have virtually revolutionized information processing and communication, thereby taking it to another level. Social networking has been among the areas that have recorded significant growth in this regard.Advertising We will write a custom essay sample on Social Networking Sites Problems and Benefits specifically for you for only $16.05 $11/page Learn More Online social network sites attract millions of users across the world and have played a central role in facilitating interactions between diverse populations. Despite the advantages documented by proponents of social networks, there have been increasing concerns regarding the harmful effects such networks have on users as a result of the personal information they provide in these networking sites. With these undertones, this paper shall set out to argue that social networks have created more problems5to the users as compared to expected benefits. Problems caused by online social networks Over the past decades, debates regarding the invasion of privacy have taken center stage. Such debates have been necessitated by technological advancements, which have made privacy invasion a real and achievable fete. According to Castro, online social networking sites have created a platform that makes it easy for people to invade the privacy of others (2). As an example, Helfand states that social sites such as Facebook have certain features that allow people to interact with you even when you do not want to (1). For example, ‘friends’ can engage you in chats despite where you are or what you are doing. The problem is that some of the friends are not really friends but people you share common aspect s with. As such, their ability to view your personal information or engage you in online interactions can be viewed as invasion of privacy. On the same note, Castro reveals that there are internet companies that take personal information of various users and redistribute that information to other companies that use it to gain competitive advantage over rival (2). In some cases, sharing of personal information is done without the explicit consent of the owner therefore, constituting to violation of personal privacy. This process is best explained by Gross and Acquisti who assert that most social networking sites encourage people to use real personal information as they register to be members of such sites, thereby exposing such individuals to a myriad of risks (1).Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Erosion of identity has also been cited as being among the harmful effects of online social sites. In most sites, people are encouraged to use pseudonyms and create profiles that are appealing to other users. As a result, most people end up publicizing themselves in a manner that conflicts with who they really are. For example, you may find underage children posing overt photos of themselves in parties, bikinis and other obviously destructive situations. While such photos may seem appealing to other users who actively ‘tag’ and comment on them, they affect how people view you in the long run. In addition, Brown asserts that social networks encourage people to create new identities that contradict their personalities (32). In this regard, the author states that it is no longer a matter of who I am, but where, with whom, and when I am (Brown 34). This clearly shows that social networks have encouraged people to be deceiving in order to fit in. Freedom of expression is best utilized through social networking sites. While interacting in these sites, member s air their views freely regarding various matters. However, since there is no fear for repercussions, some people have misused this freedom by propelling radical views to other members of the online community. This may have adverse effects on the masses, thereby leading to mass panic and protest in various parts of the world. In addition, comments posted on such sites can easily be publicized thereby destroying or damaging the professional and personal lives of different members of our societies. Similarly, there seems to be a consensus on the fact that social networking sites expose children to many risks. Traditionally, parents are always teaching there children to be careful of the company they keep and try their best to keep their children away from unwanted attention. However, social networking sites have developed an alternative way through which young children can be preyed upon by dangerous people in the online environment. For example, chat rooms can be used to lure childr en into meeting strangers who later subject them to various forms of abuses (Barnes 21). The author further states that in some occasions, predators have used these sites to stalk their victims (Barnes 24). Such incidences go to show the harmful effects of social networking sites.Advertising We will write a custom essay sample on Social Networking Sites Problems and Benefits specifically for you for only $16.05 $11/page Learn More Some of the major advantages of face to face communication are that the parties involved can express emotions through