In-Depth Summary of Expectancy Theory Essay example -- BTEC Business M

In-Depth Summary of Expectancy Theory In today’s organization, there is a need for ways in which to effectively motivate employees. Expectancy theory addresses the underlying issues that are associated with the belief that a performance or outcome is attainable. Developed initially by Edward Tolman and Kurt Levin, introduction of the theory into the workplace was not achieved until quite some time later by Victor Vroom (Bradt, 1996). It is his first utilization of the theory that enabled others to develop and recognize the potential the theory played in motivating individuals. This essay will address not only the fundamental mechanics behind expectancy theory, but also how it can be correlated with education, performance appraisals, and leadership roles in the workplace. When an individual is confronted with a task within the workplace they first assess if the effort that is required will produce a successful performance. Underlying issues such as self-esteem, educational background, and duration of the task all can aid in the individual's perception of probability in achievement. If an individual's perception of the task has a high probability of success, then motivation will ensue. Subsequently, if the individual feels there is little chance, then a lack of motivation occurs. From there the individual will attempt to analyze the probability that if this task is achieved, the desired outcome or reward will be acceptable and bestowed. This analysis of probability is labeled performance-to-outcome expectancy (Moorhead & Griffin, 2001). Desired outcomes vary depending on the individual’s needs, wants, and expectations. It is with this knowledge of diverse needs that the manager is able to realize the potential differences in how to best satisf y the employee’s outcome perception. This assessment of importance of the outcome to the individual is its valence. Having discussed the fundamentals involved with expectancy theory, we will know look more closely at how it can further be applied to motivation through education in the workplace. Studies have shown that there is a definite correlation between education and motivation amongst employees. When an individual assess their effort-to-performance probability, factors such as self-esteem and expectations can play a significant role. Lack of basic fundamental skills among individuals who have ... ...nd a feeling of insecurity there is now more then ever a reason for the organization to develop more effective ways to motivate employees. After analyzing just a few of the hybrids associated with expectancy theory, it is clear that employee perceptions and expectations play a vital role in the success and productivity of the organization. The ability of the manger not only to identify, but also to utilize, this information is essential in fostering an environment of willing and highly motivated employees. Through analyzing and offering education, relevant performance appraisals, and leadership an environment of motivation can be achieved. Works Cited: Bradt, J. (1996, March). Pay Employees for Their Contributions. Personnel Journal New Product News Supplement, 7-9. Clinton, M. (1998, Nov). Uncertain Effects: Can Basic Skills Education Improve Motivation. Technical Training, 9(6), 35-37. Isaac, R. & Zerbe, W. (2001, Summer). Leadership and Motivation: The Effective Application of Expectancy Theory. Journal of Managerial Issues, 13(2), 212. Moorhead, G. & Griffin, R. Organizational Behavior: Managing People and Organizations. Boston: Houghton Mifflin Company, 2001.

The Story of an Hour :: Literary Analysis, Kate Chopin

Analysis of â€Å"The Story of an Hour† In her story â€Å"The Story of an Hour,† Kate Chopin (1894) uses imagery and descriptive detail to contrast the rich possibilities for which Mrs. Mallard yearns, given the drab reality of her everyday life. Chopin utilizes explicit words to provide the reader a background on Mrs. Mallard’s position. Chopin uses â€Å"She wept at once,† to describe Mrs. Mallard’s emotional reaction once she was told her husband had been â€Å"Killed.† Mrs. Mallard cared for and loved her husband; being married was the only way of life that she knew. Mrs. Mallard had heart trouble, which made it imperative to break the news of her husband’s death, gently. Thus is why Josephine, Mrs. Mallard’s sister, â€Å"told her in broken sentences, veiled hints that revealed in half concealing,† (Chopin, 1894, para. 2). Once she was told the horrible news, Mrs. Mallard was alone in front of her â€Å"open window.† She â€Å"sank into a comfortable armchair,† (Chopin, 1894, para. 4). She was exhausted. Chopin describes Mrs. Mallard’s experience sitting there; she saw the tops of trees; rain in the air; a peddler was crying his wares; the notes of a distant song reached her; and countless sparrows were twittering in the eaves. (Chopin, 1894, para. 5) The descriptions involve the senses of seeing and hearing, which allow the reader to imagine what Mrs. Mallard’s experience was. Chopin (1894) â€Å"fearfully, she waited for something to come to her.† As she waited, she felt it coming, but didn’t know what it was. She tried to get up, but wasn’t able. Then she realized that she was â€Å"free, free, free!† Mrs. Mallard was in fear, but then become joyous. â€Å"She knew that she would weep again when she saw the kind, tender hands folded in death,† (Chopin, 1894, para. 13). She knew that she would be able to live free, without anyone next her. This was something she had never experienced. Chopin (1894) writes, â€Å"She loved him, sometimes; but often she did not.† As Mrs. Mallard was rejoicing, Josephine was concerned about her sister’s health. Josephine was watching Mrs. Mallard through the â€Å"keyhole.† Asking her to open the door, she declined, stating that she was fine. â€Å"She was drinking in a very elixir of life through that open window,† (Chopin, 1894, para. 18). Being that Josephine was concerned, she got up and opened the door as if she were a â€Å"goddess of Victory.† Chopin (1894) describes how Mrs.

