Zara analysis free essay sample

ZARA is one of the trendy garment retailers as an important brand in portfolio of Inditex. With development of technology and extension of market, ZARA has expanded to over 1,500 stores in 44 countries, since founded at a Spanish town called La Coruna in 1975. In internationalization process, Zara employed various retailer formats, especially online shops, to complement weakness in traditional in-store purchase. Moreover, current development status of e-tailling is attractive for Zara to entry when facing increasingly fierce competition. Apparently, this â€Å"clicks-and-bricks† approach makes sense to some degree. This article demonstrates rationale why ZARA launched online store by combining academic theories with situational audits. Furthermore, it proposes several recommendations to optimize current online retailing. Obviously, it is meaningful to research Zara which is a leader in textile retailer. As one of biggest garment retailer, its behaviour sets an example for other rivals, even brings a new model for this industry in further development. We will write a custom essay sample on Zara analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Owing to stimulus from success of Zara, resource allocation or even industrial structure might be recombined. On the other hand, it proposes a new purchase belief or lifestyle, which should be suitable to several time-pressured consumers. Therefore, rationale why wither choose this articles is apparent based on contextual statements. 2. Zara has been landing in online retailing After success of online retailing store in Spain, trendy fashion retailer Zara planed to install web store in France, Italy, Portugal and the UK, in 2010 September. Until to 2011, Zara boasted it had extended its online presence to customers in more than sixteen European countries, Japan and US. Rationale for e-tailing uses in European countries Zara has expanded European market via building online channel. In following essay, it would analyse what and how variables entice Zara’s practice by integrating academic knowledge and situational analysis. 2. 1. 1 Superiority of internet retailing With popularization of computer science in society, net accessed by personal computer has being accepted as a professional and interactive mainstream intermediary. For several social departments, searching information through internet has been regarded as a habit in daily life. Virtual shop owes its inherent advantages compared to other retailing classes in following aspects (Rosemary Mohammed, 2004): The most prominent characteristic of e-tailing retailer is selling via network instead of entity store, which is beneficial to decrease dependence on specific location. As a manner to approach sophisticated retailer that may be geographically distant to customer, net helps virtual retailers to communicate with consumers and cover wider target market by providing home shopping service. Unlike store-based retailers, it is unnecessary for sellers to possess physical space for inventory or exhibition. Internet is adopted as a display platform and transaction mechanism, namely delivery commodity directly after completed transaction. It reduces operating costs to a great extent if deducting rental fees, operational expenditure and relatively higher labour salaries. As previous empirical research showed, average transaction cost is around $15 per transaction in traditional retailing compared to approximately $0. 3 in virtual resale (Philipps et al. , 1997). This huge difference between costs induces retailer join in virtual retailing markets extremely. In comparison to catalogue retailer, internet dealer also holds own advantages. On the one hand, expense in producing and distributing catalogue is much higher and information cannot be updated promptly on catalogue. On the other hand, online shop display merchandise without upper restriction on size of catalogue or quantity of product represented. .Considering its social influence, e-tailing impels a new home-shopping device, capacitating time-pressured and less flexible consumers to purchase regardless of limitation on shop business hours. Moreover, it also implies that clients can eliminate time spending in visiting shops or waiting in  queue, which is the most boring part in shopping. Besides enlarging target market, it also proposes a fashionable shopping belief which is popular among young people. 2. 1. 2 Situational audits Zara undertake online retailing in European countries according to comparative environment and own marketing strategy except for advantages of e-tailing. The following part reveals how Inditex draft development device according to specific situation. Firstly, recent years witnessed a rapid rise in online retailing sales; namely, the significance of web store use is displayed among retail sector gradually. As facts demonstrated by U. S. Census Bureau, online quarterly sales increased stably at 28% from 2000 to 2007. In the duration, the average growth rate of total retail sales only made up 4. 5% (U. S. Census Bureau, 2007). With popularization of internet use, a growing number of net users create niche market in retailing industry, who becomes potential consumer. Concededly, it holds enormous growth potential although online transactions only generate a small portion of total retail sales. Therefore, Zara intend to seize the opportunity to reach expanded target market. Secondly, biggest rivals have launched and succeeded in virtual store in succession. On the one hands, as Jeremy demonstrates, brand that has not referred to online presence suffers a huge threat from competitors’ dramatic increase in online turnover. Obviously, rivals’ aggressive expansion in online market creates a threat to Zara’s sales. In order to maintain even enlarge market share, Zara participates in online retailing competition under compulsion. On the other hand, competitor’s success strengthens Zara’s confidence in web retailing. Meanwhile, it also offers a model used on guide strategy implement on internet. Facing increasingly fierce competition, hence Zara plan to occupy virtual market via installing online shops as soon as possible. Thirdly, online retailing complements in-store selling profitably. Online stores will comfortably supplement its extensive store estate by means of providing extra service to consumer, especially dispelling restriction on time and space. Moreover, Zara’s entry to the online retail has opened access to an enormous source of data that can be collected and analyzed to improve corporate business strategy and marketing device in further development. The gathered massages can be used for designing and executing Zara’s own marketing initiatives, such as direct mailing (n. a. , 2012). Finally, characteristics of e-tailing correspond with its marketing strategy. Zara  has adopted pattern  that manufacture and replenish constant new products in invasive price to develop curiosity and make it indispensable for a regular visit simultaneously. E-tailing can lessen expenditure on store operation efficiently and thereby decrease costs which is closely linked with price. Meanwhile, virtual shops renew catalogue in time that satisfy needs of fast fashion industry. Furthermore, most internet shoppers are in 20 to 30 years old, which is coincidence with target market of Zara. Considering realistic significance of virtual retailing, it is reasonable for Zara’s entry. 2. 