Sherron Watkins And Enron Case Analysis - 1880 Words

Sherron Watkins and Enron Mylissa Hess I have chosen to write a response to the questions assigned that exposes Sherron Watkins’s experiences at Enron and the events leading to her Time Magazine â€Å"Persons of the Year† 2002 nomination. Watkins was Vice President of Enron Corporation who alerted then-CEO Ken Lay in August 2001 to accounting irregularities within the company. Some biography information regarding Ms. Watkins, who entered employment with Enron in late 1993, was initially employed to work for Andrew Fastow. Her role was to manage Enron’s $1 billion-plus portfolio of energy related investments, a position that she held for just a little of over 3 years. In 1997 she transferred to Enron’s international group focusing primarily on mergers and acquisitions of energy assets around the world. In 2001 after having spent a year in Enron’s broadband unit she went back to work for Mr. Fastow where he was responsible for the mergers and acquisitions group of Enron Corp. 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Following Lincolns death (), Radical Republicans took...

Following Lincolns death (?), Radical Republicans took control of Congress and attempted to create a social and constitutional revolution. To do so, they amended the Constitution and imposed the 13th, 14th, and 15th amendments. Although the purpose of these amendments was to create black equality, the South resisted acceptance of these changes so that this could not be possible. In turn, there really were not any social developments even though the constitution had been changed. Lincoln was a moderate Republican and had argued for black suffrage. However, the issue was complicated because of the debate on whether the federal government has the right to interfere (?) with the suffrage that the Founding Fathers had directed at the sates†¦show more content†¦The South did all that it could to suppress and terrorize blacks. The idea was to demonstrate white superiority even though blacks were no longer slaves. The Ku Klux Klan was formed for this purpose and because of it, the Force Bill had to be imposed to control the racist men (Doc I and H). The Force Bill sent in the military to control the KKK terrorization but was ultimately useless because the KKK had already fulfilled its purpose of intimating blacks (Example). Because of this intimating, it is no surprise that social change did not occur. Blacks, though yearning, still did not have the power to counter racist white efforts against them. Every effort the North made to pacify the South and/or to help the Blacks was blatantly rejected by the South. If the North declared one law, the South would find a loophole and thus the country was a mess of disunity and debate over Constitutional changes (?) (Doc. A and B). This tug-of-war is also anther reason for why no social changes resulted from constitutional changes from 1860 to 1877. Even if the 13th, 14th, and 15th amendments were wholeheartedly radical and revolutionary constitutional changes, social changes, never mind developments, were not in any way possible because of strong Southern resistance (Doc. G). Although the Radical Republicans purpose was to create aShow MoreRelatedHow Did The Radical Republican s Rise For The Failure Of The Post Civil War Reconstruction?1619 Words   |  7 Pagesinvestigation will explore the question: How did the Radical Republican’s rise to power contribute to the failure of the post-civil war reconstruction? The time between 1863, when Lincoln passed the ten percent act, until the year 1877, when reconstruction was officially ended, will be evaluated with information provided by the sources. The investigation will specifically look to how the Lincoln assassination allowed for the rise in the Radical Republican Party from 1866 to 1868 and the party’s effectRead MoreThe Broken Promise of Reconstruction the Need for Restitution5574 Words   |  23 Pagesthe enslaved Africans. It is unequivocally true that the enslaved peoples did not create nor did they benefit from this monstrous catastrophe. The other groups however, either benefited in a direct way or thought their social status was improved through the bacillus of racism. Exasperation however, was shared by all to some degree. The Northerners became progressively more dissatisfied with their impotence following the Revolution while the Southerners were increasingly anxious that the North wasRead MoreReconstruction : The Burning Years10732 Words   |  43 PagesDAN GORMAN [Opening Narration]: The following program contains strong language and disturbing thematic content. Listener discretion is advised. (beat) From — — — Productions: RECONSTRUCTION: THE BURNING YEARS. (Music) D.G.: Good evening. My name is Dan Gorman. Like many of you, I didn’t learn much about Reconstruction in high school. I had a wonderful teacher who did much to show the nuances of American history, such as the effects of states’ rights and slavery on the Civil War. Still, my teacherRead MoreLogical Reasoning189930 Words   |  760 Pagesbook Logical Reasoning by Bradley H. Dowden is licensed under a Creative Commons AttributionNonCommercial-NoDerivs 3.0 Unported License. That is, you are free to share, copy, distribute, store, and transmit all or any part of the work under the following conditions: (1) Attribution You must attribute the work in the manner specified by the author, namely by citing his name, the book title, and the relevant page numbers (but not in any way that suggests that the book Logical Reasoning or its author

Global & International Business Contexts Diamond Analysis