Marketing Mix Essay

1.1 Background to the Report Strategic management refers to analysing the important initiatives which are taken by the top management of the company on behalf of the owners. It successfully keeps a track of day- to- day activities which are going into an organization to organise the resources and plan a strategy which the organization should follow in order to get benefit in the business. It provides a direction to the organization and is closely related to the field of organizational structure. (Hambrick, 2007) In this report, strategic management of Singapore Airlines is critically evaluated on the basis of several strategies used by them. This not only helped the company in achieving the results but also enabled SIA to expand itself in the global market as well as establish a new base in the new expanding countries. 1.2 Aims of the research are – To develop a good understanding about what involves in Strategic management. To develop knowledge about constituents of strategic management process. Critical assessment of strategies of a selected organization. To throw some light on the internal and external environment of selected organization. Gap analysis for Singapore Airlines – 2. Analysis of internal framework of Singapore Airlines – Capability to restore competency in order to attain similarity with the change in business environment are termed as dynamic capabilities. This is done by reconfiguring, mixing and adjusting external and internal resources, skills and abilities (Teece et al., 1997). 2.1 Resources – Connecting strategic resources and core strategies is defined as ‘configuration’ by Hamel where core competencies and assets, process and assets are organized and combined in order to maintain strategies (Hamel, 2002). Resources are divided into two categories, tangible and intangible resources of Singapore Airlines. They are further divided into sub categories on the basis of which it can be assessed that core strategies and strategic resources were well connected. 2.2 Capabilities – On the basis of broad variety of competency and technological expertise in newly invented planes, Singapore Airlines effectively fascinated more airlines clients to its fleet management industry, securing its place as major fleet management facility providers of the world. It also persists on expanding its potential by means of strategic joint ventures. For instance, a joint venture agreement is signed by SIA with Panasonic Avionic Corporation in order to prepare a facility for maintenance, repair and operation of communication and in-flight entertainment. Facility will be based in Singapore and components will be generated by Panasonic Avionics (Singapore Airlines, 2011). 2.3 Core Competencies – Core competencies of Singapore Airlines consist of the interpersonal talents of its flight assistants and ability of its top level management in planning strategies for marketing. They endeavour to make flights as relaxing as possible (Singapore Airlines, 2011). 3. Analysis of external framework of Singapore Airlines – PESTEL Analysis FactorsSingapore Airlines PoliticalUnpredictable, SIA reject Air India offer EconomicSIA offer created trouble in Hong Kong SocialSIA Airplane crash in Taiwan TechnologicalQuick technology implementation EnvironmentalLaunch of A380 Air career LegalPassengers safety 4. Five forces of porter – Porter’s five forces model deliver a well-liked external analysis framework for Singapore Airlines. After analysing the internal and external framework of Singapore Airlines, S.W.O.T analysis is performed in order to assess SIA’s capabilities, followed by the critical analysis of corporate and business level strategies. 5. S.W.O.T. Analysis – Strengths – Singapore Airlines has an expanded geographical reach. They operate in a number of reasons like US, West Asia, Europe, Africa, South west Pacific and East Asia. They run flights to 63 cities globally, whereas its division Silk Air is offering flights in 12 countries with 39 cities. Considerable amount of revenue is generated by SIA group with its airline operations around the globe. Equally spread and diversified revenue base guarantees that group is not dependent on single geographic market for most of its profits, by which business risk decreases significantly. Though, SIA is basically a passenger airline, but the group is also offering various specialized services like engineering services, airline operations, cargo operations, etc. which are providing them stability by diversifying business threats. Additionally, SIA group has a policy of maintaining young aircraft fleets, which emit lower carbon emissions and have less burning of fuel per kilometres. This is also strength of SIA group as this factor helps in keeping maintenance costs less, along