Effect of Microsofts Monopolistic Approach

Effect of Microsofts Monopolistic Approach The Effect of Microsofts Monopolistic Approach to Software Bundling on Innovation and Competition.   Contents (Jump to) Chapter 1 Introduction Chapter 2 – Literature Review 2.1 Monopolist or Fierce Competitor 2.2 Bundling, Innovative or Stifling Competition 2.2.1   Bundling Examples in Other Industries 2.3 The Case Against Microsoft Chapter 3 – Analysis 3.1 Bundling, Competitive or Market Restrictive? 3.2 Strategies to Gain Market Share 3.3 Microsoft and The European Union Chapter 4 – Conclusion Bibliography Chapter 1 Introduction When mentioning Microsoft, one’s thoughts naturally turn to computers, as the two are inexorably tied together. And while they both need each other, software was the latter development in this marriage of needs. Based upon digits, computers utilize this foundation as the basis for their computations (Berdayes, 2000, p. 76). A digit is a â€Å"†¦ numeral †¦ that represents an integer †¦Ã¢â‚¬  and includes †¦ any one of the decimal characters ‘0’ through ‘9’ †¦Ã¢â‚¬  as well as â€Å"†¦ either of the binary characters ‘0’ or ‘1’ †¦Ã¢â‚¬  (Atis, 2005). Computers utilize digits under the ‘base-2 number system’, which is also termed as the ‘binary number system’ (Berdayes, 2000, p. 3). The base-2 system is utilized in computers as it implements easier with present day technology. A base-10 system could be used, however its cost in terms of technology innovation woul d make computers prohibitively expensive (Berdayes, 2000, pp. 53-56). Via the utilization of binary digits as opposed to decimal digits, bits thus have only two values, ‘0 and 1’ (Barfield and Caudell, 2001, p. 344, 368). The preceding is important in understanding the relationship of numbers to computers as well as Microsoft’s later entrance into this world. The following provides a visual understanding of how this works: Table 1 – Decimal Numbers in the Binary System (Swarthmore University, 2005) Decimal Number Binary Number 0 = 0 1 = 1 2 = 10 3 = 11 4 = 100 5 = 101 6 = 110 7 = 111 8 = 1000 9 = 1001 10 = 1010 11 = 1011 12 = 1100 13 = 1101 14 = 1110 In computers, bits are utilized in conjunction with bytes, which are represented as ‘8-bit bytes’ that work as follows: Table 2 – 8 Bit Bytes (Barfield and Caudell, 2001. pp. 50-54) Decimal Number Bytes 0 = 0000000000000000 1 = 0000000000000001 2 = 0000000000000010 65534 = 1111111111111110 65535 = 1111111111111111 The earliest computer has been traced back to the ‘abax’, which is the Greek word that describes ‘calculating board’ as well as ‘calculating table’ which as invented in China and called the abacus, it was also used in ancient Greece, the Roman Empire, Russia, Japan, and is still in use by the blind (qi-journal.com, 2005). Operating much as the bits and bytes in the modern computer, the abacus has a vertical row of beads that represent multiples of 10, 1, 10, 100, 1,00 and so forth (qi-journal.com, 2005). The basic principle of the abacus operates in much the same manner as the modern computer, through numerical representation. The first generations of modern computers were huge in comparison with today’s small, powerful and fast machines, and needed air-conditioned rooms to dissipate the heat. Programming on the first commercial computer in 1951, the UNIVAC, was a group of related mechanisms driven my mathematical equations that had to be written in order for the UNIVAC to work on problems (hagar.up.ac.za, 2006). It would take another 6 years for the first personal computer to be developed, the IBM 610 Auto-Point, which was termed as a ‘personal computer’ because it only took one individual to operate it, however, the cost in 1957 termed at $55,000 translates in to well over $100,000 in today’s value (maximon.com, 2006). In 1975 saw the introduction of the Altair 8800, which sold for $439, with 256 bytes of RAM, which also represented the year that Bill Gates, along with Paul Allen founded Microsoft (maximon.com, 2006). Altair was seeking a computer language, which Gates and Allen delivered via a program called BASIC on 23 July 1975, which they gave the company â€Å"†¦ exclusive worldwide rights to †¦ for 10 years† (Rich, 2003, p. 34). Sold as an add-on with the Altair 8800 for $75, the preceding provided the revenue underpinnings for Microsoft (Rich, 2003, p. 35). Generating just $381,715 in 1977, Microsoft was upstaged by Apple Computers that made machines as well as their own operating system (Rich, 2003, p. 36). Apple’s success caught the attention of IBM, which was not in the personal computer market, the foregoing was the means via which Gates entered the picture with IBM based upon DOS, program it secured from Seattle Computer for just $50,000 that heralded the beginni ngs of the industry giant (Rich, 2003, p. 51). Microsoft MS-DOS represented the foundation for the beginning financial strength of the company, which would enable it to develop Windows 95 and successive versions leading to Vista in 2007. Along the way, Microsoft has been accused, rightly or wrongly, of a monopolistic approach to software bundling that has stifled competition and innovation. This paper will seek to examine this facet, its effects, how it happened and the ramifications of the statement. Chapter 2 – Literature Review 2.1 Monopolist or Fierce Competitor In â€Å"Trust on Trial: How the Microsoft Case is Reframing the Rules of Competition†, by Richard McKenzie (2000, p. 1), reflects that Microsoft in the last 25 years has become â€Å"†¦ the worlds premier software company, dominating many of the markets it has entered and developed†¦Ã¢â‚¬  and also finds itself â€Å"†¦under legal assault †¦Ã¢â‚¬  for monopolist behaviour. McKenzie (2000, p. 2) indicates that in the United States â€Å"†¦its the Justice Department against Microsoft, but behind the courtroom scenes there has been a good deal of political maneuvering by other major American corporate high-tech combatants -Sun Microsystems, Oracle, Netscape, IBM, and America Online, to name just a few who would like nothing better than to see their market rival, Microsoft, get its comeuppance in the court of law†. In this instance it is the â€Å"†¦efficacy of antitrust law enforcement has been on trial† as the Microsoft case repr esents â€Å"†¦the first large-scale antitrust proceedings of the digital age;† (McKenzie, 2000. p. 2). McKenzie (2000, p. x) reflects upon the government case against Microsoft as a monopolist, indicating that while its operating system comes â€Å" †¦ preloaded on at least nine of every ten computers containing Intel microprocessors sold in the country, if not the world† was it this that made the company a monopolist? The market dominance that Microsoft has in the fact that its operating system comes preloaded in over 90% of the computers sold was expressed by the former United States Republican candidate Robert Dole, who stated â€Å"Microsoft’s goal appears to be to extend the monopoly it has enjoyed in the PC operating system marketplace to the Internet as a whole, and to control the direction of innovation. (McKenzie, 2000, p. 28). This view was also repeated by the media as well as New York Attorney General Dennis Vacco who see Microsoft’s â€Å"†¦product development strategies are evidence of monopoly power: †¦Ã¢â‚¬  in that the â€Å" †¦ Windows operating system has become almost the sole entry point to cyberspace† (McKenzie, 2000, p. 29). It is without question that Microsoft’s dominance resulting from preloaded operating software provides it with an advantage in introducing other forms of software. But, is that simply good business practices o r predatory behaviour? For consideration, McKenzie (2000, p. 