2 Recommendation for virtual retailing in further development Until now, Zara’s website has been built, which installed online interactions between seller and buyer ranging from the point customers visit in retailer’s web to the point retailers fulfill consumer order (Field et al. , 2004 and Smith et al, 2007). During whole process, Zara has formulated a series of management measures to control performance in e-tailing. In the first place, it matches online price to those in physical store across each country. In term of payment approach, this transactional website accepts lump-sum payment by credit cards or debit card. Secondly, there is no charge for shoppers to delivery merchandise when they purchase at Zara online store. Furthermore, consumer also can require delivery channel by express courier or regular post according to their situation. Thirdly, e-store is constantly renewed by updated items when entity shops exhibit new arrivals. Finally, this web offers same exchanges and returns policy as in physical store. That superior after-sales service lifts customers’ worries to some degree (Susan, 2011). However, besides previous efforts, Zara is required to make a progress in following areas for the sake of perfecting online retailing (Alba et al. , 1997). Recommending related merchandise Unlike traditional in-store retailing, electronic sellers facilitate one-stop shopping and enhance service quality via offering various complementary products. Relying on personalization technologies, retailers provide customized features online, namely complex catalog navigation and tailoring of the purchase process (Kramer. et.al. , 2010). For example, customer is provided with recommendations of products that the customer might be interested in, based on the product searched for or those previously bought by the customer. Given this popular marketing approach, Zara web can suggest best-seller in season or complementary product accord with items based on current or previous buying. Moreover, it also should advise several garments in similar style in accordance with purchase history. It allows Zara to deliver trust built from one merchandise area to another consequently maximizing possibility of cross-buying and rising sales. Improving distribution system As one of main variables to restrain internet retailing development, order fulfillment is considered as an obstacle to expand electronic market. Additionally, distribution expenses and efficiency are regarded as factors which influence shopping decision. Actually, Zara indeed has set few policies in this area before. Besides those previous measures, Zara can recruit specialist and build logistics system to supervise online order, inventory management, and goods distribution. During the process, staff should check every order and deliver merchandise as soon as possible. This efficient distribution system not only helps Zara to satisfy current consumer, but also strengthen own competitiveness compared to other online rivals. Offering good consumer service The quality of online buying process affects consumer purchase decision, satisfaction and loyalty (Zeitham et. al. , 2002 and Wolfinbarger Gilly, 2003). Like other retailing approaches, transaction disputes happen inevitably across online shopping process, which mainly contains unpunctual order arrival, unqualified products and payment problem. To be competitive, sellers are not only required to supply high-class merchandise, but also offer a pleasant shopping experience via superior service to ensure whole process is responsive and convenient for consumers (Lqbal, et. al. , 2003). Therefore, it is necessary to improve relationship between buyers and sellers by improving consumer service. For this purpose, Zara should arrange personnel to answer questions before purchase, help consumer to complete complex transaction during purchase, and optimize after-sales service, especially respond or deal with consumer complains. For example, the website retailer can retrieve personal account information which is then automatically store in personal account of consumer for the sake of facilitating consumer to review past searching or purchase and track order in shipment. Favorable shopping experience should increase repeat purchase behaviour to some degree. Managing customer relationship In the highly competitive virtual marketplace where cost of retaining a customer is lower than recruiting a new one, relationship marketing take on an added importance. Zara can communicate with existing customers to advertise online, show updated products, and inform new promotions. For example, the website supplies the alternative of receiving reminder of special events or message about new arrivals. If complete payments, consumer will receive homologues voucher which can be used in next transaction automatically. Apparently, this act is available to increase repeat purchase, build customer loyalty and at least retain current market share. 3. Conclusion This article mainly discusses retailing marketing concepts which is contained in news as appendix. On the on hand, the essay explains the rationale why Zara launched online retailing store, which contains inherent superiority of online store and appropriate environment. On the other hand, writer proposes several recommendations, including merchandise assortment supply, distribution efficiency rise, consumer service improvement and customer relationship management. As predicted, with improvement in web retailing and economic resurgence, Zara’s virtual retailing will boom; and hence Zara will adjust current economic growth pattern to flourishing online marketplace. Furthermore, thanks to stimulate from success of several giants in virtual market, fast fashion industry will recombine resource allocation at a certain extent. The group already sells a home range online, but its revamped website will offer fashion lines which have only been available in its stores until now. The push into cyberspace is seen as a defensive move that comes amid fears of a decline in High Street spending. HM will follow in the next fortnight; Gap began online sales for the first time outside the US last month. Consumer confidence is waning and many fear a further economic slowdown. Online fashion sales, meanwhile, are proving resilient. At rival Next, for instance, first-half sales in stores fell 1. 5%, while its home shopping business saw sales rise 7. 8%. Further strength in internet trading has been reported by Asos, the online market leader, which said sales rose 54% during the January-to-March quarter when compared with the same period a year earlier. Online growth Online retail sales have boomed as more people get high-speed internet connections and time-pressed shoppers take advantage of shopping from home or work, according to industry observers. Shopping on the net is expected to see sales grow to ? 94bn ($144 bn) in Western Europe by 2014, from ? 56bn in 2009, according to consultants Forrester. But online sales still only make up a small proportion of total sales. In the UK, only 8% of total sales in July were made online, according to the Office for National Statistics. Shops that dont have an online presence have noticed rival stores enjoying a dramatic increase in online sales, while their sales in shops have been pretty flat, according to Jeremy Baker, professor of marketing at the ESCP business school. Complement to existing stores Zaras online shop will soon be followed by HMs online shop, which will go live on 16 September. Gap and Banana Republic are already there, having opened their online operations outside the US for the first time, on 26 August. Online stores add to rather than cannibalize physical stores, hence they tend to bring in additional sales, according to industry observers. There is clearly demand for Zara product online, said Simon Chinn, retail consultant at Verdict Research. It will comfortably complement its extensive store estate, adding an extra level of service for its customers. Rapid growth Online retail sales are set to double in next three years Zara is liked by more than 4. 5 million people who have signed up as fans on Facebook. The key now is to convert those fans into customers. Inditex, Zaras parent company, has overtaken Gap as the worlds biggest clothing retailer by sales. Inditex chief executive, Pablo Isla, said: Customers should expect the launching of online selling for the groups other brands in coming years. The success of retailers such as the dedicated online fashion site Asos hints at how rapid the migration of sales from traditional stores to the internet is, especially among the 18-34 age group. Zara made a small profit in the year to the end of January 2010, after recording a sharp loss during the previous year. It is hoping to see a 10% rise in revenue linked to its online store.