with reducing performance related security concerns (Heracleous, 2006). Weaknesses – SIA faced extremely competitive market in its initial phases. Many countries restricted air-route access to protect national airlines from other competitions. SIA worked hard to get access rights for many important airports (eg. Heathrow, Manchester) (Reddy, 2004). Various competitive authorities keep on investigating about Singapore airlines and its subsidiaries. For example, South Korea, Canada, Australia, South Africa and European Union investigated about SIA group in order to determine whether the rates, surcharges, and other characteristics of cargo service were determined lawfully or not. In financial year 2012, SIA paid administrative penalty to South African competition commission (2.8millionUSD) as settlement. Legal expenses connected with the inquiry and court case and time spent on this issue left an impact on SIA’s business and operations. Opportunities – Singapore Airlines with its well-built base of operations and proficiency, is well placed to reap advantages from the worldwide boom in tourism industry. This would help SIA Group to produce extra profits. Also, group is focusing on joint ventures and strategic operational alliances to add opportunities for growth and sales. SIA entered into partnerships (jetblue Airways) and code-sharing agreements (Virgin Australia/ Virgin America) in order to increase growth opportunities. For instance, SIA signed code share agreement with Virgin America in December 2012 (SIA, Virgin America reach code-sharing agreement, 2012). SIA will add its ‘SQ’ airline code to flights of virgin which are America-operated serving Washington DC, Las Vegas, Seattle, Chicago, etc Furthermore, SIA group has launched ‘Scoot’ which is a low cost carrier in order to grow its existence in low cost flight market. This step will enable SIA group to attract more groups of customers which will in crease its growth and revenues. Threats – Competition is very high in the airline industry. Reputation, safety records, customers service, flight schedules, fares, code-sharing relations are few parameters of competitions. SIA faces straight competition with other carriers on its route. Cathay Pacific, Japan airlines, United Continental,  AMR are few of its competitors. Extreme competition on the basis of price matching, promotions, discounting, capacity, etc. affects operating margins of SIA. Also, Natural disasters can have affect on SIA’s operations effecting the cash flows and financial state. Moreover, hike in the prices of jet fuel can increase operating costs, which can affect the profitability (Heracleous, 2006). 6. Strategies used by Singapore Airlines – 6.1 Corporate level Strategies – Diversification – Companies tend to grow their full potential in economies which are developing, with the help of strategic diversification. Strategy of diversification is followed by SIA at the corporate level. SIA group has number of primary companies with key companies being SIA Cargo, SIA Engineering Company and Silk AIR. They also have number of associated companies. Its Airlines divisions which consist of 49% ownership of Virgin Atlantic, 32 % of Tiger Airways and entire ownership of local carrier Silk Air cover basic segments of customer in the industry. This was a long-term strategy (Singapore Airlines, 2008). Benefits of using diversification by Singapore Airlines is to enable passing of learning and control quality and side by side reaping cost synergies. Subsidiaries serve as sources of learning; and also as progress arena for skills of management and corporate rather than divisional viewpoint through job rotation. Profit margins are better in related operations (like aircraft maintenance and catering) on comparison with airline business itself as structure of industry in those sectors is more favourable. (Singapore Airlines, 2008). Strategic Alliances – In April 2000, SIA joined Star Alliance as a step of its internationalization strategy. In the three main airline alliances, Star alliance hold its place  with Oneworld and Skyteam. Also, In India and China, SIA Group were investing through planned deals during this time. Deals were done with local services like engineering services, cargo85 divisions, catering and airport services. SIA is also under a code share contract with Malaysian Airlines. These airlines are offering up to 14 flights in a day between Kuala Lumpur and Singapore (Doganis, 2006). For the expansion of the company, strategic alliances are becoming more common tool. SIA used strategic alliances for increasing competitiveness in the global and domestic markets. This helped SIA in developing new business opportunities with the help of new services and products. This resulted in the expansion and growth of company globally. An alliance is a business-to-business relationship (Jeffrey, 2004). 