Interpersonal, Group and Collective Behavior Dynamics Essay Example for Free

Interpersonal, Group and Collective Behavior Dynamics Essay Enron is a company that is faced with financial instability but continues to run on dubious dealings including misrepresenting their true financial position (Cohan, 2002). This is done to save the public image of the company hence avoiding the risk of losing investors. American International Group (AIG) is also in a serious financial crisis following cases of mismanagement (FRB, 2009). We shall make a comparison of the group dynamics and internal politics within these two companies. The companies exhibited an element of information blockage. This is holding back adverse news from the public until the last possible moment. This is usually a deliberate act with the aim of maintaining a good public image. It is however followed by lawsuits, hate mails or even death threats from unhappy investors. In Enron’s case, the senior executives withheld any information about financial crisis from the public until it collapsed (Cohan, 2002). AIG maintained a ‘business as usual’ image in the public despite its liquidity issues (FRB, 2009). Motivation to lie or deliberately concealing the truth in an organization was evident in the two companies. The corporate officers do not disclose the truth especially when this truth may put the company into bankruptcy or cost them their jobs. In the case of Enron the lies were inform of hard data, lying about accounting results and a stream of earnings (Williamson, 1970). Questionable accounting practices were meant to hide huge losses that the company suffered. AIG had its share of deliberate lies when it valued its A-A and sub prime property at 1. 7; twice the value used by Lehman. The issue of the board’s oversight function and the business judgment rule is also fairly evident in the two companies he board of directors act as if they are entitled to rely on the honesty and integrity of their subordinates until something wrong happens (Crag Rebecca, 1996) . The directors of Enron were totally unaware of the severity of the company’s financial crisis until its collapse. A directors were too ignorant of the liquidity problem to the extend of planning for a lavish retreat for themselves. The subordinate managers have persuasive interest in concealing the bad news. This is meant to avoid or delay personal embarrassment and other associated risks such as the likelihood of a price drop in its shares. In Enron, individual executives who decided to hide the dubious partnership feared erosion of status (Cohan, 2002). They felt that they needed to protect both their self and external image. The same case was evident in AIG, where the subordinate managers saw the need for over costing their assets to redeem their image. Overconfidence and optimism is displayed in the two companies by the senior executives especially in press releases. Overconfidence creates a strong image for any company in the eyes of the public. Executives who are overconfident and optimistic are considered to be successful managers. This is because they are able to persuade and influence people even in the face of a crisis. The executives in Enron and AIG were also in the bid of making a name for themselves. Senior executives assured employees would continuously rise even in the event of financial instability in Enron. The chief executive officer in AIG assured investors that they would still get their bonuses even as the company was being bailed out (FRB, 2009). Corporate ‘culture’ cannot be ruled out in the management of the two companies. This refers to the norms of the company which are well known to the management and the subordinate employees. They supersede other business or ethical laws in case of a conflict. Cynism as a corporate culture fosters the breaking of rules as a means to succeed. Ethical rules are under enforced with the focus being to maximize profits. The Enron and AIG were caught up in this culture when they faced a financial crisis. They misrepresented their debts and assets respectively in the company’s sheet so as to reflect high profits and attract investors (Cohan, 2002). All this is done in total disregard for accounting ethics. Myopic information within the organization is also prevalent in the two companies. This might be due to our limited cognitive capabilities but more so because the executives are too busy to deal with abundant data. They prefer sifting this data and extracting only what is relevant. They may also be lacking the skill to analyze and understand the data as was the case of Enron’s former chairman Mr. Kenneth Lay. The directors in AIG and Enron, focused on information that confirmed their prior attitudes of leading institutions in the market. They disregarded any disconfirming information of possible collapse or liquidity issues. This is normally referred to as cognitive dissonance. It is usually difficult to change these beliefs as one is seen as a threat to the company’s status quo. Ms. Watkins, an employee in Enron became such a threat by warning a senior manager of a possible collapse (Cohan, 2002). A chief executive officer’s proposal in AIG was ignored on the same basis (FRB, 2009). Intimidation of subordinate employees by the senior employees is prevalent in Enron but not in AIG. In Enron, investigations against Mr. Andrew a former chief financial officer and other senior officers who were involved in fraud cases did not happen since no one was confident enough to confront them (Cohan, 2002). In AIG the accounting scandal is thoroughly investigated and no one is spared including a former chairman of the board. REFERENCES: Federal Reserve Bank. (2009). History and development of AIG. Retrieved May 26,2009, from http://www. federalbank. orf/history/development. pdf Herbert, A. S. (1955). A behavioral model of rational choice. John, A. C. (2002). †I didn’t know† and â€Å"I was only doing my job†. Has corporate governance careened out of control? A case study of Enron’s information myopia. Journal of Business Ethics, 40 (3),275-299. Paul Z. Janet A. (1997). The social influence of confidence in group decision making.