Book Review Harvest of Empire

Book Review Harvest of Empire Book Review: Harvest of Empire Harvest of Empire by Juan Gonzalez book review essay: From time immemorial, humans always had the ‘urge’ to move into new geographical territories with various motivations. Starting from earlier motivations of discovering new lands, imperialism to current economic motivations, people enter new countries en masse. This movement for economic development is known as immigration in present day context, and there are few economically developed countries, which elicit high number of immigrants. This immigration experience is one of the constant affairs of American life, as people from all over the world, view America as the land of immense opportunities, and enter it both legally and illegally. This view about America was critically analyzed by Juan Gonzales in his book titled, Harvest of Empire, focusing mainly on the immigration of the Latino population and how it impacts America’s foreign policies as well. Gonzales provides the readers a historical overview of how the Latino immigration started centuries ago, and at the same time provides a laser-like analysis of the current events, that are impacting the Latino population and thereby America’s politics and diplomacy. So, this paper will first provide a review of the book and then will analyze how its contents, particularly the portions which focus on the current issues impacting the Latino population, relate to todays politics and diplomacy. Personal Interpretation or opinion Harvest of Empire by Juan Gonzales is a must read book for all those who want to know about the history of Latinos immigrants, who are now considered as the fastest growing ethnic segment in America. Gonzalez starts off by examining the history of Latinos in America, right from the times when Spain and Britain made territorial conquest of America, till the present day. He has divided the book into three sections calling each sections has â€Å"Roots†, â€Å"Branches† and finally â€Å"Harvest†. The first section of â€Å"Roots† only provides the historical background of the Latino immigration by focusing on the earliest relations between the Latin American countries and the United States of America. In this section, Gonzalez was quite critical of America’s foreign policy and diplomacy, particularly its imperialistic tendencies in the early centuries. According to the author, at that time, America tried to impose its will and influence over many coun tries and even over certain cultural or ethnic groups. â€Å"†¦a vicious and relentless drive for territorial expansion, conquest, and subjugation of others- Native Americans, African slaves, and Latin Americans.† (Gonzalez 270). Thus, the author opines that America’s drive to become a sort of ‘Empire’ started in the early centuries itself. He states that America entered into or even extended its influence over many South American countries, thus negatively influencing those countries’ internal affairs, which in a way worked as a catalyst for the Latinos immigration. Negative influence in the sense, America plundered the natural resources of the Latin American countries, and thereby inhibited the growth of indigenous industries and economies. With not enough avenues for livelihood in those countries, sizable number of Latinos started entering America. â€Å"If Latin America had not been raped and pillaged by U.S. capital since its independence , millions of desperate workers would not now be coming here in such numbers to reclaim a share of that wealth.† (Gonzalez 206). Thus, it is clear that Gonzales puts the blame for the Latino immigration into America and the problems associated with it, on the Americans themselves, or in particular, on the Americans’ political and diplomatic policies. His theory is clear that the different Latino groups that exist and function today in the American society are a result of the historical happenings and actions of the American government. The second section of â€Å"Branches† focuses on each one of the six major groups of the Latino population in America. In each chapter, Gonzales separately describes about the culture, living conditions, family, etc., of the Mexicans, Cubans, Dominicans, Puerto Ricans, Columbians and Panamanians, and the Central Americans. That is, although all these groups are joined by a common language of Spanish, and are tagged as Latinos, â€Å"they come from 20-odd countries with distinct histories, customs and blends of European, African and indigenous stock.† (Robinson). He gives equal coverage to all these groups in separate chapters, by writing about certain individuals or about their families, thereby reflecting the general immigration story of all these major Latino groups. After providing an historical overview and background about the Latino immigration and the immigrants, Gonzales focuses on the real issues, which are impacting their lives. He discusses how certain sectio ns of the Latino population have not still integrated and assimilated with the American society, and then lists out certain steps that can be taken for further assimilation and acculturation. The book on the whole has several positive points going for it, as Gonzalez puts forward an interesting and informative historical overview of the Latino immigration and the current political issues impacting the Latino immigrants, backed with extensive research. Relation to todays Political and diplomatic policies One of the key political as well as social realities that can be understood from the book is the clear rise in the Latino population. When one focuses on the population numbers of America and their demographic profile, it is clear that the Latinos are on the verge of becoming the largest minority group in America, even overtaking the African American population. This striking demographic transformation is a key reality, which was forecasted by Gonzales in early 2000’s itself. â€Å"For a country long used to seeing itself as black and white, it will be something of a shock when Hispanics become the nations largest minority group in five years and fully one-quarter of the population by mid-century.† (Robinson). This swelling of the Latin population provides them increased clout in various spheres of American life, particularly politics. With candidates in all types of elections from Presidential to local level elections mainly focusing on vote banks to garner bulk votes, the Latino population are getting good attention, thus showing that ethnicity and social class matters in America, particularly from political angle and during elections. â€Å"Recent elections show that the Latino vote has become key in critical states, and most presidential candidates now on the stump are at least trying to speak a few words of Spanish† (Robinson). As mentioned above, vote bank politics are the order of the day, with the candidates trying their best to appeal to particular communities or people of particular race, religion, ethnicity etc. Candidates do that by doing certain culture specific actions, and thereby try to associate with people of particular ethnicity and social class, and in the process showing him/her as one of them. When they do that, they will be able to garner votes en masse. This focus on individuals’ ethnicity and social class by the election candidates clearly shows that both these factors truly matters in the current multicultur al American society. The other key social-ethnic reality concerning Latino immigration as well as immigration on the whole, is, American government is taking strong steps to curtail immigration, thereby impacting its foreign policies and diplomacy. The government is toughening its regulations regarding entry of skilled professional immigrants as well as ‘plugging’ the entry points of the under-skilled illegal immigrants in its borders. In the book, Gonzalez equates the border control steps taken by the American government to the building of Great Wall in China. The other major issue that is visible when it comes to the anti-immigration stance against the Latino population is the clear exhibition of racism in diplomatic handling of immigration. That is, although immigrants from different ethnic and cultural groups from various parts of the world are illegally entering America, mainly the Latino immigrants are being targeted. They are treated in a strong manner and deported back to their homel ands immediately, while the immigrants of Caucasian ethnicity are treated in a leaner manner, thus validating the statement that ethnicity and status plays a role in American diplomacy as well. â€Å"Again racism defines the xenophobia: in 1996, Gonzalez points out, 2,047 â€Å"illegal† Canadians were deported (out of 120,000) compared to 1.5 million Mexicans (out of 2.7 million).† (Martinez). It is clear that the Latino immigration as discussed by Gonzales in the book, Harvest of Empire has relations to the social-ethnic issue of racism. As racism is also carried out on the basis of an individual’s ethnicity and social class, it is clear that both are relevant in the present day society. That is, as pointed out above, even in the issue of deporting immigration, racism is done, and this shows how racism causing ethnicity and social class to make an impact in the diplomatic matters. From the above analysis, it is clear that Juan Gonzales has focused on a very imp ortant issue of immigration, as it is having effects in various spheres of the American society particularly in its politics and diplomacy. Do you still need book review help on Harvest of Empire topic? is professional book review writing service which will gladly help with your book review or book report essay starting at $12/page!