47) points to the book written by Judge Bork â€Å"The Antitrust Paradox† where he stated repeatedly †¦ antitrust should not interfere with any firm size created by internal growth †¦. And like it or not, that is how Microsoft got into the position it now enjoys. But, in all the rhetoric, there is another facet to Microsoft’s dominance, the PC manufacturers themselves. As stated by the manufacturers themselves, there simply is no other choice! (McKenzie, 2000, p. 29). Eric Browning, the chief executive of PC manufacturer Micron has said I am not aware of any other non-Microsoft operating system product to which Micron could or would turn as a substitute for Windows 95 at this time† (McKenzie, 2000, p. 30). This sentiment was also echoed by John Romano, an executive at Hewlett-Packard who advised †¦ we dont have a choice †¦ (McKenzie, 2000, p. 30). The tie-in between monopoly power and market dominance has been explained by Franklin Fisher, the chief economist for the Justice Department as Monopoly power is a substantial degree of market power, or the ability of a firm (a) to charge a price significantly in excess of competitive levels and (b) to do so over a significant period of time (McKenzie, 2000, p. 30). Fisher further asserts that Microsoft’s dominance in the market â€Å"†¦ is protected by barriers to entry in the form of economies of scale in production, network effects, and switching costs †¦ (McKenzie, 2 000, p. 30). Fisher adds that â€Å"There are no reasonable substitutes for Microsoft’s Windows operating system for Intel-compatible desktop PCs. Operating systems for non-Intel-compatible computers are not a reasonable substitute for Microsoft’s Windows operating system because there would be high costs to switching to non-Intel-compatible computers like Mac and Unix† (McKenzie, 2000, p. 30). However, the monopolistic tendencies of Microsoft have not resulted in the company charging higher prices as a result of its dominant position. This view was put forth by the chief economic consultant for the state attorneys general in that â€Å"†¦the absence of viable competitors in Intel-compatible operating systems means that Microsoft doesnt have to worry about raising its price or using its economic weight in other ways †¦Ã¢â‚¬  (McKenzie, 2000, p. 30). He asserts that â€Å" †¦ a monopolist would continue to raise its price so long as its profits rose. †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Something that Microsoft has not done. Such is inconsistent with the manner in which monopolists behave. The line of reasoning for the preceding is that â€Å"†¦the cost of the operating system represents on average 2.5 percent of the price of personal computers (and at most 10 percent for very inexpensive personal computers), so even a 10 percent increase in the pr ice of the OS [operating system] would result at most in a 1 percent increase in the price of even inexpensive PCs †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Warren-Boulton thus concludes â€Å"†¦that Microsofts price for Windows is very likely far below the monopoly price †¦Ã¢â‚¬  which is a result of â€Å"†¦the so-called coefficient of the price elasticity of demand facing any firm (the ratio of the percentage change in the quantity to the percentage change in the price †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Therefore, argues McKenzie (2000, p. 32) a monopolist would not price its product in the very low range, â€Å"†¦because a very low elasticity implies that a price increase will increase profits †¦Ã¢â‚¬ , thus the government’s case has opposing views of Microsoft’s monopolist position, a telling facet in considering the overall implications of the company. The foregoing direct contradicts Franklin Fisher’s, the chief economist for the Justice Department, claims that Microsoft earns â€Å" †¦ superhigh profits †¦Ã¢â‚¬ , which its low prices does not support (McKenzie, 2000, p. 32). Thus, in being a so-called monopolist, Microsoft’s pricing policies do not reflect the behaviour of one. The complicated market, competitive, product and business realities of Microsoft in a competitive market must also be viewed as the company taking actions to protect its position through new product introductions as well as making it difficult for compe titors to gain an edge, the manner in which all firms operate if they intend to remain in business and continue as market leaders. The fact that Microsoft provides its Internet browser free along with its operating system, serves the interest of customers in that they have this feature already available in the purchase of their computers. It also represents a competitive action that limits other browsers from gaining an edge in the market. McKenzie (2000, p. 32) aptly points our that â€Å" †¦ Any firm that is dominant in a software market isnt likely to want to give up its dominance, especially if there are substantial economies of scale in production and network effects in demand †¦Ã¢â‚¬ , something with both Fisher as well as Warren-Boulton indicate is true in the software industry. McKenzie (2000, p. 32) adds that if Microsoft where to start losing market share for its operating system â€Å"†¦it could anticipate problems in keeping its applications network intact, which could mean its market share could spiral downward as a new market entrant makes sales and those sales lead to more and more applications being written for the new operating system †¦Ã¢â‚¬ . The flaw in the monopolist argue, as pointed out by McKenzie (2000. p. 34) is that even if a company had a 100% share of the market â€Å"†¦it must price and develop its product as though it actually had market rivals because the fi rm has to fear the entry of potential competitors †¦Ã¢â‚¬ . To make his point, McKenzie (2000, p. 34) points to classic microeconomics textbooks that teach that a monopolist represents a ‘single producer’ â€Å"†¦that is capable of restricting output, raising its prices above competitive levels, and imposing its will on buyers †¦Ã¢â‚¬  therefore in the position of the U.S. Justice Department, Microsoft’s high, 90%, market share is a near or almost monopoly, that McKenzie (2000, p. 34) aptly states is like almost being pregnant, you either are or you aren’t. To illustrate his point, McKenzie (2000, p. 34) points to the company called Signature Software, which at the time had â€Å"†¦100 percent of the market for a program that allows computer users to type their letters and e-mails in a font that is derived from their own handwriting†. He adds that despite it being the singular producer in the market, the company â€Å"†¦prices its software very modestly, simply because the program can be duplicated with relative ease.† McKenzie (2000, p. 34) also points out that Netscape at one time almost completely dominated the browser market, yet did not price its advantage in monopolist fashion. In protecting its position, Microsoft developed and introduced new products, all of which any other firm had the opportunity to do and thus innovate, yet such did not happen. McKenzie (2000, p. 137) asserts that the aggressive development of new products by Microsoft was in defense of its market position as well as being good marketi ng and customer satisfaction practices. He points to the following innovations by Microsoft that helped to cement is market dominance and stave off competitive inroads, all of which could have been created by other firms (McKenzie, 2000, p. 137): 1975 Microsoft develops BASIC as the first programming language written for the PC. A feat that could have been accomplished by anther firm had they innovated and gotten the initial contract with Altair for the 8800. 