Crisis

We are going through a crisis that is sweeping the nation and affecting our people greatly. I will be discussing terrorist attacks; the war in Iraq, the falling housing market, government’s bailing out program, unemployment and the natural disasters which have played a key role In the direction our country has taken In the twenty first century. I will provide In-depth examples on how each event has Impacted our economy and social circumstances. Each piece fits together like a puzzle and creates what we now have “The State of Emergency”.

Are entering into what could be known as next great depression? Hopefully our government will act fast and dig us out off this rut that were are headed toward, before it is too late! Over centuries people from all over the world have migrated to the United States for the hope of living “The American Dream”. This country has stood for inalienable rites such as freedom of speech and religion. These specific rights have attracted millions to migrate into the United States. Immigrants have been driven here for the opportunity to prosper financially and spiritually.

It’s for this reason; America has rowan into one of the most powerful countries in the world. Other countries look up to us as an example of how to lead their own countries. Within the United States it’s a different story. Since the industrial age started the people of America have become greedy. One of the most common phrases amongst Americans is “l want my children to have everything, I didn’t have”. This mentality has placed our country into a “State of Emergency’. This country has raised many generations to pose this believe and created a self-centered way of life.

Now we have the rich, who get richer and the poor ho continue to get poorer. Since the beginning of twenty first century we have faced one ordeal after another. How has this affected our economy and culture? Let’s revisit what has happened in the last eight years. We elected a new President in 2000 ( George W. Bush), September 1 1, 2001 (terrorist attack), war on terror, war in Iraq, foreclosures crushing the housing market, bank bail out program, unemployment on the rise, and the election of the first African-American President ( Barrack Obama). This is not touching on the natural disasters that our country has faced.

Has America en her last days of glory or will she bounce back like she did during the Great Depression? Hopefully, our newly elected President has a plan that will bring us out of this depression that we have fallen into. What will happen next? Is America at the point of no return? If you analyze the past you will find that America was strong enough to overcome it. We had and have the power to bounce back. We need to come together as a country and work together to get through these tough times. Most of the issues we have faced today may not have affected us if America as a society actually believed in teamwork.

In public we are taught to be a team and in private taught to look out for ourselves. The failure starts with our children. Have we taught our children how to survive in a society like we have today? Actually, the question should be; has society taught the adults, to love your neighbor or the love for self- indulgence? This is a question that we all have to answer for ourselves. Election; That November we elected George W. Bush to be our 43rd President. In 2001 less than a year from electing our new President on the day of September 11 a terrorist attack came upon the United States like a scene from a Hollywood movie.

Four planes had been overtaken by members of the terrorist group, AY-Qaeda. One hit the Pentagon, two targeted the Twin Towers in New York City, and the last plane was headed for the USA Capital, when passengers on the plane fought back and the plane crashed in Janesville, Pennsylvania. That day 2,974 people died, 19 more died that were terrorist. We still have not found 24 people and are presuming that they are dead. This is not counting the people that were killed in the line of duty, several weeks later they estimated the death toll to be over 6,000 in all.

Fear did not Just trite Americans but people all around the world. One of the biggest shocks was, when we learned that these terrorist had been taught how to fly planes here in the USA. The first thing the Government enforced was changing the security coming into the country. Then we went on the offensive and went after Osama Bin Laden and his band of rebels. We sent our military to Afghanistan to find and stop AY-Qaeda (being harbored by the Taliban). First we had to remove the Taliban to get to AY-Qaeda but they are hard to find because they are hidden under cover in the Pakistan Mountains.

The economy was affected because New York came to a halt due to the destruction of the fall of the Twin Towers. Wall Street closed down for the rest of the week. Flights were stopped for several days leaving people stranded all over the country. After this, people were afraid to leave home much less get on an airplane. So many employees lost Jobs because of this act of terrorism not Just in the area hit but all around the country. It also changed our society in so many ways. The trust was gone; everywhere you looked there was a possible terrorist.

Fear, anger and outrage took over, but for many sorrow and regret. Never-the-less the one good thing that came out of the attacks was that for one shining moment the American people became one. Now it is 2008 and we are still feeling the pain of that horrible day. The War in Iraq: Then in 2003 we invaded Iraq along with a coalition of other countries on the grounds that we thought they had nuclear weapons (weapons of mass destruction) that Sad Hussein would not disarm and because he was supporting terrorist groups such as the Taliban and AY-Qaeda along with the religious sect the Jihad.

The Arab nations looked to Sad as a hero for standing behind Palestine which had been at war with Israel since Biblical times. America kept a close eye on Iraq with apprehension since the early sass’s following the Persian Gulf War when the first president Bush was in office. Then on December 13, 2003 the news came in, Sad Hussein was captured. Three years later, on November 5, 2006 he was found guilty by a new Iraqi Government that the USA had helped them to establish. On December 30, 2006 he was executed by hanging.

The changing times brought on by September 1 1, brought the American people together and then the Iraqi War really tore the American people apart. American’s were seeing a trend happening and were afraid of other countries becoming involved or the start of World War Ill. This scared largest anti-war rally in history; where over 3 million people attended this rally. This demonstration was held in Rome, Italy. American troops are still in Iraq today helping to keep the peace and they will be there for several more years. Housing Market Falls: In the year 2006 we started to see the housing market shift into a downward spiral.

For several years before everywhere you looked you saw a new housing subdivision under development. Then all of a sudden we started to see the same housing sites sitting empty. In 2007 the foreclosures in the housing market started growing at a fast pace. It was amazing how fast so many Americans were losing it all. Everything they had worked so hard to provide for their families was Just disappearing. Then in 2008 it was still moving in that downward motion. More and more families are losing everything. The housing market is still in a downward spiral with no relief in sight for the homeowners.

However, the banks that would not help the homeowners stay in the homes are getting help from the government. Many states, such as Florida, had help from the Florida Government to try to keep homeowners in their homes but, this only worked if the homeowner and bank were both in Florida. In 2008 the foreclosures were at record highs month after month. This has hurt our economy very badly. The society we live in has changed for this same reason. People have to learn how to adapt to a different way of life. In which, can be hard a thing to master. It is much easier to adapt to a moving up the food chain than down the food chain.

This has raised the homeless rate to new heights here in America. Many have had to depend on the welfare system to support them and now have to seek refuge in shelters. Charlene S. Onto wrote in one article in May of 2008 that, “According to an April 2008 report by the National Coalition for the Homeless, the top 10 states with foreclosures attributed to 73% of the homeless”. These are astounding figures and it shows us that we have a much larger problem than we think. Banks are Bailed Out: The next thing to happen is that the banks and financial intuitions of the United States are in financial trouble.

The foreclosures severely hurt the banks. In 2008 twenty-two banks have already collapsed. This is even with the bail out package of a $700 Billion dollars. What’s next? How is the United States going to heal from this massive loss of financial support? Of course the banks can no longer give out loans to the small business owners; this means many of the small businesses will be the next thing to fall by the way side. Other large corporations are Jumping in on the bail out band wagon like the American Auto Makers.

The Government denied the auto industry help, once the press unleashed the truth on how they first need to do their win cut backs. They actually had the nerve to fly into Washington DC in their private planes that cost the company’s around $28,000 dollars to make this round trip, when they could have taken a coach flight for under $600 dollars. They are asking for $25 billion of the $700 billion bail out package. What does our 44th President Elect think “Obama, said he believes aid is needed but that it should be provided as part of a long-term plan for a “sustainable U.

S. Auto industry” ? not simply as a blank check. ” Now once Obama takes office as our 44th President of the United States and the Democrats take the majority in congress, the Auto Industry might Just get the money they need, to keep from going bankrupt. Yes, we know that if some help doesn’t come, our way of life is going to come to a stop. If you are watching the stocks on Wall Americans are Just hoping that soon it will at least stabilize, so that we can work at fixing the problem and to know we are on the right path.

Today everyone is playing the blame game and we all need to realize that in some ways we have all contributed to the crisis that we are now going through in our society. Unemployment Rises: Now e know all of the things going on with the economy, but how has it affected the unemployment rate. It definitely has restructured this area. If the banks have no money for loans because the banks are going under, because of the housing market foreclosures that has brought them down. Now we have another problem. Companies are forced to lay off employees in order to keep their businesses going.