Business Plan for Longines Watches Case Study Example | Topics and Well Written Essays - 1500 words

Business Plan for Longines Watches - Case Study Example It is proposed to start an excusive dealership of the world famous luxury brand of the company Longines in the city of New York. Longines is an internationally famous Swiss brand that has been in the business of manufacturing quality watches since the year 1832. The company is also well known as time-keepers in many international sporting events across the world. The dealership will be situated in the address given above and will be having an area of 2000 sq feet. The interiors will be according to the specifications given by the company and will be similar to other dealers across the world. The store will be temperature controlled with pleasant and well trained staff including a doorman. The venture will be in the form of a sole proprietorship. Advertising in the media will be the main strategy to be followed. Other marketing efforts will include appointment of marketing representatives and internet business. There are several aspects of the business that researcher presented in the case study that needs immediate attention. Firstly, financial planning and management and approaching banks for financial assistance for setting up business. Secondly, the researcher prepared the SWOT analysis for knowing areas of strengths and weaknesses and described the budgeting and financial forecasting for future years. Thirdly, the researcher demonstrated human resources management and personnel management in the case study and other areas which may be of concern for start up trading companies. ... Ten sales persons will be appointed to serve customers. They will be given proper training in technicalities and etiquette. Luxury watch brand market: The luxury branded watch market in the United Sates is dominated only by a few well known international companies. They include apart from Longines, Accutron, Bulova, Citizen, Colibri, ESQ, Movado, Pulsar and Seiko. All these brands, especially Citizen, Longines and Seiko are well known and need no introduction to the market. Growth Rate: It is estimated that the venture will have a growth rate of 10% per year. Outlook: Growing affluence and the need for exclusivity among customers are advantages in this type of industry. The outlook is that the venture will be able to maintain a growth rate of 10% for the next five years. Mission statement: To be the most preferred luxury watch outlet in the city of New York Uniqueness: The dealership of one of the most respected and oldest watch brands in the world. Being an exclusive outlet will allow us to give a better pricing to our customers when compared to sub-dealers of the same brand. Key factors: Quality and name of the brand, high quality customer service and after sales service. Market analysis: Our customers come from up-market backgrounds, occasional purchase by the middle income group, organizations who use our products as gifts. There is no special off season or lean season for this segment and business is expected to be steady throughout the year. It is expected that sales will be higher during festive seasons like Christmas and New Year. It is estimated that there will at least 500,000 potential customers in the city. Distributed among our competitors, we estimate that we have 75,000 potential

Reflective paper 3 Assignment Example | Topics and Well Written Essays - 500 words

Reflective paper 3 - Assignment Example I am not in the favor of premarital sex because I uphold old values and customs. But if a couple wants to have a marriage like relationship before the actual marriage then it is up to them. However, I am totally against sleeping around and the derogatory term of ‘casual sex’. If there is a bond that exists between the couple then it is more acceptable than ‘one night stands’ and hooking up under the influence of alcohol. I would tell him that it is better to be safe than sorry. Couples get carried away in the heat of things, and they regret it later. I would tell my boy he is mature enough to make his decisions in life. He is knocking at adulthood. I cannot be his supervisor anymore. But it would make me glad if he abstains from sleeping around. It will make me even happier if he upholds the sanctity of marriage and relationships. Such topics are always careful with girls. Parents are more concerned and protective of them. Men are physically stronger and can take advantage of a vulnerable girl. Parents have this inborn protective instinct to protect their daughters from sexual predators. Naturally, a conversation about premarital sex will be more serious with my daughter. I would tell almost the same things to my daughter as I would tell my son on this topic. But there will be more concern and emotion in my voice. I would try to get her perspective first. I would tell her about the honor and value of the marital bond. I might seem old fashioned, but these customs do give an acceptable structure to the society. If such values are disregarded then the whole family system can collapse. People would only meet each other to satisfy their lust. Marriage would become meaningless and an old forgotten custom. For this reason, I would want to get her take on this subject first. The way my 15-year-old can make her decis ions, so can my daughter. I cannot be around her all her life, nor do I want to. Ultimately she has to

Perusahaan Otomobil Nasional Berhad Proton

Perusahaan Otomobil Nasional Berhad Proton The company that is discussed in this essay is Perusahaan Otomobil Nasional Berhad (Proton) which is an automotive company that was founded in Malaysia on 1983. The company experienced increase in revenue from the year 2007 to 2011 and the sales of its cars is a major factor affecting revenue. Motivation level can affect sales performance, but it would not be the only factor. The goal of this essay is to explore the motivation level of Protons sales department in comparison with other factors affecting sales. Hence, the research question that arises is To what extent does the motivation level of Proton Berhads sales department affects its sales revenue? The methodology revolves around the use of survey among the Protons sales department staff and followed with an interview with one of the head of the sales department. Using the data obtained, motivation level of the staff is assessed using Herzberg Two-Factor Theory while the other factors affecting sales are assessed using PEST analysis. The conclusion was that Proton had implemented measures that help to motivate its employees, but there is a limit to how effective can motivation level affects sales as there are other factors involved such as quality and brand perception. The unresolved issue would be regarding the need of Proton to improve its quality and increase its employees motivation at the same time. 1.0 Introduction Issues regarding employees motivation had been one of the main focus of an organization as motivation can affect a certain company in many ways. Based on the book An Integrated Approach to Business Studies by Bruce R. Jewell, motivation can be defined as a factor or an influence that can drive people to behave in a certain way  [1]  . For a company, they would need a motivated workforce if they want their employees to sell well. The company in question here is Perusahaan Otomobil National Berhad(Proton) which is an automotive company that was founded on the year 1983  [2]  . Its product mix includes various categories of cars ranging from sedan, compact cars, hatchback, multi-purpose vehicle, and microvan  [3]  . Along its years of operations, Proton had been the target of scrutiny from the general public especially regarding its sales as there are criticisms to its sales  [4]  and after sales service  [5]  . One factor that can affect quality of sales service is motivation. Thus, the intention of this essay is to explore whether the motivation level of the Protons sales department had been a crucial factor affecting the companys sales revenue? Besides that, this essay would also discuss on how other factors could also affect sales revenue for Proton and how other factors could compare with motivation level in terms of its effects to sales revenue. From the questions that arise, the research question was formulated as follow:- To what extent does the motivation level of Proton Berhads sales department affects its sales revenue? 2.0 Methodology 2.1Data collection The main purpose of data collection for this particular essay is to measure the motivation level of Protons sales department. Thus, primary research had been carried for the sole purpose of measuring the motivation level of the employees. The two chosen methods were surveys and interviews. As stated before, with the data obtained, a qualitative deductive will be made to see how high or low the motivation of Protons employee. To deduce, the content theories regarding motivation used is Herzbergs Two-factor theory. 2.1.1*Details of Survey* A survey was designed in order to uncover information regarding the motivation of Protons sales department and the number of respondents was 15 people from the Enterprise Sales Team and R3 Sales Team which are a part of the sales department of Proton. The surveys question and its respective data are shown in Appendix 1. 2.1.2*Details of Interview* The interview was done with Mr. Hj. Roslan Hj. Mohamed which is currently the head of Eneterprise Sales Department of Proton. The interview question and its answers are shown in Appendix 2. 