The Benefits of an Aging Population Outweigh the Disadvantages

Ageing population is one of the most discussed matters. It is because fertility rate is steadily decreasing and life expectancy is increasing. Some believe that it is a huge problem whereas others stand on opposite view. In this writing I will explain why there are more benefits than cautions of the elder generation to the society. As human beings age, they become more dependent on the care of others. Traditionally, this care was provided by the family, but nowadays, the need for care presents a burden which many families cannot cope with.Moreover, elderly people need medical care, day centres, transport and leisure. All these points cause many economic consequences. The major problem is funding welfare systems, such as pensions and healthcare. That means that governments need to spend more. Consequently that could raise income taxes. Of course, elder citizens do need more heath care, but many others are fit, competent and self-sustaining. For instance, across Europe, typically only one retired person in 20 lives in a care home.In the UK, of 10m over 65s, just 3 percent live in care homes. In addition for that, those who survived drugs binges, fast cars, or bad marriages, are older, they are still rocking and making more use of condoms that their younger generation. For example, Mick Jagger and Tina Turner. Even they are in their 70s nobody has idea of a dependant. Furthermore, non-celebrities also remain active, assertive and independent.They fill library and seminar halls once crammed with callow youths. They run picket lines or marathons. Millions of the middle-class retired continue working and they are often more valuable than young workers. Some worry that older workforce will be less innovative and adaptable, but there is evidence that companies with a decent proportion of older workers are more productive than those addicted to youth. Finally, elder generation less hooked on the latest ‘gizmos’.They may even reduce pressure on the worldâ₠¬â„¢s recourses by consuming less, and by conserving environment. In conclusion, it is true that as getting older, mankind need more care and attention, both from the family and the government. However in the modern life, as medicine and technology developed, they are healthier and independent. From my prospective, in future old people will be expected to stay in the formal economy longer.

Difference Between Business Proposal and Formal Research Essay

The final objective of the business proposal and a formal research establishes the differences between the two studies. Business proposal has a practical orientation and is designed to find the best solution to a problem in order to generate either financial savings or greater revenue (Bazerman, M. H., & Moore, 2009). On the other hand, a formal research builds upon other comparable research to discover, demonstrate or test a hypothesis. It has no financial implications and generates a wide variety of findings that may be made applicable in a wide variety of contexts. Business proposal defines the problem as a business decision making concern, formal research estimates the problem as a potential contribution to scholarly research. When it comes to data gathering and use, business proposal looks for available data sources to make a decision, formal research produces own data to make a discovery. The approach for business proposal is to analyze different alternatives, for formal research is related to performing an experiment. Business proposal normally doesn’t use theoretical work ; on the other hand, formal research defines the theories that support the variable utilized in the hypothesis. The capability of the formal research consists of contributions to the academic world and the scholarly work while capability of a business proposal is to find solutions to business problems. Despite the many differences between business proposal and research project, there are some commonalities. One of them is that the findings in both cases may or may not be presented with headings and subheadings (Bazerman, M. H., & Moore, 2009). Business proposal and formal research should work together. If no formal research is present , the proposal will be useless. To write a business proposal, there is a need to conduct a formal research on the market. The reason it is so important is that the viability of the business can be determined. It wouldn’t be logic to initiate any kind of business if the products or services are not needed by the visualized market. Business decisions require intelligence and how research can provide that intelligence. Business proposals contextualize the findings from formal research in an existing organizational structure.

Acetabular fractures in the elderly Essay Example | Topics and Well Written Essays - 4750 words

Acetabular fractures in the elderly - Essay Example According to some studies, fractures of acetabulum account for more than 24% of operative fractures n the elderly population (5). Apart from the increase in the elderly population, the rate of acetabular fractures in this segment of population has also increased (5). Historically, acetabular fractures were treated on conservative lines. The management involved prolonged immobilization, casting, traction and pelvic slings. Advances in surgical technique, imaging modalities and our over all understanding of pelvic anatomy have opened ways for better operative management of acetabular fractures. Increased numbers of patients are now candidates to operative treatment owing to reduction in peri- operative morbidity and mortality, along with advances in anesthesia and medical management of multiple co-morbidities. As opposed to historical conservative management that involved prolonged immobilization, operative management provides the platform for early patient mobilization. Despite these advances, treatment of acetabular fractures continues to pose significant challenge to the orthopedic surgeons. This article will review various methods of managing and treating these fractures and their respective outcomes. Fractures of the acetabulum can result from various mechanisms. Majority of fractures involve low to moderate energy injuries and are due to fall from a standing position or short ladder (5 18 23). As the result of a fall, when greater trochanter strikes the ground, the pressure due to the hit drives the femoral head in an antero-medial direction into the anterior column and quadrilateral plate. The displacement of these structures results in medial subluxation of the femoral head which goes beneath the intact weight bearing dome of acetabulum. The weight bearing dome is defined as the superior 10 mm of the acetabulum on axial CT imaging, or the 45 degree roof arc as described by

Short Stories versus Repression of Desires and Love Research Paper

Short Stories versus Repression of Desires and Love - Research Paper Example Sylvia’s coming to the city has been of great help to the grandmother since she (Sylvia) has been very significant in assisting with the duty chores. In this short story, Jewett attempts to establish the understanding of love as well as repression of desires. After coming to the city, Sylvia has fallen in love with virtually everything and her new (Jewett 4). She loves and values every aspect of the city. Sylvia’s love for the animals and birds in the city prevents her from telling the hunter where the heron’s nest is located until she is given money and a gift of the knife. Keeping the secret of the heron’s nest brings out the idea of repressing the desire of whether to tell the hunter or not. On a different perspective, the hunter is in love with his activity as well as the heron. After discovering that there was a heron (rare bird) seen in the area, the hunter sets out to find it (Jewett 9). His desire or love for the heron makes him bribe Sylvia with a knife and money so that he can be shown the heron’s nest. This short story revolves around the life of Mrs. Hutchinson, a normal housewife, and the annually contested lottery. In this short story, there is a lottery that people participate to win on an annual basis. People participate in the lottery despite the fact that its price is not money but being stoned to death. Amazingly, people still anticipate the lottery irrespective of the end result. Mrs. Hutchinson knows this very well but she could not have fathomed the idea that one day she might be the winner of the lottery. One day, Mrs. Hutchinson’s family was chosen as the winner of the lottery. All these times, Mrs. Hutchinson did not question the lottery until it reached her turn to be stoned to death. Like many other short stories, The Lottery by Shirley Jackson attempts to establish the love and desires that particular individuals have towards specific aspects of life.

Art using hand and brain Essay Example | Topics and Well Written Essays - 750 words

Art using hand and brain - Essay Example I have been crazy about drawing since I was six years old. I have always been interested in pictures and paintings. Drawing has occupied my mind since I was a kid, and has strengthened its root as I have grown older. People see images everywhere around them, and think that the artists draw those images out of the blue, without much thought and without much effort. However, that is not true at all. The truth is that artists spend ample time in thinking about the ideas behind every picture, and them bringing those ideas to life using imagination and innovation. However, that imagination, originality, and creativity is a gift of God that only some people possess. Artists think a lot before creating a picture. This is because they hold the responsibility for the message that they have to convey through the picture. Sometimes, the picture does not even have to be beautiful to convey the message. The artist uses his brains to deliver the message in the most beautiful way, so that the peopl e do not only enjoy the beauty of the picture, but also get the message in it. Whenever I have to draw a picture, first of all I make a sketch of it using pencil. This sketch is not beautiful at all unless I try to put the idea I have in mind into the picture, using my imagination. But of course, I cannot bring the picture to life without using my brains. The imagination comes from the brain; whereas, the hand can only draw some lines here and there. Hand lays the foundation, and the brain builds the whole building on that foundation. After I have drawn the basic sketch, I put color and beauty in it, keeping in mind that the basic message gets conveyed properly. Most often, I try to convey message about life. Once, I drew a sketch of a dark sea with bright blue horizon. When it was only a pencil sketch, it conveyed no message. But in mind, I had made a picture of happiness and gloom. Since life is a combination of happy and sad moments, I colored the sea very dark to represent gloom , and colored the horizon very bright to represent happiness. The picture turned out to be very remarkable, as it was a combination of sparkling colors, which actually depicted a contrast as happiness and sadness. The point I want to mention is that hand can only draw a basic outline of a picture, but to convey the true message, the artist uses his brains, from where the imagination comes from. Innovation arises from mental understanding of the message. If I had not put in the colors in the above mentioned picture, there was no way to convey the message properly. I am also very fascinated by street art. It is also a beautiful combination of hand and brain. It is an art which, sometimes, is regarded as an annoyance or as an act of vandalism; but most often, it is considered as a means of expressing disapproval about social or political issues prevailing in the society. This aspect of expressing dissent and using art to ask questions from the public or the government makes street art a form of public art. It is actually one of the most convenient means for the artist to show to the superiors what the public is going through and what they want. People find street art interesting, capture images, and discuss them with curiosity. This makes them ponder over what is the idea behind. The artist makes extensive use of his imagination, and puts that imagination into reality through the use of hand and brain. Putting it all together, art cannot be expressed in its true form, if the artist does not know

Case 8-3 Ikea Essay Example | Topics and Well Written Essays - 1250 words

Case 8-3 Ikea - Essay Example It can also be defined as the way in which companies manage their business processes to produce an overall positive impact on society (Mallerbaker, 2009). This paper discusses the problems Ikea Corporation faced in the late 1990’s associated with CSR issues particularly child labor accusations. Ikea Corporation create a corporate culture that while it was streamlined and relaxing since the manager did not operate in beaurocratic manner, they also seem to forget about their responsibilities of the activities of the company abroad. Ikea was not well prepared to deal with international issues such as child labor. The company got a wake up call after some of its suppliers were caught involved in child labor practices. The company did not like the negative impact the revelation had on its sales and customer relations. The firm realizes its needs solutions to deal with the issues the company is facing. The company is facing public relations problems due to accusations that the firm is involved in child laborer practices. The child labor violations occurred not directly at Ikea, but as indirect associations since major supplier of Ikea at being accused of such acts. The first reaction of the company was that they were unaware of the child labor activity and they are against that type of illicit activity. The company never before had dealt with these types of issues. The executives of the company were at fault due to their incompetent managerial activity in which they failed to implement any proactive measures that could prevent such circumstances from occurring. The business risk of the company is high regarding its public image. After the public relations issues the company lost 20% of its sales in Denmark (Barlett et. al., 2008). Ikea is a company that has been able to successfully implement an organic growth model during the last 40 years. The