This becomes the next crisis. Unemployment is rising fast according the Agency for Workforce Innovation. In Florida the unemployment rate has hit the highest it has in fifteen years. It is now at an average of seven percent, but in some counties like Flagler, it is above ten percent. Just about everywhere you go you meet someone else with a story of their company releasing them. Will this affect the housing crisis even more? Of course it will. How is our government along with the people of America going to fix our problems?

The main thing we can do is no matter what social class or race we might be is look at the problems and try to do our part to fix it. American people need to stop looking to the government to fix everything we all have a voice and need to learn to use it. Natural Disasters: Over the past few years the economy has suffered because of the natural disasters from hurricanes, flooding, tornadoes and wild fires. The cost to rebuild after a natural disaster can be soar into billions of dollars. Just look at the devastation this tornado in Oklahoma caused on Mother’s Day 2008.

Look at Just how big an out of control this fire in California became and how it eats everything in its path. Natural disasters are likely to hurt us in more ways that the rest because it can take over your life so fast and most working people don’t have the funds to Just start over. It is devastating to loose everything you have and even some family members. It is amazing to me how our country will come together in these times to help but, in others like the economy everyone Just points the finger. Satellite view Satan 2005 $81. 2 Billion Quickie $27 Billion Wilma 2005 $22. Billion Charlie 2004 $18. 6 Billion Hurricane Strain These are some examples of the cost associated with a hurricane. Alabama Florida 14 Georgia 2 2 AltaVista 1,577 Mississippi 238 Total 1836 The death tolls are also astounding after one of these storms. You can see in this hart based on Hurricane Strain in 2005 This is not mentioning the 705 people missing. Personal Reflection Unfortunately, I was one of the many who lost their home. It was foreclosed on in September 2007. I lost my Job because my company made a decision to out source position.

I had a very hard time trying to find a Job and when I finally did the income wasn’t nearly the same. First, I tried to keep my house and my car was repossessed, then because I was already so far behind I lost my house. Things started getting better for my family in early 2008. I found a good paying Job and so did my husband. That summer my husband, who is a heavy equipment operator, lost his Job once the project was finished. Within two months are other car was repossessed. Thank God, my Job was walking distance. What I didn’t know was the next day I was going to be laid off.

So here I am no car, no Job, no bus route close, and no phone. What was I going to do? I made a leap of faith and I am going back to school. I finally received my income tax and bought a cheap car and Just keep looking for a Job. Hopefully, one will come soon since I am about out of money and will be out on the street and raising the homeless rate by four. I view our country as a great one full of opportunities, but it is in trouble. Everything comes and goes, we Just have to remember that we are strong and life will get better.

My hope for this country is that our newest President will have the strength to fight the wrongs that hurt our country and the compassion for the people that really need him. To help those of us that has fallen with the economy. I hope to one day see an America where we are all, actually equal, that social statuses are erased and that economic status shows us how we help one another when we are in need. Personally, I feel that the government needs to be eloping out the families in America more than the banks and auto companies. For example and they could buy a home and cars that would rebuild the economy.

Not to mention the taxes on the money, homes, and cars that would be paid back to the government. People would be off the street and banks would have gotten rid of all the foreclosed houses. It would raise the housing market if people were competing for them. In my opinion, I see a fix that could be better than giving aid to the banks because, they still are having problems after the bailout. Self-indulgence or greed has ruled this country for long enough. I wanted to have it all and once I had it still wasn’t enough I wanted more.

The Problem and Its Background

Our country suffers from multifarious crisis such as socioeconomic crisis, political crisis, and as well as financial crisis which is greatly affected by global economic crisis. Despite of all these crises, Filipinos are imaginative, creative, and courageous to surpass these obstacles in everyday life. Even though there are some companies affected by these crises which they are force to decrease their employees called as “recession”, some of them have job openings that offer new career opportunities to graduated college students.

These job openings also offers a new challenge into their life – a great responsibility lies to his hand that someday will help his family strive to achieve wealthiest, use his acquired knowledge and skills when he engage into a job, and acted as one of the reinforcements in industry that would further improved the depleting economy of the country. All of these come first from wishes and aspirations that arises during childhood years that someday he or she will become a doctor, an architect, a teacher, a police, or an attorney to help those seek needs and help their family to ascend into poverty.

According to Ginzberg and his associates, during the fantasy period play gradually becomes work-oriented and reflects initial preferences for certain kind of activities. This stage is the preparation for a child’s highly organized social life they will be required to adjust when they enter the first grade. Career preferences are free opportunity to select a desired career. It is also a decision-making in a confusing situation which occurs during the senior year of high school level. When one is confused in choosing a career, he relies on his friends and relatives.

He was confused in a sense that he cannot make his own decision and not yet ready to get into college. According to Tiedemann, career development unfolds within the general process of cognitive development as one resolves ego-relevant crises. He further noted out those decision-making is a continuous process in which individuals will change their courses of career action, generally by leaving a setting or environment. Such as when a student is disoriented in his course he has been taken that will result in decreasing eagerness on that particular field.

He decides to transfer in another school or to shift another course that really fits his own interest and. When one is unstable in making decision, these disoriented strategy may be repeated until achieve different bachelor’s degree which can be a major distraction of one’s future job. Super also considered indecisiveness as a period of developmental process when interest was not fully crystallized. Therefore, this study intends to determine the factors affecting career preferences among senior high school students.

This factors that serve as preferences of student in choosing a career in college includes childhood aspirations, family/ relatives, peer/ friends, interest and specialization, values, in-demand jobs, school guidance counselor; and anticipated problems encountered are presumed to affect the student preferences of their career.

Statement of the Problem

We, as the student chose this topic because we are graduating student and we are now in the point of planning what career are we going to take. Still, we are undecided what course is suitable for us.

We chose this because we want to know what are the factors that affects us to think what are we going to take. The study aimed to determine the factors affecting career preferences of senior high school students. Specifically, it sought to answer the following sub problems:

What are the socio-demographic characteristics of the senior high school students in terms of:

• Sex
• Age
• Parents Educational Attainment
• Parents Occupation
• Size of Income
• Sibling Position

What are the top three expressed career choices of the students?

What re the preferences of students in choosing a career in college in terms of:

• Childhood
• Family/Relatives
• Peer/Friends
• Aspirations Values
• In-Demand Jobs
• School Guidance Counselor

What are the anticipated problems encountered in making their career choice?

Hypothesis of the Study

The following hypotheses are formulated for acceptance or rejection of study: The socio-demographic characteristics (such as sex, age, parents’ educational attainment, parents’ occupation, size of income, and sibling position) does not affect the career preferences of the senior high school students.

The preference of student in terms of childhood aspirations, family/ relatives, values, in-demand jobs, and school guidance counselor does not affect their career choice. The anticipated problem encountered by students does not affect their career choice.

Conceptual Framework Theoritical Framework

The study is anchored on the theory of Donald Super which focuses on the development of life roles over the life p with emphasis on interrole congruence. His vocational concept as a part of self-concept is formed, it is the driving force that establishes a career pattern one will follow through life.

Vocational developmental tasks are derived from vocational stages which provides framework for vocational behavior and attitudes.

Vocational Developmental Stages

1. Growth (birth-age 14 or 15), characterized by development of capacity, attitudes, interests, and needs associated with self-concepts;
2. Explanatory (ages 15-24), characterized by a tentative phase in which choices are narrowed but not finalized;
3. Establishment (ages 25-44), characterized by trial and stabilization through work experiences;
4. Maintenance (ages 45-64), characterized by a continual adjustment process to improve working position and situation;
5. Decline (ages 65+), characterized by preretirement considerations, reduced work output, and eventual retirement.

The crystallization task (ages 14-18) is forming a preferred career plan and considering how it might be implemented. Pertinent information is studied with the goal of becoming more aware of the preferred choice and the wisdom of preference. The specification task (ages 18-21) follows in which the individual feels the need to specify the career plan through more specific resources and explicit awareness of cogent variables of the preferred choice.

The implementation task (ages 21-24) is accomplished by the completion of training and entry into the career and develops a feeling of security in career position. The stabilization (ages 24-35) is reached when the individual is firmly established in a career and develops a feeling of security in career position.