Question: Describe about the Global International Business Contexts for Diamond Analysis. Answer: Part 1: Porters National Diamond Analysis: The diamond model is a study to find out why certain countries succeed in international trade whereas others fail. The model shows that industries are located in particular regions where there is abundance of land, labour, material and capital which make up the four factors of production supported by a chain of markets, suppliers and customers (Hargrovesn Smith, 2013). Porters model of competitive advantage model of nations considers the following factors: Factor conditions: Every country is endowed with its own natural resources which include minerals, cheap labour, technology, financial structure which provides capital to industry and favourable land (Saeedi, et al., 2015). These factors are not present in equal ratio in all the country and are an essential determinant of the type of industry that could develop in a country (Mnsson, 2014). South Africa is rich in minerals, timber and has human resources to work for soft drink industry but it does not have the capital required and most importantly the technology. Demand: Customers, being the creators of demands play a very significant role in deciding a firms success. When there is a large domestic demand, a company produces better quality products for the home market which also influences the foreign market (Obizhaeva Wang, 2013). International soft drinks brands like Pepsi and Mountain Dew bear the testimonial that the South African market has good opportunities and the cold drink company can enter the market to exploit its scope. Related and supporting industries: The presence of ancillary units provides a firm with easily available parts for its assembled finished products. This encourages further development and growth of an industry because availability of parts decreases the cost of importing or buying parts from far off markets. For example, big soft drinks manufacturers like Coca Cola have their own ancillary bottling unit which enables them to cut the cost of buying bottles from outsiders. A firms structure, plans and competitors: The strategies of a firm, structure and rivalry reflect market conditions. South African soft drink market already has two players Coca Cola and Pepsi which presents a huge challenge to a firm of the same category who wants to enter South Africa (Lungeanu Zajac, 2014). It must also be noted that South Africa is poor in infrastructure, which will make a huge investment in infrastructure mandatory. The marketing strategy of the firm has to be modified to suit the poor conditions of South Africa, like selling the soft drinks from hand carts instead of a chain of stores prevalent in rich countries of Europe, North America and Asia. Chance events: Changing market conditions, sudden happenings and new innovations can create new opportunities for a firm to exploit. The present soft drink market in the world is experiencing rise in demand of health drinks and low calorie soft drinks. This gives an opportunity to soft drink companies to manufacture sweet carbonated drink for the young and traditional cola lovers, the energy drinks for the health conscious and a low calorie cola variant for the drinker in between these two segments. Such incidents also allow the soft drinks companies to acquire new buyers and increase profits. Government policies: This is by far the most important factor which can influence all the stated factors. Today governments encourage entry of foreign companies poses a big threat for the domestic companies especially, the small ones with limited resources. Governments earn huge taxes from them in return of business permit in the country. Thus government policies determine the entry of a multinational company. The soft drink company should follow the laws and rules set by the government of South Africa. Figure 1. Porters diamond model (Source: Zhao, Gao Shi, 2015) Part 2: Foreign Direct Investment in Equity in South Africa: Foreign direct investment refers to investment by a company abroad either by acquiring a company, by means of joint venture or merger in order to get access to its resources and earn profits (Moosa, 2016). Based on the above findings, a company intending to enter the market of South Africa can acquire shares of a domestic company, thus gaining right to manage and control the companys assets and other resources. A poor country like South Africa can derive the following advantages from FDI: Economic development stimulation- South Africa has a huge economic resource but lacks the infrastructure and capital to utilize it for the countrys growth. FDI through equity mode can bring in more investment from foreign companies which can help domestic companies to flourish. The European soft drink company can acquire a domestic firm and generate production and employment, thus stimulating economic development. Employment and economic boost- When a global company enters a new economy, they create companies to cater to the economys market. This also leads to growth of ancillary units to supply parts to the main company. This creates employment opportunities bringing about economic growth and improvement in the living standard of the people. Coca cola operates in South Africa through takeovers and other forms of FDI, employing more people than a small domestic company. Easy international trade- International trade policies tend to favour rich, powerful and big countries leaving bleak chances for poor and small countries to bargain. When a global company like Pepsi enters a market through FDI, it can take advantage of the capital and infrastructural strength of the country. FDI makes international trade easier and also gives the domestic companies a platform to explore foreign market opportunities. Development