1983 Microsoft developed the first mouse based PC word processing program, Word. 1985 The company develops the first PC based word processing system to support the use of a laser printer. 1987 Microsoft’s Windows/386 became the first operating system to utilize the new Intel 32-bit 80386 processor. 1987 Microsoft’s introduces Excel, the first spreadsheet that was designed for Windows. 1989 Word became the first word processing system to offer tables. 1989 Microsoft Office becomes the first business productivity application offering a full suite of office tools. 1991 Word becomes the first productivity program to incorporate multimedia into its operation. 1991 Word version 2.0 becomes the first word processing program to provide drag and drop capability. 1995 Internet Explorer becomes the first browser to support multimedia and 3D graphics 1996 Microsoft’s Intellimouse is the first pointing device to utilize a wheel to aid in navigation. 1996 Microsoft introduces Picture It, the first program to permit consumers to create, enhance and share photo quality images over their PC’s. 1997 DirectX becomes the first multimedia architecture to integrate Internet ready services. 1998 Microsoft’s WebTV in conjunction with the hit television show Baywatch becomes the first internationally syndicated Internet-enhanced season finale. 1999 Windows 2000, which later becomes Windows NT adds the following innovations as firsts to a PC operating system, Text to speech engine, Multicast protocol algorithms that are reliable, Improvements in the performance registry, Inclusion of DirectX, Vision based user interfaces, Handwriting recognition, and a number of other innovations to enhance its operating system, and maintain as well as increase its market position. The preceding represents examples of innovation spurred by Microsoft that could have been introduced by its competitors in various fields first, but where not. Thus, Microsoft in these instances, as well as others introduce consumer enhancing innovations to further its market dominance through aggressive new product development, a path that was open to others as well. 2.2 Bundling, Innovative or Stifling Competition Rosenbaum’s (1998) book â€Å"Market Dominance: How Firms Gain, Hold, or Lose it and the impact on Economic Performance† provides a perspective on the means via which companies gain as well as lose market share, and the tactics they employ to best their competition. Few people remember that when Microsoft introduced Microsoft Word and Excel, the dominant software programs for word processing and spreadsheets were Lotus 1-2-3- and WordPerfect (Rosenbaum, 1998, p. 168). In fact, WordPerfect was the application found in all businesses, period (Rosenbaum, 1998, p. 168). Each of the preceding applications cost approximately $300, which Microsoft bested by selling his Office Suite program for $250. Through providing limited use Word programs in Windows, consumer had the chance to test Word before buying it (Rosenbaum, 1998, p. 168). More importantly, Microsoft’s spreadsheet, word processing, presentation programs were simply better and easier to use that the competitio n. By innovatively offering a free limited version of Word with the operating system, Microsoft induced trial, to which it had to follow up on with a better product. In looking at competitive practices and competition analysis, there is a relationship that exists between the structure of the market and innovation, to which Hope (2000, p. 35) poses the question as to â€Å"†¦whether monopoly is more conducive to innovation than competition †¦Ã¢â‚¬ . Hope (29000, p. 35) indicates that in response to the foregoing, there is no â€Å"†¦clear-cut answer, probably because there is none †¦Ã¢â‚¬ . Hope (2000, p. 35 puts forth the theory that â€Å"†¦Most economists, and virtually all designers of competition policy, take market structure as their starting point as something which is somehow, almost exogenously, given (although it may be affected by competition policy), and which produces results in terms of costs, prices, innovations, etc †¦Ã¢â‚¬  However, Hope (2000, p. 35) tells us that this is wrong, based upon elementary microeconomics, as â€Å"†¦Market structure is inherently endogenous†¦ (and is) â⠂¬ ¦ determined by the behaviour of existing firms and by entry of new ones, simultaneously with costs, prices, product ranges, and investments in RD and marketing†. Exogenous variables, if they in fact exist in a particular situation, represent facets such as product fundamentals such as â€Å"†¦production processes, entry conditions, the initial preferences of the consumers, variables determined in other markets, and government policy †¦Ã¢â‚¬  (Hope, 2000, p. 35). As a result, Hope (2000, p. 35) advises that the questions as to whether â€Å"†¦there will be more innovation with monopoly than with competition is no more meaningful than to ask whether price-cost margins will be higher if costs are high than if they are low †¦Ã¢â‚¬ . 2.2.1 Bundling Examples in Other Industries Aron and Wildman (1999, p. 2) make the analogy of Microsoft’s bundling methodology with that of cable television whereby a broadcaster how owns a â€Å"†¦ marquee channel can preclude competition in thematic channels (such as comedy or science fiction channels) by bundling their own thematic channels with the †¦Ã¢â‚¬  marquee channel. The preceding illustrates the idea that consumers tend to value channels such as HBO, Cinemax and Showtime that their reputation helps to cause consumers to consider other program platforms they offer. These channels advertise their other channels on their marquee stations and vise versa, offering bundling of channels at reduced prices to encourage purchase. Aron and Wildman (1999, p. 2) offer the logic that â€Å"†¦a provider that attempts to compete by offering a thematic channel on a stand-alone basis, without an anchor channel, would not be able to survive the competitive pressure of a rival with an anchor.† The argume nt that having a marquee channel, or anchor, is key to the viability of broadcasters is supported by the development of pay television in the United Kingdom. Aron and Wildman (1999, p. 2). The dominant pay television supplier is BSkyB which controls â€Å"†¦most of the critical programming rights in Britain, enabling it to use bundled pricing to execute a price squeeze against rivals †¦Ã¢â‚¬  which as in the case of Microsoft â€Å"†¦the pay television industry is that a firm that monopolizes one product (here, an anchor channel) can effectively leverage that monopoly to preclude competition in another product market by using bundled pricing† (Aron and Wildman, 1999, p. 2). Aron and Wildman (1999, p. 3) provide another example of how firms utilize bundling to inhibit their competition, through the example of Abbott and Ortho laboratories, which produce blood-screening tests utilized to test blood that is donated for viruses. Interestingly Abbott produced all five of the test utilized to check for viruses, whereas Ortho only produced three, thus Abbott bundled the five tests in a manner that Ortho was unable to compete, thus effectively making it a monopolist (Aron and Wildman (1999, p. 3). Were these good business practices that this enabled Abbott to increase its market share at the expense of another company that did not innovate in producing all five tests to complete? Ortho claimed that â€Å"†¦Abbott was effectively a monopolist in two of the tests, Ortho claimed that Abbott could and did use a bundled pricing strategy to leverage its monopoly into the other non-monopolized tests and preclude competition there† (Aron and Wildman, 1999, p. 3). The preceding examples show â€Å"†¦that a monopolist can preclude competition using a bundled pricing strategy †¦Ã¢â‚¬  (Aron and Wildman, 1999, p. 3) and that in so doing can accomplish such without charging prices in excess of what is reasonable for their customers, which makes sound business sense in that capturing the market thus eliminates the need for such, and also provides the business condition that prevents competitors from re-entering the market at lower prices. Thus it is rational for a monopolist to behave as if competitors exist, which in fact they will if it provides such an opportunity through increased pricing. The examples indicated show that â€Å" †¦ it is indeed possible in equilibrium for a provider who monopolizes one product (or set of products) to profitably execute a fatal price squeeze against a rival in another product by using a bundled pricing strategy† (Aron and Wildman, 1999, p. 3). 