6.2 Business level strategies – Differentiation strategy – Premium services were successfully delivered by Singapore Airlines to those customers who are very demanding and this can be termed as achieving differentiation strategy. This helped Singapore Airlines in identifying that different customers are broadly scattered, with varied needs and sufficient spending power. If an organization is unique in something which is valuable to its customers at the same time, it differentiates itself in the marketplace (Chamberline & Robinson, 1996). If an offer is valuable for the customers, they tend to be less sensitive to characteristics of competing suggestions where cost may not be one among these characteristics. This accomplishment of SIA challenges viewpoint of Porter that cost leadership and differentiation strategies are equally exclusive strategies (Porter, 1985). Differentiation strategy allowed Singapore Airlines to insulate itself partially from rivalry competitors of same industry. Customers of differentiated services were less sensitive to prices and they started preferring SIA over other airlines, that is, SIA succeeded in gaining customer loyalty (Hitt et al., 2007). SIA carefully applied this strategy and played safe by delivering premium services appropriately without over-proliferating them. leadership strategy – Singapore Airlines has considerably greater effectiveness than its peer group, which is a crucial aspect of an effective leadership strategy. They have young fleets which have lower maintenance costs; they are fuel efficient and have effective hedging of fuel. Labor cost of SIA is comparatively low (16.6%) than average of all prime airlines (20.1%) (Singapore Airlines, 2008). Singapore Airlines have youngest fleets in the airline industry, which is worth considering. Their fleets have average age of 75 months, and average age of half of airline industry fleets is 163 months. SIA’s fleets are much efficient. Younger planes are quiet, comfortable and fuel efficient. They have low repair, service and maintenance costs which are all part of its leadership strategy. 7. Recommendations – Keeping in mind the weaknesses discussed above, some recommendations for Singapore Airlines come into light like keeping company information confidential. SIA paid huge fine as various companies successfully investigated about SIA’s internal facts and figures. Also, they need to keep a close eye on its competitors who try to gain lead in the competition on the basis of price matching, promotions, discounting and capacity. 8. Conclusion – A variety of strategies were executed by Singapore Airlines by which the company is successful for a considerable time. By keeping a track on industrial environment and the macro environment, Singapore Airlines can uplift its capabilities to secure future success. However, as there are uncertainties in the environment and market keeps on altering quickly, it is crucial to monitor and carefully consider all the strategies before implementation. Singapore Airline’s potential to become accustomed to change will positively help the company..to..strive..on..with..competitors..in..the..future. 9. References – Chamberline. E, & Robinson, J. (1996). â€Å"Theory of Monopolistic Competition, What is Perfect Competition ? † Quarterly Journal of Economics, Vol. II, no. 4, 431- 433 Doganis, R. (2006). Outlook, The Airline business ed. 2, Routledge, Abingdon. Hambrick, D. C., (2007). What is strategic management really? Hamel, G. (2002). Leading the Revolution: How to Thrive in Turbulent Times by Making Innovation a Way of Life. New York: Plume Books. Heracleous, L. (2006). Flying high in competitive industry: Cost effective service at SIA. Mc Graw hill. Hitt, M., Hoskisson, R., Ireland, R. (2007) Management of Strategy: Concepts and Cases.7th ed., Thomson South-Western, USA Jeffrey, R., (2004). Strategic alliances: Theory and evidence, Oxford university press, US, 2004. Porter, M.E.(1985). Competitive Advantage. New York: Free Press, 6-22. Reddy, A. (1994). Total quality marketing: the key to regaining market shares. Westport, CT: Quorum Books. SIA, Virgin America reach code-sharing agreement (2012, December 15, Saturday). Business pg30..Retrieved..from http://imcmsimages.mediacorp.sg/CMSFileserver/documents/006/PDF/20121215/1512BZC032.pdf SIA (2012). Virgin America reaches code-sharing agreement, December 15, 2012. Singapore Airlines, (2008). Annual Report, Singapore. Singapore Airlines, (2011). Annual Report, Singapore. Teece, D., Pisano, G., and Shuen, A.(1997). Dynamic capabilities and strategic management, Strategic Management Journal , 18, 509-533. reaches code-sharing agreement (2012, December 15, Saturday)