of human capital resources- A big multinational soft drink company requires more trained and experienced people to handle operations across the various markets it serves. Such a big company not only provides employment to the people in the host country, but also trains them. Thus, a multinational company improves the quality of human resource in its host country and gradually leads to better income and economic growth. Tax incentive- The governments in the host countries give tax incentives to global companies in return of their technology, expertise and capital. These big giants as a result can inject more capital in the host market thus expand its business further and also decrease the price of their goods and products (Shunko, Do Tsay, 2014). One of the biggest soft drinks manufacturers in the world, Coca Cola can utilize the tax incentive gained in South Africa by strengthening its market and also reduce the price of the cola drink. Resource transfer- When a multinational company holds equity shares of a smaller company in another country, it gets right to control the assets and resources of the latter. This means, it use the good and services and also the human resources of the smaller company to support its international trade. Thus, the goods and services get new market abroad and the human resources gets new exposure enriching it (Yarbrough Yarbrough, 2014). Increase in productivity- New markets creates new demands thus calling for increase in productivity. A multinational company has the capital and resources to meet the sudden increase in demand, thus helping the domestic to cater to the international market. The brand values of multinational companies also help their subsidiaries to promote their products and grow in the market. Increase in income- It is evident from the above discussion that, increase in employee productivity and new markets result in larger inflow of revenue. Moreover, FDI through equity mode strengthens the capital structure of a company. These two factors contribute towards faster growth of a domestic company thus expanding its control over the market. A domestic soft drink and bottling plant in South Africa can increase its productivity by assisting a company like Pepsi. FDI, through acquisition of equity shares gives a great boost to an otherwise local firm with limited resources and a limited market. However, FDI too has its own share of demerits or disadvantages. The following are the disadvantages of FDI through equity mode: Hindrance to domestic income- Michelle Hutches and Sonja Rego in their work, state that the equity capital of a firm is directly responsible for its capability to take risk (Hutchens Rego, 2013). As per definition, equity capital is the difference between the total of a companys assets and libilties. It can be understood from these two statements that when a multinational soft drink company acquires FDI right by buying equity shares, it gets the power to control the total assets of the domestic company as well. Such a multinational company often uses the resources to retain its worldwide market position, thus depriving the domestic firm of its deserved income. Risk of political changes- Unfavorable political changes in the home country of the multinational company affects the business of the domestic company as it becomes totally dependent on the former. Similarly, a political change in the country of the domestic company can affect it the new policies go against the multinational company which winds up its operations in the host country. In either of the cases, the smaller company gets badly affected and is often left with scarce resources and market to sustain on. Negative influences of exchange rates- A big multinational company like Pepsi or Coca Cola has the expertise like a local beverage company to take advantage of the difference in exchange rates. A domestic company gets exposed to exchange rates and often has to acquire resources at higher prices. Higher costs- Getting involved in international trade demands more productivity necessitating hiring of more staffs to support it. Complying with various international laws and adapting to various market norms causes manifold increase in the cost. A small soft drink manufacturer, unlike a global player in same category, cannot bear the high cost and usually closes down. Economically non viable- Unlike the previous defects, this affects the multinational companies who acquires the equity of a foreign company. The market conditions in the host company may become unfavorable and require winding up of the business in the host country. The multinational company incurs heavy losses which may also hamper its business elsewhere. Expropriation- The government of the host country may acquire the ownership of the assets of the multinational company present within the area of domination. The multinational companies which invest a huge amount towards FDI have to take heavy losses which have significant impact on its resources. Modern day colonialism- Many countries, especially the ones under colonization by a foreign country like the European countries, hinder FDI. They perceive it as a form of modern colonialism leaving their resources and people open to exploitation by the global companies. It must also be noted that most of the multinational companies in the world including Pepsi and Coca Cola either belong to America or Europe. This fact only fuels this perception of modern day colonialism hindering affecting international trade. The work titled Earth, Wind and Fire states that the mining wealth of South Africa is worth $2.5trillion (Ting, 2016). The following are the recommended strategies which can be undertaken to enter South Africas market