2.2 Analysis The analysis in this essay mainly revolves around the correlation between the motivations levels of Protons employees with its sales revenue. The findings will be discussed so that the extent to which the motivation level affects the sales revenue can be seen clearly. The next step is to see other factors that may be involved which can affect sales. To do this, Political Economy Social Technology (PEST) analysis will be carried out so that we can see the external factors that surround Proton. Further discussion will be carried out in order to see how big do the factors affect Protons sales revenue, and compare it with the internal factor which is the motivation level of employees. The end result would be a conclusion that will include suggestions and an unresolved issue. A simple 4 step flow can be seen below:- 3.0Main findings and analysis Determining the motivation level:- 3.1 Application of Herzberg Two-Factor Theory Based on Herzberg Two-Factor Theory, there are two aspects that define motivation which are the hygiene needs and motivators  [6]  . Fulfilling hygiene needs prevents employees from being dissatisfied while having motivators will ensure satisfaction of employees. This theory is chosen to determine the motivation level of Protons employees because of the two aspects mentioned that is evident in their working environment. Above is a table outlining the hygiene needs and motivators as outlined by Herzberg  [7]  . To determine the motivation level of the employees in Protons sales department, most of the points in the table will be discussed based on the findings. 3.1.1 HYGIENE NEEDS Relationship with supervisor Protons sales department employees feel that their supervisor listen to them and most felt that they are involved in the decision making process. They also feel that their supervisor give moderate attention to their work and most feel that their supervisor expectation of them is good in which it corresponds to their actual potential. Yet, some felt that their supervisors are bias in their work with some claiming that there is presence of so-called bosss pets and also gender biasness. Working conditions The employees of Protons sales department felt that the working condition is normal at best rather than good. Most felt that it is normal in their working condition to get positive feedback and constructive criticism. Still, some felt that office politics is present thus it could be a source of unhappiness regarding the working conditions. Salary It was found that the salary is high. This is due to the presence of many types of commission that helps to increase the payments received by employees such as finance commission, model-based commission, accessory commission, and insurance commission. 3.1.2MOTIVATORS Achievement Proton promotes the desire to achieve for their sales department by having seasonal monthly campaign. Employees will be given an incentive for achieving the target for a specific sales campaign. Recognition In Proton, the form of recognition comes in the form of a club membership that celebrates sales personnel who had sold 100 cars. Advancement Opportunities for advancement exist for Proton since it was found that an employee can advance into a sales manager in just 5 years. Growth Most of the employees agree that growing their knowledge and having opportunities for self-development is highly important for them but it can be seen that most of them thinks that the opportunities for self-development is not high but still present in the company. The presence of growth opportunities will lead to higher satisfaction for the employee. ANALYSIS OF MOTIVATION LEVEL Based on Herzberg Two-Factor Theory, to ensure employees are motivated, it is better to address the hygiene needs and then focus on the motivators. For Proton, the company had in a way provided a moderate working condition and the supervisors are having good relationship with their subordinates. These two factors fulfill the hygiene needs and reduce dissatisfaction in the sales department. Aside from that, the salary structure which is high also contributes to lower dissatisfaction for the employees. Although we cant say for sure that the dissatisfaction is completely addressed by Proton, but we can deduce that Proton had fulfilled some of the hygiene needs thus lowering the dissatisfaction among employees. For the motivators, Proton had also provided ample motivators for the sales department. We can see that Proton had provided its employees with adequate opportunities for them to receive proper achievement, recognition, advancement and growth. The presence of the motivators mention ed helps to promote satisfaction for the employees in the sales department. As a result, Proton had fulfilled the hygiene needs and provided motivators for its employees. It is hard to see whether the employees are highly motivated or not but from the discussion, it would be better if we deduce that the employees in Protons sales department is coined as motivated due to the low dissatisfaction and adequate satisfaction. 3.2 Establishing the relationship between motivation level and sales revenue Graph of growth of Protons revenue from 2007 until 2011 (Appendix 3) Judging from the graph, Protons revenue had improved for 5 years straight. As company that make cars, most of Protons revenue would come from the sales of their cars thus that is why the sales department plays a crucial role to ensure better sales. We had found before that the employees in the sales department are motivated because of the way Proton had addressed the hygiene needs and motivators. Due to the fact that the employees are motivated, it can be seen that their motivation level correlates with the increase in revenue. A motivated employee would definitely perform better when at work thus there would be higher sales compared to an unmotivated employee. As a conclusion, we could see that the motivation level had contributed to the increase to revenue. Yet, the underlying question here would be the need to establish the limit in which motivation level plays a role to the increase in revenue. Thus, the following questions could come into play:- 1. Are there any other significant factors that contribute to sales? 2. How about the state of the country Proton is in? Does it affect the sales? 3. Are there any outside factors, which are out of Protons control that contributes to greater motivation among employees? Thus, in order to uncover the extent to which motivation level plays a role, the next step would be to find the factors that affect Proton sales and determine its significance in comparison to the motivation level of Protons sales department. Determining the extent to which motivation level affects the revenue of Proton 3.3 Application PEST Analysis The use of PEST analysis is crucial in order to see the environment Proton is situated in. The findings would be analyzed regarding their significance to Protons revenue. Political Government discards protectionist policy  [8]   High excise duty for imported cars  [9]   Economy Low loan approval rate by Bank Negara Malaysia  [10]   Social Low average wage per individual  [11]   Technology Appearance of hybrid cars in Malaysia  [12]   POLITICAL Government discards protectionism with Proton thus removing Protons exclusivity in the automotive industry If a company is backed by the government, the cost of operation can be considerably lessened as there would be injection of funds by the government. This would ensure that the company can sell its products cheaper, thus garnering an increase in revenue. But what would happen if a company was stripped off from being protected by the government? For Proton, when there is no more protectionism by the government, the company would need to stand by its own thus it needs to channel its cost to their products. This will make the price of its cars higher. Still, if we look at the revenue, Protons revenue still increases despite the hike in prices. This shows that the removal of protectionism doesnt really affect Protons sales and the possible reason for this is either Proton had improved its quality or there are other factors that promote sales. High excise duty for imported cars Excise duty is one of the major factors that affect a cars price. In Malaysia, the excise duty for imported cars is imported as high thus increasing the prices of imported cars. National carmakers such as Proton and Perodua are at an advantage in terms of pricing because they can provide lower priced cars as compared to their foreign competitors. For Proton, its cars which are considered cheaper than imported cars would prompt price-sensitive consumer to buy their cars thus increasing their cars considerably. ECONOMY Low hire-purchase approval rate by Bank Negara Malaysia Bank Negara Malaysia is the national bank of Malaysia and it regulates the hire-purchase approval rate in Malaysia. Recently, the approval rate for hire-purchase differs from a carmaker to another, and for Proton it is rated as low. Not every customer can pay the full price of cars in the early stage of buying thus they would resort to hire-purchase. When the hire-purchase approval rate is low for Proton, customers cannot buy Proton cars thus they would proceed to other carmakers which has higher hire-purchase approval rate. Thus, this would reduce Proton sales. SOCIAL Low average wage per individual The worlds average wage is approximately RM 4440 ($1480) which is a stark difference compared to Malaysias average wage which is RM 1500 ($500). Due to the low wages, Malaysians wouldnt have enough purchasing power thus they would gravitate towards buying low priced products in order to save cost and sustain their living. Protons cars which are cheaper than imported cars would be a fine choice for most Malaysians thus this would contribute to more sales for Proton hence contributing to an increase in revenue. Yet, with the Economic Transformation Initiative carried out by the government, Proton would be threatened because the program was intended to increase the nationals average wage from RM 1500 ($500) to RM 4000 ($ 1333) which is closer to the worlds average wage. If the government initiative reached its goals, the purchasing powers of Malaysian would increase thus they would have a wide range of cars that is feasible for them to purchase. TECHNOLOGY Appearance of hybrid cars As the world is moving towards less use of fossil fuels in everyday lives due to pollution, hybrid cars is invented to cater for the environmentally conscious consumers. Aside from that, hybrid cars would save consumers a hefty sum of money because consumers would need to depend less and less on petroleum which is infamous for its constant rice of price. The appearance of hybrid cars in Malaysia and the governments incentive for Malaysians to buy hybrid cars is a probable factor that can affect Protons sales. Still, hybrid cars is still not many in Malaysia thus it would not be a major factor