Finally, the consolidation task (35+) follows with advancement and seniority in a career. Super also identified six dimensions that he thought were relevant and appropriate for adolescents:

1. Orientation to Vocational Choice (an attitudinal dimension determining whether the individual is concerned with the eventual vocational choice to be made);
2. Information and Planning (a competence dimension concerning specificity of information individuals have concerning future career decisions and past planning accomplished);
3. Consistency of Vocational Preferences (individuals’ consistency of preferences);
4. Crystallization of Traits (individual progress toward forming a self-concept);
5. Vocational Independence (independence of work experience);
6. Wisdom of Vocational Preferences (dimension concerned with individuals ability to make realistic preferences consistent with personal tasks).

This theory is found to be appropriate because of its stressfulness in terms of developing a career plan that will guide the individual in choosing a career in college. Also, Super’s six-dimension is appropriate for adolescent is truly applicable because senior high school students are fall under this category. Another theory adopted for the research is David Tiedeman’s5 self-development approach to career.

He believes that evolving ego-identity is of central importance in the career development process. He referred to the evolving self-in-situation from the earliest awareness of self to point at which individual becomes capable of evaluating experiences, anticipating, and imagining future goals, and storing experiences in memory for future reference with his context of Erik Erikson’s eight psychosocial crises. Self-in-situation, self-in-world and the orientation of work evolve as one resolves the psychosocial crises of life.

He therefore conceptualized a paradigm for problem-solving as the mechanism of career decision making. His paradigm covers four aspects of anticipation or preoccupation (exploration, crystallization, choice, and clarification) and three aspects of implementation of adjustment (induction, reformation, and integration).

Aspects of Anticipation, Preoccupation, Implementation, and Adjustment

Aspects of Anticipation and Preoccupation

Exploration

1. Thinking is rather temporary and evanescent in nature.
2. There is consideration and reconsideration of possible courses of action.
3. Through imagination, one experiences numerous activities by relating feelings of self within certain structures or premises.
4. There is searching through projection into tentative goals.
5. There is a focus on future behavior with alternative courses of action.
6. There is a reflection upon aspirations, abilities, interests, and future societal implications related to career choice.

Crystallization

1. There is a continued assessment of alternatives.
2. Fewer alternatives are under consideration.
3. There is an emergence of tentative choices.
4. Tentative choices may be reevaluated in the process of valuing and ordering.
5. Goals become more definite and formed but are not irreversible.
6. There is a definite more toward stability of thought.

Choice

1. A definite goal is chosen.
2. There is a focus on a particular behavior necessary to reach the chosen goal.

Clarification

1. This period is marked by further clarification of self in the chosen position.
2. Further consideration of the anticipated position lessens the doubts of the career position.
3. A stronger conviction about the career decision is developed.
4. This ends the anticipatory or preoccupation stage.

Aspects of Implementation

Induction

1. This period begins the social interaction experience with career identification.
2. There is a further identification of self and defense of self within the career social system.
3. As acceptance is experienced within the career, part of self is merged with the accepting group.
4. There is a further progression of individualized goal but within the framework of the totality of a career concerning social purpose.

Reformation

1. The career group offers acknowledgement of acceptance as a group member.
2. There is assertive action on the part of the individual the career group and outside the career group, spawned by the newfound conditions.
3. Assertive action takes the form of convincing others to conform to the self-view held by the individual and toward greater acceptance of modified goals.

Integration

1. A compromise of intensions of goal is achieved by the individuals as he/she interacts with the career group.
2. Objectivity of self and the career group is attained.
3. Identification of a working member within the total system of the career field emerges.
4. Satisfaction of a committed cause or action is at least temporarily attained.

Tiedemann stressed out why individual change their courses of action because of external factors because of external forces (such as the call of the armed forces, an economic crisis, the work setting itself) or by broad psychological drives (such as unmet needs, changing aspirations, role diffusion). According to the prescribed sequence, a new decision unfolds and must be made, beginning with exploration and eventually reaching integration.

If integration is not reached once again, the individual may adapt to a career environment or may simply withdraw and begin a new search for eventual integration.

Theoretical Paradigm

The rationale between these two theories is one follows a vocational self-concept which is a driving force that establishes a career pattern one will follow through life but there are some factors could might altered this pattern. These factors, such as external forces (called of armed services, economic crisis, work setting itself) and psychological drives (unmet needs, changing aspirations, role diffusion) altered the career patterns of individual.

Super said that indecisiveness is a period in developmental process when interests have not been fully crystallized. Individuals lead to discriminate 2 or more choices of two or more occupational objectives when uncertainty about future occurs. Tiedemann noted that as individuals become more aware of the developing character of the career process itself, they are more willing to make changes and to alter or redefine a decision.

Conceptual Framework

Future-tension can be surpassing if individual has a preparation to overcome it. Career preparedness will help the student become more effective and successful in life with his chosen job. Childhood aspiration has a major role on individual’s striving force. As they grow older, the more they want, the more they will strive to get it.

But external factors (environment and society) and internal factors (self-crisis and family) changes their aspirations in life. Such as when a child wants to be a nurse to cure a patient in his illness but because of her interest like drawing and painting changes his aspirations. His interest got more concentrated so she will take a course which is suitable for it.

Some graduated high-school students gradually stop in pursuing their college career. Financial sustainability plays a major role in alterations of career life. They need to work in order to sustain their studies, as wells as to help their family about expenses and earlier exposure to a company. Career preferences, then can be conceptualized as a process of decision-making. It also involves a series of prime factors such as the socio-demographic profile (sex, age, parents educational attainment, parents occupation, size of income, and sibling position).

Likewise, it will identify the top three expressed career choices, preferences for the career choice such as childhood aspirations, family / relatives, peer /friends, interest and specialization, values, in-demand jobs, and school counselor; their anticipated problems encountered and how these problems affect the students in making their career preferences; and sibling position.

Conceptual Paradigm Scope and Limitations

The respondents were taken from the different secondary schools in the City of Calamba. The senior high school students were whole selected as a part of the study.

This study focused on their career preferences of senior high school students of different secondary schools here in the City of Calamba. It looked into their socio- demographic characteristics in terms of sex, age, parent’s educational attainment, parents occupation, size of income, and sibling position; top three career choice; preference of students in choosing a career in terms of childhood aspirations, family/relatives, peer/friends, values, “in-demand” jobs, and school guidance counselor; and anticipated problems encountered in making their career choices.

The researcher considered senior high school students as the respondents since some of them are still undecided of course they want to pursue and suffers from difficulties in deciding their last term in high school excluded lower years since they are not yet capable of making a career decision and still pursuing their target specialization.

Significance of the Study

Education is the totality of learning acquired by individual which is inherited from one generation to another, while career is serve as its application.

The collaboration of these two fields plays a key in improving individual’s competence and professionalism and serve as their personal achievement. Therefore, this study is deemed significant to the following stakeholder for the following reasons:

• To the Students – The respondents are the center of the research because ultimately they develop the awareness of themselves, strength, and weaknesses for their career development by continually summarizing and reflecting upon what they are learning from home, school, and community. In totality, students are in charge of their own choice.
• To the Parents – In this study, parents will realize how important they are as a source of encouragement in which children are free to explore different areas of career preferences. This study will look forward in giving their children an assurance to acquire quality education that would enable them to obtain better job, better income, and brighter future.
• To the Teacher – This study will give information to the teachers of ACC and LCBA as to the preferences of students such that they can focus on the skills needed by the students if ever the latter would pursue the career they have chosen.
• To the School Administration – The result of this study will help the school administration in putting up an effective, integrated career information and guidance system that plays a very helpful role in guiding students towards making the best possible career decisions.
• To the Researcher – The process and outcome of this study will produce a great satisfaction, competence, and professionalism to the field.

Although the topic of the study is focused on career which belongs to the field known as Industrial Psychology, the purpose is to have a diversity and idea about the field rather than understanding the abnormalities of human behavior.

Definition of Terms

The following terms are conceptually or operationally defined to enhance the understanding of the readers of this paper.