2.3 The Case Against Microsoft Spinello (2002, p. 83) in his work â€Å"Regulating Cyberspace: The Policies and Technologies of Control† inform us that there are four distinct aspects of the United States government case which is based upon violations of the Sherman Act, which are as follows: The company’s monopolization of the PC operating systems market was achieved via anticompetitive means, specially in the instance of the utilization of its browser, in violation of â€Å"Section 2 of the Sherman Act, which declares that it is unlawful for a person or firm to â€Å"monopolize†¦any part of the trade or commerce among the several States, or with foreign nations† (Spinello, 2002, p. 83). That Microsoft engaged in â€Å"†¦Unlawful exclusive dealing arrangements in violation of Sections 1 and 2 of the Sherman Act (this category includes Microsoft’s exclusive deal with America Online)† (Spinello, 2002, p. 83). That Microsoft in its attempt to maintain it competitive edge in browser software â€Å"†¦attempted to illegally amass monopoly power in the browser market) in violation of Section 2 of the Sherman Act †¦Ã¢â‚¬  (Spinello, 2002, p. 83). And that the bundling of its browser along with the operating system was in violation of â€Å"†¦Section 1 of the Sherman Act (Section 1 of this act prohibits contracts, combinations, and conspiracies in restraint of trade, and this includes tying arrangements) †¦Ã¢â‚¬  †¦Ã¢â‚¬  (Spinello, 2002, p. 83). Spinello (2002, p. 89) provides an analysis of the Department of Justice case against the company utilizing a distinct example as represented by Netscape. He contends that the option for consumer choice was never inhibited by Microsoft, and that Netscape’s own practices contributed to the decline in popularity of its browser. Chapter 3 –Analysis 3.1 Bundling, Competitive or Market Restrictive? The Concise Dictionary of Business Management (Statt, 1999, p. 109) defines a monopoly as â€Å"A situation in which a market is under the control or domination of a single organization †. The Dictionary continues that â€Å"This condition is generally considered to be met at one-quarter to one-third of the market in question (and that) †¦ A monopoly is contrary to the ideal of the free market and is therefore subject to legal sanctions in all industrialized countries with a capitalist or mixed economy†. In addressing this facet of the Microsoft case, McKenzie (2000, p. 27) elaborates that Microsoft’s market position as a ‘single seller’ in the market as a result of its dominance represents â€Å"†¦ latent, if not kinetic, monopoly power† and in the opinion of the judge presiding over the case, the company is â€Å"†¦illegally exploiting its market power in various ways to its own advantage and to the detriment of existing and potential market rivals and, more important, consumers†. This goes to the heart of the matter concerning the assertion that Microsoft’s monopolist approach is stifling competition and innovation as its bundling practices effectively eliminates software such as Netscape and others from becoming an option for other companies as the Internet browser Explorer comes preloaded with Windows and Vista operating software. This view was publicly asserted by the United States Attorney General at the time, Janet Reno in a 1997 press conference where she stated on behalf of the Justice Department that Microsoft is unlawfully taking advantage of its Windows monopoly to protect and extend that monopoly (McKenzie, 2000, p. 27). Gillett and Vogelsang (1999, p. xiv) in â€Å"Competition, Regulation, and Convergence: Current Trends in Telecommunications Policy Research† advise that â€Å"†¦Bundling is a contentious element of software competition that has been at the heart of the Microsoft antitrust litigation, and represents an integral aspect in the examination of how and if Microsoft’s monopolistic approach to software bundling has an effect on innovation and competition. They state that â€Å" †¦ through bundling, can profitably extend this monopoly to another product, for which it faces competition from a firm offering a superior product (in the sense that it would generate more surplus than the product offered by the monopolist) (Gillett and Vogelsang, 1999, p. xiv). They continue that â€Å"†¦Bundling the two products turns out to be an equilibrium outcome that makes society in general and consumers in particular worse off than they would be with competition without bundl ing †¦Ã¢â‚¬ . Gillett and Vogelsang (1999, p. xiv) offer the idea that â€Å"†¦bundling is likely to be welfare reducing and that unbundling would not be a suitable remedy †¦Ã¢â‚¬  Aron and Wildman (1999, p. 1) advise us that through the use of bundling a company can exclude its rivals through the combined pricing, thus successfully leveraging its monopoly power. They continue that the preceding represents part of an equilibrium strategy by which the monop

Organisational Behaviour Essay -- Business Management

â€Å"The study of the structure, functioning and performance of organisations, and the behaviour of groups and individuals within them† Derek Pugh’s (1971) This influential definition of organisational behaviour was by Derek Pugh in 1971. Human behaviour is the way people act and react to situations and circumstances, each individual is different, therefore it is essential for an organisation to study human behaviour in order to understand the workforce. By observing and understanding each individual the organisation would improve performance; organisational behaviour can be considered as the key area of management. Organisations study organisational behaviour within by; investigating individuals, social perception, attitudes and emotions. By doing so they are able to determine whether motivation is existent and if so, is it successful. How individuals work in groups and teams is important for unity within organisations therefore it is crucial to know how people communicate amongst their group/teams and how well is the outcome when they do. Employees can become stressed which would affect them a great deal because an employee stressed would not be able to work to his/her potential. However this would be the least of the organisations worry because stress affects an employee’s psychological well-being a great deal, this is dire for both the organisation and the individual. We know how these factors fit into the reason behind studying organisational behaviour however its relevance in today’s organisations is still a question, I’m going to discuss two of the factors in more det ail and relate to whether they are relevant or not in today’s organisations. †¢ Personality Human Behaviour in an organisation needs to ... ...line Etymology Dictionary. Source location: Douglas Harper, Historian. http://dictionary.reference.com/browse/motivation. Available: http://dictionary.reference.com. Accessed: December 08, 2010. http://tutor2u.net/business/people/motivation_theory_introduction.asp http://vintechnology.com/journal/?p=47 http://www.mmdnewswire.com/sham-dayal-pmp-13943.html http://www.management-issues.com/display_page.asp?section=opinion&id=6100 http://books.google.co.uk/books?id=8PvwwrWnX5IC&printsec=frontcover#v=onepage&q=motivation&f=false (book reference) pg 249, 2000 http://www.accel-team.com/human_relations/hrels_05_herzberg.html http://en.wikipedia.org/wiki/Frederick_Herzberg http://www.accel-team.com/maslow_/maslow_nds_02.html http://www.management-issues.com/display_page.asp?section=opinion&id=6100 http://www.love2reward.co.uk/rewards/info-centre/motivation.jsp Organisational Behaviour Essay -- Business Management â€Å"The study of the structure, functioning and performance of organisations, and the behaviour of groups and individuals within them† Derek Pugh’s (1971) This influential definition of organisational behaviour was by Derek Pugh in 1971. Human behaviour is the way people act and react to situations and circumstances, each individual is different, therefore it is essential for an organisation to study human behaviour in order to understand the workforce. By observing and understanding each individual the organisation would improve performance; organisational behaviour can be considered as the key area of management. Organisations study organisational behaviour within by; investigating individuals, social perception, attitudes and emotions. By doing so they are able to determine whether motivation is existent and if so, is it successful. How individuals work in groups and teams is important for unity within organisations therefore it is crucial to know how people communicate amongst their group/teams and how well is the outcome when they do. Employees can become stressed which would affect them a great deal because an employee stressed would not be able to work to his/her potential. However this would be the least of the organisations worry because stress affects an employee’s psychological well-being a great deal, this is dire for both the organisation and the individual. We know how these factors fit into the reason behind studying organisational behaviour however its relevance in today’s organisations is still a question, I’m going to discuss two of the factors in more det ail and relate to whether they are relevant or not in today’s organisations. †¢ Personality Human Behaviour in an organisation needs to ... ...line Etymology Dictionary. Source location: Douglas Harper, Historian. http://dictionary.reference.com/browse/motivation. Available: http://dictionary.reference.com. Accessed: December 08, 2010. http://tutor2u.net/business/people/motivation_theory_introduction.asp http://vintechnology.com/journal/?p=47 http://www.mmdnewswire.com/sham-dayal-pmp-13943.html http://www.management-issues.com/display_page.asp?section=opinion&id=6100 http://books.google.co.uk/books?id=8PvwwrWnX5IC&printsec=frontcover#v=onepage&q=motivation&f=false (book reference) pg 249, 2000 http://www.accel-team.com/human_relations/hrels_05_herzberg.html http://en.wikipedia.org/wiki/Frederick_Herzberg http://www.accel-team.com/maslow_/maslow_nds_02.html http://www.management-issues.com/display_page.asp?section=opinion&id=6100 http://www.love2reward.co.uk/rewards/info-centre/motivation.jsp

Comparing And Contrasting Clear Felling And Selection System Environmental Sciences Essay

C. s. foresters use different Silvicultural systems in order to handle woods throughout its life. A silvicultural system can be defined as the procedure of be givening, reaping and renewing a wood. Forests and forest bases are treated, tended, harvested and regenerated utilizing different techniques. Felling of bases is a common intervention in order to reap lumber, to derive some net income but besides in order to renew woods. Based on the forest direction objectives a Forester or a forest proprietor can follow different silvicultural systems. During the past old ages a base was managed with the chief aim of lumber harvest home ( wood wood merchandises ) and a higher direct net income. Nowadays, due to the enhanced cognition and consciousness of the complexness of the environment and besides due to the consciousness of people for their quality of life, bases are non managed merely for lumber production but besides for ecological and resource aims. This includes clime alteration, quality of life, agreeableness and diversion, national and planetary pacts and ordinances / Torahs, conservationists concerns, planetary heating, C segregation and C emanations. The purpose of this study is to compare and contrast two Silvicultural systems. These are: a ) Clear Felling ( clear felling ) and B ) Choice system. Clear Felling is the system where the full base is cut at one time and so the country is either unnaturally or of course regenerated. Choice system is the system where some trees are harvested ( groups or single ) in order to do infinite for natural regeneration. Variations for both systems are discussed within the present study. Both of the discussed systems have a figure of advantages and disadvantages, and both can be used in woods and forests of any country, ever based on the forest direction aims. Clear Felling can be categorized in the undermentioned three classs: a ) Clear droping i whole base system, B ) Clear droping i progressive strip system and degree Celsius ) Clear droping i alternate strip system. Choice system can be categorized into: a ) The choice system and B ) The group choice system. 1. The Clear Felling System FAO defines Clear Felling as the technique applied in order to fell all trees found on a considerable country at one clip. Clear felling is done for two chief grounds, i.e. gross and regeneration. Many environmental groups are against this technique due to the fact that in most instances clear felling is carried out in big countries and therefore big countries are exposed to eroding and are cut downing the aesthetical, economical and societal value of the site. This is due to inauspicious impact of dirt, dirt eroding, agreeableness and wild-life. Impacts are present in the country until is regenerated and trees grow plenty to cover the country. Clear felling, is the system where all trees of a considerable country, i.e. larger than 1ha i as stated by Clayoquot Sound Scientific Panel, 1995, Chapter 3 i are removed and so the country is of course regenerated or regenerated by seting. This leads to a future even-aged base. Clear felling can be applied in bases with the undermentioned features: & A ; gt ; Stands where many dead, unhealthy, or diseased trees are found & A ; gt ; Stands where a batch of damaged trees is present ( amendss by air current or fire ) & A ; gt ; Stands with short rotary motion species, or with light demander species that can non turn in the shadiness & A ; gt ; Stands where after reaping desirable regenerations will be present or are predicted to be present Christou, 1995, states that Clear Felling can be categorized in the undermentioned three classs: a ) Clear droping i whole base system, B ) Clear droping i progressive strip system and degree Celsius ) Clear droping i alternate strip system. 