gestures, body language, facial expressions and tonal variations. Social networking sites are actively eliminating these crucial aspects of communication (Brown 32). Since people do not meet physically in such sites, the emotional aspect of communication and interaction is slowly being phased off. This is fostering a culture that will eventually see people loose connection with their emotions as they interact i n the virtual world. This is very harmful since it tampers with the core aspects that make us who we are. Despite these disadvantages, there are some advantages that can be accrued from the existence of social networking networks. Castro states that the internet has played a pivotal role in ensuring that people have access to information and the ability to make and maintain friendships in a world where time is limited (2). However, Rosen asserts that the internet has to a great extent affected our ability to truly read books and analyze information effectively (1). In her article, the author states that most websites are characterized by distractions, consumerism and attention-seeking behaviors, which present challenges to one’s ability to read effectively. This shows how internet sites affect the quality of learning especially to young children who only scan for information instead of actively reading over the internet. Conclusion This paper has argued that the risks associa ted with social networking sites far outweigh the expected benefits. To support this assertion, the harms that emanate as a result of using such sites have been outlined. As a result, an illustration on how these websites can be used to invade personal privacy, prey on innocent people and spy on individuals has been provided. Despite the advantages mentioned above, it has been clearly shown that the risks that social networking sites expose users to are not justifiable. It can therefore be acknowledged that such sites are more harmful than beneficial to members of society. Works Cited Castro, Daniel. â€Å"The right to privacy is not a right to facebook.† Information Technology and Innovation Foundation (April 2010). Web.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Barnes, Susan. â€Å"A privacy paradox: social networking in the United States.† FirstMonday 11.9 (September 2006). Web. Brown, Arnold. â€Å"Relationships, Community, and Identity in the New Virtual Society.† Futurist 45.2 (March 2011): 29 – 34. Print. Gross, Ralph and Acquisti, Alessandro. â€Å"Information revelation and privacy in online social networks (the facebook case).† ACM Workshop on Privacy in the Electronic Society (2005). Web. Helfand, Jessica. â€Å"My Facebook, My Self.† Dialogues: An Arguement Rhetoric and Reader. ‘Comp’. Gary Goshgarian and Kathleen Krueger. Boston: Longman, 2011. Print. Rosen, Christine. â€Å"In the beginning was the world.† Dialogues: An Arguement Rhetoric and Reader. ‘Comp’. Gary Goshgarian and Kathleen Krueger. Boston: Longman, 2011. Print. This essay on Social Networking Sites Problems and Benefits was written and submitted by user Aliana G. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

DWDM Meeting Bandwidths Demands essays

DWDM Meeting Bandwidths Demands essays Since the Telecommunications Reform Act of 1996, the flood gate has been opened for the competitive local exchange carriers to provide services throughout the world. To meet the ever changing needs of consumers, including high speed data, it has become necessary to be able to provide services on a large scale than ever before. This would mean that in order to provide quality of service you would have to have the resources to supply the demand. Data services are a crucial part of business operations. For this reason it has become essential to have fault tolerance services which could result in having to have doubled the bandwidth. This could be a big stress on an already strained infrastructure. No one could have predicted the growth that the telecommunication industry experienced. Most U.S. networks were built using estimates that calculated bandwidth use by employing concentration ratios derived from classical engineering formulas such as Poisson and Reeling. By this formula networks were designed on the assumption that a given individual would only use network bandwidth six minutes of each hour. These formulas did not factor in the amount of traffic generated by Internet access (300 percent growth per year), faxes, multiple phone lines, modems, teleconferencing, and data and video transmission. Had these factors been included, a far different estimate would have emerged. In fact, today many people use the bandwidth equivalent of 180 minutes or more each hour. One study estimated that from 1994 to 1998 the demand on the U.S. interexchange carriers'(IXCs) network would increase sevenfold, and for the U.S. local exchange carriers' (LECs) network, the demand would increase f ourfold. †  Noting these factors you can see the demand for bandwidth. Companies use fiber for their backbones, this is because of the bandwidth that fiber have to offer. Still, a companys bandwidth can run sh ...