The Spanish Revolution :: essays research papers

Ever since the fall of 1930 when the Spanish Revolution began there has been no surcease of the struggle in Spain. For a long time there was a deadlock of forces, an equilibrium in the tug of war between the property holders and the destitute. Now the equilibrium is being definitely broken. The issue before Spain is either Communism or Fascism. The matter is being fought out not with ballots but with bullets and ruthless civil war. Slowly the political revolution is being definitively turned into a social revolution. From the very beginning, the mass of workers of Spain, both in the city and in the country were the decisive elements. When the students rioted before the universities in 1930 it was only when the workers joined them with a vast general strike that the regime of the military dictator, Primo de Rivera, fell and the temporary regime of General Berenguer set up. When General Berenguer tried to hold fake elections without extending the franchise to all, it was another general strike that overthrew the regime, compelled new elections, forced the king to flee and established the republic in April 1931. At this point the Syndicalist and Anarchist workers began to miscalculate their forces. Syndicalism and Anarchism, in spite of their revolutionary phraseology were able only to overthrow the old regime and to allow the new democratic republic to be set up; but these movements could not go forward to the positive constructive tasks of setting up the rule of the workers. These antiquated movements were good enough to accomplish the negative and critical tasks of overthrowing an antiquated monarchy; they did not know how to deal with a modern bourgeois republic. In the course of the revolutionary movement there was set up what in fact amounts to a dual power, the masses respecting the authority of the unions and the revolutionary organizations, the government being forced at times to yield to the opinions of these mass organizations on vital questions. At one time the bourgeois government was even forced to declare that Spain was a workers republic and to feign friendliness toward the Soviet Union. The leaders of the toilers' organizations, however, did not know what to do with their power. The lending groups were composed of four principal elements: the Anarchists, the Syndicalists, the Socialists and the Communists. The Anarchists were powerful enough within the trade union movement to exercise decisive influence for a time upon the whole situation.

Poverty in Canada Essay

Despite having one of the highest  standards of living among all the developed nations, and despite being voted numerous times in recent years by the United Nations as the best country in the world in which to live, experts agree that poverty is prevalent in Canada today. Unfortunately, that is more or less where the agreement ends. Exactly how prevalent and how serious a problem poverty is in Canada is an open question that has been hotly debated for the last 10 years. There have been two times in the past 300 years when economic structural changes have occurred in the world that have been so massive and so far-reaching, that the impact on societies has been nothing short of monumental. The first time was in the Industrial Revolution which began in the early 1700s and caused massive societal transformations, especially in the western world, changing life from agrarian-based societies to industrial-based societies. The second time was in the early 1980s with the beginning of the â€Å"Information Revolution.† Today, a rapid, world-wide, economic transformation is taking place that is changing our societies from industrial-based societies to information-based societies, the 3rd wave. These changes are part of a greater phenomenon called â€Å"globalization† . The improvement in technology lead to a desire to make trades with other countries, and therefore allowing foreign companies to sell in Canada and thereby compete with Canadian companies, and vice versa (â€Å"Laisser faire, laisser passer† – Adam Smith).This increased competition lead to ever greater pressures on Canadian companies to reduce their costs of producing goods. Companies closed down and went looking in third world countries because labour is cheaper. At the same time, technology was replacing human labour; employees lost their jobs, being replaced by machines that could do the job faster and more efficiently. This eliminated the manufacturing, low-to-medium skills, well-paying jobs, which didn’t require a very high level of education. While now, our labour markets into high-skills, high-paying jobs on one end of the spectrum, and low-skills, low-paying jobs  on the other end. Therefore, one way would be for people have to get a better education to get a better job, get better money, and get themselves out of poverty, which runs along the views of Plato. But who are the poor in Canada? Are there any identifiable persons or groups who are more likely to be poor than others? Is age a factor? What about gender, race? What about geographical factors? Does living in certain parts of the country make you more likely to be poor than living in other parts? According to Smith, there is in every society an absolute minimum standard of living which consists of survival necessities (shelter, food and clothes), plus additional non-survival necessities as determined by each society’s customs (such as owning a linen shirt and a pair leather shoes in his day). Together these necessities meet not only a person’s basic survival needs, but also allow that person to participate in society with dignity and without the shame and stigma often attached to being poor. To allow any person to live below this minimum standard would, to use Smith’s term, render that society â€Å"indecent.