1.1. Whole base Clear Cut System This is the Silvicultural System where the whole base is removed go forthing back a bare country. The country is so regenerated either of course or unnaturally i in most instances by seting ( Figure 1: Clear cut system ) . When natural regeneration ( seeding ) is to be applied, droping must be carried out in the leeward side in order to enable seeds to be blown by air current and to cover the clear cut country. ( Christou, 1995, p.75 ) . In instance that unreal regeneration with either seeding or seting is to be applied, the cost will be really higher due to the cost of seeds, workss but besides due to the high labor cost. Figure 1: Clear cut system Beginning: hypertext transfer protocol: //www.forestrynepal.org 1.2. Clear droping i Progressive Strip System With this system ( Figure 2: Clear cut – progressive strip system ) felling is carried out in the signifier of strips which progress in turn in one way across the regeneration country. The produced base will be even-aged if we consider each strip as a compartment. The regeneration largely comes of course from seeds from the staying standing strips/trees. The intent of this system is to derive entree to the base for transit, development and direction. Besides, is the proviso of unreal regeneration from next trees and the protection against air current and snow ( Christou, 1995, p. 78 ) . A new strip will be felled when sufficient regeneration of the old felled strip is present and when that strip is sufficient protected against inauspicious factors, like air current and snow. Figure 2: Clear cut – progressive strip system Beginning: hypertext transfer protocol: //www.forestrynepal.org 1.3. Clear droping i Alternative Strip System Is the system where felling is carried out in strips ( Figure 3: Clear cut – alternate strip system ) . Strips are at right angle to the air current way, enabling seeds from the staying untrimmed strips to be blown to the felled strips and therefore natural regeneration to be present ( hypertext transfer protocol: //www.forestrynepal.org ) . Uncut strips are to be cut when there are marks that equal natural regeneration is established in the antecedently felled strips i this system largely depends on natural regeneration. The breadth of the strips depends on assorted factors, like weight of seed ( seed travel distance blown by air current ) , terrain ( sloppy/flatted countries ) , inauspicious factors ( air current, snow ) ( Christou, 1995, p. 79 ) . Figure 3: Clear cut – alternate strip system Beginning: hypertext transfer protocol: //www.forestrynepal.org 1.4. Advantages and Disadvantages of the Clear Felling System 1.4.1. Advantages of the Clear Felling System Christou, 1995, p.75 and Nyland, 1996 province that the advantages of the clear felling system are the undermentioned: & A ; gt ; It is the simplest of all Silvicultural systems. No particular proficient accomplishments are needed & A ; gt ; Higher outputs per unit of country and lower harvest home costs & A ; gt ; Better control of plagues, viing flora, better seedbeds, and better dirt lacks & A ; gt ; Easier supervising and direction of droping operations & A ; gt ; Where unreal regeneration ( seeding or seting ) is to be used, coveted species can be established since this is up to the director manus & A ; gt ; Regeneration failures can be seen really early ( from the 2nd twelvemonth ) , and so crushing up of failures can be carried out & A ; gt ; Less or even no amendss to the staying trees & A ; gt ; If unreal regeneration will be applied or if natural regeneration which will be decently tended will be applied, the freshly established trees will be clearer from knots and more cylindrical due to natural pruning & A ; gt ; If unreal regeneration of the full country is carried out in one operation, the cost will be lower & A ; gt ; Distribution of age categories are nearing the normal more closely than other systems & A ; gt ; More light reaches the land therefore assisting the regeneration and constitution of the new harvest, particularly for light demander species & A ; gt ; Damages and / or losingss of lumber by windfall is avoided & A ; gt ; Most applicable system when mature and over mature bases are present system & A ; gt ; Easier application of fertilisers in the new harvest & A ; gt ; Easier control of insects and diseases since the whole base is removed & A ; gt ; Yield can be determined before reaping starts & A ; gt ; Specialized equipment designed for harvest home and site readying can be used due to the big country of the site, e.g. if really big country is to be felled, overseas telegram Cranes and reapers can be used 1.4.2. Disadvantages of the Clear Felling System Christou, 1995, p.76 and Nyland, 1996 province that the disadvantages of the clear felling system are the undermentioned: & A ; gt ; Is the worst system as respects biodiversity of a site – a batch of breaks to vegetations and fauna – taking all the big trees adversely impact some wildlife home ground & A ; gt ; Increased weeds invasion in clear felled countries & A ; gt ; In most instances unreal regeneration is applied, which is really dearly-won & A ; gt ; Clear felled countries are exposed for a long clip to weave, hoar and rain, therefore enduring from eroding & A ; gt ; Crop established after clear felling is an even-aged harvest which is normally less immune to weave and snow & A ; gt ; Immature trees are besides felled which non make their concluding increase i less gross & A ; gt ; Soil capacity and features is decreased & A ; gt ; Disturbance of the surface litter during logging displaces stored seeds and additions opportunities for surface eroding on sloppy countries, at least until new workss are grown plenty & A ; gt ; Landowners must hold equal stored seeds in order to use seeding & A ; gt ; The site factors are non to the full used. & A ; gt ; Lowering the aesthetic and diversion value of the country, until the new harvest is to the full established & A ; gt ; If markets can non absorb all the timber the system can non be applied & A ; gt ; Is non a good system for shadiness tolerant species which are used to turn easy under protection 2. The Choice System The Selection System differs from all other systems and is the system where felling ( selective fellings ) and regeneration are distributed over the whole of the country. Christou, 1995 provinces that the chief differences between Selection System and other systems are: a ) Fellings, cuttings and regeneration confined in all over the country and during the whole base life and B ) the ensuing base is uneven aged, where all age and size categories are found in every portion of the base. This system is really the iContinuous Cover Forestryi system, where in the country ever some trees are found standing. In this system, single or groups of trees are harvested to do infinite for natural regeneration. The established harvest is uneven-aged, where trees of all ages are found assorted together over every portion of the country. Regeneration operation is carried out throughout the life of harvest ( Hart, 1991, p. 252-253 ) . Felling of trees all over the country of a wood is possible when the country is little but if the country is big it is non possible to fell the trees over the full country yearly. Therefore, felling is done in a smaller country ( portion of the whole country ) after a certain figure of old ages, which is equal to the figure of the smaller countries i the interval scopes from five to ten old ages ( Hart, 1991, p. 252 ) . This interval is known as felling rhythm. It is really the clip between two consecutive fellings on the same country. In most of the times natural regeneration ( where favorable conditions are present ) will be present and therefore the freshly established base will hold all age and size categories ensuing to an uneven-aged base. In Cyprus, harmonizing to the Marking regulations for Pinus brutia and Pinus nigra, 1992, single trees ( individual tree choice system ) are selected for felling ( over mature, dead, deceasing, diseased, trees of unwanted species, trees with bad features, trees that when felled will enable younger and better trees to turn plenty without competency ) . Besides, in immature plantations, positive or negative choice is carried out. In instances that natural regeneration fails to be present, so seting or seeding is carried out. Figure 4: Choice system Beginning: hypertext transfer protocol: //www.forestrynepal.org Figure 5: Choice system Beginning: Dr. Owen Davies Et Al, 2008 Harmonizing to Christou, 1995, p. 87 and Dr. Owen Et Al, 2008, p.64 there are 2 types of Selection System, viz. a ) Single tree choice system and B ) Group Selection system. These two sub-systems are discussed moreover in the following paragraphs. 