through FDI in equity mode and for strategic management of it :( Please refer to Appendix 1) Critically analyze the South African market studying legal, economical, financial and technological aspects related to equity FDI, cultural and other important factors. Study the local conditions and establish strong relations with financial institutions, especially those with branches in Europe. The company must also look for quality source of raw materials locally otherwise, it has to import the raw materials from other countries. The company instead of setting up a new subsidiary can take over an existing soft drink company through equity mode FDI and use its plants to create a niche for itself in the South African market. The bigger portion of the South Africans are poor, hence they cannot afford to visit a hotel or a bar and relish a customized cola drink. The company should employ people to sell drinks at low price to the poor in hand carts which will also allow it to penetrate the rural market. However, tourists visiting the country can relish the coal in hotels and bar. Such an approach will allow the firm to cater to both the poor and the rich (Laws, 1995). Now a days expansion in a new market requires a great deal of open innovations and is very expensive (Chesbrough, H., Vanhaverbeke West, 2014). The company should enter into contract with institutions for functions like research, promotion, financing and staffing (Johanson Mattsson, 2015) at local level. This strategy is very effective after entry as the demand increases because availing these services even from an overseas branch of the same company becomes expensive. Strategies and their implementation need to be more localized after the initial establishment stage (Stromquist Monkman, 2014). The company at this stage should acquire a bigger firm; obtain stakes of big material supplying ancillary units and promotion channels. Part 3: Two Management Issues: First, South Africa is rich in raw materials but does not have the required infrastructure, capital investment and expert human resource. Hence, a company intending to enter the market of South Africa needs to invest a lot of capital in it before it can start generating high revenue. Secondly, acquiring equity shares of a domestic company will also require a lot of investment because the market already has strong competitors like Coca Cola and Pepsi. The legal system in the country is still not as open as the European and Asian countries giving rise to a lot of legal complications and high expenditure thereof. Moreover, the people might look upon FDI as a modern form of foreign domination. PESTEL Theory: PESTEL theory studies the political, economic, social, technological, environmental and legal factors effecting a business organization. They are external or macroeconomic factors which affect a multinational corporation more than a domestic company. A multinational corporation has to consider these factors while making strategies and also incorporate them in its communication plan. Political: The government policy, political stability, foreign trade policies and the policies and laws pertaining to FDI play a key role in expansion of a multinational company. The political instability and strict control of the South African government put a huge pressure on the foreign companies (Smith, 2014). International agreements pertaining to taxes, tariffs and exchange rates among other terms and conditions play a very important role in international trade. South Africa is a part of BRICS along with Russia, China, India and Brazil. (Carnoy et al., 2013) This means that an FDI with the country will also access to these emerging markets. Every country has its own legal framework and departments dealing with taxes and tariffs. The governments monitor the working of the MNCs closely since they are among the biggest tax payers. A multinational company should also abide by the rules of the bodies governing commodities or its raw materials. For example, drinkable water in South Africa has to confirm to the standards of South African National Standard 241 Drinking Water Specification (Janse, Barnard Krger, 2016). The business of an MNC is affected by international incidents like terrorism, inflations and wars adversely leading to heavy losses. Transparent policies and target centred strategies can help to tackle such situations. The company must communicate policy changes to the stake holders like customers and governments to ensure cooperation from them. It can minimize the losses suffered due to such urgencies by spreading them over its global market. An MNC should use the international laws and laws in various countries to gain best advantage and means to spread its losses owing to unpredictable factors and make them up. Economic: Economic factors are factors of production which include land, labour, materials and capital (Fuss McFadden, 2014). An MNC should take into consideration the cost of land, laws pertaining to land use and ownership. There exist international labour laws and country specific labour laws in order to protect human resource from exploitation of multinational firms. The firm must include the prevalent remuneration scales and perks in its employee policies to ensure quality labour production. The MNC must abide by the laws to avoid penalty. Each country has its own reserve of natural resources which can be exploited commercially for production. Entering an economy through FDI allows a global company to get access to a countrys resources helping it to increase productivity. South Africa has natural resources which attracts foreign companies to invest in her resources. An MNC should create ties with various financial institutions to get advantage