Adolph Hitler’s Leadership Ethics Essay

About 18 months ago, the Council of the Academy of Sciences of South Africa (ASSAf) appointed a Study Panel of eminent scientists to examine and collate the most relevant and reliable evidence on the influences of nutrition on human immunity, particularly in respect of HIV infection and active tuberculosis in South Africa. The decision to focus on this topic was sparked by the prevailing debates and public uncertainty in South Africa regarding the role of nutrition and nutritional supplements such as vitamins and minerals in the management of HIV infection. The Study Panel report released a few weeks ago under the title ‘HIV/AIDS, TB and Nutrition’ observes that South Africa is currently in the throes of three distinct epidemics – malnutrition, HIV infection and TB. The prevalence of each is sufficiently high that the same communities may be affected by all three epidemics in a purely mathematical overlap, but there is also prima facie evidence from observational studies that the three epidemics are in fact often linked in a synergistic relationship in which they mutually reinforce and facilitate one another. The report provides up-to-date and in-depth epidemiological summaries of each. This editorial will however largely concern itself with nutrition and HIV infection. Why nutrition is important for the immune system The body defends itself against microbial invasion by activating its quite complex immune system, and mobilising what the report dubs the ‘flamethrowers’ or respiratory burst whose central role is the intracellular killing of pathogenic organisms by oxidation or ‘burning’. This in turn relies on the availability of energy stored in energy-yielding fuels such as carbohydrates and fats to fuel the ‘respiratory burst’. Largely for this reason, the resting energy expenditure in HIV-infected individuals is increased by at least 10% compared with noninfected persons. This critical chain of complex defensive mechanisms (involving regulatory hormones, neuropeptides, cytokines and neurotransmitters) is obviously undermined if the infected person is not kept supplied with adequate energyladen macronutrients such as carbohydrates and fats. Micronutrients (vitamins and minerals) are equally important as part of the nutritional landscape for the optimal functioning of the immune system. For example, the vitamin B complex – thiamine, riboflavin and niacin – has a critical role in the Krebs cycle via which the required energy is generated. However, oxidants are indiscriminate warriors that will attack and destroy both invader and host cells alike. For this reason, there is a need for ‘fire extinguishers’, and micronutrients fulfil the parallel and important role of serving as antioxidants whose function is to limit and contain the destructive effects of oxidants on the host cells. HIV infection and nutrition HIV infection is associated with weight loss and wasting, both of which are independent contributors to poor clinical outcome. The reasons for the weight loss and wasting are multifactorial, and include the increased resting energy expenditure, food scarcity, and decreased absorption of ingested food due to gastrointestinal disease or viral disruption of the intestinal mucosa. Although a 10% or greater loss of body weight over a year is not uncommon in HIV, there is in fact a high degree of variability in the extent of weight loss and wasting which, not infrequently, is causally associated with secondary infection. Whole-body protein turnover may be as high as 25% in untreated HIV sufferers, leading to cachexia. Also, as already mentioned, resting energy expenditure is increased by 10% in HIV-infected people. It would therefore appear to stand to reason that nutritional intervention in people with HIV infection will improve survival and/or quality of life, but hard evidence to this effect is woefully lacking. Very few randomised, placebo-controlled trials have been conducted in this regard. There is preliminary evidence, however, that specific dietary supplements such as amino acid mixtures increase body weight and reduce HIV viral load. Supplementation with medium-chain triglycerides reduces HIV-associated intestinal dysfunction and fat malabsorption. And ready-to-use therapeutic food improves nutritional status in severely malnourished children. Micronutrients (vitamins and minerals) are essential to immune function, and deficiencies may therefore act as cofactors in HIV transmission and progression. Micronutrient deficiencies are common in HIV-infected people. Multivitamin supplementation has been shown in observational studies to result in a 40 – 48% slower progression to AIDS and a 40 – 60% reduction in the risk of death after 8 years of follow-up. But here again, there is an unhappy lack of sufficiently powered randomised controlled trials to confirm these benefits. The World Health Organization, the Southern African HIV Clinicians Society and the Department of Health have all published guidelines for nutrition in HIV/AIDS that have been collated in the ASSAf report. But the report also identifies gaps in our knowledge regarding HIV and nutrition, and recommends areas and topics that ought to be prioritised for research. Daniel J Ncayiyana Editor ‘HIV/AIDS, TB and Nutrition’ – ASSAf Report SOUTH AFRICAN MEDICAL JOURNAL – FIRST PUBLISHED JANUARY 1884 October 2007, Vol. 97, No. 10 SAMJ 893

The Career of a Manager Essay Example | Topics and Well Written Essays - 1000 words - 8