Is Going to College a Waste of Time

Is Going to College a Waste of Time Your whole life, you have been conditioned to believe that you will only get a good job and be successful if you say those four magic words: I’m going to college. More and more researches support the idea that it’s not necessarily true. In fact, although college graduates are more likely to have a higher wage and more stable life, non-college graduates can be just as happy and successful with the right attitude. A Self-Made Life: Can You Survive Without a Degree? Think about it. How many entrepreneurs, thought leaders, and successful businessmen have dropped out of college or never even attended? And, we’re not talking about no-name local success stories. Some of the richest men in the world (Facebook designer Mark Zuckerberg, Macintosh founder Steve Jobs, and Microsoft billionaire Bill Gates, just to name a few) dropped out of college to pursue their fame and fortune. In fact, as college costs rise and jobs become more competitive, college graduates are asking whether the 4-year investment of time and money is really worth it. In a recent Salon article, former Secretary of Labor Robert Reich eviscerates the higher education model as it currently stands. He says: â€Å"Too often in modern America, we equate â€Å"equal opportunity† with an opportunity to get a four-year liberal arts degree. It should mean an opportunity to learn what’s necessary to get a good job.† For many, that means getting a 2-year vocational degree, taking online courses, or starting their own passion-driven business. Since the unemployment rate for recent grads has increased dramatically since the 2007 recession, many savvy and driven students chose to create their own jobs and with amazing success. College-Bound: The Real Scoop Yet, dropping out of college or not attending is no guarantor of success. The U.S. Bureau of Labor Statistics shows that those who only receive a 2-year degree or less make almost half on average as those who get a 4-year degree. In addition, their unemployment rate is 30% higher on average. A recent report from the Economic Policy Institute shows that states with higher rates of college grads have corresponding wages and jobs, which means that more college grads actually bring up the wages for everyone else. Not only that, but having a college degree is one of the more basic requirements of getting and keeping a job. According to 2011 Pew Research study, 86% of post-graduate students say that their college degree was a good investment for them. Because so many students are getting college degrees, it is often necessary to have a 4-year degree just to stay competitive in many high-paying job markets. Graduating from college has more personally fulfilling benefits as well. According to Census Bureau statistics, people with college educations have almost half the divorce rate of their degree-free peers. Additionally, the recent Gallup-Healthways Well-Being Index survey, five of the happiest states on earth (Colorado, Minnesota, Vermont, New Hampshire, and Massachusetts) have the highest percentages of college graduates. So, What Really Does Makes a Success? Despite the clear benefits of a college education, most Americans agree that education is not as important as attitude. When asked what makes a person successful, the overwhelming response from the Pew Education survey was that hard work (61%) and getting along with people (57%) were more important than education alone (42%). Additionally, Richard St. John recently shared a TED Talk about his research into what makes people successful. In face-to-face interviews with over 500 successful people in every industry imaginable, he found eight key factors that determine success: Passion Hard Work Focus Pushing Boundaries Ideas Consistently Improving Service Persistence What does this mean for your life? It means that you can be happy and successful whether or not you get a college degree. It all depends on how you approach your life. Whether you choose to get a degree or not, you still need the same basic drive to succeed, people skills, and ability to adapt to change. Final Line You can be successful or unsuccessful regardless of whether you get a college degree. People who are dedicated to being successful in their education will get the benefits of the long-term stability and personal connections that degrees generally provide. Those who are dedicated to being successful outside of the walls of a college building can achieve amazing results as long as they work hard enough and have the vision to change the world. No matter what you choose: whether to pursue a degree or not, your true success comes from knowing what you want and making the sacrifices it takes to achieve your goals. And whatever path you choose, you’ll have satisfaction in your choice. Finally, you’ll be able to say those truly magical four words: I knew I could. Do you think it is worth going to college? What benefits and drawbacks of college do you see? Your opinion is always welcome here!

Analysis of Promotional Program Situation Essay Example | Topics and Well Written Essays - 500 words