affecting Protons car sales yet. Other factors that affects Protons sales but outside the scope of PEST analysis PEST analysis is limited in the way it restricts the analysis of environment surrounding Proton towards political, economy, social, and technology. In reality, there are other factors affecting sales for Proton that should be considered. The factors could be internal or external and some of them have an effect to employees motivation. Before we discuss even further, look at the list of the factors below:- Quality of Protons cars Banks interest rate*  [13]   Pricing of used car market* Marketing methods Relationship between sales and after-sales Discussing the factors Quality of Proton cars Quality of products is undeniably one of the greatest factors affecting the sales of a product. With high quality, some product can even exist without the need of extensive marketing because there will be word of mouth, which is a great marketing method. Regarding Proton, the quality of its cars is questionable.. Aside from that, Protons car is also perceived as inferior and low quality as compared to its competitors especially carmakers from Europe, Japan and Korea. Thus, the quality of Protons cars is a huge factor affecting sales and it should be taken into great consideration when discussing about Protons sales. In term of employees motivation, the quality of Protons cars can affect its employees motivation level. It is a common knowledge that if you want to sell something, it would be best to sell the best to consumers. Why? This is because when we sell something that is high in quality; we would feel confident selling it because we know that our customers would love it once they use it. This is also true for the case of Proton. If the employees in the sales department of Proton know that the car they are selling is perceived as inferior and low quality, they would feel less motivated because they arent confident that their customer is receiving a good car. This is a good example of Expectancy Theory in which if sales personnel of Proton perceive that no matter how much effort they put into selling, they would know that the rewards will be far from their grasp. This is because even if their selling effort is great, they would not be rewarded with a successful sale of a car because they woul d feel that customers would probably not buy a low quality car no matter how good they are in trying to sell it. This shows how employees performance is also affected by the quality of products they are selling. Banks interest rate Banks interest rate for each car brand is different and will continuously change. If the interest rate for Proton is high, car prices will be high and customers will be more reluctant to buy, thus causing low sales. The opposite would happen if interest rate is low. The changes to interest will also affect the sales department employees. For example, a high interest rate would make car prices high and they would feel less motivated or confident selling the car. Pricing of used car market Pricing of used car market for a particular car brand also changes over time. If a particular car has high price in the used car market, the user of that car would be inclined to sell his car especially if the car is outdated. The opposite would happen if the price of a car is low in the used car market. For Protons employees, it was reported that they would feel more motivated selling a car to a customer who is seeking to replace their car which had been sold off as used car. This group of customers is called as the replacement buyers. Employees would feel motivated because it is easier for them to make the sale because cars are essential in everyday life and replacement buyers would feel greater need to buy a car as compared to buyers who already own a car. Motivation will convert to performance thus there would be higher sales. Marketing methods Proton marketing method revolves mostly on having direct contact with the public which is their prospect such as having activities in the showroom and shopping complex that involves the participation of the public. It is reported that the sales department employees like the direct marketing method because they like the contact with the public. Direct method of marketing is unquestionably a good way for marketing and can boost sales but for the case of Proton, the most evident benefits would be the increase to the sales department employees morale, thus there would be an increase in sales due to increased performance. Relationship between the sales team and the after-sales team The after-sales team of Proton is reported of providing low quality service to its customers and it could affect customers perception towards the brand. Still, the most important aspect about the after sales team is the relationship between the after-sales team and the sales team which is really crucial especially with regards to the sales team motivation. Sales personnel would be motivated especially during the act of selling if they know that whenever there is a problem after the customers bought the product; they can be confident that the after-sales team can handle it. For the case of Proton which has low quality after-sales service, we can probably deduce that the sales team motivation level will be affected because of low confidence towards the competency of the after-sales team. Conclusion We had started by acknowledging that the sales department of Proton is motivated based on the use of Herzberg Two-Factor Theory and the fact that the revenue increases from 2007 2011 shows that motivation did indeed prove to be a contributor to the revenue of Proton. The question that we need to really discuss is the extent to which motivation really plays a role to contribute to revenue, thus other factors that affect sales must be discovered. It was finally found that there are many factors that affected the sales of Proton and some such as the high excise duties and quality of Proton cars seemed to be a really major factor that affects sales. Thus, it can be concluded that motivation level of Protons sales department is a factor that affects sales but it is not the greatest factor. If Proton were to employ measures that can continuously improve its employees motivation, sales would increase but until a certain point when an increase of motivation wont increase the sales. This is because of the mentioned major factors such as Protons car qualities that hinder sales growth significantly. To really improve its sales revenue, there are some issues that Proton must address. External Factors Internal Factors 4.1 Issues and suggestion on how to handle it From the above diagram, we can see how the factors affecting Protons sales are sorted into internal factors and external factors. Proton should consider focusing on the internal factors because it is the factors that Proton can really control and directly improve. Thus, there are three issues that is internal for Proton and suggestions are given on how Proton can address the issues below:- 1. Product quality The quality of Protons cars is an issue that Proton should focus on addressing because customers decision to buy are mostly affected by quality. In order to improve its quality, one of the measures Proton could employ is improving its quality control method so that no inferior cars are produced. Aside from that, Proton should also maximise the benefits of owning Lotus by ensuring better technology transfer with Lotus and also devise more training that is catered to help Protons engineers to learn more from Lotus. 2. After-sales team quality The quality of after-sales is important in order to retain customers loyalty. If Proton doesnt improve its after-sales quality, customers will think lowly of the brand thus it would affect sales. It was found that Proton had made a fine decision by giving out proper training to its after-sales team recently but another factor that might affect the after-sales team quality is the salary of the after-sales team which is below industrys average. To counter the issue, Proton should either negotiate with its after-sales team or consider giving better wages or perks. 3. Employees motivation Although it was found that the employees of the sales department are motivated, yet there is still so much more Proton could do to really increase employees motivation. In Proton, there are issues that Proton should tackle such as biasness and lack of guidance in order to make the working environment a better place. Proton should also consider reviewing the Herzberg Two-Factor Theory so that the company can how it can reduce dissatisfaction even further aside from increasing satisfaction in the long run. A final note Although suggestions are given, only Proton knows best how it can improve itself because its internal issues can be tackled best from within their company. The unresolved issue here would be the issue regarding how Proton can really improve its products quality and at the same time increase its employees motivation so that more sales can be gained. If Proton were to devise a way to tackle the issue, then sales would definitely increase as a result. Word count : 3852 Bibliography 1. Chedet.cc 2. CLARKE, P. (2009). IB business and management course companion. Oxford, Oxford University Press. 3. Corporate.proton.com 4. En.wikipedia.org 5. Freemalaysiatoday.com 6. HAGEMANN, G. (1992). The motivation manual. Aldershot, Gower. 7. JEWELL, B. R. (1993). An integrated approach to business studies. London, Pitman. 8. KREITNER, R. (1983). Management. Boston, Houghton Mifflin. 