† The following studies have been made by Kevin Lee from the Canadian Council on Social Development: â€Å"1. From 1990 to 1995 the total number of poor people in Canada increased dramatically. During this period, Canada’s total population increased by 6.1 percent, whereas the population of those considered poor increased by 28.6 percent, far outstripping the overall growth. 2. Poverty is largely an urban phenomenon. In 1990, 66.6 percent of the poor population in Canada lived in metropolitan centers. 70 percent of all poor people live in Montreal, Vancouver or Toronto. Between 1990 and 1995, poverty rates rose in every city examined. 3. Poverty rates varied substantial between cities. Cities in Quebec had the highest poverty rates while cities in southern Ontario had the lowest. For example, Montreal had the highest rate in Canada, 2.5 times higher than Oakville, which had the lowest rate. 4. Certain population groups were more likely to be poor than others. These included: * Single-parent families, whose poverty rate was 2.45 times higher than the average. * Aboriginal persons, whose poverty rate was 2.26 times higher than the average. * Recent immigrants, whose poverty rate was 2.17 times higher than the average. * Visible minorities, whose poverty rate was 1.53 times higher than the average. * Persons with disabilities, whose poverty rate was 1.47 times higher than the average. 5. Poverty rates varied considerably according to age and gender. The young and the elderly are more likely to experience poverty. The incidence of poverty declines with age until age 45 to 54, after which it rises again. Women in every age groups are more likely to live in poverty, and women seniors above age 75 are the most like of any group. Among males, boys up to age 14 had the highest poverty rate. Children and youth made up one third of the total poor population. 6. Poverty rates varied based on education levels. As expected, in every city examined persons with less than high school education were more likely to be poor than those with a post-secondary level education. However, at least 6 percent of post-secondary graduates in every city lived in poverty, and in six cities that rate was over 20 percent. 7. Poverty rates varied based on occupational skills levels. As expected, persons with lower skills levels had a higher incidence of poverty, however  high-skills workers still had high poverty rates in some cities. For example, in Montreal almost 20 percent of high-skills workers were living in poverty as compared to 4.5 percent in Gloucester or Burlington. 8. The average income for working-age families in Canada was $60,400. 9. The average income for working-age â€Å"poor† families in Canada was $14,500.† Taken from http://www.ccsd.ca/pubs/2000/up/ But another question prevails here: How should we help them? Canada has been using a lot of different methods to try and help them. We can find numerous shelters for the homeless, which also provides them with food and water. All this is free for them, but it’s not helping them get out of poverty, it is like a breathing device for them. Without it, they would die. There are other people who do have a home, as humble as it might be, but they are having troubles paying for it, since they cannot find a job. The government supplies those people with an amount of money weekly. This is called the Welfare system, but it is not working as well as in Sweden. This may be because the people are taking this money, and instead of spending it on food and vital needs, some of them go and buy cigarettes, alcohol, and drugs. On the other hand, some people are wisely investing it in education, and vital needs. This makes us wonder if our tax money is being spent wisely. Should the government tax the working people to give and income to the non-working people? There are many points of view about this subject. We may think that it is unfair that you are working to help them, without getting anything in return. We may feel like we are being obliged to care for the less well off. But in fact, by giving them little boost, they are helping us back. If they get a chance at a better education, they could get a job, or even open their own company, which would create employment, and in its turn would increase consumption, and make the economy go round. We would all benefit from this. If this starts off, there would be enough jobs for everyone, thus getting the present poor people out of poverty and help the next generation