Analysis of Promotional Program Situation - Essay Example This product is hopefully going to sail through the market given its peculiarity, simplicity and integrative capabilities. There are a number of competing products to the Tablet360. However, the main competition is from the Nokia and Samsung who have by far established a number of related products. Their products are well positioned across the world market. They have a broad market share, towering through a number of countries. Their marketing strategies are vibrant and they have their presence on all the local and international media, in addition to the internet. They are also well promoted through sponsorship of great football clubs that play in the English Premier League. At the moment, there are so many phones and related tablets from these companies with enhanced features such as the touch screen, radio, mobile banking options, TV and the internet among others. (Strauss). In addition, it might be difficult to persuade the huge population that has already embraced these gadgets given the extra expenditure that they may have to incur on Tablet360. However, the saleability of this gadget is almost gua ranteed since its features are luxurious, efficient and amazingly economic due to the miniaturized enhancements and the ease of workability. As such, the tablet is estimated to command a market share of about 75% percent in the electronic market if effective advertisement is carried out. Most of the competitors are marketing their products through the mass media and the internet. (Strauss). In addition they also use the mobile phone short messaging services to spread the awareness of their products. (Christensen and LÃ ¦greid). In order to counter this, a more personalized marketing strategy for Tablet360 will have to be adopted. For example, after closing a sale with a buyer of the tablet, he might be given an opportunity to seek for a customer of another tablet with a guaranteed commission. (Strauss). In case the new customer comes, then the same strategy can

Case Study Example | Topics and Well Written Essays - 750 words - 24

Case Study Example The company supplier power is larger in its international operations than in domestic business transactions. In the U.S. the supplier power is concentrated in three companies that have the three largest market shares. The material that changed the industry and cannibalized the soft drink can industry is aluminum. The threat of new entrants can be categorized as medium low. The industry is controlled by five companies that have a combined 61% share in the U.S. (Bradley). The rest of the marketplace is served by over 100 independent companies. Due to the high value of the market which is worth over $12.2 billion there are always going to be entrepreneurs interested in penetrating the market. This industry is capital intensive and requires a high investment in machinery and equipment to set up an operation. Engineering knowledge is imperative for the success of a company. Since there are a few hundreds players in this industry another entrant could successfully penetrate even though the existence of high barriers of entry. The Buyer power of Crown Cork & Seal is medium high. The company currently has a market share of 7%. In 1989 the company produced 120,795 million cans. Its buyer power is higher in the international arena than in the United States. One of the competitive advantages the company enjoys is lower direct labor costs due to cheaper labor prices overseas. The company has the capability to achieve economies of scales in the purchase of raw materials such as plastic, steel, and aluminum. Economies of scale enable companies to lower the cost of buying materials. The threat of substitutes in the industry is medium. In regards to the sale of soft drinks can the majority of manufacturers utilize aluminum. In terms of packaging the biggest threat to metal packaging is plastic. Plastic is a petroleum derivative. The utilization of research and development allows companies to bring innovation to the industry. The company has a passive strategy in its

Challenges Faced By Working Couple

Challenges Faced By Working Couple The overarching purpose of the study was to know the impact of working hours on the work-life balance challenges faced by working couple. WLB from an employee perspective is the most important strategy of organisation. This article reports that the working hours have a significant relationship with the challenges faced by working couple. Data was collected from various countries like USA, India, Australia, and Canada. A total of 70-80 participants (working couples) indicated that long and odd working hours make their work-life imbalanced. Due to which they are unable to spend time with family and negatively effecting their organisation commitment. Also, these time constraints create more stressful conditions to work and giving unproductive results to organisations. We therefore, recommend all the organisations to implement work-life balance strategies which are family friendly policies and simultaneously, reaping benefits for the organisations too. Keywords: working couples, work-Life Balance, Flexible working hours, flexibility. Introduction What is Work-life balance? For companies to remain competitive there is a need to attract and retain valued employees with regard to human resource policies and practices that address work-life balance. Therefore Work- life Balance is an important area of concern for Employers. Work life balance is about individual choices that enable employers and employees to manage the interaction between work and the demands of life that affect health, families and communities. Work/Life Balance: n. A state of equilibrium in which the demands of both a persons job and personal life are equal. According to Maryln Walton of Herman Millers Future Insight Group, The participants rated work-life balance as the most important of the propositions in the future. It also was rated lowest for the amount of attention being paid to it through the workplace. Therefore in todays organizational settings WLB strategies are being implemented like policies of flexible work and leave arrangements, child and dependant care, compressed work week, job sharing, etc. Review of Literature Working Hours and Dynamics Interplay between Work and Family Challenges A work/life balance survey conducted in 2002 by TrueCareers states