M6A1 Essay Example | Topics and Well Written Essays - 500 words

M6A1 - Essay Example †¨Provide guidelines supported by evaluative tools, such as NPV, IRR, MIRR, payback, and breakeven analysis. †¨Identify the most appropriate methods for comparing projects of different sizes. It also takes knowledgeable accountants and actuaries who can actually predict the financial success or failure of a project based on financial information. Therefore, it is of utmost importance that the accountant understand the real costs and opportunity costs of any investments before decisions are made about where to invest and when to invest. Of course, one always wants to make sure that one is on the right side of the market. If it is a bear market, one wants to sell short. If it’s a bull market, one wants to invest in financial exploits which will benefit the company financially. and utilized efficiently by the operations management team. That is why it is so important that one make sure one sticks to a consistent plan that will help one be able to analyze the various ways that projects might be carried out. For this, one needs a reliable team—and the accountant is a linchpin in helping an organization decide how to best proceed with the plans that they are ready to carry out. Of course, working with such a team is an important part of ensuring the project is a financial success. projects is crucial. Everyone knows that good project management, therefore, makes certain that a budget is in place to deal with any problems that may come up. So, not only does the accountant want to provide the customer with adequate information about how well a projected project is going to succeed. It’s also of premier importance that there is some sort of consistency in the organization in terms of financial organization so that it can weather difficult times, such as in a lagging economy. There are several methods available for analyzing cash flow. According to Fabozzi and Peterson (2003), â€Å"Cash flows are evaluated using NPV†¦IRR, MIRR,

Research Project Essay Example | Topics and Well Written Essays - 1250 words - 4

Research Project - Essay Example ucted studies on the relationship between language anxiety and performance have indicated the existence of a negative relationship between language barrier and the overall performance of a learner. To an extent, the effects of language anxiety severely affect the performance of a learner. The extent of these effects is obvious during language tests, when learners are put under the pressure of time constraints and of success. This study focused on the issue of language anxiety and its effects on Saudi learners’ test performance. A questionnaire was used to identify learners’ different levels of language anxiety. Later, the learners were subjected to a standardised test to determine their anxiety levels. The results from the study indicated that the correlation between anxiety scores and test had adverse effects on the students’ performance in the tests. From the findings, suggestions were made on the need for more attention to be made on language anxiety. Methods of reducing language anxiety among students during tests to improve their performance are also suggested. Language anxiety, comprising of the various types of fears, worries, or nervousness related to learning or using a foreign language in communication has been the subject of research for a long time. The feeling of discomfort associated with a person using a foreign language both in learning and communication in comparison to the ease of using mother tongue is justified. Experts in the field of anxiety and psychology hold that learning anxiety successfully has negative effects in the performance of a student, which at times can lead to adverse results. The ease of understanding questions in a test, the time taken in understanding and answering a particular question and the comfort while answering questions are the various factors that affect the level of performance of a student. Time is essential in tests as success is determined by the ability to answer either all or most of the questions. If a

Case for Analysis Marching Towards Market Essay Example for Free

Case for Analysis Marching Towards Market Essay Introduction Whirlpool Corporation is a Fortune 500 company and a global manufacturer and marketer of major home appliances, with annual sales of approximately $20 billion. Whirlpool entered the Indian market in the late 80s, and had entrenched itself as a formidable player in the Indian home appliances market by the mid 1990s, with a comprehensive product portfolio covering washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is one of the most recognized brand in home appliances in India and holds a market share of over 20%. While Whirlpool is an acknowledged player in many of the water purifier markets across the world for the past several years now, Whirlpool entered the growing water purifier market in India in 2008. Given its focus on â€Å"attaining market leadership through Customer loyalty†, Whirlpool aspires to be the market leader in the water purifier market by 2012. This case presents the situation of the water purifier market in India, and poses challenges that Whirlpool will have to overcome to achieve its vision of becoming the market leaders. Drinking Water : A perspective Even as world bodies and governments across the continents are strategizing to manage the growth humanity in a holistically sustainable manner, availability of safe drinking is a major area of concern for all. As high as 884 Mn people in the world do not have access to safe water. This is roughly  one in eight of the worlds population. 1.4 million children die every year from diarrhoea caused by unclean water and poor sanitation one child every 20 seconds. Approximately 80% of diseases in India are caused by water borne micro organisms. This is true in rural as well as urban India. However, awareness of health risks linked to unsafe water The use of water can be broadly divided in to two major categories, namely for Consumption (drinking, cooking etc) and Sanitation. This case focuses on water used for drinking purposes. A brief on Water Treatment methods Throughout human history, different methods of treating water before consumption have been devised. Up until about 100 years ago, it was always found that water flowing from natural springs was safe for drinking in its natural state, but in the 21 century even spring water is first scientifically tested before it is recommended or bottled for drinking. Each of the above methods carries with them significant disadvantages either from a convenience point of view or from health and hygiene perspective. This calls for more sophisticated methods of purifying water, to suit with the evolving lifestyles in the societies. Current State-of-the-Art Water Purification Technologies Today, the more sophisticated and commercially available water purifying technologies are, †¢ †¢ †¢ Manual fill Purifier (Drip Type) Ultra Violet (UV) purification Reverse Osmosis (RO) purification The latter two are generally referred to as Electronic Water Purifier technologies (EWP); by exception, the first one is referred to as Non EWP.  The above three are given in the order of chronological evolution, with RO technology being the latest in the Water Purification technology. The manual fill purifiers do not run on electricity, which is a scarce resource in many parts of rural India, and also have significantly lower costs in comparison to the EWPs. Interestingly , these manual fill purifiers which primarily use chlorine or UF technology are at par in performance with UV in terms of microbial protection. UV has been the oldest technology in the industry. It typically involves preliminary stages of filtration, followed by treating the filtered water through UV rays to deactivate the microbial organisms.   In the RO technology, even the smallest of microbial organisms are filtered using the reverse osmosis technology. RO technology especially scores over UV when the Total Dissolved Solids (TDS) count in the source water is high . One disadvantage of RO systems is the wastage of significant quantum of water during its processing. Needless to say, the costs of the products under these different technologies increase from manual fill purifiers to UV purification systems to RO purification. The typical price range of manual fill purifier products is Rs. 1500 to Rs. 3500, while the UV products range in price between Rs. 4000 to Rs. 9000. The RO products are priced on the higher side starting from Rs. 8000 to Rs. 20000. Many products available in the market today in India use a combination of technologies but for the products in the lower end technologies (manual fill purifiers). Water Purifier Market in India The delivery of purified water in the Indian markets follow two conduits, namely, water purified in purification plants delivered to residences and other consumption locations (e.g. restaurants) in cans; and installation of water purification instruments at the place of usage. While the former  One of the oldest methods of treating water, and one still used constantly in Third World and often in developing nations or areas that have seen recent natural disasters, is boiling to kill microbes (but this causes loss of taste and may leave in dirt). Other methods of water treatment include filtering and distilling, use of chemical agents such as Iodine or Silver or Potassium Permanganate into the water supply, or the use of candle filters. methodology predominantly uses multiple technologies mentioned above, provides economies of scale and eliminates initial costs of investing in equipments, the costs involved in distribution of the treated water counters these economies of scale. The l atter provides for visibility and ease of use, which are significant perceived benefits in comparison to the former. While both the delivery mechanisms exist, the latter is fast catching up. This case focuses on the latter, which is typically referred to as the Water Purifier industry. This industry is broadly divided in to two categories namely Electronic Water Purifiers (EWP) comprising of products using UV or/and RO technologies and Non Electronic Water Purifiers (Non EWP) comprising of products that use the manual fill purifiers. Frost and Sullivan report of primary research in 2009, estimates the total market size of the Water Purifier industry in India to be 2000 Cr of which 63% is from product sales and 37% is after sales revenue. Despite the size of this industry, the Water Purifier industry in India has a low penetration (2% Urban and 0.5% All India) as per IRS 2007 and is growing at a strong rate (others use traditional water treatment methods like boiling and filtering, or use of chemical additives like Chlorine, Potassium permanganate etc). As per AC Nielson 2006 study( and internal estimates), the industry is expected to touch approx 2.3 mn units by the end of 2009. Expected growth rate of 15% and a CAGR (‘04-‘09) 21%. The average ASV of the industry is Rs 6700. With a size of approx 1.7mn (units), the EWP market is divided into 2 sub-segments – RO (30% sal) UV (70%). The RO segment is the premium end of the category and has an ASV of Rs 12000 while UV has an ASV of Rs. 7000 .RO UV growths , CAGRs(‘04-‘09) are (15% ,16%) and (10% ,10%) respectively. The Non-EWP segment operates at a sub 2K ASV (Rs 1900). This segment is witnessing an explosive growth with the entrance major players like HUL etc . The Annual growth rate was witnessed at 25% while CAGR(‘04-‘09) at 77%. It is important to note that the technology sold in a given local market is also dependent largely on the characteristics of the source drinking water in the given demography. For example, a region like Delhi with high TDS calls for RO technology, while regions like Cochin with low TDS would depend on products with UV technology. Also, one of the detriments to EWP products is the availability of continuous flow of source water and availability of power, both of which advantages are addressed the products dependent on Manual Fill Purifier technology. While the major element of the market in the water purifier equipment business in India is still in the unorganized sector, branded products are catching up and their market share is improving. The major branded players in the market are Eureka Forbes (AquaGuard, AquaSure brands), Kent, Philips, HUL (Pureit), Ion Exchange (Zero B) Ushabrita and Whirlpool (Purafresh). As per Frost and Sullivan report 2009 , Market share by player and by technology- Approx Shares ( for 2008) Eureka Forbes: RO(20%) , UV(35%) , Drip Type(33%) Kent: RO(25%) , UV(0%) , Drip Type(0%) ZeroB: RO(15%) , UV(0%) , Drip Type(0%) HUL : RO(0%) , UV(0%) , Drip Type(42%) OTH: RO(40%) , UV(65%) , Drip Type(25%) The Non-EWP segment was primarily dominated by local players until recently, when HUL entered the category with its drip type purifier under the brand Pureit at a break through price of Rs 1800 and took the market by storm. The other key players in this segment are Ushabrita Eureka Forbes. The channel for this segment has traditionally been the Direct to Home (DTH) route, with this route still accounting for a whopping 65% of the product sales in this category. The ratio of Eureka Forbes’ DTH sales is higher at 75%. On the trade side(contribution bal 35%), the DAP channel (Domestic Appliances Products) accounts for the larger proportion of the share with 65% while the Durable Trade accounts for the remaining 35%. The DAP Channel mainly consists of small appliance sellers  who sell products like iron , blenders , mixers , gas burners etc. These retailers primarily sell products which lie within the price range of Rs 500-Rs 5000. They are typically not in the prime locations in the market place and their shopfloor size is on an avg10X10ft. The products are displayed mostly in a packed form. The products are sold very close to the MRP and the discounts offered are in the range of only 5-10% HUL has made an entry through a unique channel. It has opened up a large number of ‘Water Safe Zones’ / â€Å"Product Experience Centres’ and is pushing the volumes from there while catering to direct to home service as well While HUL is establishing itself in the entry level segment through consistent advertising and promotions , the more established players in UV RO like Eureka Kent too are active in the media space and are seen promoting their products through several media elements. Recently, HUL was seen rolling out a ‘Rs 1 Crore’ challenge offer and heavily promoting the same. At the same time Eureka Forbes was also seen throwing a ‘Money Back Guarantee’ offer on its products. Eureka Forbes operates with a strong sales service force of 6000 people on the company rolls along with an equally large group of third party franchises. The company has been under pressure to expand its volumes since the avg the productivity of its sales team has come down over years. Lately, they have been seen heavily focussing on retail through their ‘Aquasure’ brand while the ‘Aquaguard’ brand is operating in the DTH section. Kent has its own sales service set up in Northern India while it depends on third party franchises for its operation in the rest of the country. It has branch offices in 6 cities (AP , Karnataka, Kerala , Mumbai , Gujarat , West Bengal). In order to counter HUL’s explosive growth, Kent recently rolled out a NON-EWP (UF based) purifier at a price of Rs 2500 under the sub-brand  Ã¢â‚¬â„¢Kent Gold’. This product is being primarily marketed through the retail channel. HUL has set up its Safe water zones with external KSPs ( Key service providers) while continuing to have its internal sales team supervising the operations . In Delhi for example , it has 27 such zones with a sales team of 750 sales men, 17 Territory sales executives (TSE) , 3 business development executives (BDE) , 1 area head.(AH) and 2 service officers . The TSEs, BDEs AH are on company rolls. The following table summarizes the typical product price points in the various segments. Price range (In Rs) Unorganized 1500-2500 4000-6000 8000-12000 Organized 2000 – 3500 6000-9000 8000-20000 Whirlpool Not Applicable Not Applicable 12500-20500 Segment Non EWP Ultra Violet (UV) Reverse Osmosis (RO) Whirlpool’s entry in the Water Purifier Market in India Whirlpool has been present in the Water category in all the key regions of the world including US, Canada, NAR, Europe, Brazil, Mexico Asia in several value added segments like water heaters, bottled water dispensers, water softeners , Refrigerator filters etc. Whirlpool entered the Water Purifier Market in India in the early 2008 to tap in to the growing Water Purifier Market, focused on the RO segment to start with, with the launch of the Purafresh range of purifiers. Currently, Whirlpool Water Purifier products are available across all markets in the country. Whirlpool has garnered a Market Share of 5% in the RO segment in the past 1  ½ years. The Water purifier category is a perfect brand fit for Whirlpool. It is a home appliance used by the home maker to provide safe and pure drinking water to her family, thus building a strong case of placing trust in the brand. This category will lend a lot of credibility to the Whirlpool brand. Whirlpool’s communication strategy also revolves around reinforcing this element of Trust. Equipped with Whirlpool’s patented 6th Sense technology, the new ‘Purafresh’ water purifier is the first Reverse Osmosis system on the market that not only purifies but also protects the purity and freshness of the water with its prestigious gold seal certification (from GOLD Seal of Water Quality Association, USA WQA). Purafresh is available in three models – Purafresh Platinum, Purafresh Elite and Purafresh Deluxe. Trigger Questions for Analysis Given the situation described above, suggest a comprehensive â€Å"Go-To-Market† plan following a systematic methodology for Whirlpool to achieve its overall objective of achieving market leadership in the Water Purifier Market (in the organized sector) by 2012, and its interim goal of achieving market leadership in the RO segment, ensuring its premium brand image, and its operational philosophies (given in the annexure for ready reference). A) Understanding and presentation by a Systematic methodology. B)Inputs: Should reflect comprehensive understanding of the company and competitive environment. 1) Analyze company development , history, Growths. 2) Identify Strengths , weaknesses , 3) Analysis of external environment (Porter 5 forces , SWOT etc) C) Outputs: Understating should result in output 1) Strategy on all 4 P’s 2) Channel Strategy ( Spl Focus) a) Evaluation of SWOT b) Key market insights c) Business Level Strategy d) Recommendations (including articulation of hypothesis) e) innovative approach especially in the communication/promotion strategy Phase II Build a detailed business plan arising out of the above strategic plan, and project the profitability of this business over time, including investments that may be required for new products and their market entries, while achieving this objective. Recommendation evaluated by 1) Strategy 2) Product choice 2) Financials ( volumes, Margins , costs , etc) 3) Process of executing strategy 4) Innovative approach/ideas. {In the first phase, the second phase question and related references should not be circulated} Whirlpools high end Purafresh platinum model, is Indias first and Only Direct Flow RO with no storage tank enabling immediate consumption of freshly purified water with 72 litres per hour capacity (Normal RO products have 8-10 litres per hour capacity). It has an advanced 5-stage purification process and also boasts of a first–of–its–kind electronic interface with a Filter change indicator, which alerts the consumer on the need to change the filter and thus ensures continual purity protection of the water. Other diagnostics functions like no water on tap indication, self cleaning mode indication, and water extraction indication makes it the most advanced and best in class product available in the Indian market today. Whirlpool entered the Indian market mainly leveraging their strength in the durable retail channel and has the highest share (30%) of all Water Purifier sales in this channel. Whirlpool has also entered the DAP Channel and are currently having a 10% share in that channel. The â€Å"Surging to Lead† Challenge Given its focus on â€Å"attaining market leadership through Customer loyalty†, Whirlpool aspires to be the market leader in the water purifier market by 2012, with an interim goal of attaining market leadership in the RO segment by 2010, while at the same time maintaining its brand position. This, no doubt, is a challenging aspiration for Whirlpool, given the well entrenched players in the market like Eureka Forbes, aggressive players like HUL who is focused on tapping the market at the â€Å"Bottom of the Pyramid† and a large unorganized market who would significantly benefit from the growth fuelled by these players. However, Whirlpool has to its advantage of its strong brand position in the hearts and minds of the home makers, and a strong, well established channel in the white goods market. The challenge for Whirlpool is to leverage its strengths, and perhaps work out completely innovative market strategies if it has to achieve its intent of becoming a  market lea der in the Water Purifier Market in general, and that in the RO segment. Annexure : A brief about Whirlpool Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being worlds number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat of any other in the industry. Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the1980s. This encouraging trend brought the company to India in the late 1980s. It forayed into the market under a joint venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry. Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into Indian refrigerator market as well. The same year also saw acquisition of major share in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This expanded the companys portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 20%. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an infrastructure that is witness of Whirlpools commitment to consumer interests and advanced  technology. In the year ending in March 09, the annual turnover of the company for its Indian enterprise was Rs.1,719 Crores. The companys brand and image speaks of its commitment to the homemaker from every aspect of its functioning. It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a slogan of â€Å"You and whirlpool, the worlds best homemaker† dots its promotional campaigns. The products are engineered to suit the requirements of smart, confident and in-control homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions. Whirlpool Corporation : Vision and Mission Whirlpools pervasive vision, â€Å"Every Home, everywhere, with pride, passion and performance†, rests on the pillars of innovation, operational excellence, customer-centric approach and diversified talent. These are embedded within our business goals, strategy, processes and work culture. Be it our products that are the result of innovation and operational excellence to meet every need of our consumers or the people behind these products that come from a wide spectrum of backgrounds, everything we do features a distinct Whirlpool way. Core Competencies Innovation: Unique and compelling solutions valued by our customers and aligned to our brands create competitive advantage and differentiated shareholder value. Operational Excellence (OPEX): A methodology for solving problems continuous improvement of products processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps us achieve operational excellence. Customer Excellence: Excelling the customer expectation from the company, its brands,  products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer. Knowing a customer helps us know who our customers are, how to treat them, how we add value, and what the drivers of brand loyalty are. This information is gathered from the customers data base history. This way we are better able to customize products for them and recommend the right product to solve problems. Being a customer is important to share customer knowledge and insights, drive actions based on customer insights, be passionate about our brands and customer loyalty and provide a positive voice for our brands. We show empathy for customers and seek to resolve their problems by creating consistent customer touch-points, with our endeavour always being to provide unique solutions for the customer . Whirlpool Corporations Transformation Agenda Whirlpool is transforming into a completely customer-centred company where the customer lies in the core of every of our functions. This focus has arrived as direct consequence of our core IDEATE up of five elements: competency of customer excellence. It allows us to build Customer Loyalty. The transformation is made The elements of the transformation hold the promise of making Whirlpool a growing company and thereby increasing value for our shareholders. The five  elements are the basis for describing our strategy internally and guide the development of our plans and initiatives. Whirlpool has swiftly moved from being a World Class Manufacturer to a World Class Marketer using the brand-building framework. We are dedicated to creating unique branded solutions that build customer loyalty and achieve brand excellence.