be poverty free. Of course I am exaggerating, there would  never be 0% poverty, but there might be a possibility of a 100% educated population. Once this has been reached, more innovations will be accessible, and the updated Adam Smith wo uld come in play: â€Å"Laisser innover†, also known as R&D. This could help in many ways, a good example would be space technology. The exploration of space has, ever since it began in 1962 with the launch of Yuri Gagarin, been a controversial subject among the peoples of this planet. The controversy surrounds the spending of billions and billions of dollars on the pursuits of space exploration. The thread of the most common argument against space is that there are more pressing problems here on our planet such as pollution, overcrowding, disease, poverty etc. that this money could be spent on. Will taking moneys from space exploration and investing more money in these immediate problems help them? There is no doubt that by investing more in these problems that there will be measurable improvements in all problems. In fact given a conscious effort to spend wisely any problem could be helped. So the question becomes does space exploration help this planet? Can exploring space on its own justify the investment? The most obvious area where space exploration has benefited our immediate lives is right in every ones own living room. The television newscasts which you watch have been more than likely been transmitted via satellite. The satellite has also allowed trans-continental telephone calls, emergency tracking and a host of other uses. These are measurable benefits in the present, but the question begs as to why we spend money on theoretical research on quasars, missions to the moon, and experimental technologies which seem like science fiction to most people. The answer to this question lies in the benefit of space exploration that we see today, that is, in satellite communications. More than thirty years ago when Sputnik was first launched that was deemed a marvel of science and technology, almost science fiction. No one person could foresee the benefits that could be gleaned from the launch of this simple spherical metal ball which bounced radio signals back to earth. The point here is that the investment in this project paid off, in what we see today in the form of TV  news, phone calls and direct broadcasting television. It is important to point out that the Sputnik launch and all other attempts including the American Echo project were good investments but there are space projects which failed miserably such as the Russian attempt at building a Super Booster, now called Energia. Millions of dollars were wasted in this failed project. What I am trying to illustrate is that there are good and bad ideas, good and bad investments not only in space exploration but in any field of science. This is what drives the advancement of knowledge. Space exploration in the broadest sense gives us the future. It is an investment not for the short term but for the long term. It allows us to study different environments, allows technology to develop and allows ideas to be tested. No one can argue that Sputnik was not a wise investment so how can we possibly know that sending missions to the moon is not. The responsibility lies with us to determine what is important and worth pursuing.

Does homosexuality harm the institution of marriage

Does homosexuality harm the institution of marriage? YES! The institution of marriage is unique. It is the one institution that binds women and men together to form a family, and this serves broad societal purposes. â€Å"Homosexual activists argue that same-sex marriage is a civil rights issue similar to the struggle for racial equality in the 1960s.† (Richie, 2014) This is false. First of all, sexual behavior and race are virtually different realities. A man and a woman wanting to marry may by different in their characteristic: one may be black, the other white; one rich, the other poor; or one tall, the other short. None of these differences are impassable barrier to marriage. The two individuals are still man and woman, and thus the†¦show more content†¦This rule is confirmed by the evident difficulties faced by the many children who are orphans or are raised by a single parent, a relative, or a foster parent. The unfortunate situation of these children will be the module for all children of a same-sex marriage. A child of a same-sex marriage will always be denude of either a mother or a father role model. Same-sex marriage ignores a child’s best interests. (Ritchie, 2 014) In addition, it does not create a family but a naturally sterile union. To prevent the birth of children by using contraception, traditional marriage is usually so fecund that those who would obstruct its end must do force to nature. On the contrary, same-sex marriage is unable to bear children. If the spouses want a child, they must avoid nature by costly and artificial means or employ surrogates. Therefore, we cannot call a same-sex union marriage and give it the benefit of true marriage. Furthermore, it is not special of anyone can get married. It denigrates and distinguish against religious beliefs that marriage is between on man and one woman before God. God is good enough reason. Gay are imposing their beliefs on others. They are not a suspect class and have not been marginalized, so they do not deserve special treatment under law. The fact that they have enough money to influence legislation and affect court decisions to promote and impose their beliefs on others proves thatSh ow MoreRelatedAnalysis Of Andrew Sullivan s Article Why Gay Marriage Is Good For Straight America 1621 Words   |  7 Pagesarticle â€Å"Why Gay Marriage is Good for Straight America.