of various financing options. It must also follow the rules and directions set by the international and national bodies and agreement. Social: A multinational corporation caters to a market spread across several countries having their own culture. The multinational company gets both human resource and customers from these markets. It must not act in a way so as harm the religious, cultural or racial sentiments of the people. A big problem in South Africa is apartheid referring to a disparity in laws and treatment giving the minority whites of European origin over the blacks Africans. A multinational company should not indulge in practice of any such policy which will not only affect its business in the country adversely but also hamper its goodwill abroad. Technology: Technology refers to innovation, research and development and autimation which decides minimum levels of production and outsourcing in an economy. South Africa is very poor as far as technology is concerned necessitating a huge capital investment through FDI (Ho, 2014). The resources of the country have not been utilized because South Africa is a poor country without skilled labour force and know how to harness the resources. Environment: Every country has laid down laws to protect its environment in response to international laws to preserve the depleting ecosystems. They also cover water ways, sewage, human health, recycling goods and production of biodegradable products using eco friendly ways. Violation of such laws attracts penal actions or winding up of the business (McIntyre, 2016). Destruction of water resources, forests and wild animal is considered a crime and is dealt in green criminology (Beirne South, 2013). The soft drink company should consider environmental measures tectonic while framing policies so as to avoid grave consequences. Legal: A MNC seeking to enter a foreign market through FDI has to abide by the laws of its home country, host country where it wants to enter and international laws which are often interrelated (Carr Stone, 2013). It must use the land and resources of the host country ethically and legally to maximize its revenue. Private and public sectors participate simultaneously to improve conditions of labour. The company must follow labour laws and use its human resource judiciously to avoid conflict and interruption in production resulting in long term losses. Such a problem can also create unfavourable political situation abroad market related to this market. Many countries give consumers legal remedies against fraudulent products and services (Weatherill, 2013). The soft drink company must produce quality soft drink and simultaneously preserve the environment so as not to attract penalties or closure of business. OLI theory: OLI theory, abbreviation for Ownership, Location and Internalization, is a theory of foreign direct investment (FDI). The theory developed by John Dunning believes that a firm deciding to enter international trade, especially through FDI, considers the three factors and its control over them (Dunning, 2015). These factors go a long way in deciding why some firms are successful global players while others are not. The three determinant factors have been explained below: Ownership: Ownership, according to this theory refers to possession of assets and resources and includes raw materials, work in progress and finished goods (Masulis, Pham Zein, 2015). The key idea is that if a multinational firm acquires the equity of a company in another country, it gives it access to the companys assets as well. The multinational company can then use these resources and assets for production without degrading their value. A multinational company is able to cater to a global market due to its control over vast resources from different countries. It can also be pointed out that dynamic economies like South Africa encourage this kind of FDI from big multinational corporations due to its inherent advantages Location: A firm can take to two approaches in FDI to expand its business in a foreign country. It can locate its plant abroad for production and access to the host countrys market which is called horizontal approach. It may take to invest in a foreign country to avail lower cost of production. In both cases, the corporation generally locates its headquarter in its own home country and the overseas branches are controlled from the headquarter. The control is considered as vertical often lending FDI its vertical nature (Goswami, 2013). A firm usually prefers acquiring locations in developed or developing nations as they have the customer base with purchase capacity for their products. Countries like India, China and USA have become famous destinations for FDI. Multinational companies like Microsoft, Samsung and TATA have FDI in these countries. Big cities like Beijing in China, Mumbai in India and Washington D.C. in the USA are the most preferred location for setting up controlling units. Internalization: A multinational company is dependent on supply chains in all its markets. It can acquire ownership of the firms supplying it with very crucial materials in order to maintain standard in quality and competitive advantage in the market. Here, the supplier becomes a subsidiary or employee of the MNC and this is known as internalization. Again, an MNC may take over its service providers and ancillary unit to ensure speedy servicing and supply of parts at low price. This saves a companys budget and also increases its business. The company should use its huge international market to follow its internalization policy and execution. This will allow it to acquire local business unit in various areas and derive advantage from them. References: Beirne, P., South, N. (Eds.). (2013).Issues in green criminology. Routledge. Carnoy, M., Loyalka, P., Dobryakova, M., Dossani, R., Froumin, I., Kuhns, K., ... Wang, R. (2013).University expansion in a changing global economy: Triumph of the BRICs?. Stanford University Press. Carr, I., Stone, P. (2013).International trade law. 