Native Americans in the United States and European Colonists Essay Example for Free

Native Americans in the United States and European Colonists Essay Early encounters between American Indians and European colonists led to a variety of relationships among the different cultures. Analyze how the actions taken by BOTH American Indians and European colonists shaped those relationships in TWO of the following regions. Confine your answer to the 1600s. Early relationships between American Indians and European colonists differed among the dissimilar cultures. The encounters between the American Indians and the New England Colonists ended in betrayal and bitterness while the relationships between the Indians and the Spanish Southwest was violent and hateful. In New England during November of 1620, the first European colonists arrived to establish Plymouth Colony. During the harsh winter, half of the colonists had perished. When the surviving colonists arrived, a couple of Indians came to help them. The Indians taught the colonists how to grow and fertilize corn crops. Soon, the Europeans became successful farmers and began trading with Indians for fur. As the Europeans became more self-sufficient, they turned their firearms at the Wampanoag Indians and forced them to declare English Sovereignty. For generations, the aggression toward the Wampanoag Indians from Europeans continued. After years of hostility toward the Indians, the governor or Plymouth received information that the Wampanoag chief, Metacom was planning a war against the English. The Indian who provided the information to the English was named Sassamon and was known as a â€Å"faithful Indian† to the English. He was murdered by the Indians for betraying them. Soon after in 1675, the English hung three Wampanoag Indians thus beginning King Philip’s war. This war resulted in stopping the Indian’s resistance to colonial expansion and wiped out approximately forty percent of the Native American population in New England.