that 70% of more than 1,500 respondents said they dont have a healthy balance between their personal and work lives. As organisations move towards more participative and flat structures where fewer employees are expected to manage increase workloads (Hall Ritcher, 1988), the demands of the environment increase, and maintaining the balance between the demands of a career and life responsibilities become more difficult. Hence an increasing level of stress can rapidly lead to low employee morale, poor productivity, and decreasing job satisfaction. Some of the specific problems that relate directly to productivity in the work environment are abuse of sick time, cheating, chronic absenteeism, distrust, embezzlement, organizational sabotage, tardiness, task avoidance, and violence in the workplace. Other serious repercussions are depression, alcohol and drug abuse, marital and financial problems, compulsive eating disorder s, and employee burnout. With ever increasing work overload there is always negative spillover of stress from office to home and from home to office. Working late hours, bringing work to home, less time for lunch at office hours are the common problems faced by working couple. Moreover, if the working environment is not supportive it may lead to more turnover as before. Employees tend to experience work-family conflict when demands from work and family are both high and difficult to satisfy. Work-family conflict is a form of interrole conflict in which incompatible demands emanating from work and family domains make it difficult or impossible to satisfy both sets. Employees from dual-earner families (the subjects of our study) are particularly likely to experience conflict between work and family. Whereas most research has focused on individuals and the work-family conflict they personally report, a growing number of studies suggest that work-life issues must be understood in the context of both spouses employment conditions. Employees tend to experience work-family conflict when demands from work and family are both high and difficult to satisfy. Work-family conflict is a form of interrole conflict in which incompatible demands arising from work and family domains make it difficult to satisfy both sets. Working couples are particularly likely to experience conflict between work and family. Whereas most research has focused on individuals and the work-family conflict they personally report, a growing number of studies suggest that work-life issues must be understood in the context of both spouses employment conditions. This study though examines the spousal support and his indulgence in work, being at priority. A 1991 study finds relationships among employees job security, income, and weekly work hours and their spouses job involvement and satisfaction. Longer working hours are considered as the biggest work-family conflict reason giving more challenges to be faced by working couple. Late working hours, night shifts, work at home, no flexible scheduling and rigid corporate timings all these are demanding flex time work strategies. In the last decade ( Health Canada 2001, National Work Life Conflict Study), declared that high job stress has doubled, high job satisfaction and employee loyalty has doubled, the percentage of Canadian working more than 50 hours a week has grown from 10% to 25% , most Canadian lives in dual-income families and have dependents, whether children, aging parents or both. Also Canadian employers has reported that work life conflict has resulted in increased absenteeism and employee turnover, reduced productivity increased disability costs and health cost, increased managerial stress, and impaired family/social relationships. Jacobs and Gerson (2001) proposed that total family work hours, or the combined work hours of both spouses, would be a stronger predictor of negative outcomes, especially among parents, than the work hours of the individual spouses. Total family work hours is a concept with considerable face validity; as Jacobs and Gerson (2001) note, married individuals have less time to spend at home, because they devote more joint time to work (p. 50). More recently, Voydanoff (2004b) argued that long work hours reduce the resources that couples have for managing home demands, with likely negative effects on marital quality that vary with gender. For example, long work hours have been associated with high work_family conflict (Grzywacz Marks, 2000) as well as with good physical health (Bird Fremont, 1991). In contrast, there was no significant relationship between long work hours and intention to turnover or life satisfaction (Barnett Gareis, 2000a,b). Therefore todays company need various work-life strategies to be implemented that are helpful for working couple. They will be able to maintain a balance between much needed personal and professional life. The workplace based strategy could be flexi-time and flexi hours, part time, job sharing, job redesign, compressed work schedule; and flexi-place strategy could be telecommuting. Leave arrangements could be compassionate care leave, extended leave, maternity leave, parental leave, personal leave, self-funded leave, sick leave. A review of more than 30 surveys regarding work/life balance published from 1997 to 2003 reveals that the number of employers who offer family-friendly benefits has dramatically increased. According to the SHRMÂ ® 2003 Benefits Survey by the Society for Human Resource Management (www.shrm.org /surveys-available late June 2003), the percentage of employers offering family-friendly benefits continues to increase.21 The survey documents that the top five family-friendly benefits offered are: Dependent care flexible spending accounts (71% of respondents). Flextime (55% of respondents). Family leave above required leave of the federal Family and Medical Leave Act (FMLA) (39% of respondents). Telecommuting on a part-time basis (34% of respondents). Compressed workweeks (31% of respondents). Research Methodology Data Collection A sample of 70-80 working couples was taken from various countries including USA, Canada, Australia and India to measure the effect of working hours on working couples and the challenges they face. Diverse type of corporate sector including service sector, medical sectors, NGOs, manufacturing sectors, educational sectors etc. were included A structured questionnaire was drafted containing various statement on Work-Life Balance and challenges. Giving a Chronback Aplha of .80 ( reliability and validity of questionnaire). Measurement Individual working hours effect was assessed on the lives of working couple. 