1. Crisis – an unstable or crucial time or state of affairs whose outcome will make a decisive difference for better or worse. In this study, crisis is mentioned into four: socio-economic, political, financial, as well as global economic.
2. Recession – a period of reduced economic activity or withdrawal. In this study, recession refers to a decrease of employees in a company affected by economic crisis.
3. Career – a field for or pursuit of consecutive progressive achievement especially in public, professional, or business life. In this study, career is the application of education whereby it is the totality of acquired knowledge.
4. Ego-Relevant Crisis – is derived from Erik Erikson’s eight psychosocial crises such as *Trust*Autonomy*Initiative*Industry *Identity*Intimacy*Generativity*Ego-Integrity.
5. Disoriented Strategy – displace from normal position or relationship. In the study, this term refers to mechanism of students when he or she is unstable in choosing a career which can be repeated.
6. Socio-Demographic Characteristics – refers to sex, age, parent’s educational attainment, parent’s occupation, size of income, and sibling position.
7. Sibling Position – the position of respondent in his family, whether he or she was a first child, second child, third child, etc.
8. Preference – other term for recommend ; the power or opportunity of choosing. In the study, the term career preference refers to the basis of student in choosing the course he wants whether it comes from his childhood aspirations, relatives, peer, his values in life, interest and specialization, and school guidance counselor.
9. Childhood Aspirations – the child’s infantile wishes of what he wants when grew up.
10. Interest – to induce or persuade ; to participate or engage.
11. Specialization – to concentrate one’s efforts in a special activity of field.
12. Values – refers to motivated drives the individual is striving to achieve their aspirations in life.
13. “In-Demand” Jobs – refers to the majority of present occupation which many companies are in need for a particular job.
14. School Guidance Counselor – is a type of counseling profession specialized in assisting the tudents in choosing their career in college and as well as vocational or educational problems.
15. Anticipated Problems – the expected problems of student’s career choice. For example, financial sustainability, poor health, self-conflicts, etc.
16. Self-Concept – the mental image one has of oneself.
17. Vocational Self-Concept – a driving force that establishes a career pattern one will follow through life.
18. Vocational Ego-Involvement – a term which describes Tiedemann’s self-development approach to career.

Review of Related Literature and Studies Career preference is the process of decision-making

A great number of studies, researches, and write-ups has been conducted for a period of time and still emerged as one of the top-priority research due to rapid changing and need of time. This chapter is the presentation of literature and studies from foreign to local which may directly or indirectly bearing to study at hand. Relevance to present studies will give a big picture why these literature and studies from foreign to local are used.

Foreign Literature

According to Howard stressed out that whenever students are in their high school experience, they are the center of learning.

In a traditional high school, the center of the system is the content or subject, not student learning. Howard and Ill present a system to promote the shift from traditional content or subject –centered high schools to student-centered high schools which is called as Collaborative Career Pathways – a system of organizing the student learning interests and aptitudes around career paths. It provides a structure for students to reference their learning and comment each year of their high school experience. It allows students to plan and practice their skills while creating a smooth and successful transition to a post-secondary option.

Goffredson’s Developmental Theory of Occupational Aspirations describes how people become attracted to certain occupations. Self-concept in vocational development is the key factor to career selection and people want jobs that are compatible with their self-image. The key determinants of self-concept are one’s social class, level of intelligence, and experiences with sex-typing. Roe’s need approach emphasized that early childhood experiences play an important role in finding satisfaction in one’s chosen field.

The need structure of the individual, according to Roe, would be greatly influenced by early childhood frustrations and satisfactions. According to John Holland , individuals are attracted to a given career by their particular personalities and numerous variables that constitute their backgrounds. First of all, career choice is an expression of, or an extension of personality into the world of work followed by subsequent identification with specific occupational stereotypes. Accordingly, one chooses a career to satisfy preferred modal personal orientation.

Modal personal orientation is a developmental process established through heredity and the individual’s life history of reacting to environmental demands. If the individual has developed a strong dominant orientation, satisfaction is probable in a corresponding occupational environment. If, however the orientation is one of indecision, the livelihood of satisfaction diminishes.

Local Studies

According to the study conducted by Siguan Jr. (1994), it was found out that the students self-concept showed no significant influence on their career preferences.

The academic achievements of students proved to be significant related to their career preferences. The school were students came from had no influence on their choice of career. He recommends that a more improved and functional guidance provided in school to help students make sound career choices. The guidance services in school must be collaborative efforts of the administrator, guidance counselors, and teachers.

Classroom teachers are encouraged to do their best in improving teaching learning processes, considering that academic achievement of student influences their career preferences. Another tudy conducted by Almerino (2003), it was found out that a big picture of a big family with low educational attainment and inadequate investment was the sole foundation of choosing a course, which was psychologically motivated.

The respondent’s level of preferred intelligence did not match to their chosen course. This could be drawn from the required level of the course in contrast with their level of preferred intelligence. The necessity of developing a career development program was need in order to prevent any misfits and to assist students in the process of crystallizing their career in life.

She recommended that this program be effectively implemented. Personal interests, abilities, skills, and values are the most influential factors in coming chosen occupation by the participants according to Pabiton (2007). These imply that like other graduating students in high school students, the participants seemed to have chosen occupation. She also noted that the students be given all the chances to learn and develop the skills and attitudes required for various occupations. She recommends that career counselors could give more emphasis on this environmental factor during individual and small group career counseling.

Foreign Studies

According to the study conducted by Garcez (2007) , it was found out that by increasing career development activities, which includes setting career goals, students had a higher self- esteem. Maybe even more important, however, is that students were more satisfied about the education they were receiving. This will, in turn, hopefully lead to students having a deeper desire and commitment to succeed in their education. Another outcome of a higher self-esteem, is that those students chose more difficult goals than students with low self-esteems.

She noted that excellent detailed plan for teaching parents and teachers how to teach young students to set career goals. The plan requires a total community effort through educators, parents, and businesses. Students must be given an opportunity to identify and explore their desired careers.

They can accomplish this through the “School to Work Transition” or “Job Shadowing Program. ” Through the cooperative efforts of the entire community, students can identify career choices, set career goals, and have higher self-esteems at an early age.Ultimately, they will further their education and have a better chance of succeeding in the “do or die” world in which we live.

Local Literature

According to Elmer (1989), career planning is life goal-setting. Without such a plan, it is like making a journey to an unfamiliar destination without a map. He proposed a Career Planning Guide that will help the students in choosing their appropriate course from planning a career, steps in planning career, goal-setting and self-understanding.

Also, it reveals that guidance and counseling is intervention of underemployment individuals and career preparedness must be initiated.

Synthesis of the Present Studies

The studies reviewed provide ample evidence that career development program is in need and must have a collaborative efforts made by school administrator, teachers, and mostly guidance counselor in crystallizing student’s career decision. The teaching methodologies or strategies must be improved and concentrate on student’s learning and not by subjects.

Research Methodology

This chapter presents the research design, population and sample of the study, research instruments, data gathering procedures, and statistical treatment of data.

Research Design

This study used a descriptive survey method used to assess socio-demographic characteristics such as sex, age, parent’s educational attainment, parent’s occupation, size of income, sibling position; the top three expressed career choices; preference of student in choosing a career and anticipated problems that affect the career choices of senior high school students of Laguna College of Business and Arts and Asian Computer College.

Descriptive research is a purposive process of data gathering, analyzing, classifying and tabulating data about prevailing conditions, practices, beliefs, processes, trends, and cause-effect relationships and then adequate and accurate interpretation about such data with or without aid of statistical treatment.

Population and Sample of the Study

There are 173 respondents of this study came from LCBA and ACC but only 124 participated answering the survey questionnaire. Stratified random sampling is used to select randomly, samples from the different strata of the population.

This type of sampling is used when the population has class stratifications or grouping either horizontally or vertically.

Research Instrument

The instrument used was a researcher-made questionnaire checklist to gather the needed data for the student’s profile. The draft of the questionnaire was drawn out based on the researcher’s readings, previous studies, professional literature, published and unpublished thesis relevant to the study. In the preparation of the instrument, the requirements in the designing of good data collection instrument were considered.

For instance, statement describing the situations or issues pertaining was toned down to accommodate the knowledge preparedness of the respondents. Open-ended options were provided to accommodate to free formatted views related to the topics or issues. In this way, the instrument is authorized to obtain valid responses of the students.

Preference for the use of the structured questionnaire is premised on several research assumptions such as a) cost of being a least expensive means of gathering data, b) avoidance of personal bias, c) less pressure for immediate response, and giving the respondents a greater feeling of anonymity.In the end, it encouraged open responses to sensitive issues at hand.

Data Gathering Procedure

The first step before going to the testing proper is to make a request letter. Upon approval, the researcher retrieves the request letter. The Prefect-of-Discipline, as well as the High School Department OIC, class advisers and other faculty members were selected in the administration.