An Analysis Of The Global Automotive Industry

An Analysis Of The Global Automotive Industry The car industry is one of the largest and most profitable industries in the world and is epitomized by the innovative ideas of Henry Ford. Since then the industry has evolved in almost every aspect. The industry has experienced its lows and highs, the 2009 economic downturn being the pivotal point in its history. The industry is essentially an oligopolistic market, which means competitive advantage is the vital objective for all firms. Recent trends have witnessed large firms shifting to regions where costs are low and vertical integration is possible. Most of the lead firms are almost completely vertically integrated and this absorbs most of their profit margins. Firms must also consider the key drivers of change such as revised environmental and technological requirements. Due to the region-centric dispersion of production there is always a risk of poor operations management in certain regions. Organizations are now encouraging their major suppliers to set shop in these emerging m arkets. This leads to a high level of dependence on suppliers who are benefiting from the sharp increase in outsourcing. Customers needs and wants have also changed, with safety and technology on top of their list. The rising costs in fuel and the impending threats of global warming have created a new segment for alternative energy vehicles. Analysis of these macro economic factors leads to a conclusion that the car industry is far from its saturation point and there is still potential for growth in many regions. Table of Contents Introduction The automotive industry is an ever-evolving industry that has experienced both, spurts of rapid growth and unforeseen decline in sales (Molnar, 2009). This is largely due to the fact that the automobile industry shares certain similarities with other large industries, such as the electrical and apparel industries where foreign direct investment (FDI), global production and international trade are significant influences (T.J. Sturgeon et al., 2009). This industry is principally an oligopolistic market; therefore competitive advantage is a key strategic objective for all major players in the industry (Williamson et al., 2004). Based on statistical data the current major players in the industry are Toyota (Japan), General Motors (USA), Volkswagen group (Germany) and Ford (USA) (Datamonitor, 2011)(See Figure 1). Apart from the current big four there are several other lead firms from Japan, USA and Germany, whose domination was heightened due to several mergers and acquisitions and equity based alliances. (T.J. Sturgeon et al., 2009). Since the automobile industry is largely homogenous, there are common trends in the market that directly or indirectly affect most organizations (Williamson et al., 2004). Great potential for growth has been identified in markets like India, Brazil and China due to the availability of low cost skilled labor. This encourages an increased flow of FDI into such countries and facilitates trade liberalization through World Trade Organization (WTO) (T.J. Sturgeon et al., 2009). Along with Global integration organizations are also integrating themselves regionally due to dispersion of final assembly plants in various countries (Molnar, 2009). Another changing attribute in the industry is the alteration of the supply chain due to higher technical dependence on the suppliers. In contrast to the tier based supply chain, now suppliers are vertically integrating to handle complex subsystems (Molnar, 2009). This report focuses on the various macro-environmental factors that affect the car industry currently. Factors such as supplier bargaining power, economical integrations, and political and technological aspects are the key drivers, which are affecting the car industry. The report analyses the trends in the industry from the past, and future expectations, focusing mainly on companies such as Ford, GM, Volkswagen, and Toyota, and justifies how the industry can expect growth in the future. Market Trends The automotive industry has experienced structural changes, from mass production techniques in the 1920s to lean production methods in the 1980s (Wayman, 2007). A groundbreaking concept introduced by Toyota called the just in time Strategy (Beasley, 1950) changed the face of car manufacturing. Similarly Ford introduced the standardization method (Fordism) that revolutionized the method of manufacturing in all industries. Over time the industry experienced a transition from standardization to modern concepts such as just in time and lean production. Emphasis then shifted to branding and sales, as competition got fierce, leading to focus on company operations and marketing (Data monitor, 2011). The slowdown at the end of the first decade of the 21st century affected the banking sector and the stock market thus indirectly affecting the automobile industry. In this recession, costs in the industry increased due to an increase in the cost of the raw materials. As shown in the following graph, the sector most affected was premium cars (Luxury cars). As stated by Pwc. on autofacts.com (2011), Much of the recession was rooted in the white-collar financial service professions, which account for a large percentage of the sectors consumers. This caused an unforeseen dip in the production level of premium cars and had a ripple effect on the on the economies of Europe and Asia Pacific. (Autofacts 2011) As illustrated above the fall in production during the recession can further be explained by analyzing the level of contribution by these strategic groups towards the world production of cars (by value). The United States (US) has been a dominant force in contributing towards the worlds production of passenger cars, with 37.80% of the worlds automotive production in the year 2007. However, negative economic conditions meant production decreased drastically from 30.70% in 2008 to 15.70% in 2009. This free-fall in production shows how susceptible demand for new cars and the auto industry are to economic conditions. http://graphics8.nytimes.com/images/2012/07/26/business/26euauto-graphic/26euauto-graphic-articleInline.jpg The recession in the US not only affected the domestic market but also affected other major economies. Europe, closely interlinked with the American economy, was one of the first to experience the effects. The recessions magnitude was evident with the fall in production in Europe in 2010, decreasing to 29.70% from 35% in 2009. Although Europe has experienced fluctuations in production, on average it has been reasonably stable compared to the US and the rest of the world. In 2012 estimates by the European Automobile Manufacturers Association predict that sales of passenger cars will decrease by 3 million to 12.4 million. Actual sales of passenger cars have been decreasing since 2008. Sergio Marchionne chief executive of both Chrysler and Fiat commented saying, Ive never seen it this bad, (New York Times 2012). Asia pacifics production has grown at a stable rate averaging 27.92%. Although the region was affected by the global recession it limited the fall in production to 6.4%. After 2009 it experienced a boost in growth for the following two years taking levels close to the 2008 high. Through these years of volatility the automotive industry has had to trim the fat by cutting payrolls and closing underperforming facilities. As well as dealing with these difficult economic trends manufacturers have to be conscious about legal factors and social factors like global warming. Most companies have introduced products consider the environment, which has a positive effect on sales and brand image. These costly additions linked with bad economic conditions have in some ways encouraged greenfield ventures and outsourcing the production of parts and labor in low cost areas like Thailand and other parts of Asia. Macro-economic Analysis PESTLE Analysis The macro environment of the car industry is extensive. Companies need to identify the key drivers of change in order to build scenarios to help them achieve their strategic objectives (Johnson, Scholes and Whittington, 2008). Changing macro-economic conditions force companies to alter their strategies in order to sustain and increase their market share. The economic crisis that the industry suffered in 2009 played a major role in shaping the industry into its current state (T.J. Sturgeon and Biesebroeck, 2010). As stated by Sturgeon, Biesebroeck and Gereffi (2008), the automotive industry is neither fully global, consisting of a set of linked, specialized clusters, nor tied to the narrow geography of nation states or specific localities. However, in recent times the industry has become more region-centric, as companies have set up production and assembly closer to point of sale in order to take advantage of economies of scale and lower labor costs that are available in these emerging markets (Humphrey and Memedovic, 2003). Emerging markets in the car industry are attracting lead firms due to rapid sales growth in these regions (Datamonitor, 2011). In China, lead firms are adopting cautious localization and aggressive localization strategies to reduce their variable costs so that they can compete efficiently in the region (T.J. Sturgeon and Biesebroeck, 2010). The rapid growth of the Chinese car market can largely be attributed to its liberal policies towards joint ventures, as highlighted by the joint venture that formed the Shanghai Volkswagen Automobile Co. which dominated the market for 10 years (Molnar, 2009). Another rapidly growing market is Brazil, which is projected to be the worlds sixth largest car manufacturer in 2013. High import taxes ensure that companies are forced to manufacture locally. Another unique aspect of the Brazilian industry is its dependence on the ethanol industry that fuels almost all cars in this region. The government supports this industry as it employs over a million pe ople and also protects the car industry from the flux of oil prices (Matthew Symonds, 2008). One of toughest challenges for the automobile industry in current times is adhering to the latest technological and environmental norms. The emphasis on incorporating cutting edge technology in cars is evident in KPMGs (2012) survey that shows us the recent demand for mobile connectivity and built in technology (See Figure 3). In order to meet the consumer demands for technological improvements companies are turning to new technology suppliers. This is a strategic risk for companies, as the lack of transparency in the supply chain could lead to environmental disasters, such as the catastrophes in Japan and Thailand in 2011 (KPMG, 2012). Improved fuel efficiency and lighter cars are two factors that are desired by consumers and legislators alike, however the required resources like aluminum cannot be used due to stringent environmental laws (KPMG, 2012). China has set a good example by investing US$15 billion in a market determined to utilize technology to reduce the environmental dam age inflicted by fuel emissions (KPMG, 2012). The automobile industry is one of the most heavily regulated industries in the world. Manufacturers need to follow the safety and environmental regulations of the respective regions they are based in. This becomes difficult due to the current trend of outsourcing most of the cars parts. Every company has to adhere to the environmental norms and therefore strive to reduce emissions from their products. There is no room for error as any breach of legal regulations jeopardizes the companys business strategy Porters 5 Forces Suppliers Suppliers bargaining power is increased when there are a few producers dominating supply (Mintzberg, H. 2002). Despite the automotive industry manufacturers concentrated firm structure, since the early 1990s bargaining power has shifted from the industries automotive manufacturers to their suppliers. This is because of the creation of global suppliers which have taken on more extensive roles in the areas of design, production and FDI (Sturgeon et al, 2009). These globally dominant suppliers are favored by manufacturers who expect and encourage them to be present near their plants and in emerging areas of growth (Molnar, 2009). New projects are no longer seen as an opportunity to expand globally instead, a supplier must have a global base in place to even make a bid, (Sturgeon et al, 2009). Suppliers such as Bosch and ZF are becoming involved in manufacturing and assembly, assembling important sections of vehicles before passing them on to manufacturers (Molnar, 2009). Increased outsourcing and the bundling of more value chain activities make these firms larger and more powerful (Sturgeon et al, 2009). The larger firms achieve economies of scale and scope, making it cheaper to design and produce many components creating high entry barriers (Molnar, 2009). This is concentrating the industry, which in turn is also increasing suppliers bargaining power. Buyers Buyer power can be high if buyers are concentrated, there are low switching costs, or there is buyer competition threat (Johnson, 2011). From the consumer perspective there are definitely low switching costs as switching from VW to Ford costs nothing but the price of the car. End customers generally have no bargaining power because they are individuals who purchase directly from the manufacturer through franchised distribution systems. Only large car rental or leasing companies can gain discount (Molnar, 2009). Substitute Cars do not have a direct substitute threatening sales in the industry. Substitutes like public transport are available but they do not share the same benefits, mainly price and door-to-door transport, that cars do (Molnar, 2009). Bicycles and motorbikes do however offer this benefit and are often considered substitutes. They are not however perfect substitutes, as they do not meet the same comfort, carriage and experience needs, that are a unique selling point for different varieties of automobile. A growing concern that consumers would switch to these substitutes during the global recession was the price of fuel. Despite spikes in the price of oil which provides 97% of transportation fuel, there has been a large increase in demand for passenger cars (Molnar, 2009). This can be attributed to improvement in mileage per gallon and the convenience of having a personal vehicle. It also distinguishes price from performance and that in the case of a car, a lot of people, seek value more than price. Competitor analysis Rivalry between competitors occurs when competitors are numerous or are roughly equal in size or value (Mintzberg, H. 2002). The battle for market share is usually very costly and industries exhibiting these traits usually have low profit margins. The auto industry however is considered to be an oligopoly, which minimizes the effects of price based competition (Molnar, 2009). Firms try to position themselves as luxury brands (Ferrari) or low cost fuel efficient brands (Toyota) to corner a market segment. However some firms like Mercedes, by introducing the Smart car, target a wider demographic. This however, goes against the product life cycle pattern in which differentiation is supposed to decline as the business becomes more mature (Mintzberg, H. 2002). There is some differentiation between vehicles price, quality and status, a vehicle is perishable and there are no (to very low in the case of finance) switching costs. The aforementioned factors, according to Mintzberg (2002), create a strong temptation to cut prices which intensifies rivalry. A strategy firms use to avoid price based competition is to offer rebates, 0% financing, long term warranties and no money down. These finance options help lure in customers but also pressurize profit margins and break even projections (Molnar, 2009). Marketing innovations can raise brand identification or help differentiate the product (Mintzberg, H. 2002). Threat of new entrants: Heavy investment is required by companies looking to enter the automobile industry. Economies of scale are sort after by the new entrants; however the current players have reached large-scale production levels (Gerry Johnson et al., 2011). Most brands have a rich history, helping them build their branding, as brand equity is a big seller (Molnar, 2009). Ford was established in 1903 and GM began in 1908 and they are world renowned (MarketLine, 2012). Firms need to invest heavily in research and development in order to match their competitors technical and design prowess in area such as energy conservation (Molnar, 2009). New entrants may struggle to build their network with suppliers as the automotive industry has an extremely concentrated firm structure (Sturgeon et al., 2009). The global recession made it easier for the larger firms to acquire and integrate horizontally as well as vertically, opening more retail and franchise distribution locations. The recent global meltdown has led to customers switching brands in order to look for low-priced or high performance cars. For example, the Tata Nano was an instant hit in India upon launch; since it was a low price car. The A6 from Audi also got high appreciation for its performance and quality. The existing players in the market would adapt these features and come up with their own designs, hence increasing competition. Daewoo founded in 1967, could not survive and was dismantled in 1999 by the Korean government. Indian Tata motors entered the passenger vehicle market, in 1998 through aggressive acquisitions of foreign brands but could not penetrate the US or EU markets (Molnar, 2009). One of the most crucial barriers to new entrants is legislation and government policies. Restraints such as patent protection regulate the market and have an impact on new companies, if they do not have any unique ideas (Gerry Johnson et al., 2011). Policies regarding FDI and FII affect companies going global and entering new markets. Regional integration such as NAFTA, EU, makes trade and foreign investments simpler and convenient for such companies. Conclusion The current economic crisis has accelerated deep structural change in the automotive industry, setting the stage for sustainable growth (Deloitte, 2009). There are huge potential gains and room for growth in emerging markets, particularly in Asia, mainly in China and India. Countries with high importing costs will experience a decline in domestic capacity as the lead firms continue to set up their manufacturing centers in these emerging markets. The regional trading blocs (e.g., NAFTA, European Union, ASEAN, and Mercosur) are expected to grow and drive regional production as firms look to shift to lower cost regions. Another lucrative opportunity for the organizations is the increase in demand for new cutting edge technologies in cars. This convergence leads to the creation of new business models that include alliances with companies from other industries that provide new technology (Deloitte, 2009). The rising prices of crude oil indicated a continuous and gradual increase in fuel prices over the next 4 years (Moming Zhou, 2008). This is an opportunity for the lead firms to grow by investing more resources in alternative energy products (Hybrid cars), at a time where consumers are looking to switch to more environment friendly cars (See Figure. 2). This is a perfect time to capture this market when treaties like the Kyoto Protocol (Molnar, 2009) call for a collective effort to battle global warming. In conclusion, it can be determined that the global car industry continues to attract consumers to differentiated products. However, firms must make the right strategic decisions, to reduce the absorption of their profits by their vertically integration strategies. Existing companies must adopt a strategy of sustainable growth to ensure their survival in this industry. Bibliography Book JOHNSON, G., SCHOLES, K., WHITTINGTON, R. (2008). Exploring corporate strategy. Harlow, Financial Times Prentice Hall. JOHNSON, G., SCHOLES, K., JOHNSON, G., WHITTINGTON, R. (2011). Exploring strategy. Harlow, Financial Times Prentice Hall. MINTZBERG, H., QUINN, J. B. (1991). The strategy process: concepts, contexts, cases. Englewood Cliffs, N.J., Prentice Hall. Report Pwc (2011) 2011 Automotive Review. [report] Autofacts ProQuest (2012) Thailand Emerges as Global Hub for Fuel Efficient and Environment Friendly Car Manufacturing. [report] ProQuest. KPMG (2012) Global automotive executive survey. [report] KPMG. p. 4-57 DATAMONITOR (2005) Global Automative Retail. [report] DATAMONITOR (2006) Global Automative Retail. [report] DATAMONITOR (2007) Global Automative Retail. [report] DATAMONITOR (2008) Global Automative Retail. [report] DATAMONITOR (2009) Global Automative Retail. [report] DATAMONITOR (2010) Global Automative Retail. [report] DATAMONITOR (2012) Global Automative Retail. [report] DATAMONITOR (2011) Global Automative Retail. [report] MarketLine (2005) Global Automative Retail. Website People.brunel.ac.uk (1950) Just-in-time. [online] Available at: http://people.brunel.ac.uk/~mastjjb/jeb/or/jit.html [Accessed: 10 Nov 2012]. EWING, J. (2012) Europes Auto Industry Has Reached Day of Reckoning NYTimes.com. [online] Available at: http://www.nytimes.com/2012/07/26/business/global/europes-auto-industry-has-reached-day-of-reckoning.html?pagewanted=all_r=0 [Accessed: 10 Nov 2012]. deloitte (2009) [online] Available at: http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/A%20New%20Era_Online_final.pdf [Accessed: 11 Nov 2012]. Articles Dannenberg, J. and Kleinhans, C. (2007) The Coming Age of Collaboration in the Automotive Industry. p.88-94. Datamonitor (2011) Global Automobiles. [report] Datamonitor p.1-37. Molnar, E. (2009) Strategic Management in the ailing automobile industry. Sturgeon, T. et al. (2009) Globalisation of the automobile industry: main features and trends. International journal of technoligocial learning, innovation and development, 2. Sturgeon, T. and Biesebroeck, J. (2010) Effects of the crisis on automotive industry in developing countries: A global value chain perspective. Sturgeon, T. et al. (2008) Value chains, networks, and clusters: Reframing the global automotive industry.Journal of economic geography, 8 (3). p.297-321 Humphrey, J. and Memedovic, O. (2003) The global automotive industry value chain: what prospects for upgrading by developing countries. Magazine Symonds, M. (2008) A global love affair: A special report on cars in Emrging markets. The Economist, Iss. 8606. Online Newspaper Zhou, M. (2008) Gasoline could hit $7 a gallon in four years: CIBC. The Wall Street Journal, [online] 24th April. Available at: http://articles.marketwatch.com/2008-04-24/news/30787082_1_crude-supplies-natural-gas-oil-supply [Accessed: 11 Nov 2012].