12-items from the dual career couple challenge scale were used to assess the challenges experienced by them. Responses were gauged on a 5-point Likert-type scale ranging from 1 (never) to 5 (always). For example items including, Do you work late hours at office everyday?; Do you miss out on quality time with your family and friends because of work pressure? A higher response rate of 85% was recorded. Therefore, for measuring the effect of working hours on the challenges faced by dual career couple a simple regression analysis technique was applied with the help of SPSS 18 (PASW). Taking challenges as independent factors and working hours as dependent factors. Simple regression analysis was used to test the hypothetical relations between the challenges and working hours, in table 1. We can see the variables entered as independent. To address the challenge of analyzing data where its being proved by our results that as p Conclusion This study therefore suggests that dual-career couples may have different needs from those of the more traditional single-career couple. There is, therefore, a need for organisations to develop policies and practices that provide support for the demands of both work and family. In the work environment, dual-career employee status implies the need for greater employer sensitivity and awareness of the conflicting demands of simultaneous careers, so that employees may become more effective both at work and at home. What is needed is policies and programmes to help employees reduce the amount of conflict and the resulting stress they experience when they try to juggle the demands of work and home responsibilities (Thomas Ganster, 1995). Higgins, Duxbury and Irving (1992) for example, found that conflict between work and family roles reduce employees perceptions of quality of work life and the quality of family life which, in turn, can impact productivity, absenteeism and turnover. Suppo rtive work practices like flexible work options (e.g. flexitime, compressed work weeks, home telecommuting) as well as assistance with child and dependent care, employee support programme (e.g. counselling) and career path alternatives (Bardoel, Tharenou and Moss, 1998) are therefore vital to minimise stress, maximize employees sense of control over their lives, sustain manageable career progression, and at the same time balance career and family demands. (Elloy F David, 2004). Limitation of Study The study presented here is not without limitations. Lack of time was also a big constraint. Respondents situated out of India (home country) having problem while filling up the questionnaire were not able to discuss the doubts regarding the questionnaire because of distance and lack of time. Wrong information like telling wrong age or wrong spouse information cannot be avoided. An additional limitation based on the characteristics of the sample may be bias associated with nonresponse.

Analysis of SDB

This report aims to provide an analysis of a proposed investment in Sheen Development Bank (SAD) by Unabridged in 2002 and assess whether the P/B ratio of 1. 6 for Unabridged to pay for its 18% stake in SAD is appropriate. The analysis of Newbie's acquisition of Sad's stocks Is based on several aspects of Sad's asset quality, earnings capability and capital adequacy. According to price-to-book ratio of SOB's Industry peers and some acquisition precedents by foreign Investors, Unabridged made a correct decision that It paid 1. Times book value of Sad's stake on basis of SOB's performance. This Is because of Sad's high P/B ratio and low ROE Indicating that SOB's share price was overvalued; therefore, Unabridged acquisition of Sad's stocks was appropriate with a P/B ratio of 1. 6. Finally, this report provide a reasonable recommendation for Investors to make a correct occultation decision In terms of real profitability of occultation targets. Table of contents: Four Chinese banks had be gun to accept investments from foreign banks or financial investors since 1999.As a listed bank with huge developing potentials, SAD was snagged by government officers and encumbered by massive low-quality loans which resulted in high Naps, an under-capitalized balance sheet and disappointing profitability. In order to bring to SAD the best management practices and expertise in banking, the Sheen government was primarily seeking long-term foreign strategic investors. Therefore, SAD decided to sell its four Joint shareholders' 18% non-traceable legal person stake of SAD.At the same time, Newbie's successful experience in South Korean bank and its strong expertise in financial institution significantly enhanced the quality of its loan portfolio and its operating performance. Then, Unabridged was actively acquiring Sad's 18% stake in order to improve Sad's bad performance. This report will analyze how Sad's ratios in its balance sheet influence Newbie's acquisition decision as to Sad's price-to-book ratio. The paper also Justifies that Unabridged pays 18% Sad's shares with a reasonable P/B ratio. 