† He is an experienced publicist, and he is homosexual. Sullivan argues that every person has the right to get married disregarding his or her orientation. Richard Rodriguez who is also a famous publicist composed â€Å"Family Values.† Like Sullivan, he is homosexual and he discusses it in his work. Rodriguez and Sullivan share many viewpoints related to homosexuality, but they disagree about the appropriateness of homosexual marriage – Sullivan is forRead MoreGays Should Be Legal Contract1290 Words   |  6 PagesGays Should Be Allowed To Marry Calling something marriage does not make it marriage. Marriage is a legal contract between a man and a woman. It is the institution that establishes kinship and relations in the family. Marriage is mostly recognized by a state, organization, religious authority, local community, or peers. Marriage is for procreation, education, the unity, and well-being of the couple. Some say marriage is for two people who love each other and ready for commitment. Nevertheless, inRead MoreEssay about The Case for Gay Marriage1673 Words   |  7 Pagespolitical debate over the decisive issue of gay marriage forces us to rethink our commitment to those deliberate words. Throughout our history, America’s homosexual population has struggled against society to prove that they have the right to marry anyone they love, regardless of sex. Until only recently, in fact, the vast majority of Americans have held steadfast views against the legalization of gay marriage. But in the most recent decade, gay marriage activists have made significant progress toRead MoreThe Disadvantages of Allowing Same Sex Marriages745 Words   |  3 Pages Same sex marriage is hotly debated for its legality as it is against the natural law. The ramifications are vast and we are seeing the effects of homosexual legal rights affecting housing, education, the work place, medicine, the armed forces, adoption, religion, etc. (http://carm.org/gay-marriage-harm). Although some believe that same sex marriage should be allowed as denying same sex marriage is a form of minority discrimination, same sex marriage does no harm to society and it is an acceptedRead MoreEssay on We Need Same-sex Marriage Now1352 Words   |  6 PagesWe Need Same-sex Marriage Now Known to some people as a lifetime commitment of devotion, to others a promise to reside with a stranger, and even to some people as a union arranged by their parents, marriage is a widely varying ritual practiced all over the world. In the United States, marriage is a freedom of choice and an act of love, supported with benefits and privileges from the government. It has traditionally been the union of a woman and a man, made with the expectation of permanenceRead MoreMarriage Is The Legal Or Officialising Process913 Words   |  4 PagesMarriage is an institution that ages back to ancient societies. It offered a secure environment and legal benefits to facilitate the granting of property rights. Marriage is the legal or officialising process by which two people under go to be recognized publicly and by law .It is the joining  of two people in a bond that relatively lasts until death,  but in practice is increasingly cut short by divorce .Marriage allows a couple to have a stab le relationship that is recognized by the state and byRead MoreSame Sex Marriage Should Be Legal1491 Words   |  6 PagesSame sex marriage is one of the most debatable issues in the modern world. Marriage has been accepted as the social union between a man and a woman for the past thousand years. Homosexuality was viewed with scorn, and marriages among same sex couples were prohibited in most cultures across the globe. However, gay relationships are slowly obtaining acceptance, as homosexuals have come to be expressive in fighting their rights to marry in the early 90’s. As homosexuality grows in acceptance in theRead MoreThe Argument Against Gay Marriges1237 Words   |  5 Pages Arguments against gay marriges Though there are differences in the views of different faiths, conservative Protestants, the Catholic Church, Mormons, traditional Jews, and Muslims share two fundamental antigay arguments. The first is that homosexuality is wrong because it involves sex that doesn t create life. In the case of Judaism, a key Bible passage is the story of Onan (Links to an external site.), who sleeps with his dead brother s wife but, to avoid giving his brother offspring, doesnRead MoreGay Marriage Should Be Legal1480 Words   |  6 Pagesmeaning. They believe marriage is more than a piece of paper and a set