Database :: essays research papers

The Database   Ã‚  Ã‚  Ã‚  Ã‚  Databases are becoming as common in the workplace as the stapler. Businesses use databases to keep track of payroll, vacations, inventory, and a multitude of other taske of which are to vast to mention here. Basically businesses use databases anytime a large amount of data must be stored in such a manor that it can easily be searched, categorized and recalled in different means that can be easily read and understood by the end user. Databases are used extensively where I work. In fact, since Hyperion Solutions is a database and financial intelligence software developing company we produce one. To keep the material within scope I shall narrow the use of databases down to what we use just in the Orlando office of Hyperion Solutions alone.   Ã‚  Ã‚  Ã‚  Ã‚  In the Orlando office we have three main databases. We have a Microsoft Access Database, a Visual Source Safe database, and a Microsoft SQL server database with a custom web client front end. The Microsoft Access database is fairly simple. We use this data base to keep track of the computer hardware and software configurations that are used when doing quality assurance testing and problem replication and troubleshooting of the software product. For any one product we can have up to twenty or thirty different configurations. Initially keeping track of the configurations along with the machine name and IP address was done on paper with a grid like matrix. After a short period of time, this became extremely time consuming and impractical. A simple database was set up in Access and then the database was shared to allow each user to be able to find out what configuration each computer was in for that day or that week so that the proper tests and or bug reporting could be conducted. The database allows the users to search by software version, platform type, operating system, machine name, IP address, memory size, and several other items that are not as significant. Before the database was created the engineer would have to leave their desk find the chart and to a cross reference using the matrix that was drawn up, and hopefully that matrix was kept up to date. Now as the technicians update or change the machine configurations they can enter that information immediately into the database and it will automatically provide a matrix view or a tabular view for any engineer who needs it.

Essay --

There is a wide range of concepts and definitions for companies The company is a contract whereby committed by two or more people that all of them contribute in a project designed to profit .by providing a share of the money or work-sharing that may result from the project of the profit or loss. Because of the definition of the company as a contract that requires the company to need to undergo this decade, the general rules and laws in the contracts and therefore recognize freely contractors in the organization and determine what arises from the rights and obligations and duties . Another definition of the company which is an association or group of individuals, members and people sharing common goals , vision and unite in order to focus about various organizing skills collectively or available resources to achieve the stated goals specific. http://en.wikipedia.org/wiki/Company There is a wide range of companies in the Sultanate of Oman and the most important and oldest of these companies are Oman Telecommunications Company Omantel is the leading company in the provision of integrated telecommunications services in the Sultanate of Oman and through the provision of a variety of modern and advanced services . Oman Telecommunications Company offers range of services that keep pace with technological development in the world. Omantel provides transmission networks that cover all parts of the Sultanate of Oman and enjoy this network signal strength . Oman Telecommunications Company Characterizes in sophistication in dealing with clients it is always listen to their ideas and opinions , proposals. They try very hard to achieve all the promises to keep up the needs of customers . The Omantel is considered as one of the tributaries o... ...t obtain approvals from other competent authorities and the following companies : 1 - The financial leasing companies , banks and financial institutions, and exchange companies that want to establish a commercial activity in Oman obtain approval from the Central Bank of Oman 2 - the insurance companies and the relevant agencies that want to set up business in Oman must get approval from the Department of Insurance in the Ministry of Trade and Industry / Capital Market Authority . 3 - industrial companies that want to set up business in Oman should get approved by the Ministry of Trade and Industry. 4 - medical products must be obtained approval by the Ministry of Health. the activities of printing and publishing and broadcasting must obtained approval for by the Ministry of Information and Culture. http://www.pkf.com/media/506937/doing%20business%20in%20oman.pdf