The Career of a Manager - Essay Example At present, I possess certain skills that would be helpful in pursuing my career as a manager. For example, I am quite proficient in the field of accounting and statistics. These skills are vital for becoming a manager as accounting would help me in managing the financial resources in a better way and statistics would aid in forecasting demands efficiently. However, as a manager, my prime concern would be generating profits for an organization. Creation of sufficient profits is concerned with the better management of risk and proper investment (Saville Consulting, 2008; Pollak, 2011). However, I do possess certain limitations that can hinder my career progression. In this similar context, it is to be mentioned that managing a big organization would be a quite challenging task for me. The significant amount of time and effort must be devoted to the proper management of a business linked with such organizations (Amtek Engineering Ltd, 2010). Thus, according to my viewpoint, I need a st rong and capable team, which can assist me to undertake various duties and fulfill the organizational objectives. I will require developing team management skill and other vital managerial skills in order to become a manager. At present, I did not decide to which field of management I would prefer to pursue my career. Among various fields, I am planning to become a marketing or financial manager. This career has attractive potentialities and opportunities in the modern era. Thus, an effective plan has been made in the following based on which I could successfully pursue my career and at the end become a potent marketing or financial manager. In order to pursue my career, I would like to understand regarding the world of business and administration. Thus, I will enroll in Foundation degree in business from Warwickshire College. Furthermore, I will learn about the nature of business organizations and the environment wherein they operate.

Sappho of Lesbos Essay Example | Topics and Well Written Essays - 500 words

Sappho of Lesbos - Essay Example Sappho’s poetry exhibits an intense relationship with the Greek Goddess of Love Aphrodite. Indeed, Sappho was involved in a thiasos, a cult organized to worship the goddess Aphrodite with poems and songs. In the poems Sappho’s relationship with goddess can be seen at times to reflect intense devotion, and at other times Sappho implores the goddess to grant her wishes or end her torment. In a poem titled ‘To Aphrodite of the Flowers at Knossos’ Sappho calls for the goddess to leave Krete and come and join her. In the final stanza she refers to the goddess deferentially as â€Å"Queen Aphrodite† and asks her to exultantly â€Å"pour heavenly nectar into gold cups.† This poem demonstrates Sappho’s thematic concern with Aphrodite as a celestial entity to be adored. In ‘Hymn to Aphrodite’ Sappho envisions the goddess as an entity towards which she pleas for help with a reluctant lover. In this poem Aphrodite responds, â€Å"â⠂¬â„¢Whom,’ thou criest, "dost wish that sweet Persuasion / Now win over and lead to thy love, my Sappho?† Like many other poems, this one shows the relationship between the goddess and poet to be intimate and developed. Throughout Sappho’s poetic oeuvre we witness her conflicted relationship with the effects of romantic love. While a large amount of Sappho’s poetry concerns love, she characterizes it as equally emitting anguish and salvation. In a fragment titled ‘The Blast of Love’ she writes, â€Å"Like a mountain whirlwind / punishing the oak trees / love shattered my heart.† Fragments like this which lament the throes of love, can be contrasted with other work where she revels and languishes in the powerful emotion. In a fragment called ‘To Eros’ she writes simply, â€Å"You burn me† While direct and simple, the sentiment characterizes Sappho’s conflicted nature with love. Even a quick perusal of

Phase 4 Discussion Board Essay Example | Topics and Well Written Essays - 500 words - 1

Phase 4 Discussion Board - Essay Example Yes, I would switch to the Visa Student Card. This is because the interest charged using the Visa Student Card of $270 is lower compared to the interest charged using my existing credit card of $412.50. Most important, I would switch to any credit card that offers lower interest rate on my purchases after six months taking in account that the credit cards offers an interest rate of 0% on all purchases and balance transfers for six months. In case of Open-End Credit, a borrower can continue to borrow (purchase) and pay in various amounts. In case of Closed-End Credit, the lender tells the borrower how much they can borrow and a fee schedule is set up, which the borrower pays until the debt is paid off. In general, Open-End Credit is for small purchases and Closed-End Credit is for bigger purchase. Credit card purchases are an example of Open-End Credit and a Car loan taken is an example of Closed-End Credit. Many large appliance stores offer simple interest loans to their customers. For example, suppose a customer is interested in purchasing a $1,400.00 refrigerator at Myer Appliances. The customer is unable to pay the total amount at the time of purchase, so Myer’s lets the customer make a down payment of $140 and then 12 monthly payments of $120.75.   Suppose that you are unable to pay the total amount for your appliance at the time of purchase, so you take out a simple interest loan. The store will let you make a 10% down payment and then make 12 equal monthly payments for the remaining balance at a simple interest rate of