In administering the questionnaire, the researcher was use the time allotted for vacant to avoid distractions of class discussions. The student responses were given enough time to answer the questions.After data gathering, the researcher now collected it for tallying the scores and to apply the statistical treatment to be used with the study.

Statistical Treatment For Data

The responses made by students describing their socio-demographic characteristics, preference of choosing their career, and anticipated problems were presented. For instance, sex, age, parent’s educational attainment, parent’s occupation, size of income and sibling position. This was also applied for top three career choice and students preference in making his career choice.

In providing overall picture of the socio-demographic characteristics and career preference, as well as anticipated problems in pursuing their studies and its effect on students, summary presentations will also presented. Responses to the questionnaire by senior high school students were statistically analyzed with the data requirements of the study. Students were statistically analyzed with the data instruments of the study. Descriptive statistics such as frequency count, mean, percent and rank are considered.

Statistical Treatment For Data

In this chapter, the data gathered from the senior students of Asian Computer College and Laguna College of Business and Arts in relation to the research objectives. This chapter discusses the result of the semi-structured questionnaire responded by 124 participants. Before the initiation of the research study the significance, rationale and purpose of the study were provided respondents. Furthermore, the respondents have also been given the assurance that all the data they will give are used for the purpose of the research and the identities of the respondents will be confidential.

The object is to determine the effects of choosing career preferences in the College Degree. The conduct of this study entails a detailed account of the socio-demographic profile of the respondents. It is assumed that the attributes of the respondents influence their behavior and answers on the survey questions. Of particular significance to the achievement of the goals and objectives of the study – which is to be an instrument of analysis of the institution to gauge where it is now and where it is heading, thus what changes are to be made –is to be able to answer the research questions.

What is Financial Crisis? The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.

Financial crises directly result in a loss of paper wealth; they do not directly result in changes in the real economy unless a recession or depression follows. TYPES Is financial crisis really a man-made disaster? Let’s take example of Late 2000’s financial crisis also known as Global Financial Crisis. The financial crisis was triggered by a complex interplay of valuation and liquidity problems in the United States banking system in 2008. The bursting of the U. S. housing bubble, which peaked in 2007, caused the values of securities tied to U. S. real estate pricing to plummet, damaging financial institutions globally.

Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Many causes for the financial crisis have been suggested, with varying weight assigned by experts. The United States Senate issued the Levin–Coburn Report, which found “that the crisis was not a natural disaster, but the result of high risk, complex financial products; undisclosed conflicts of interest; and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street. Causes of Financial Crisis Macroeconomic conditions: Low interest rates made bank lending more profitable, while trade deficits resulted in large capital inflows to the U. S. Both made funds for borrowing plentiful and relatively inexpensive. The U. S. housing bubble: The falling prices of houses and low interest rates to finance or refinance the houses were easily available. As such home loans were very easily available. But when time came to pay back the loan many defaulted which led to bursting of housing bubble and its impact led to financial crisis.

Relaxation in rules led to large banks to increase their financial leverage and expansion of issuance of mortgage backed securities. Inaccurate credit ratings: Credit ratings were awarded inaccurately which led to an inflated balloon and when it busted it led to financial crisis. Technological factors: The cause of the crisis can be seen also in principles of technological development and in long economic waves based on technological revolutions. Crisis and stagnation were a result of the end of the long economic cycle originally initiated by the Information and telecommunications technological revolution in 1985-2000.

The market had been already saturated by new “technical wonders” (e. g. everybody has his own mobile phone) and – what is more important – in the developed countries the economy reached limits of productivity in conditions of existing technologies. Boom and collapse of the shadow banking system (SBS): The shadow banking system is the collection of financial entities, infrastructure and practices which support financial transactions that occur beyond the reach of existing state sanctioned monitoring and regulation.

The core activities of investment banks are subject to regulation and monitoring by central banks and other government institutions – but it has been common practice for investment banks to conduct many of their transactions in ways that don’t show up on their conventional balance sheet accounting and so are not visible to regulators or unsophisticated investors. The shadow banking system saw a boom but once investors started losing interest and no more wanted their funds to be used in SBS and changes in business policies led to its collapse which ultimately led to financial crisis.

Airline crisis communication is very important in saving the reputation of an airline company. The purpose of this presentation is to evaluate the reason why some airline loss their reputations and then make successful strategies in an airline crisis communication In this presentation, the definition of airline crisis communication will be given from two aspects, the aspect of practical way and the knowledge of the scholars.

Then an example of an unsuccessful case about NYMPH is chosen to scribe the measures they did after a crisis case happened and the analysis of the negative effects and loss following it will be described in details. After that, the problem of this case will be evaluated and reasons will be explained. Finally, four best strategies based on crisis communication theory and successful examples will be introduced to assist airline take successful strategies in the future.

Then it comes to the conclusion that best strategies are effective in a crisis communication. Key words: Crisis communication: the perception of an unpredictable event that threatens important expectancies of stakeholders and can seriously impact an organization’s performance and generate negative outcomes. Reputation: the opinion that people have about an airline someone or something because if what has happened in the past.

Abstract

The current global financial crisis is no longer news but a reality. Our policy makers in the country have been proven wrong based on their argument that the country was insulated. Some of the sectors that have felt the heat of the crisis are the banking sector and the stock market. In the stock market, investors lost trillions of naira due the downward fall in the prices of stock. Based on this, the study assesses the extent of the stock market volatility in the period preceding the crisis and the period of the crisis.

Using the All Share Index, the returns for various months were computed, descriptive statistics of the returns was calculated and the volatility of the market was estimated using the standard deviation. It was found that the stock market is highly volatile in the period of the financial crisis than the period preceding it. The recommendation is that the depth of instruments in the stock market should be varied in terms of fixed securities than equity instruments. Introduction The global economic crisis, which first emerged as a financial crisis in one country, has now fully installed itself with no bottom yet in sight.

The world economy is in a deep recession, and the danger of falling into a deflationary trap cannot be dismissed for many important countries (UNCTAD, 2009). The recent global economic crisis was a result of economic and political events in the United States. What started with amended federal policy and poor mortgage lending practices, resulted in a world-wide economic meltdown that spread like a virus (Beck, 2008). The US sub-prime mortgage market triggered the crisis as a result of credit crunch within this market.

Most countries around the world have approached this ‘tsunami’ pragmatically with emergency funding support for relevant sectors, so as to mitigate the impact of the crisis on economies as well as avoiding the entire collapse of the international financial system (Ajakaiye & Fakiyesi, 2009). Despite these supports by various governments in the form bailout, it does not stop some countries to go into recession, because of large decline in their wealth, manifesting itself in falling productive capacity, growth, employment and welfare.

At first, the direct impact of the financial crisis on the African economies was limited as African countries has weak integration with the global economy and most commercial banks in the region refrained from investing in the troubled assets from the US and other part of the world (Adamu, 2008). This is why most commentators argue that Africa is so far insulated from the direct effects of the financial crisis at least in the short-run. But now, this is not the case as the rate of unemployment and liquidity squeeze is becoming unbearable.

In Nigeria, like other African developing countries, the initial response to the crisis was rather meek, as if our policy makers do not understand the gravity of the crisis. While the developed countries were busy trying to bailout their economy in order to mitigate the effects of the crisis, our leaders were hiding under the shadow of insulation. The most visible sector being hit by this crisis in the Nigerian economy is the capital market.

The Nigerian Stock Exchange, the flagship of Nigeria’s capital market has witnessed unprecedented turbulence since April, 2008. First, the downward slide of the stocks on the market dominated by the banking sector made experts restive and regulatory authorities jittery. While accusing fingers were being pointed at different directions as the cause of this volatility in the prices of stocks, the market began a free-fall never witnessed in the history of capital market operations in Nigeria.

Both local and foreign investors who had taken advantage of the optimal return on investments on the stock exchange began to scamper elsewhere in desperation. Some of the questions that are critical to this trend in the capital market are; what is the extent of the stock price volatility on the Nigerian Stock Exchange? What are the factors that impacted the stock price volatility? To what extent has this volatility in stock price affected investors?