Political Risk Analysis Kenya 2012

Political Risk Analysis KENYA Table of contents Kenya covers an area of 582,646 square kilometers. The land stretches from the sea level (Indian Ocean) in the east, to 5,199 meters at the peak of the snow-capped Mount Kenya. From the coast, the altitude changes gradually through the coastal belt and plains (below 152 meters above sea level), the dry intermediate low belt to what is known as the Kenya Highlands (over 900 meters above sea level).The monotony of terrain in the low belt is broken by residual hills, masses of broken boulders and inselbergs. Settlement is confined to places where water can be found. Wildlife are masters of the greater part of the low belt. The famous Amboseli Game Reserve and Tsavo National Parks are situated here. The Great Rift Valley bisects the Kenya Highlands into east and west. Mount Kenya is on the eastern side. The Highlands are cool and agriculturally rich. Both large and small holder farming is carried out in the highlands.The Lake Victoria Basin is dominated by Kano plains which are suited for farming through irrigation. The northern part of Kenya is plain and arid. However, a variety of food crops do well through irrigation. Kenya is located approximately 8-10 hours flying time from major European cities, and about 16-20 hours flying time from North American cities. 1. 2. CLIMATIC CONDITIONS Kenya enjoys a tropical climate. It is hot and humid at the coast, temperate inland and very dry in the north and northeast parts of the country. The average annual temperature for the coastal town of Mombasa (altitude 17 meters) is 30. 0 Celsius maximum and 22. 40 Celsius minimum, the capital city, Nairobi (altitude 1,661 meters) 25. 20 Celsius maximum and 13. 60 Celsius minimum, Eldoret (altitude 3,085) 23. 60 Celsius maximum and 9. 50 Celsius minimum, Lodwar (altitude) 506 meters) and the drier north plain lands 34. 80 Celsius maximum and 23. 70 Celsius minimum. There is plenty of sunshine all the year round and summer clothes are worn throughout the year. However, it is usually cool at night and early in the morning. The long rains occur from April to June and short rains from October to December.The rain-fall is sometimes heavy and when it does come it often falls in the afternoons and evenings. The hottest period is from February to March and coldest in July to August. The annual migration of wildlife between Serengeti National Park in Tanzania and Maasai Mara National Park in Kenya takes place between June and September. The migration of almost two million wildebeest, zebras and other species is nature's greatest spectacle on earth. 1. 3. POPULATION Kenya’s population has rapidly increased over the past several decades, and consequently it is relatively young. Some 73% of Kenyans are under 30.In 50 years, Kenya’s population has grown from 7 million to 43 million. Kenya is a country of great ethnic diversity. Most Kenyans are bilingual in English and Swahili. Kenya has a very diverse populati on that includes three of Africa's major sociolinguistic groups: Bantu (67%), Nilotic (30%), and Cushitic (3%). Kenyans are deeply religious. About 80% of Kenyans are Christian, 11% Muslim, and the remainders follow traditional African religions or other faiths. Most city residents retain links with their rural, extended families and leave the city periodi-cally to help work on the family farm.About 75% of Kenya’s population lives in rural areas and relies on agriculture for most of its income. Nearly half the country’s 42 million people are poor, or unable to meet their daily nutritional requirements. The national motto of Kenya is Harambee, meaning â€Å"pull together. † In that spirit, volunteers in hundreds of communities build schools, clinics, and other facilities each year and collect funds to send students abroad. 1. 4. BACKGROUND OF KENYA’S ECONOMY (1960-2010) Kenya is the largest economy in east Africa and is a regional financial and transportat ion hub.After independence, Kenya promoted rapid economic growth through public invest-ment, encouragement of smallholder agricultural production, and incentives for private (of-ten foreign) industrial investment. Gross domestic product (GDP) grew at an annual average of 6. 6% from 1963 to 1973. Agri-cultural production grew by 4. 7% annually during the same period, stimulated by redistrib-uting estates, diffusing new crop strains, and opening new areas to cultivation. After experiencing moderately high growth rates during the 1960s and 1970s, Kenya's eco-nomic performance during the 1980s and 1990s was far below its potential.From 1991 to 1993, Kenya had its worst economic performance since independence. Growth in GDP stagnated, and agricultural production shrank at an annual rate of 3. 9%. In-flation reached a record 100% in August 1993. In the mid-1990s, the government imple-mented economic reform measures to stabilize the economy and restore sustainable growth, including lifting nearly all administrative controls on producer and retail prices, im-ports, foreign exchange, and grain marketing. Nevertheless, the economy grew by an annual average of only 1. 5% between 1997 and 2002, which was below the population growth estimated at 2. % per annum, leading to a decline in per capita incomes. The poor economic performance was largely due to inappropriate agricultural, land, and industrial policies compounded by poor international terms of trade and governance weaknesses. Increased government intrusion into the private sector and import substitution policies made the manufacturing sector uncompetitive. The policy environment, along with tight import controls and foreign exchange controls, made the do-mestic environment for investment unattractive for both foreign and domestic investors.The Kenyan Government's failure to meet commitments related to governance led to a stop-start relationship with the International Monetary Fund (IMF) and World Bank, both of which suspended support in 1997 and again in 2001. During President Kibaki's first term in office (2003-2007), the Government of Kenya began an ambitious economic reform program and resumed its cooperation with the World Bank and the IMF. There was some movement to reduce corruption in 2003, but the government did not sustain that momentum. Economic growth began to recover in this period, with real GDP growth registering 2. % in 2003, 4. 3% in 2004, 5. 8% in 2005, 6. 1% in 2006, and 7. 0% in 2007. However, the economic effects of the violence that broke out after the December 27, 2007 general election, compounded by drought and the global financial crisis, brought growth down to less than 2% in 2008. In 2009, there was modest improvement with 2. 6% growth. In May 2009, the IMF Board approved a disbursement of approximately $200 million under its Exogenous Shock Facility (ESF), which is designed to provide policy support and financial assistance to low-income countries facing exogenous bu t temporary shocks.The ESF re-sources were meant to help Kenya recover from the negative impact of higher food and in-ternational fuel and fertilizer costs, and the slowdown in external demand associated with the global financial crisis. In January 2011, the IMF approved a 3-year, $508. 7-million ar-rangement for Kenya under the Fund's Extended Credit Facility. To a considerable extent, the government's ability to stimulate economic demand through fiscal and monetary policy is linked to the pace at which the government is pursuing reforms in other key areas. The Privatization Law was enacted in 2005, but only became operational as of January 1, 2008.Parastatals Kenya Electricity Generating Company (KenGen), Telkom Kenya, and Kenya Re-Insurance have been privatized. The government sold 25% of Safaricom (10 billion shares) in 2008, reducing its share to 35%. Accelerating growth to achieve Kenya's potential and reduce the poverty that afflicts about 46% of its population will require c on-tinued deregulation of business, improved delivery of government services, addressing structural reforms, massive investment in new infrastructure (especially roads), reduction of chronic insecurity caused by crime, and improved economic governance generally.The gov-ernment's Vision 2030 plan calls for these reforms, but realization of the goals could be de-layed by coalition politics and line ministries' limited capacity. Economic expansion is fairly broad-based and is built on a stable macro-environment fos-tered by government, and the resilience, resourcefulness, and improved confidence of the private sector. Despite the post-election crisis, Nairobi continues to be the primary commu-nication and financial hub of East Africa.It enjoys the region's best transportation linkages, communications infrastructure, and trained personnel, although these advantages are less prominent than in past years. Kenya faces profound environmental challenges brought on by high population growth, de-forestation, shifting climate patterns, and the overgrazing of cattle in marginal areas in the north and west of the country. Significant portions of the population will continue to require emergency food assistance in the coming years. Kenya is pursuing regional economic integration, which could enhance long-term growth prospects.The government is pursuing a strategy to reduce unemployment by expanding its manufacturing base to export more value-added goods to the region while enabling Kenya to develop its services hub. In March 1996, the Presidents of Kenya, Tanzania, and Uganda re-established the East Afri-can Community (EAC). The EAC's objectives include harmonizing tariffs and customs regimes, free movement of people, and improving regional infrastructures. In March 2004, the three East African countries signed a Customs Union Agreement paving the way for a common market.The Customs Union and a Common External Tariff were es-tablished on January 1, 2005, but the EAC countrie s are still working out exceptions to the tariff. Rwanda and Burundi joined the community in July 2007. In May 2007, during a Com-mon Market for Eastern and Southern Africa (COMESA) summit, 13 heads of state endorsed a move to adopt a COMESA customs union and set December 8, 2008 as the target date for its adoption. On July 1, 2010, the EAC Common Market Protocol, which allows for the free movement of goods and services across the five member states, took effect.In October 2008, the heads of state of EAC, COMESA, and the Southern African Development Communi-ty (SADC) agreed to work toward a free trade area among all three economic groups with the eventual goal of establishing a customs union. If realized, the Tripartite Free Trade area would cover 26 countries. 2. POLITICAL CRITERIA 2. 1. GENERAL From the moment Kenya became independent, they went through lots of big changes. In 1962 the KANU-KADU coalition government was formed. The coalition government included both Kenyatta and N gala.The country was divided in 7 regions and each one of the regions had its own regional assembly. After forming the coalition, the principle of reserving seats in the parliament for non-Africans was abandoned and the first open elections were held in May 1963. In 1964 Kenya became a republic, and constitutional changes further centralized the government (Wikipedia – September 2012). When in 1978 Daniel Arap Moi became president in an authoritarian and corrupt manner, there were several changes in the politic of Kenya.Moi reduced the power of the Kenyatta’s men in the cabinet by identifying them to be traitors. Also although the parliament started off as coalition during the whole presidency of Moi there was only one party who had all the power. Even after being requested by United States to have multi-party system Moi declined. In the end because of the local and foreign pressure Moi was forced to accept a new party so that the multy-party could be restored. Moi won the elections in 1992 and 1997 where he used fear and electoral fraud to win (Wik-ipedia – July 2008).In 2002 Moi was not able to present himself in the presidential elections because it is stated in the Kenya’s constitution that a present cannot be in the presidential elections more than three times. Moi unsuccessfully tried to promote Uhuru Kenyatta, as his successor. Moi’s former vice-president Mwai Kibaki was elected president by a large majority. International and local observers reported that the 2002 elections to be generally more fair than those of both 1992 and 1997 when Moi was elected as president. Kibaki lost quickly much of its power because his regime was too close linked with the Moi forces.The continuity between Kibaki and Moi became one of the reasons for the self-destruction of Kibaki’s regime. In 2007 Odinga attacked the failures of the Kibaki regime. In December Odinga won majority of the seats in the Parliament, but the presidential elections votes were divided. In the end it became never clear who won the elections, still the election committee stated that Kibaki was the winner. Odinga accused Kibaki of corruption which resulted in several big confrontations between followers of Odinga and Kibaki. The European Union did not agree with the outcome either because of the detected fraud in the presidential elections.As relation mass protest were triggered, bring-ing simmering ethnic tensions. The protest and the ongoing violence between several groups continued and became worse over the months. Between December and February 1. 500 people died and 600. 