of rings. The hope is that marriage could be defined as a â€Å"public recognition of a private commitment† or â€Å"emotional, financial, and psychological bond† between two people (Sullivan 53). Gay activists believe that taking away the ability to have a publicly recognized relationship or an accepted union is an infringement of their public equality. However, non-supporters of this cause believe that gay marriage is â€Å"an attack on theRead MoreSame Sex Marriage Is Not The Law Of The Land1510 Words   |  7 PagesProfessor Lee Comp Rhetoric 2 20 October 2014 Same-Sex Marriage According to Dr. James Dobson, founder of Focus on the Family, If traditional marriage is not the law of the land, the institution of the family will cease to exist. Traditional marriage is a legal union of a man and woman as husband and wife. Inside the court rooms and outside, citizens of the United States battle out their differences between heterosexual and homosexual marriage; one reason for this is because the frequency of relationships

Definition and Examples of Verbal Hygiene in English

The Flaw by David Sington Movie Review Example

Essays on The Flaw by David Sington Movie Review The paper "The Flaw by David Sington" is a good example of a movie review on finance and accounting. Anyone mentioning the global financial crisis is almost sure to create a disbelieving reaction in most individuals. We are all aware of its existence, and also that things occurred like the subprime mortgages, people lost a lot of money, and the taxes of our nation flooded to the help of the very institutions which were to blame for the global financial crisis. The movie; The Flaw directed by David Sington takes us through what caused the 2008 banking crisis. The actors in the movie include Robert Frank, Robert Shiller, Dan Ariely, Joseph Stiglitz, and Robert Wade (Sington). The title of the movie originates from Alan Greenspan; chairman of the Federal Reserve. He made an open remark that there was a ‘flaw’ in the capitalistic world.The strongest point of the movie is the way it covers the complex subject of economics in a simple and interesting way. The film’s dir ector cleverly takes complex concepts in economics and makes them understood to the lay audience. The greed of the bankers sent the global economy into its worst performance ever. In the film, Ferguson's Inside Job shows the manner in which politicians and bank CEOs together brought this situation into being (Bradshaw). Even though the movie is less journalistic, it is more lenient to the white-collar players who were involved. Sington shows us that the banking crisis in The Flaw was caused by a boom in the house mortgages as well as the securities based on those mortgages. Sington does a very good job by putting emphasis that most of the activities were based on financing, for instance, borrowing more cash on existing mortgaged property, time and again to cover other debts. The entertaining and smart film comes up with an intellectual framework of what happened and then shows the effects in the real world.The film goes back in time to determine the reason why most Americans chose t he risky mortgages. The movie shows how people with so much wealth spent on big houses destroying the whole market. In 1 hour and 20 minutes, the movie shifts between economic policies and wealth redistribution, which led to huge debt levels.  Ã‚  The film has no commentary like Michael Moore’s Capitalism: A Love Story. In addition, the movie moves at a good pace with David mixing thoughtful interviews with borrowers, brokers, and bankers, as well as economics with animations and graphics,   got from post-war cartoons to show the benefits of a free market. The interviews provide a narrative that creates a cohesive and thorough picture of what happened. All these people failed to comprehend the physic’s basic principle that in the end, every bubble has to burst.What makes this film stand out is the manner in which it exposes our economic system has shifted in favor of the super-wealthy. As a living documentary of the 2008 global financial catastrophe, the film shows to the viewers the growing inequality of incomes, unchecked capitalism, and the widening gap between the wealthy and the rest of us. Greed is considered as one of the factors that contributed to the crisis. From the movie, we can learn that 0.1% of people had about 40% of the nation’s money.   As cited by (Holland), 0.1 percent richest Americans earn 12% of the total annual income.Even though the movie is informative and entertaining, it has various weaknesses. First, the film does address a global picture of the financial crisis while focusing only on America. Second, the film is not completely clear on what it understands capitalism’s flaw is. Third, it does not provide future solutions in case such a thing occurs again. Lastly, the film also lacks the understanding and insight of the Inside Job. In general; however, Sington has made a film that is hugely entertaining and insightful. Sington boldly tries to address the issues that resulted in the financial crisis and make someone understand what happened in America in 2008.