What can the regulatory authority do to contain this problem? This paper will address the first question raised above. This part is the introduction and the rest of the paper is arranged as follows; section two discussed the concept of financial crisis, the Nigerian capital market and the crisis, then stock market volatility. In section three, we discuss data and methodology, then results and discussions in section four and finally, summary and conclusions in section five. The concept of financial crisis

The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults (Kindleberger & Aliber, 2005, Laeven & Valencia, 2008).

Some economic theories that explained financial crises includes the World systems theory which explained the dangers and perils, which leading industrial nations will be facing (and are now facing) at the end of the long economic cycle, which began after the oil crisis of 1973. While Coordination games, a mathematical approach to modelling financial crises have emphasized that there is often positive feedback between market participants’ decisions (Krugman, 2008).

Positive feedback implies that there may be dramatic changes in asset values in response to small changes in economic fundamentals, Minsky’s theorised that financial fragility is a typical feature of any capitalist economy and financial fragility levels move together with the business cycle, but the Herding and Learning models explained that asset purchases by a few agents encourage others to buy too, not because the true value of the asset increases when many buy (which is called “strategic omplementarity”), but because investors come to believe the true asset value is high when they observe others buying (Avery & Zemsky, 1998, Chari and Kehoe, 2004, Cipriani & Guarino, 2008). The Nigerian Capital Market and the Crisis The All Share Index and the market capitalisation of the 233 listed equities capture activities and performance on the Nigerian Stock Exchange (NSE). Before the crisis, there has been a consistent growth in these performance indicators over the year (see fig. 1).

For instance, the All Share Index according to data from www. cashcraft. com grow from a value of 12,137 in 2002 to 66,371. 2 points on March 5, 2008, with a market capitalisation of about N12. 640 trillion, after which values fell to 20,827. 17 points on December 31, 2009, with a market capitalisation of 4. 989 trillion because of the meltdown. This shows that by the end of the year 2009, the All Share Index had lost a total share of about 69%, while market capitalisation had lost 61% of its value.

There are concerns regarding how rapidly the global financial crisis affected the Nigerian Capital Market, especially given that there is virtually no cross-ownership of banks (investment or otherwise) between Nigeria and foreign countries, and there is hardly any domestic mortgage market for there to be a sub-prime problem as found particularly in the UK and the USA (Aluko, 2008; Ajakaiye & Fakiyesi, 2009). The decline of indicators of activities on the NSE before the escalation of the crisis on the global scene in July 2008 became a source of concern for many.

It is difficult to attribute this decline to any particular factor, but those factors that may have direct or indirect impact are as follows; i. Foreign portfolio investments withdrawals and reduced foreign direct investment affect investor confidence in Nigeria (Adamu, 2008; Aluko, 2008; and Ajakaiye & Fakiyesi, 2009). This is the case because most foreigners withhold their investments in order to service their financial problems at home.

This exposed the country to FDI uncertainties and vagaries, particularly in an era where public-private partnership (PPP) of huge investment plans such as oil and gas – LNG projects, power plants, railways, housing and roads are being encouraged. ii. Another factor which according to Ajakaiye & Fakiyesi (2009) that had serious impact on the stock market is what they called the ‘intensifiers’. These include policy interpretations by the market, which may have been induced by the slow government initial stand on the economy. This also includes interpretation of announcements, proclamations and rumours by the market.

Examples include the proposed recapitalisation plan of the stock market players (stock broking firms), as well as rumours on the termination of margin lending by banks. iii. The phenomenon of marginal lending in Nigeria, whereby investors borrow money from banks to invest in other financial instruments like IPOs of banks with the hope of making quick returns. This may also be termed Nigeria’s own version of the ‘sub-prime problem’, as it resulted in an exploding domestic stock market and stock prices and astounding returns to both the speculators and providers of the margin funds.

This make the banks to feel the heat of the crisis as most margin loans become difficult to repay due to the downward trend in the market. iv. With the currency overdependence on oil revenue, the downward trend in the price of crude oil and prospects for economic recession in the developed world and Europe which are the markets for the oil, also contributed for the fall in the stock market. Because it look as if Nigeria’s capital market bear cycle actually began with the decline of oil prices in July, and accelerated with its further decline in September and October (Aluko, 2008; Ajakaiye & Fakaiye, 2009).

Stock Market Volatility Stock volatility refers to the potential for a given stock to experience a drastic decrease or increase in value within a predetermined period of time. Investors evaluate the volatility of stock before making a decision to purchase a new stock offering, buy additional shares of a stock already in the portfolio, or sell stock currently in the possession of the investor. In recent months, it has not been unusual to see the value of major stock indexes, such as the S 500, NIKKEI, DOW JONES, KOSPI, FTSE, and our own NSE-ASI change by as much as 3% in a single day.

Unfortunately for many investors, the general direction of those changes has been downward. To many, this volatility is driven by the recent global financial crisis. Stock market volatility tends to be persistent; that is, periods of high volatility as well as low volatility tend to last for months. In particular, periods of high volatility tend to occur when stock prices are falling and during recessions. Stock market volatility also is positively related to volatility in economic variables, such as inflation, industrial production, and debt levels in the corporate sector (Schwert, 1989).

The persistence in volatility is not surprising: stock market volatility should depend on the overall health of the economy, and real economic variables themselves tend to display persistence. The persistence of stock market return volatility has two interesting implications. First, volatility is a proxy for investment risk. Persistence in volatility implies that the risk and return trade-off changes in a predictable way over the business cycle. Second, the persistence in volatility can be used to predict future economic variables.

For example, Campbell, Lettau, Malkiel, and Xu (2001) show that stock market volatility helps to predict GDP growth. Volatility may impair the smooth functioning of the financial system and adversely affect economic performance (Mala & Reddy, 2007). Similarly, stock market volatility also has a number of negative implications. One of the ways in which it affects the economy is through its effect on consumer spending (Campbell, 1996; Starr-McCluer, 1998; Ludvigson & Steindel, 1999; and Poterba, 2000).

The impact of stock market volatility on consumer spending is related via the wealth effect. Increased wealth will drive up consumer spending. However, a fall in stock market will weaken consumer confidence and thus drive down consumer spending. Stock market volatility may also affect business investment (Zuliu, 1995) and economic growth directly (Levine & Zervos, 1996; and Arestis, Demetriades, & Luintel, 2001). A rise in stock market volatility can be interpreted as a rise in risk of equity investment and thus a shift of funds to less risky assets.

This move could lead to a rise in cost of funds to firms and thus new firms might bear this effect as investors will turn to purchase of stock in larger, well known firms. While there is a general consensus on what constitutes stock market volatility and, to a lesser extent, on how to measure it, there is far less agreement on the causes of changes in stock market volatility. Some economists see the causes of volatility in the arrival of new, unanticipated information that alters expected returns on a stock (Engle, 1982).

Thus, changes in market volatility would merely reflect changes in the local or global economic environment. Others claim that volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of risk and increased uncertainty. The degree of stock market volatility can help forecasters predict the path of an economy’s growth and the structure of volatility can imply that “investors now need to hold more stocks in their portfolio to achieve diversification”(Krainer, 2002).

Data and Methodology This research relies on the daily All Share Index (ASI) of the Nigerian Stock Exchange as reported by the exchange and on Cashcraft database. There are 233 listed companies on the Nigerian Stock Exchange and the ASI is the major index that captures the performance of all the shares of the listed companies. Using the ASI, the monthly returns (%) were calculated using the formula below; Where Vf is the ASI at the end of the month, and Vi is the ASI at the beginning of the month. These returns were calculated for all the 48 months used in this study.

We measure volatility using the standard deviation and/or variance. This is done by dividing the period under study into two. The first period comprises of 24 months observation for 2006 and 2007, the period prior to the crisis and the second 24 observations were for 2008 and 2009, the period of the crisis. In examining volatility changes over time, we compare the variances or standard deviations of the different periods and determine if they are statistically significantly different from each other. To estimate volatility, the expected returns or mean for these periods returns were computed using the equation;

This implies that is the average of the return values. Using this value for and the variance estimate results in a formula for the volatility is given as; . It follows that the estimation of the volatility constant given by Wilmott, Howison and Dewynne (1995) is: Lastly, the expected returns and the standard deviations will be used in testing the hypothesis whether there is a significant difference between the means of the two observation using t – statistic for testing difference of two means. Results and Discussions Table 1 shows the descriptive statistics of the monthly returns for the two periods.