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Formulation of a Systemic PEST Analysis for Strategic Analysis.European academic research,2(5), 6478-492. Hutchens, M., Rego, S. (2013). Tax risk and the cost of equity capital.Available at SSRN. Janse van Rensburg, S., Barnard, S., Krger, M. (2016). Challenges in the potable water industry due to changes in source water quality: case study of Midvaal Water Company, South Africa.Water SA,42(4), 633-640. Johanson, J., Mattsson, L. G. (2015). Internationalisation in industrial systemsa network approach. InKnowledge, Networks and Power(pp. 111-132). Palgrave Macmillan UK. Laws, E. (1995).Tourist destination management: issues, analysis and policies. Routledge. Lungeanu, R., Zajac, E. (2014, January). Director Expertise and its Influence on Firm Strategy: Theory/Evidence from Firms after their IP. InAcademy of Management Proceedings(Vol. 2014, No. 1, p. 17095). Academy of Management. Mnsson, A. (2014). 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Needs of Special Offenders free essay sample

The Needs of Special offenders Inmates with special needs, the mentally ill, and the substance abusing inmates all make up a large number of the prison population. These inmates affect the prison systems in different ways. Providing programs for the mentally ill inmates is extremely difficult for correctional staff. A very high percentage of inmates in the prison system have a mental illness. The demands for security for these inmates can be very challenging to program efforts. Correctional agencies are not equipped to provide mental health programs to the inmates to the same extent as mental health agencies. Mental health programs are critical to the accomplishment of the correctional facility. Correctional facilities provide multileveled and integrative programs to the mentally ill inmates. Without treatment the mentally ill inmates will be unable to prepare for release and they will not be able to reenter the community. The correctional mental health program must be effective in transitioning the inmate back to the community. We will write a custom essay sample on Needs of Special Offenders or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Prior to release, the prison and post release staff ensure that the inmate will receive the proper treatment from the community mental health programs. Substance abuse programs is a must have in a correctional environment because a high number of inmates have a history of alcohol or drug abuse. Fifty-three percent of state inmates and 45. 5 percent of federal prison inmates were classified as having an alcohol or drug abuse dependency. Substance abuse treatment in prisons is critically important, as the Office of National Drug Control Policy reports that treatment while in prison and during postincarceration supervision can reduce recidivism by roughly 50 percent. Historically however, the treatment needs of drug abusing inmates has gone unmet while they are in prison. In a 1991 study by the U. S. General Accounting Office, it was estimated that fewer than 20 percent of identified substance abusers were enrolled in a prison substance abuse program. In a 1998 report, only 24 percent of state inmates were estimated to receive treatment over the course of a year. 5 The percentage of inmates receiving treatment has improved over the past decade. †(Corrections: An Introduction, Third Edition, CH 13. Pg 444) Residential treatment for substance abuse is the most effective type of treatment because it is the most intensive and the inmates live in a unit that is completely focused on substance abuse treatment. Residential treatment is the most expensive but, only 3. 3 percent of the inmates treated in a residential environment, were rearrested within the first six months of release. If the special needs of the mentally ill inmates do not get met and do not get cared for properly, the inmates will not get the proper care they need. The mentally ill inmates will be released back to the streets in the same condition they were in upon entry. If the needs of these inmates do not get addressed, it will defeat the entire purpose behind the mission of corrections, rehabilitation. The mentally ill inmates and the inmates with special needs will cause disruption amongst the prison, this will cause disturbances between the inmates and the security staff. This will cause injuries to the staff and inmates. The inmates that have substance abusive problems will seek the means in acquiring drugs and alcohol from the other inmates and security staff, in order to satisfy their addiction. Inside the correctional facilities is a mental health treatment program. The mental healt treatment programs play a critical role in rehabilitation of the offender, the better the treatment, the less likely the offender will be likely to commit the crime again. Mental health programs have a continuum of care in order to provide various levels of care based on the needs of every inmate treated. The most intensive level is the inpatient hospital inside of the facility. The inpatient treatment is for the inmate with needs for aggressive treatment. The facility has short term crisis units that stabilize symptoms and send inmate back to general population when treated. The third unit is a residential unit that treats the inmate in a general population setting so the inmates still interact with other inmates.