Market Disruption By Business Models

Question: Discuss about theMarket Disruption By Business Models. Answer: Introduction This paper endeavors to define a business model and product disruption, the paper identifies the film industry as an industry whereby the Pay-tv has been disrupted by Netflix and there is a comparison between the Pay-Tv model and Netflix disruptive model, the paper concludes by discussing the significance of the findings for future business models. What is a Business Model? It is a framework that guides a business to the realization of profits, a business model comprises of the goals that have been set up and strategies well laid for an organization to have profits in the long run, it is a money making method description for businesses, a business model contains aspect like the product offering in the market and also its sustainability in the market (Muehlhausen, 2013). A business disruption is basically the changes that happen in the market, which cause organizations, to change their business operation or functionality in the market, as a result of business disruption businesses are expected to change operational management of goods and services (Blythe and Zimmerman, 2005). In the 20th and 21st Century the film industry has experienced a fundamental evolution. The film industry was characterized with people visiting theatre halls after a release of every new movie, people were expected to purchase tickets for the new movie, thereafter came television industry and channels that would provide films though their programming. With the current technological advancements there is a new wave in the film industry, which happens to be the cable Tv, filming is not interrupted with advertisements, all one needs, is a strong internet connection and make payments for internet service or bandwidth to access the content. One of the company that has caused market disruption in the film industry is Netflix. The company has driven video tapes and disc rental to a halt, this has led to reduction in number of jobs at the video tapes rental worldwide. The organization is challenging major cable TV providers as well as the Pay TV, through its invention, the organization has posted better profit returns after tax, more than the predominant organization in the industry like the Disney which owns ESPN and ABC. Netflix has caused war on the media industry and many clients in the world are throwing away their Pay-tv set boxes and are embracing the Netflix streaming videos services. It has been a smiling phase for Netflix after they have caused market disruption, price per share has rose to high as $123 per share. It was noted that 46% of households in the U.S. can access streaming services as at August 2015.Customer preference in the video streamline by Netflix has disrupted the media programmers and the distributors of content globally. Traditionally, the Pay Tv model acted as an intermediary between, the customers and the filming companies and what was really irritating before, according to the consumers; the television stations kept or advertising products in between the programming, something that doesnt exist in Netflix, video streaming. Sourced from: Perry (2015) The Netflix effect: an excellent example of creative destruction. Available at: https://www.aei.org/publication/the-netflix-effect-is-an-excellent-example-of-creative-destruction/24/08/2016 The traditional media had a very different approach from the Netflix disruptive model, the traditional media and Pay Tv served it consumers at its convenience, waiting for the right movie to be released and dictating to the customers when they should watch the movies at their own timings. On the other hand, the PAY- Tv interferes with programming or the movie that is being broadcasted at that particular time by advertising their products and services. Prices in the traditional video broadcast keeps going up with no explanations, to receive a good picture quality using the traditional video, one will need a signal receiver either a set box or an aerial which is connected to the television set. Netflix disruptive form in offering services is the right thing, the organization offers services via internet and streamline of the video content. Competitive advantage of Netflix is that; the consumers dont require set boxes or signal receivers to stream line the video content being aired by t he Netflix company, all they require is a strong internet connection they can either watch on the laptops, at work during lunch time, in the bedroom before catching a nap or even while relaxing beside a swimming pool after the first swim .Netflix has disrupted the film industry by giving the customer a choice, a good organization enables the consumers to decide when they want the product and how the given product should be packaged.( Evenson, 2007). A close look at the packaging by the Netflix sums it all, why the company efforts and disruptive intentions hit the market. Packaging of the products go co-currently with current technological advancements, watching video content is moving from theatre and cinema halls as well big TV sets in the living room, to where the consumers are watching the content and movies even on their mobile phones (Paetz, 2014). The disruptive model by the Netflix organization has succeeded over the Pay-tv or traditional model as it offers customers a chance to enjoy video streaming services with all available gadgets that can access internet, various consumers can watch content while in the same room through Netflix, all they need are different gadgets and plug in earphones unlike the Pay Tv model whereby for consumers to enjoy services, they will need a Tv set and they all need to concentrate on the aired content (Sinclair, 2012). The Pay Tv model used before seemed to be working in the media industry, especially where the programmers would wait for new release of movies, and air the content through the television set at their own timing, Pay Tv Model provides consumers with content though it limits when the consumers should be watching certain content, during the broadcast they introduce products