For the period 2006 – 2007, the average return was 3. 42% with a standard deviation of 5. 37%. This is showing that during this period, stock market returns was less volatile because a less volatile stock will have a price/return that will deviate relatively from the mean little over time. This is the period when investors have consistent positive returns on their investment and there are willing to invest because stock returns are less volatile and their exposure to risk is less. Table 1. Descriptive Statistics RETURNS %2006-072008-09 Mean3. 4233 -4. 3658 Standard Error1. 09552. 5003 Median3. 550-4. 8400 ModeN/AN/A Standard Deviation5. 367012. 2489 Sample Variance28. 8050150. 0365 Kurtosis0. 67236. 3865 Skewness0. 39191. 4372 Range24. 6669. 15 Minimum-7. 44-30. 95 Maximum17. 2238. 2 Sum82. 16-104. 78 Count2424 Source; excel output On the other hand, during the period 2008 – 2009, there was a negative average return of –4. 37% with a standard deviation of 12. 25% showing high volatility in returns. This is as a result of the accelerated downward fall of the stock prices on the Nigerian Stock Exchange as a result of loss of investors’ confidence due to the global financial crisis.

This period is characterised by negative returns which results to high volatility, and as we can see, the more volatile that a stock is, the harder it is to isolate where it could be on a future date. Since volatility is associated with risk, the more volatile that a stock is, the more risky it is. Consequently, the more risky a stock is, the harder it is to say with any certainty what the future price of the stock will be. When people invest, they would like to have no risk. The least amount of risk that is involved, the better the investment is.

Since almost every investment has some risk, investors have looked for ways to minimize risk, so their best reaction was to avoid the stock market and this affected the market. The other descriptive statistics showed that both distributions are positive or right – skewed, meaning that most of the returns are in the lower portion of the distribution and there are some returns that has extremely large values and this pull the mean return upward to be greater than the median, specifically for the second period. Both has a positive kurtosis value of 0. 6723 and 6. 865 indicates a distribution with a sharper peak than a bell – shaped curves. The result of the test for the hypothesis to determine whether there is a significant difference between the means of the two observations is presented in table 2 below. The hypothesis is; Ho: µ1 = µ2 i. e. there is no difference in the means of the two observations H1: µ1 ? µ2 i. e. there is difference in the means of the two observations. From the result of the t- test, the null hypothesis is rejected at 5% level of significance. This is because t = 2. 85 ; t = 2. 01. the p – value computed is 0. 064 and it indicates that if the means are equal, the probability of observing a difference this large in the sample means is only 0. 0064. Based on this, there is sufficient evidence to conclude that the mean returns are different for the two periods, and that returns are lower in the period of the crisis than the period before it. This confirms the reason why there is higher volatility in this period than the other period. Table 2. t – Test for differences in Two means (assumes equal population variances) Data Hypothesized Difference0 Level of Significance0. 05 Population 1 Sample Sample Size24 Sample Mean3. 233 Sample Standard Deviation5. 367 Population 2 Sample Sample Size24 Sample Mean-4. 3658 Sample Standard Deviation12. 2489 Intermediate Calculations Population 1 Sample Degrees of Freedom23 Population 2 Sample Degrees of Freedom23 Total Degrees of Freedom46 Pooled Variance89. 42012 Difference in Sample Means7. 7891 t Test Statistic2. 853384 Two-Tail Test Lower Critical Value-2. 012896 Upper Critical Value2. 012896 p-Value0. 006463 Reject the null hypothesis Source; Excel output

Conclusion and recommendations

The paper studied the extent of the stock market volatility in the period of 2006 – 2009.

The period is divided into 24 months each to study the volatility of market returns between 2006 – 2007, and between 2008 – 2009. On the basis of the results it was found that the period 2006 – 2007 is less volatile than the period of 2008 – 2009; and this is due to the global financial that have affected investors’ confidence. Since volatility is associated with risk, the more volatile that a stock is, the more risky it is. Consequently, the more risky a stock is, the harder it is to say with any certainty what the future price of the stock will be. When people invest, they would like to have no risk.

The least amount of risk that is involved, the better the investment is. Since almost every investment has some risk, investors have looked for ways to minimize risk, so their best reaction was to avoid the stock market and this affected the market. The recommendation is that the stock market instruments need to be diversified away form equity instruments to more of fixed security instruments.

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25. Stock market volatility and corporate investment”, IMF Working Paper, 95/102. www. cashcraft. com Appendices 1. Monthly returns computed using the NSE-ASI MONTHS/ YEARSRETURNS %MONTHS/ YEARSRETURNS % Jan-06-1. 69Jan-08-0. 02 Feb-060. 30Feb-08-11. 1 Mar-06-2. 00Mar-08-4. 01 Apr-06-0. 75Apr-08-5. 67 May-065. 45May-08-0. 33 Jun-065. 66Jun-080. 00 Jul-066. 75Jul-08-6. 90 Aug-0617. 22Aug-08-9. 22 Sep-060. 67Sep-08-6. 07 Oct-060. 35Oct-08-20. 96 Nov-06-3. 84Nov-08-9. 08 Dec-064. 92Dec-08-2. 37 Jan-078. 93Jan-09-30. 95 Feb-0710. 62Feb-097. 17 Mar-074. 87Mar-09-12. 60 Apr-078. 44Apr-098. 15 May-075. 95May-0938. 20 Jun-072. 44Jun-09-12. 63 Jul-070. 94Jul-09-7. 09 Aug-07-7. 44Aug-09-10. 42 Sep-07-0. 12Sep-09-2. 2 Oct-07-0. 16Oct-09-3. 08 Nov-077. 82Nov-09-3. 64 Dec-076. 83Dec-090. 05 Figure 1. Stock market performance, 2002-2009 Source: Extracted from Ajakaiye and Fakiyesi (2009)

A crisis was exactly what British Petroleum (referred to as ‘BP throughout the paper) went through in 2010. It was particularly important to communicate the right way taking all considerations into account. We were wondering how the specific crisis went so wrong and if the use of specific communication strategy was beneficial or not. Hence, the communication strategies used to overcome the crisis can be used by many other companies in the future as guidelines of how to do and, maybe more important, how not to.

Also, the intervention from the American government, the pressure from the local community and how the media was used, is extremely important in the BP case. This paper intends to show how BP communicated and reacted throughout the crisis. It will discuss the challenges BP had and it will especially focus on how BP actually reacted to the crisis and how they perhaps should have reacted differently, including the use of communication theories. Finally, the paper will outline the consequences of the crisis on both organization and communication strategy.

On April 20, 2010, the Departed Horizon oil-drilling rig explosion in the Gulf of Mexico resulted in the deaths of 11 rig workers, but public attention quickly shifted from their deaths to the following environmental and economic damages – the incident was described as the worst maritime oil spill accident in history, as the accident released over 18 million gallons of crude oil into the Gulf of Mexico. Three months passed before BP substantially stopped the leak, all the while the crisis was evilly covered by all news media in the United States as well as internationally.

As a result of this, the BP oil spill case serves an excellent example of analysis of BSP crisis communication.  The total cost of BP to indemnify the clean up of the environment and funds to affected workers has reached almost two billion dollars.  Incorporated in 1909 in England , BP has become one of the world’s largest multinational companies operating in more than 80 countries 4, leading in oil and as industry, including exploration and production, refining, distribution, extracting and producing renewable energy.

The company provides their customers with energy for heating and lighting, fuel for transportation and energy for retail services and petrochemical products. BP employs approximately 80,000 employees, and sales and other operating revenues add up to $375,517 million in 20116 . Finally BP is also a conglomerate owning several brands such as: ORAL, ARC, Castro, amp and The Wild Bean Cafe©. Having settled “BP and the Departed Horizon Crisis” as the case, which this paper ill centre around, the problem statement is as follows: To which extent has BP successfully communicated during the Departed Horizon Crisis?

In order to examine the problem statement the paper will attempt to address the following issues:  Characterize how BP communicated during the crisis.  Analyses the effects of BSP communicative strategies. Discuss and evaluate whether or not BP has been successful in dealing with the crisis seen from a communicative perspective. In this paper a broad spectrum of empirical data has been used. However, most of the empirical data has been found through articles in different newspapers – the use f different newspapers and their viewpoints has given us very diversified inputs throughout the paper.