3. 0 Main Body 3. Asset quality Difficulties in cash flows in a bank are always caused by a high NAP ratio. NAP ratio is a crucial tool to assess a banks performance, which is calculated as net non- reforming loans divided by total gross loans. Banks often report their NAP ratio as a measure of the quality of their outstanding loans. The higher the NAP ratio, the more possibility such returns will be lost and vice versa. As is shown in the Appendix 2, the NAP ratio decreased from 22. 7% to 1 1. 6% during the period from 2000 to 2002 Compared with Sad's industry peers, Sad's NAP ratio is higher than the average amount of its peers.The NAP ratio of SAD was only below Bosom's, but far higher than other Joint-stock banks in 2002. Sad's NAP ratio was 1 1. 6% in 2002, to some extents, this ratio means that Sad's cash flows were falling into much more troubles and difficulties than other Joint-stock banks. On the other hand, Loan Loss Reserves by Gross Loans determines the quality of loans of a bank. LARK is a percentage that reflects accumulated provision expenses and gives an indication of the management's expectation of future loan losses. The higher the ratio, the more suspicious the loans are and vice versa.The LARK ratio of SAD declined from 7. 1% to 3. 9% from 2000 to 2002, which was approximately the them. Although the LARK ratio of SAD decreased by nearly 3% during these three ears, Sad's loan loss reserves increased almost 100 million. By comparison with its industry peers, Sad's LARK/NAP was largely lower than the average level. Hence, Sad's high NAP ratio led to a low asset quality in 2002. 3. 2 Earnings capability Obviously, Sad's net interest margin declined by 1% from 2000 to 2002; compared with its industry peers, Sad's net interest margin was 0. % higher than the average ratio of other five Joint-stock banks in 2002. This indicates that S ad's ability of making profits is stronger than the average level. Meanwhile, Sad's non-interest income level ND operating expense were above the average level in 2002. Nevertheless, Sad's ROAR was 0. 9% in 2000 and was only 0. 3% in 2002. This ratio was merely half of the average ROAR of other five Joint-stock banks in 2002 indicating that Sad's profitability of the assets was relatively weak as well as its ROAR at the same time. Sad's ROAR was only one-third of the average ROAR of five Joint-stock banks.Therefore, Sad's performance was not good compared with its industry peers; the reason of Sad's bad performance is that an increasing assets generating low net income. 3. 3 Capital adequacy In commercial banking, capital adequacy ratio (CAR) is used to monitor a banks situation of capitalization by regulators and managers. CAR is calculated as the sum of tier 1 capital (equity and retained earnings) and tier 2 capital (subordinated debt and reserves) and dividing it by its risk-wei ghted assets. Sad's CAR decreased from 10. 6% in December 2001 to 9. % in December in 2002, but still above the Chinese regulatory floor of 8%. It is particularly worth mentioning here that Sob's CAR was 0. 7% higher than the average CAR of other five Joint-stock banks in 2002. Not all the mime the CAR is good if high; a high CAR means that a banks large amount of money is stuck in provisions or risk management, and there would be fewer money left for investment or for the continuation of some activities. Therefore, from the situation of Sob's declining CAR, SAD suffered in substantial loan quality troubles caused by its poor credit management. . 4 Price-to-book ratio It would be appropriate for Unabridged to pay 1. 6 times book value to get 18% stocks of SAD. There were some precedent that foreign banks and financial investors acquired domestic banks' minority-stake from 1999 to 2001. For example, AFC acquired Bank of Shanghai 5% stake at a price-to-book ratio of 1. 5 in September of 1999; and acquired 15% stake of Nanjing City Commercial Bank at a price-to-book ratio of 1. 2 in November 2001. Even if Newbie's acquisition of Sad's stake at the price-to-book ratio of 1. Is higher than If's; however, it was still lower than the average ratio of other three domestic listed banks. Significantly, the price-to-book ratio of SAD was around 5. 5 to 5. 9 from 2002 to 2003; and at the same, the other three banks average price-to-book ratio was 3. 1 to 2. 2. Hence, the appropriate ululation range should be below 2. 2 for Newbie's acquisition. As we can calculate that the ROE of SAD was decreasing from 12. 07% to 9. 02% from 2000 to 2002. P/B provides a valuable reality inspection for investors seeking growth at a reasonable price.Large differences between P/B and ROE, a key growth indicator could sometimes send up a red flag on companies. As a result. Sad's low ROE and high P/B ratio indicate that Sad's shares were overvalued at that time. If a company's ROE is Unabridg ed pays 1. 6 times book value that is far lower than Sad's price-to-book ratio, it would be an appropriate decision. . 0 Conclusion By way of conclusion, this report introduces the background of Chinese banks' stocks acquired by foreign financial investors and analyzes lots of ratios in Sad's balance sheet.The report also proves that Unabridged paying 1. 6 times book value through assessing Sad's asset quality, earning capability, capital adequacy and comparing its industry peers' P/B ratio and analyzing the relationship between P/B ratio and ROE ratio is appropriate. In addition, this report provides a considerable recommendation for investors to acknowledge a banks real performance. 5. 0 Recommendations However, much attention should be paid to comparing a banks key ratios analysis before acquisition its stocks for foreign investors.