2.1. The Single-tree Selection System Is the system where felling of single trees is spread throughout the whole base, therefore enable the base to be regenerated within the whole base ( Dr. Owen Et Al, 2008, p. 64-65 ) . In most instances, single mature trees are selected for droping enabling replacement by regeneration ( Christou, 1995, p. 89 ) and therefore taking to a wholly uneven-aged base. This means that all size categories are distributed throughout the whole base. Felling of trees in the same country is merely possible when a little country is found. In instance of big woods this is non possible and so the country is divided into smaller coupes ( block ) , each coupe ( block ) is felled at regular intervals of non more than ten old ages. In each block cuttings are carried out when necessary ( Dr. Owen Et Al, 2008, p. 64 ) . Since all canopy stratas are to be present, natural pruning is present. Forest developed utilizing this system has a great aesthetical value with a more natural expression i all tree sizes are present within the whole country. Skilled forces are needed in order to choose trees for droping, following some regulations, e.g. remotion of dead, bad shaped, rivals etc. Besides, extraction cost would be higher and eventually give will be lesser than in even-aged bases. 2.2. The Group Selection System This system is largely used for light demanding species. In this system the felling is confined to a group of trees alternatively of any single 1. Besides, utilizing this system an uneven-aged base is produced. Felled countries are little in order to have protection and shelter from environing trees/areas ( Dr. Owen Et Al, 2008, p. 64 ) . If bigger countries are felled there is a high hazard of amendss caused by inauspicious climatic conditions, like air current and hoar ( Christou, 1995, p. 91 ) 2.3. Advantages and Disadvantages of the Selection System 2.3.1. Advantages of the Selection system Harmonizing to Christou, 1995, p.90-91 and Hart, 1991, p. 253-254 the advantages of the Selection system are the undermentioned: & A ; gt ; As respects aesthetical value this system is the most applicable, since the whole country will hold trees and regeneration & A ; gt ; Regeneration and stand amendss from air current and hoar amendss are limited & A ; gt ; Elimination of land and dirt eroding & A ; gt ; The general expression of the base is more of course since to the uneven-aged base produced & A ; gt ; Due to the flexibleness of the system we have better possible usage of the site & A ; gt ; Where market requires uninterrupted and little output this system is extremely recommended & A ; gt ; By opening the upper canopy the fire jeopardy is lower & A ; gt ; We can choose each one tree individually if it will be felled or non and this enables the director to fell merely those trees that have reached their increase halt & A ; gt ; Better shelter proviso to fauna and flora & A ; gt ; Weedss are better controlled, since less weeds will turn & A ; gt ; It gives the highest possible protection for sensitive species in order to renew and turn in inauspicious climatic conditions, like hoar and air current 2.3.2. Disadvantages of the Selection system Harmonizing to Christou, 1995, p.90-91 and Hart, 1991, p. 253-254 the disadvantages of the Selection system are the undermentioned: & A ; gt ; A high cognition and accomplishments are required & A ; gt ; Continuous fellings in the same country may non be perceived favorably by the populace & A ; gt ; No clearly output appraisal and finding & A ; gt ; Mostly shade tolerant species are favoured particularly in Single tree Selection system & A ; gt ; If there are jobs with insects and diseases in the country the control will be hard & A ; gt ; If certain harvest home methods are to be used so debasement of the site is possible & A ; gt ; High costs for be aftering and executing of the whole procedure ( taging, droping, regeneration ) & A ; gt ; Is non a suited system in croping countries & A ; gt ; During felling and extraction, hurts are caused to the standing trees & A ; gt ; There is non a determined period of thinning in which attending to the quality of the base will be given 3. Evaluation ( Comparisons and Contrasts ) of the two Silvicultural systems Taking into consideration all the above advantages and disadvantages of both Silvicultural systems, we can do some ratings and comparings, which are detailed discussed in the undermentioned paragraphs. 3.1. Fiscal considerations Under clear felling system there is no demand to engage specialised directors and labors, which will be of a higher cost, and since all trees are removed from the country net income will be higher. On the other manus, in most instances specialized heavy machineries are used for harvest home, conveyance, site readying and for planting/seeding and this addition the cost a batch. Using the clear felling system a big country and a batch of trees are felled. This means that the output will be the higher per unit of country. Besides, the activities cost per unit country will be much lower than in Selection system because machinery, labor, fellings and regeneration will be carried out in the same country. The cost for the extraction roads will be besides lower in the clear felling system ( Clayoquot Sound Scientific Panel, p. 53 ) . Site readying after clear felling is easier but more expensive per unit of country. Damages to standing trees and loss of lumber gross are besides avoided, since all trees are felled. Besides, in most instances where clear felling is used, unreal regeneration will be applied since no female parent trees to give their seed will be found in the neighbour country. On the contrary, by using choice system natural regeneration will be an evident, since a batch of environing female parent trees will be found. Sing regeneration, particularly if planting is to be applied in a clear cut country, seedlings will be of the coveted species, and the turning infinite will be controlled and so trees of better features will be grown ( Christou, 1995, p. 75, 90 ) . 3.2. Fauna and Flora Under Selection system, zoology and vegetation is less disrupted since trees are staying in the country. For illustration, under individual tree choice system if there is a nest on a tree, this tree will non be felled. Besides, in instances that sensitive or threatened flora species are found under some trees, or within a little country, the Forester will make up one's mind non to use droping on that country, enabling the protection and/or enlargement of this vegetation ( Christou, 1995, p. 75, 90 ) . 3.3. Aesthetic, Recreation and Amenity It is clear that, under Selection system, a natural visual aspect of the base will be produced i uneven aged base. This will increase the aesthetical value of the base and stand will be unfastened to public for diversion and agreeableness much earlier than if clear cut is applied ( Clayoquot Sound Scientific Panel, p. 54 ) . 