9. Malaysia-chronicle.com 10. Paultan.org 11. Reganrajan.com 12. Thestar.com.my Appendix 2 Hj Roslan Hj Mohamed Head, direct and government sales operation Enterprise Sales Department ([emailprotected])Interview What is the reward package provided by Proton for its sales department employees? Generally, our reward package is similar with most companies. But, the main focus of employees when joining Proton would be the salary and commission structure of the company. Can you give a more detailed explanation about the salary and commission that you previously mentioned? I will be glad to. There are two basic positions the sales department non-executive (sales advisor) and executive (management). The non-executive or the sales advisor starts with a basic salary of RM300++. Sales advisor is similar to sales personnel and their remuneration lies within their commission is plentiful. There are 5 types of commission which are model-based commission, used car commission, financing commission, accessory commission, and insurance commission. There are also monthly and quarterly volume commissions. The executive or the management also has their own commission but the commission depends on the group they are managing. Essentially if his group succeeds, the executive will succeed too. What is the average payment that the sales advisor would receive each month? The amount is quite hefty. The average payment for sales advisors is usually RM7000 which is quite high. Is there any form of recognition sales advisors would receive after selling many cars? Yes, there is. It is called Club 100, which is an achievement club for sales advisor who achieved 100 sales. There are many benefits for the sales advisor who is a member of Club 100 such as having their own parking space. Is there any sales campaign held by Proton? Yes, there is and you could say that the sales campaign is one of the events that really motivate a sales advisor. A typical seasonal sales campaign would involve selling unpopular models. Any sales advisor who sold an unpopular model would be given a monthly incentive and that is the reason why they are eager to achieve success when a seasonal sales campaign comes. What do you think are some factors affecting motivation of a sales advisor? Well, there is a lot. One of them would be having many model ranges because sales advisor enjoy their work when they have many selection of cars that they can advise their customer to buy. Other than that, sales advisors love to sell zero problem cars which are top-notch and high quality. This is because they will feel excited selling it aside from not having to deal with customers complaints afterwards. They feel that it is hard to manage complaints about qualities because it is not they who design it. Lastly, sales advisor love selling new models too. How about the economy? Does it affect sales? Banks interest rate plays a big role here. When interest for car is high, people would definitely exercise caution before buying thus sales would be low and vice versa. You can see that when interest is low, sales advisors would be motivated because more people are inclined to buy thus increasing their chances of increasing their income. Talking about car prices, aside from interest, the pricing in the used car market also affects sales. For the public, when the price for used cars is high for their model, they would be inclined to sell it at that time so that they can buy new models. This group of people is called the replacement buyers which are the customers who buy a product in order to replace their previous items which had been sold off. You could say that when a specific model has high trade-in value in the used car market, people would be inclined to sell their cars and buy a new one to replace their own. A sales advisor would be motivated to sell cars when they know that the customers they are serving are replacement buyers. How about the leadership in the sales department of Proton? We apply autocratic way of leading as a way to manage employees in the staff department. This is what we call as the best practice approach because other leadership style is not suitable. Being autocratic doesnt mean that we need to compromise relationship between manager and the sales advisor. In Proton, sales advisors performance is closely monitored and they must sell a minimum of 6 units or they will be deeming as under perf

Political attack ads

Americans National University Political advertisements have been a pervasive part of politics In the united States since the dawn of television. Presidential candidates have been making an appearance In the living rooms of Americans since Dwight D. Eisenhower Introduced a series of short campaign ads to the world of television during his presidential race (livingroomcandidate. Org par-I, 2012).From the beginning researchers regarded television as a medium that had the potential to allow people to become more informed, and therefore more included leading to a nonpartisan democracy Chirurgic, Coleman, & Blubber, 2009). Individuals who, in the past, had limited access to current affairs have been able to gain a different impression of politics through the medium of television. As television became a comfortable medium for politics, electoral democracies became a game of â€Å"power, persuasion, monopolizing support for policies and politicians, and accumulating votes† (Chirurgic, Coleman, & Blubber, 2009).In this paper the writer will attempt to analyze the impact of political television ads on democracy. Throughout political history politicians have used an ray of methods such as speeches, advertising, and political rallies to obtain the winning vote, however political television ads became a popular theme in the race for president. Political attack ads are as old as television and made their first appearance in 1952 in which republicans would give one answer to one group and give a completely different answer to the same question to another group (Greer, 2006).Because of this the opposing party could not be trusted. Some of these ads had quite a lasting effect but none more than the President Johnny's ad â€Å"Daisy Girl† that sutured a little girl picking the petals off of a daisy then fades into a nuclear bomb going off (Greer, 2006). The ad was a response to Barry Goldwater statement regarding using nuclear weapons in the Vietnam War. Although t he ad was only aired once before being pulled from television, many believe It's Impact was what led to Johnson winning the presidential race In 1964 (Greer, 2006).For more than sixty years politics and television have existed In a state of reciprocated dependence. Politics provides the raw materials while television packages It, subtly reconstructs It, and livers It to the audience (Currently, Coleman, Blubber, 2009). Political advertising has become an Indispensable campaign strategy and many people regard It as fairly obtrusive. Political advertisers are not liable to any regulatory organization, voluntary or otherwise, for the accuracy of their claims (lounger, Prior, 1999).Political ads are complaining about the objectivity of the comments made about them. While television has become a fundamental part of the political process it, in turn, has widely contributed to De-plasticization (Chirurgic, Coleman, & Blubber, 2009). Greer ascertains that poll after poll confirms that the e lectoral process is marked by cynicism and dissatisfaction with contemporary campaign discourse (2006). Nearly 60% of the public in the year 2000 was dissatisfied with how candidates conduct their campaign (Greer, 2006).The focus has moved from political discourse to the personalities and faces of political leaders. Because the focus has turned to spectacle rather than ideas the educational value of election campaigns has greatly diminished. Televised presidential debates have become a battle of physical style which has moved our culture towards a new way of conducting important business Postman, 2005). The lines between show business and political discourse become more blurred with each passing day. Americans tend to have a negative preconception towards political campaign ads.They are inclined to believe that such attack ads undermine not only the election but the democratic government as well. John Greer Author of In Defense of Negativity disagrees with this theory. Greer believe s that these political ads enrich the democratic process, providing voters with relevant and substantial information before they head to the polls as they are pitched battles for control of the government (2006). Greer points out that exaggeration in political ads not only apply to negative ads, but to positive election propaganda as well (2006).Many ads point out the positive aspects of a candidates race to become president such as President Reggae's advertisement of his tax cuts, however he failed to mention the tax increase he previously signed into law. This ad and other similar political ads were not labeled as misleading (Greer, 2006). Americans tend to assume that positive political ads are practical and truthful. Greer states that Bob Squire once said â€Å"most lies in politics are told in positive ads† (Greer, 006). This statement asserts that regardless of the content of the ad it is impossible to truly assess whether or not the ad is misleading.Political attack ad s have branched off from the television and people are now turning to the internet for their political news. The television trend is currently on a downward spiral. According to research by the Pew Internet & American Life Project the number of Americans going to the internet for their presidential election campaign news has increased by 23% since 2004 while those relying on television dropped by 4% (Pew, 2008). The most popular internet resources are blobs, comedy sites, government websites, candidate sites or alternative sites (Chirurgic, Coleman, & Blubber, 2009).Audiences are increasingly becoming active participants in public communication, as senders as well as addressees of mass-circulating messages (Chirurgic, Coleman, & Blubber, 2009). Through the internet medium American audience members can intervene and participate in political discourse with a gradation of value that was impossible even twenty years ago. Political advertisement, whether positive or negative, will always mom with a degree of fabrication that misleads one American or another.Political ads set the stage for campaigning and are what gets Americans involved in democracy whether it is a commercial you watched on Television or a Youth video. Americans have been able to gain a sense of involvement that was not possible offended by political attack ads, Greer believes that positive political ads can be Just as misleading if not more. Regardless of the general consensus, political attack ads have gotten the public more involved in not only their local politics, but their national politics as well. References Greer, John G. 2006).