000 people became homeless. The United Nations tried to settle and offered a compromise whereby Kibaki stayed president and Odinga became Prime Minister (Chartis – February 2008). In August 2010, a reference date taken on a new Kenyan constitution. The new Kenyan con-stitution restricted the power of president which would benefit to the parliament and re-gions .The reference date was accepted by the majority of parliament and passed peacefully. 2. 2. THE POLITICAL BALANCE OF POWER Various people speak of the heritance of Moi when looked at Kibaki and the amount of pow-er he has. Moi reduced the power of the cabinet – this resulted in more power for him, the president. When Kibaki became the president he had his first years as much power as Moi had in his years. But the second time Kibaki became president there were many protests against him becoming the president. Many people and also Odinga accused him winning unfairly.United Nations stepped in and made Odinga prime minister and shortly after that the Kenyan constitution changed. With the new Kenyan constitution rules Kibaki, or the pre-sent president, is not allowed to appoint more than 50% of the ministers. The rest of the ministers can be chosen by the prime minister. In this way the president is never able to al-ways have full support by his ministers. Nowadays you can speak o f a power-sharing cabinet in Kenya. The cabinet is fifty percent Kibaki appointed ministers and fifty percent Odinga appointed ministers.At the moment we can speak of balanced coalition when we look at Kenya. 2. 3. PRESENT GOVERNMENT AND HIS ATTITUDES AND PROGRAMS Although many opposed of Kibaki to become the president Kenya again in 2007 he did by some say an outstanding job. The country is compared to the Moi years much better man-aged and has by far more competent personnel (Wikipedia – October 2012). Many sectors of the economy have recovered from collapsing in 2003. So did many state corporations who had collapsed during the Moi years have been revived and are performing profitably. Also the infrastructure has been going through changes.Several ambitious infra-structural and other projects are planned or ongoing. Kibaki also introduced the Constituency Development Fund, this was introduced in 2003. The fund was designed to develop resources across regions and to control imbalances in regional development. The CDF program has invested in putting up new water, health and education facilities. There was also special attention for the remote areas of Kenya; these areas were usually overlooked during projects (CDF – official website). Another fact is since the presidency of Kibaki the dependence of Kenya on aid by western donors has been decreased.The country is still getting funded significant but is now finding more fund by internally generated resources, such as tax. During Kibaki presidency, Kenya was more democratic and freer than before. When Kibaki came to power in 2003, he gave away free learning in primary school as well as in secondary school. This resulted in increase of number of children in primary- as in secondary school. 2. 4. POLITICAL STABILITY IN KENYA Before August 2010 all the power laid in the hands of the president. Ex-president Moi for example used his position for his own benefits.After the new Kenyan constitution the powe r changed of only one person, the president, too have it shared with the cabinet. With the new Kenyan constitution it results in a more stable government. When we look at the further the cabinet of Kenya will go through huge changes starting from 4 March 2013, because the general election will then be held. So far Kibaki did not state that he will run in the president elections next year. Odinga will be participating as well as several other ministers, for example: the Deputy prime minister and the Cooperative minister (Wikipedia – October 2012). . CRITERIA RELATED TO DOMESTIC ECONOMY 3. 1. GENERAL INFORMATION Most of Eastern Africa's economy is centralized in Kenya, although this gives them a power-ful position they still suffer from corruption and the low prices of their most important ex-port products. Lately the government has lacked investing in infrastructure which leaves them in danger of losing the position of the largest economy in Eastern Africa. The government is a ccused of the lack of attempting to stop the corruption which opened the doors to a lot of scandals within Kenya's economy.This has led to a deduction of financial support options. Recently Kenya have had a lot of setbacks like: high food and fuel import prices, a severe drought and reduced tourism resulted in rise in the interest rated and an increased cash re-serve. 3. 2. GDP The GDP in 2011 was $ 72, 34 billion, in 2010 this was $ 68,9 billion and in 2009 $ 2,6 billion. GDP growth in % Because of violence used during the elections plus the global financial crisis have led to a deduction in the GDP, in 2008 the growth was only 1,7% but luckily the economy rebounded since the year 2009.Now in 2011 the growth was only 4,3% due to the inflation and currency depreciation. The GDP per capita was $1,700 in 2009 and in 2010 and increased to $1,800 in 2011. If you would compare this with the rest of the world this leaves Kenya on the 195th place in the, which is dangerously low when we lo ok at the risk of doing business with Kenya. Year PPP growth 20051398. 7034. 74 % 20061490. 4066. 56 % 20071592. 9866. 88 % 20081604. 9250. 75 % 20091616. 1430. 70 % 20101675. 9183. 70 % Even though historical facts do not look good, the forecast concerning the GDP are looking better.The GDP is likely to increase due to expansions in tourism, telecommunications, transport and construction and recovery in the agriculture, one of the most important sec-tors for Kenya's GDP. 3. 3. MOST IMPORTANT SECTORS AND PRODUCTS As mentioned before, one of the most important sectors in Kenya’s economy is the agricul-tural sector, forestry and fishing accounted for 24% of the total GDP, 18% of the wage em-ployment and 50% revenue from exports. Especially the tea production and export are likely to increase because of prosperous weath-er forecasts; the coffee industry has stagnated and is not likely to increase in the near future.The most profitable sector in Kenya is the service sector with t ourism dominating that sec-tor. About 63% of all GDP is generated by tourism. Most tourists come from Germany and the Uniting Kingdom; they are attracted to the coastal beaches and the big game reserves. The tourism sector had a downfall because of negative attention in the media and the unsafe environment. The government is currently addressing the security problems within Kenya by introducing a tourism police and by launching marketing campaigns in key tourist origin markets.The most important sectors are: consumer goods (mobile, batteries and textile), agriculture, oil, aluminum, steel, cement and tourism. 3. 4. INFLATION RATE Inflation in consumer prices in % The inflation rate in 2011 was 14%. As we can see on the chart the inflation rate fluctuates a lot which means it will have a negative effect on the analysis on the risk. The Kenyan inflation rate has been on an average of 12,6%, from 2006 until 2012. The ultimate high was 31,5% in May 2012 and 3,2% in October 2011. On the following chart we can see the inflation rate more specified in recent times.Even in the last months there has been a lot of fluctuation in the inflation rate. The main reasons for the fluctuations are droughts and uncertainty in the import and export prices. 3. 5. THE GROWTH OF THE POPULATION The current total population is 43,013,341 (July 2012). In this chart we can see that the population always has had a steady growth. 3. 6. DOMESTIC INFRASTRUCTURE Kenya has an extensive road network of 152887 kilometers but most of the roads are in bad state unfortunately. For example of the total of 63. 800 ilometers of high way only 8,868 are paved. There is currently a project designed for creating links between all major and minor roads and to rehabilitate 20. 000 kilometer of roads in the urban centers. Kenya has a state owned railway corporation which is managing the single track railway station. It runs from Mombasa through Nairobi to the Ugandan border. Certain institutes are investing in the railway corporation to make it viable. The government is working on making the railway a private owned company. Either way, the Kenyan railway station is in a bad state.Kenya has a port located in Mombasa; it has a freight throughput of about 8. 1 million tons. Kenya has an airport that recently has changed from a state owned company to a public/private company. This has been successful since Kenya now is the key gateway to Africa Communications Overall Kenya has a well-established communication system More than 90% of the population has access to GSM signals. Kenya Posts and Telecommunications Corporation provides international direct dialing and subscriber trunk dialing, mobile telephones, telex, facsimile, data communication and related services.Substantial investment for the expansion of these facilities is under way and various internet providers have made their entry into Kenya. 4. CRITERIA RELATED TO FOREIGN ECONOMY Economic Cooperation, Regional Integration & Trade T he East African Community (EAC) countries – Kenya, Tanzania, Uganda, Rwanda and Burun-di – transformed into a fully ? edged and enforceable customs union on 1 January 2010. They adopted a common external tari? (CET) with three bands: 0% (raw materials and capital goods), 10% (intermediate goods) and 25% (? nished goods). Tari? of up to 100% are appli-cable to products that are deemed to be sensitive to member states. These include maize, rice, cement, sugar and dairy products. Members will continue to collect customs receipts separately until a revenue sharing mechanism can be agreed. Furthermore, the EAC Common Market Protocol came into force on 1 July 2010, potentially allowing for the free movement of goods, services, people and capital in a zone with a com-bined population of some 135 million people. Given the large amount of legislation that needs to be amended in all countries to comply with the protocol, the transition is expected to proceed slowly.Kenya has alr eady taken signi? cant steps to domesticate and embrace the provisions of the protocol. A task force charged with reviewing national laws and aligning them with the Common Market Protocol has completed its report. Areas that need harmonization include investment, tax, labor, education, standards, competition, transport, communications and ? nancial services. The report was forwarded to the attorney general who was expected to prepare a miscellaneous amendment bill to be tabled in parliament. Non-tari? barriers (e. g. road blocks, varying quality standards, the ine? ient functioning of the port of Mombasa and other red tape) continue to impede the free trade in goods and add to the costs of doing business. The replacement of paper-based customs administration practices with an electronic inter-face system, Simba, is a strong step towards enhancing competitiveness and trade facilita-tion. With the bringing into operation of Simba customs checks are subjected to computer-ized scanning and fewer physical checks are undertaken. The programme has enabled im-porters and exporters to lodge their documentation on line.In 2012, the Simba upgrade is expected to increase automation of goods clearance across all Kenyan border crossings. 4. 1. IMPORT 2011 While Kenya had just spent 3. 3 billion US Dollars on merchandise imports in 99’, they imported goods worth to 13. 49 billion US Dollar in 2011 which is an increase of over 400%. The depressed performance during the 2008-09 was due to a number of adverse shocks including the post-election violence in early 2008, a severe drought that affected most parts of the country, high international commodity prices and spillover effects of the global financial crisis, but the econ-omy rebounded in 2010.Import Products The major import products for the year to June 2011 were oil, manufactured goods, chemi-cals, machinery and transport equipment. The increase in the value of imports was mainly due to imports of oil, machinery an d transport equipment, and manufactured goods. Oil imports accounted for 24. 2% of the total import. International oil prices increased from USD 74. 8 per barrel in June 2010 to USD 112. 15 per barrel in June 2011. Imports of machinery and transport equipment accounted for 28. 9% of total imports, and increased from USD 3 212 million to USD 3 942 million.This was due to the ongoing infra-structure development. Imports of manufactured items, mainly intermediate goods, accounted for 14. 8% of the im-port bill and increased from USD 1. 625 million to USD 2. 021 million while chemicals ac-counted for 13. 5%. Major Import Partners Kenya’s major import partners for merchandise are (2011): 1United Arab Emirates13. 0% 2China12. 1% 3India11. 6% 4South Africa5. 8% 5United Kingdom4. 6% 4. 2. EXPORT 2011 Kenya had received 2. 2 Billion US Dollar in 99’, while they could increase their receiving for ex-ports in 2011 to 5. 