But this does not exclude a use of quantitative data which, amongst other things, have been used to illuminate the several attempts of BP to use CARS-strategies, and underline the immense loss of fiscal funds the crisis has caused. The rather specific choices of qualitative data have been used to shed light on the different views of the crisis – and the several statements pointing toward similar conclusions have helped to support the points made and clarify a rather eventful crisis.

In the beginning of the work with he case study of BSP crisis response, a pretty sufficient understanding of the crisis as a whole was in place, we assumed, but as the paper progressed and different theories were applied our understanding of BP and the relationship to their stakeholders grew. The quantitative data used also comes from BSP own publications as well as articles from different international online newspapers. Of course, the reader must have in mind that BSP own figures, occasionally, might have been used to strengthen their image and not only inform the reader.

When examining and analyzing the Deep Water Horizon oil spill crisis, this paper is et out to delimit the case by answering our initial problem statement. To narrow our focus down to the relevant aspects in the case we have decided to delimit our analysis to the main stakeholders, including:  the American government;  the local society; and the media. This has been done not only due to the formal constraints of the paper, but also in order to go into depth with these stakeholders, who we reckon to be, of major importance to this crisis within the given delimitation’s of this paper.

In order to answer this paper we find it necessary to make a common definition of a crisis. Extensive studies have been carried out on crisis communications over the past two decades. A brief review of literature on this subject reveals that there are several definitions of organizational crisis, depending on theorists’ different viewpoints on what constitutes a crisis. Herman claimed that to reach the level of a crisis, the event must contain three negative attributes: surprise, threat, and short response time.

Surprise means that the organization did not prepare for the magnitude of the crisis. Threat means that the event poses a threat to the organization’s financial security, customers, surrounding environment etc. Short response time refers to the urgent need of preventive action in order to stop an intensification of the crisis.

Timothy Combs utilizes the interconnectivity of these three attributes to make his definition of a crisis: “A crisis can be defined as an event that is an unpredictable, major threat that can have a negative effect on the organization, industry, or takeovers if handled improperly. ” Furthermore, according to the very same book, organizations frequently find themselves in situations that can be identified as crisis. There are no exceptions; “We must accept that no organization is immune from a crisis anywhere in the world even if that organization is vigilant and actively seeks to prevent crises. ” (Combs & Holiday, 2010: p. 7). This reality urges the need for preparation and readiness to respond – what is called crisis management. The major difference between handling an issue and an actual crisis is that an issue turns into crisis when it goes from the company domain into the public domain; a situation, which sometimes is inevitable no matter how competent the management is.

The term ‘a crisis within a crisis’, or a so-called ‘double-crisis’, as coined by Danish professors Finn Freedmen and Winning Johannes, refers to a situation where a company experiences a communication crisis that overshadows the initial crisis. A crisis within a crisis naturally has negative implications for a company since it emphasizes weaknesses in the company’s internal structure and/or interactions with stakeholders. The term is relevant to apply to this particular case because its give an accurate description of the consequences of BSP communicative strategy. The agenda setting theory distinguishes between two in the media. The first level deals with the significance of an organization where an organization receives more media attention then other related organizations.

The second level relates to associations or topics that the public associates with a particular organization. 12 One of the important aspects when dealing with the media is the agenda, which stakeholders often associate to organizations. The agenda setting theory is related to this assumption and therefore is significant to apply when analyzing BSP media relations.

As a company might have many different stakeholders it is important to have a tool to categories them. Once the stakeholders are categorized the organization will be able to decide, how and how much it should communicate with this stakeholder. In general when describing stakeholders this paper is using Edward Freeman’s definition of a stakeholder: A stakeholder is any group or individual who can affect or is affected but the achievement of the organization’s purpose and objectives”.  In order to categories stakeholders this assignment will use the ‘Stakeholder salience model’. The superiority of this model is that while being extremely simple to use it is also extremely precise when in its finding of how much effort the organization should use when communicating with each category of stakeholder, and even more important; how the company should communicate with its various stakeholders.

The model is based on “salience”, defined as the visibility of the stakeholder to the organization using three parameters;  the power of the stakeholder group,  the legitimacy of the claim laid upon the organization, and the urgency of how important the claim is according to the need of an immediate action. The purpose of the model is to define how salient a stakeholder group is. The model is based on seven different types of stakeholder groups; Dormant stakeholders are the ones with dominant power and the ability to affect other groups of stakeholders.

They are not able to legitimate their claims, and power will only be dormant but have an influence anyway. Mostly, this would be wealthy stakeholders.  Discretionary stakeholders are stakeholders with a high degree of legitimacy but without the necessary power to influence the organization. Demand stakeholders are the ones with urgent claims but without power and the necessary legitimacy to enforce them. Dominant stakeholders are the group of stakeholders representing both legitimacy and power.

These are stakeholders having great influence on the organization, e. G. Owners and big investors. Dangerous stakeholders are people with both urgent and claims on power. In addition, these will often attempt to use unfair” means.  Dependent stakeholders are those who rely on others to get their claims carried out – mostly because of the lack of power. Finally,  Definitive stakeholders can be identified as the ones having both legitimacy and urgency as well as power. These are the most powerful stakeholders and it is strictly  necessary for the organization to keep close communication with these. Normally, it would be definitive stakeholders who can also be classified as the shareholders. Once the stakeholders are categorized, the firm can now decide on strategy of communication. When researching strategies of communication, this paper has used the basic framework of communicative strategy given to us in “Corporate Communication – A Guide to Theory and Practice” .

The framework generally provides three different strategies. This framework is chosen because of its simplicity when it comes to numbers of strategies and complexity when it comes to ways of communicating within each strategy, hence the framework provide an extremely useful tool when analyzing and discussing what mind of communication BP has conducted, how it worked, why the strategy did not work and why it might have worked better: Informal strategy is a strategy of simple informing about something through; newsletters, press releases etc.

This strategy is hence based on the idea that objective information about the organization should be passed on to the relevant stakeholders. Persuasive strategy uses tools such as advertising and meetings/discussions with stakeholders. The general aim of this strategy is to change the stakeholders’ image into a more favorable one or to create particular understanding with the organization’s decisions. The strategy will not create change in the organization, but rather aims to create change in the stakeholders’ perception of the organization and its decisions.

Dialogue strategy aims to create a mutual understanding and/or mutual decisions between stakeholders and the organization. Timothy Combs divides a crisis into four different types with two different aspects. The four types are; faux pas, terrorism, accidents and transgressions. In addition, a crisis in this matrix can be of either internal or external, and intentional or unintentional characteristics.

Inflation is the increase in the prices of goods and services. Simply, inflation means continuously fall in the value of money due to too much supply of money in the market. Inflation affects a nation’s domestic (internal) market by repelling consumers to buy goods and services therefore this effects businesses as they are not getting money so they close down. This leads to unemployment. Inflation affects a nation’s exchange rate as it usually will depreciate their currency in relation to the currencies of their trading partners. 2.

The Argentinean government adopted the Keynesian approach as their economic policy in the 1880-1886 period. This is clear because the Keynesian approach adopts an active government influence on the economy which is similar to the Argentinean approach. It says “funds were used to construct railroads and public works”, this shows the Keynesian approach the Argentinean’s were implementing. 3. The political stability affects the economic activity in a country. Political stability means a government that can be relied on by the people from now until next year. A fraudulent election” signals that political parties were in strong conflict with each other in the election of Roca’s brother-in-law. This would mean that there would be conflict when it would come to decision making and policy changes. This damaged the economy as it could not implement the best policies which would have helped recover their economy. 4. Firstly, fiscal policy is the way in which a government adjusts its levels of spending in order to monitor and influence a nation’s economy.

It is linked with monetary policy where a central bank influences a nation’s money supply. These combined are very important in achieving an economy’s goals. 5. When a country’s debt crisis spreads to other countries the other countries governments have to come up with a rescue package that will rescue their financial institutions. This is seen when the British central bank had to step in with a bailout fund for the House of Baring which protected not only Britain but the European markets. 6.

The pros of defaulting are that the country won’t have to go into a deeper hole of debt by getting other countries or the ECB to bail them out with their funds which will help the country get back on track. For investors, this is good news. They get to purchase property at bargain prices. The cons of defaulting are that the country’s credit rating is destroyed. Lenders have to raise their interest rates and become less generous to new borrowers in order to make up for the fact that they are losing money. This means that a default rate affects anyone who wants to get a loan by making it more expensive or even impossible.