3.4. Dirt and H2O protection In clear felling there is ever a large job with dirt eroding and landslides, since the whole felled country is unprotected from any trees. In choice system, particularly in the individual tree choice system the dirt is extremely protected from standing trees and staying land flora. Besides H2O catchments countries are enrich with much H2O ( Hart, 1991, p. 254 ) . 3.5. Tree features i shade tolerant / visible radiation demanding species When there is a demand to reforest an country utilizing light demanding species clear droping system is the most applicable since the base is opened plenty to acquire more visible radiation which favours their growing. If in the country shade tolerant species are found or if this type of species is to be used for re-afforestation so the Selection system is the most applicable. Under this system shade is provided to enable immature seedling to turn plenty and to be protected from inauspicious climatic conditions ( Christou, 1995, p. 90 ) . 3.6. Windfall, Insects, Diseases Animals and Weeds In the clear cut system there are no windfalls because all trees are felled, where in Selection System we may hold jobs with windfalls. Sing insects, diseases and animate beings the clear felling system offer more advantages since the country can be controlled by these inauspicious factors. All trees are cut and so no insects and diseases will stay in standing trees. Besides when there is a large job with animate beings, like the ruddy cervid in UK, a clear cut country can be fenced in order to avoid amendss to immature seedlings from animate beings ( Christou, 1995, p. 90 and Hart, 1991, p. 254 ) . In contrary, in the instance of weeds there will be a large job in clear cut countries because the whole country will be without any trees. In choice system there will be no job with weeds since weed invasion will be avoided due to the uninterrupted screen of the country with trees. 3.7. Ecosystem and Site factors Clear cut system will finish alter the ecosystem of the country. This will be really distinguishable in countries with trees that are hard to renew. With the application of Selection system the ecosystem is retained since ever trees will be present and will protect besides the under storey species. Now, sing site factors, e.g. in countries where there is a low precipitation, Selection system must be applied in order to protect and salvage H2O for immature regeneration. In the reverse, when the country has a high precipitation the clear cut system can be applied since immature seedling will non endure from draft. Decision Within the current study two chief silvicultural systems country discussed: a ) Clear felling and B ) Choice system. The first 1 does non follow any regulations since all the trees are felled, where in the 2nd system ( individual tree choice system ) a tree is removed if meets some standards. This indicates that particular cognition is needed. Both systems have many advantages and many disadvantages. In order to make up one's mind upon the system to be followed in an country, a batch of consideration must be taken, like, site conditions, direction ends, public agreeableness and diversion and public protests. In order to make up one's mind which Silvicultural system must be applied to each site a batch of factors must be examined such as the type of the harvest produced, site and climatic conditions, biological and fiscal considerations, biodiversity of the site and aesthetic factors. Both of the systems will give good consequences in their application if they are used in the correct sites with the right manner of application after analyzing in deepness of the factors mentioned above. Every system has its ain country of right application e.g. for United Kingdom which has a batch of rainfall but besides has a batch of jobs with windfalls Clear felling is the best system whether in Cyprus with really low precipitation and really dry summers Selection systems are the best for application. Besides for states where the lumber production and fiscal returns are the primary aims Clear cut is the most applicable system. Choice systems are the best systems for countries where aesthetic, diversion, nature preservation, ecology and sustainability are the chief aims.

Brown Recluse Spider,What You Should Know

The brown recluse spider, Loxosceles reclusa, has a bad and largely undeserved reputation. Across the U.S., people fear the bite of this spider, believing it is an aggressive attacker and certain to cause devastating necrotic wounds. Research on brown recluse spiders has proven these assertions to be false. Description The best-known feature of the brown recluse spider is the fiddle-shaped marking on the cephalothorax. The neck of the dark brown fiddle points toward the abdomen. Other than this marking, the brown recluse is a uniformly-colored light brown, with no stripes, spots, or bands of contrasting color. The violin marking is not a reliable identifying characteristic. Young L. recluses may lack the mark, and other Loxosceles species also display the fiddleback detail. Along with other Loxosceles species, brown recluses have six eyes, arranged in a semi-circle pattern of three pairs. This feature distinguishes Loxosceles spiders from most others, which commonly have eight eyes. The brown recluse lacks any stiff spines on its body but is covered with fine hairs. The only definitive way to identify the brown recluse spider, Loxosceles reclusa, is to examine the genitalia. With a body size of just a quarter inch long, this requires a high magnification microscope. Suspected brown recluse spiders should be brought to your county extension agent for expert identification. Dietrs The brown recluse spider feeds at night, leaving the security of its web to search for food. Current research reveals the brown recluse is primarily a scavenger, feeding on dead insects it finds. The spider will also kill live prey when needed. Life Cycle Brown recluse spiders live about two years. The female lays up to 50 eggs at a time, encasing them in a silken sac. Most egg production occurs between May and July, and a single female may lay five times within a year. When the spiderlings hatch, they remain with the mother in her web until they have molted a few times. Over the first year of life, the spiderlings will molt up to seven times before reaching adulthood. Special Adaptations and Defenses Brown recluse spiders use short fangs to inject a cytotoxic venom into prey. When provoked, a brown recluse spider will bite, and this venom may cause necrotic wounds to the person or animal that has been bitten. Venom is not the brown recluses primary defense, however. As the name recluse suggests, this spider is quite timid and spends the daylight hours in retreat, usually in its web. By remaining inactive during the day, the brown recluse limits its exposure to possible threats. Habitat Brown recluses prefer dark, undisturbed areas with low moisture. In homes, the spiders find shelter in basements, storage closets, garages, and sheds. During the day, they may hide in cardboard boxes, folded clothing, or even shoes. Outdoors, brown recluse spiders are found beneath logs, in wood and lumber piles, or under loose rocks. Range The established range of the brown recluse spider is limited to U.S. states in the central Midwest, southward to the Gulf of Mexico. Rare and isolated encounters with brown recluse in areas outside of this range are attributed to interstate commerce. Brown recluse spiders may seek shelter in cardboard boxes, and make their way to places outside their known range in shipments of goods.