and advertise in between the broadcast. This portray that Pay-Tv model caters more for the big consumers who normally pay to advertise and they care less about the home consumers. All the companies involved in the Pay-Tv need to reinvent the products being offered or even rebrand their business and product offering to remain relevant in the market. Business need to reinvent their models to consumers, in order to remain relevant in the market. Netflix is at the top of the game with its disruptive model unlike the pay-tv model, Today Netflix is shaking the film industry, there was a time that Pay-Tv was the most admirable form of broadcasting film in the market. If the current disruptive model by Netflix is not redesigned and offer a competitive edge in the market, Netflix will become a company of survey in the future, consumers will quote how the new organization X is offering better services than Netflix (Montgomery, 1991). The end product of doing business is to make profits, most of the business models have a profit mindset at the end, businesses should tap on other aspects of making profits like a good well laid out competitive strategy even when the competitors disrupt the market. For example To be a leader in the beverage industry, Coca-Cola has developed a number of strategies such as market segmentation, communication advertising, segmentation of the lifestyle in the market and also product differentiation this is aimed to attain an upper hand over its competitors (Michman Mazze1998). Coca-Cola introduction of the diet soda called Tab, made its main competitor Pepsi, to introduce Diet Pepsi. The Tab brand was originally a product developed or designed for the female market but with introduction of Diet Pepsi, Coca-Cola, diversified its market, for the Tab to be consumed by men and families too. While Pepsi produced a Diet Pepsi, to counter Coca-Cola markets for Tab, Coca-Cola couldnt throw away its product with a new rival in the market but diversify the market through the competitive strategy of segmenting more customers that can be on the reach out by the Tab diet brand. (Michman Mazze1998).Another competitive strategy of the Coca-Cola company, is product differentiation. Coca-Cola has reinvented or made its products different with time and again in the market for relevance.to manage change Coca-Cola has always introduced new brands in the market, for instance in 1989, the organization introduced Power Ade which happens to be a sports drink. In 1990s Coca-Cola came up with products such as bottled water, fruit juices like minute maid and tea. The Coca-Cola is not resilient introducing new products, as well as differentiating it products to meet the market gap and thus it employs use of competitive strategy product differentiation Coca-Cola has highly invested heavily, in promotional or advertising strategy across the globe, what makes its advertising to be a great strategy is advertising on uniform information and Coca- Cola, creative team behind advertising always comes up with appealing information to the markets, for instance in 2013 Coca Cola invested $3.3 billion geared towards marketing and advertising, in the Share a coke campaign the campaign was aimed at allowing the Coca-Cola fans ,to share bottles or cans personalized with their names. The campaign saw Coca-Cola company volume of sales rise at 5% in Germany, Nordics and North west Europe regions. Sourced from: Sharon. B (2014, Nov20). Investor insights on the non-alcoholic beverage industry. Retrieved from https://marketrealist.com/2014/11/guide-non-alcoholic-beverage-industry/ Conclusion The paper begins by defining business models, which are strategies set out by companies or organization for profit maximization on the other hand is a definition of a business disruption, which is basically the changes that happen in the market, which cause organizations, to change their business operation, business disruption may be caused by an organization for the realization of its new market , other businesses might cause disruption in the market to shut the existing business and enjoy profits by themselves. The paper has identified the film industry as one which has been disrupted by entry of Netflix which offers film content via the internet, Netflix has employed a disruptive model while the traditional media uses the Pay Tv Model. Two of the models have been compared and reasons why the disruptive model by the Netflix has ended up succeeding and causing ripples to the main competitors. There is a conclusion on the models by examining the significance, of the finding and recom mendation to the models for them to be a reality they should have a competitive advantage and product differentiation, to support differentiation the paper has analyzed the wars between Pepsi and Coca-Cola during the market disruption period. References Amacom Div American Mgmt Assn.Advertising, the media and globalisation: a world in motion. Routledge. Blythe, J. and Zimmerman, A.S., 2005.Business to business marketing management: A global perspective. Cengage Learning EMEA. Evenson, R., 2007.Award-winning customer service: 101 ways to guarantee great performance. Michman, R.D. and Mazze, E.M., 1998.The food industry wars: Marketing triumphs and blunders. Greenwood Publishing Group. Montgomery, C.A., 1991.Strategy: seeking and securing competitive advantage. Harvard Business Press. Muehlhausen, J., 2013.Business Models for Dummies. John Wiley Sons. Paetz, P., 2014.Disruption by Design: How to Create Products that Disrupt and Then Dominate Markets. Apress. Vizjak, A. and Ringlstetter, M.J. eds., 2012.Media management: Leveraging content for profitable growth. Springer Science Business Media. Moon, S. and Dathe-Douglass, S., 2015.The Ultimate Competitive Advantage: Why Your People Make All the Difference and the 6 Practices You Need to Engage Them. BenBella Books, Inc.. Louie, G.G., 2009. Persistent forecasting of disruptive technologies. Sourced from: Sharon. B (2014, Nov20). Investor insights on the non-alcoholic beverage industry. Retrieved from https://marketrealist.com/2014/11/guide-non-alcoholic-beverage-industry/