Biopsychosocial Models for Schizophrenia

This paper will explore one of the most severe mental disorders, schizophrenia, with the goal of providing an actualized understanding of this disorder, including its etiology, course, epidemiology, diagnostic and treatment. Schizophrenia is characterized by an unadaptive pattern of general though and emotions, including delusions, auditory hallucinations, paranoia, disorganized thinking and disorganized speech. These symptoms cause a significant impairment in personal and social life.There are a wide range of symptoms that can be present in individuals diagnosed with schizophrenia, for which some researchers have questioned the validity of the concept of schizophrenia as a single disorder (Baier, 2010). Despite of the fact that the symptoms of schizophrenia continue to be considered as representing a unitary disorder, diagnostic manuals do classify schizophrenia into different subtypes: paranoid, disorganized, catatonic, undifferentiated and residual. Diagnosis is usually made on cr iteria established by the DSM-IV-TR or ICD-10.This criteria make use of self-reported experiences and clinical judgments of mental health professionals. The etiology of schizophrenia, while not completely understood, is thought to be complex, as multiple factors seem to contribute to the development and the course of the disorder. While psychology-including abnormal psychology-has experience a significant increase of empirical knowledge in the last few decades, no other area of psychology research has developed as much as psychobiology (Baier, 2010).The technology available today allows researchers to scan brains-both topographical and functional; hence, ‘’schizophrenic brains’’ have been studied in order to seek out for structural or functional differences in contrast to ‘’normal brains’. Scientists have found several differences of brain structures in 40 to 50% of cases, as well as in brain chemistry during psychotic states (Kneisl & Trigoboff, 2009). Brain imaging technologies-such as PET and fMRI-showed functional differences in frontal lobes, temporal lobes and the hippocampus.Reduction in brain volume has also been observed in many cases, usually in the frontal cortex and the temporal lobes (Baier, 2010). Since neuronal circuits are altered, some scientists have proposed that schizophrenia is actually a manifestation of a constellation of neurodevelopmental disorders (Baier, 2010). The neurotransmitter which seems to play the most important role in the development in the manifestation of schizophrenia is dopamine, in the mesolimbic pathway (Baier, 2010).The dopamine hypothesis proposes that the excessive activation of D2 receptors cause the positive symptoms of schizophrenia (Kneisl & Trigoboff, 2009). The dopamine hypothesis of schizophrenia is supported by data which proves the effectiveness of antipsychotics that block D2 receptors, but also on PET and SPET imaging. Nevertheless, as new medication with a different mechanism of action seem to have similar effects (Baier, 2010), the dopamine hypothesis seems to be reductionist. Glutamate also seems to play a role in schizophrenia, as schizophrenic individuals tend to show a reduced function of the NMDA glutamate receptor.Reduced function of glutamate is linked to lower performance on taks that require the frontal lobe and the hippocampus. Genetic data suggests that schizophrenia is highly heritable; apparently genetic vulnerability in interaction with certain environmental factors are a common cause of the disorder. Twin studies’ results estimate an 80% of heritability of the disorders. Concordance rates between twins are around 50% for monozygotic twins and around 17% for dizygotic twins (Kneisl & Trigoboff, 2009).On the other hand, molecular genetic studies attempt to identify specific genes which may contribute to the etiology of schizophrenia. Until now, allelic variation of two genes show a stronger correlation with schizo phrenia: dysbindin (DTNBP2) and neuregulin (NRG1) (Kneisl & Trigoboff, 2009). Several environmental factors can contribute to the development and course of schizophrenia. Prenatal factors, such as obstetric complications, maternal malnutrition, maternal stress or even been born in winter or spring or are common risk factors for schizophrenia,though they do not represent factors of high-risk (Baier, 2010). Less-common factors for schizophrenia are increased paternal age and gluten intolerance. Studies with small samples have identified certain psychosocial factors that are likely to be risk factors for schizophrenia: living in urban areas, poor family environment, low socio-economic level, disrupt school behavior, low social competence and immaturity (Kneisl & Trigoboff, 2009).Schizophrenia affects about 0. 7% of world population. It is slightly more common in males (1.4 times) and the usually ages of onset are 20-28 years for men and 26-32 years for women. Different countries have s lightly different rates of schizophrenia, which reflect the importance of environmental effects in the development of the disorder (Kneisl & Trigoboff, 2009).Schizophrenia is a societal concern, as it cause considerable costs. Life expectancy is 15 years lower in schizophrenic individuals, in great part due to the comorbidities of the disorder, such as depression and substance abuse. Three-fourth of schizophrenics have disability with relapses (Baier, 2010).Most people with schizophrenia have an independent life, though sometimes they make use of community support. There is a high suicide rate in schizophrenic population, around 4. 9%, which shouldn’t come as a surprise considering that many schizophrenic also suffer from different forms of clinical depression (Baier, 2010). Modern treatment of schizophrenia corresponds to the bio-psycho-social paradigm. About all schizophrenics receive antipsychotics, many times in combination with psychological and social intervention.Antip sychotics are efficient at reducing positive symptoms, but fail to do the same with negative symptoms and with cognitive functions. There is evidence that a continue use of antipsychotics prevents relapse, but not longer than 2-3 years.Antipsychotics are classified into typical and atypical, and little evidence suggest that any of them is better than the other (Kneisl & Trigoboff, 2009). Typical antipsychotics tend to provoke a higher rate of extrapyramidal side effects, while atypical antipsychotics are associated with weight gain, metabolic syndrome and diabetes (Kneisl & Trigoboff, 2009).Psychosocial intervention for those with schizophrenia include family therapy, cognitive remediation, cognitive-behavioral therapy, assertive community treatment, skills training, supported employment, token economic intervention and interventions for weight management or substance abuse. Currently new medication and psychotherapies for treating schizophrenia are been investigated. Minocyclineâ⠂¬â„¢s effects in schizophrenia, a bacteriostatic antibiotic, is currently under study, giving its great penetration into the central nervous system (Kneisl & Trigoboff, 2009).On the other hand, nidotherapy is been applied by some clinicians; this therapy aims at changing the environment of schizophrenic individuals, in order to improve their capacity to adapt (Kneisl & Trigoboff, 2009).It is to be seen whether this new treatments will prove effective or not. As it has been showed throughout this paper, schizophrenia is a complex disorder, and it cannot be explained or treated from a reductionist perspective. Hence, most researchers and clinicians adopt a bio-psycho-social perspective, which reflects in theories of schizophrenia as well as in its management.