77 Billion US Dollar.This is an increase of about 260%. The depressed performance during the 2008-09 was due to a number of adverse shocks including the post election violence in early 2008, a severe drought that affected most parts of the country, high international commodity prices and spillover effects of the global financial crisis, but the economy rebounded in 2010. Export Products The agricultural sector continues to dominate Kenya’s economy, although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed, and only 7 or 8 per-cent can be classified as first-class land.It is the mainstay of Kenya's economy, contributing over one third of the Gross Domestic Product (GDP). AGRICULTURAL PRODUCTS:Tea, coffee, horticultural products, pyrethrum, pineapples, sisal, tobacco and cotton. TOP 1 – TEA Kenya is one of world`s top producers and exporters of high quality tea and coffee. Value of the produce was boosted by the average auction price TOP 2 – HORTICULTURE The robust flower industry in Kenya sees flower exports ac-counting up to 35% of all Europe’s flower imports. The good performance recorded in the horticultural sub-sector was due to improved external demand.OTHER EXPORTS:Beside this also iron, steel, petroleum products, cement, arti-cles of plastics, medicinal and pharmaceutical products, and leather are exported Textile is Kenya’s leading manufactured export. Soda ash (used in glassmaking) is Kenya’s most valuable min-eral export and is quarried at Lake Magadi in the Rift Valley. SERVICES: Transport, tourism and telecommunications services are the top three service exports in the country. Kenya’s services sector, which contributes about 63 percent of GDP, is dominated by tourism. TOURISM: In 2011 tourism experienced signi? cant gains with earnings rising by 32. %. The United King-dom continued to be the country’s main departure point for tourists with 203. 290 arrivals. Tourism is the second most important source of foreign exchange. To maximize on this growth trend, the Government is working together with the private sector in carrying out marketing as well as in strengthening linkages between tourism and the rest of the economy. Major Export Partners The market for Kenyan exports has been transformed over the years due to changing policy environment, regional integration and other initiatives providing market access to 12 key trading blocks.The initiatives include the East African Community, the Common Market for Eastern and Southern Africa (COMESA), Cotonou ACP/EU Partnership Agreement, and the AGOA initiative, among others. COMESA is Kenya’s key export market, absorbing about 35% of total exports. The European Union market is the second most important, absorbing about 30% of total exports. Kenya’s major export partners for merchandise are (2011): 1COMESA (e. g. Uganda, Tanzania etc. )35. 0% 2European Union30. 0% 3United States5. 6% 4Pakistan4,2% 5United Arab Emirates4,1%Ke nya's relations with Western countries are generally friendly, although current political and economic instabilities are sometimes blamed on Western pressures. ? 4. 3. THE IMBALANCE IN TRADING Kenya is largely a trade deficit country. The negative balance of trade occurs because the country's exports are vulnerable to both international prices and the weather conditions. Since independence, Kenya has enjoyed close international relations, particularly with the western countries. It is also a member of several regional trade blocs, such as the COMESA (Common Market for Eastern and Southern Africa) and the EAC (East African Community).These blocs are key components of Kenya’s trade volumes. The 2011 Kenya’s trade performance was mainly affected by rise of oil prices globally which led to increase in the import bill and the depreciation of the Kenya shilling, while exports remained stagnant. The gap between imports and exports, also called current account deficit, now sta nds at above 10% of GDP – one of the highest in the world! Today, Kenya’s main exports don’t even earn enough to pay for its oil imports, 4. 4. KENYAN CURRENCY The recent history of Kenyan currencyOn 14 September 1966, the Kenyan shilling (KES) replaced the East African shilling at par, although it was not demonetized until 1969. The Central Bank of Kenya issued notes in de-nominations of 5, 10, 20, 50 and 100 shillings. Locals in Kenya call the Kenyan shilling also â€Å"Bob†. The Kenyan Shilling: Development of the Kenyan shilling Overview of the development of the Kenyan shilling (blue) compared to the US Dollar (red) between 2002 and 2012. Exchange rate in October 2012: EUR / KES 1 Euro = ca. 110,38 Kenya shilling 100 Kenya shilling = ca. 0,91 Euro EUR / USD 1 Euro = ca. 1,29 US Dollar 100 Kenya shilling = ca. ,18 US Dollar 4. 5. KENYAN MONETARY POLICY The year 2011 was tumultuous for the monetary authorities in Kenya with high inflation rates and a h eavily depreciated currency. The month–on-month inflation rate averaged 12. 9% from January to October and peaked at 19. 7% in November 2011 against a target of 5%. The high rate of inflation was mainly driven by a rise in food and non-alcoholic beverage prices and transport charges. The food and non-alcoholic beverages index rose by 26. 2% compared with October 2010 while the transport index rose by 26. 22%. The rise in transport index reflected the sharp rise in fuel prices.According to the Central Bank of Kenya (CBK), the euro-area currency crisis also had a desta-bilizing effect on the price level. Inflation is expected to drop to single digits in the next two years thanks to improved production of food and stability of fuel prices. In 2011 the Kenyan shilling depreciated (=im Wert gefallen) by a margin of 25. 2% against the US dollar (USD), dropping from an average of KES 81. 11 per USD 1 in January 2011 to KES 101. 51 in October 2011. It depreciated against the euro (EU R) from an average of KES 108. 29 per EUR 1 in January to KES 139. 07 in October 2011.To arrest the fall of the Kenyan shilling, the monetary policy committee (MPC) progressively increased the central bank rate (CBR) from a low of 6% in January 2011 to a high of 18% by December 2011. The inflationary pressure experienced in 2011 and the depreciation of the Kenyan shilling can directly be traced back to the Central Bank of Kenya policy adopted in 2010, when it cut the central bank rate from 7% in January to 6% in December. This was meant to revive lend-ing and stimulate the economy through increased consumption. The policy was highly suc-cessful as evidenced by the 5. 6% growth attained in 2010.However increased consumption pushed up consumer prices and put pressure on the Kenyan shilling as it heightened demand for imports, which rose from USD 11,283 million in year 2009/10 to USD 13,659 million in year 2010/11. Furthermore, in year 2010/11, domestic credit increased by KES 254. 4 b illion (23. 4%) against a target of KES 205. 9 billion (18. 9%). The excess credit growth reflected a stronger domestic demand than previously estimated. 4. 6. KENYAN’S DEBT SITUATION Kenya’s external debt (or foreign debt) External debt is that part of the total debt in a country that is owed to creditors outside the country.This is not to be confused with actual government debts. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank. List of countries by external debt (End of 2011): External debt. (in USD)per capita% of GDP 1 United States14,710,000,000,00050,266103 2 United Kingdom9,836,000,000,000156,126390 3 France5,633,000,000,00074,619182 4 Germany5,624,000,000,00057,755142 5 Japan2,719,000,000,00019,14845 Italy2,684,000,000,00036,841108 7 Netherlands2,655,489,600,000226 ,503344 8 Spain2,570,000,000,00018,26084 16 Austria 883,500,000,00090,128200 92 Kenya 7,935,000,00020025 The debt service ratio The debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country’s export earnings. A country's international finances are healthier when this ratio is low. The ratio is between 0 and 20% for most countries. For example, if a country has export revenue of ? 100bn and pays ? 15bn interest payments on its external debt, then its debt service ratio is 15%.A rising debt service ratio is often the sign of an imminent economic crisis. Debt service ra-tios may rise because of: †¢A fall in exports †¢Lower price of commodities which are main exports of a country. †¢Higher Borrowing †¢Higher interest rates increasing cost of debt repayments †¢Devaluation increasing cost of external repayments. 5. CONCLUSION All in all Africa has a big potential for exports and investments as there are sti ll big growth opportunities. Kenya has the greatest growth potential in the Sub-Saharan area followed by South Africa. However there are some recommendations to bear in mind (e. . Letter of credit, creditworthiness check,†¦ see list at end of paper) Following there is an overview of the key advantages and disadvantages for exporting to or investing in Kenya: +- Stable economy and good eco-nomic prospectspolitical instability ? political riskBUT: increasing political stability since peaceful referendum in 2010 ? adoption of a new con-stitution Favourable strategic geographical position and access to export mar-kets (? Eastern Africa) corruption and impunity (=Straflosigkeit) BUT: High efforts to bring the problem under control: since 2010 ?Kenyan Anti-Corruption Commission forced high-profile cabinet ministers to step aside and the International Criminal Court publicly named perpetra-tors of violence (=Gewalttater) Membership of the largest African common market, the EAC (Easter n African Community), COMESA and the Southern African Development Community (SADC) ? enables the free movement of goods and ser-vices across the member statesInadequate infrastructure for absorption of economic devel-opmentBUT: High efforts to catch up on infrastructure English languagewidespread poverty ? crime Mombasa seaport ? most impor-tant seaport + Nairobi ? olitical and economic stronghold in the Eastern African Areacompanies are often undercap-italized ? risk of late or non-payment Small time difference Small taxes and levies (=Abgaben) Low wages compared to European countries and well trained em-ployees Emerge of a middle class with increasing purchasing power Kenya plays a major role in the Eastern African economy. Mombasa is the most important seaport in Eastern Africa and Nairobi is the economic and political stronghold in this area. One big plus for exports to or investments in Kenya is that the country has a quite stable economy. Even there were some setbacks in the p ast (e. . violence during the last elections in 2008, global financial crisis) the outlook for Kenya’s economy and GDP is quite favourable for the future. Due to the expansionary of fiscal measures and by structural business reforms driven by the IMF the economy of Kenya will further improve in the past few years. Addi-tionally the recovery of agricultural production and investment in infrastructures will also contribute to the dynamism of the economy. These are quite good prerequisites for potential exporters and investors. Even if Kenya’s investment prospects are quite attractive they had been marred by political risk for a long time.Violence during the election in 2008 frightened away many potential investors. The turning point for Kenya was the peaceful referendum in 2010 where a new country’s constitution was decided (? separation of powers). The peacefulness around the referendum had a huge positive impact on the country. Following this event Standard and Poors increased the credit rating to level B+ which brings Kenya closer to a score that foreign investors regard as an all-clear signal. Nevertheless exporters and investors need to be careful about the political situation in Kenya as new elections will take place in March 2013.The electoral campaign carries significant risks of a resurgence of the violent confrontations within the ethnic groups in Kenya. Our opinion is that Kenya has a huge potential for exporters and investors. It has a solid eco-nomic basis and political stability is already improving, so we would export to or invest in Kenya. Our recommendation prior to do export or investment is the following Exporters/Investors†¦ †¢Ã¢â‚¬ ¦ need to check the local partner/customer in Kenya carefully It is very important to have a reliable, reputable partner in Kenya.Creditworthiness should be checked prior to doing business with them. †¢Ã¢â‚¬ ¦insist on payment by letter of credit Especially when doing business w ith a customer/partner the first time it is advisable not to sell under open payment terms. It could than occur that the exporter would never receive his money. A letter of credit is used to eliminate the risk such as unfa-miliarity with the foreign country, customs or political instability. †¢Ã¢â‚¬ ¦ should not admit corruption Corruption in a foreign country is also indictable in Austria. Austrian exporters may also be reliable for their Kenyan partners.Therefore it is advisable to agree on anti-corruption clauses in the contract. In case an Austrian exporter would admit corruption the export insurance will not be valid anymore. †¢Ã¢â‚¬ ¦ need to consider and watch the political situation When political unrests occur it may be advisable to stop exports until the unrests have calmed down. 6. SUMMARY MILESTONE HISTORYThe independent Republic of Kenya was founded in December 1963. JOMO KENYATTA was the first president (until 1978). Kenyatta's long presidency provided the co untry with stability. GEOGRAPHIC FEATURES †¢580. 000 km2 †¢42 million inhabitants †¢Capital City: Nairobi Language: English, SwahiliThe Republic of Kenya is a country in East Africa that lies on the equator with the Indian Ocean to its south-east. It is bordered by Tanzania to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the north-east. Kenya has a land area of 580. 000 km2 (7 times bigger than Austria) and a population of about 43 million residents. It is to stress out that 75% of the population is younger than 30 years. Its capital and largest city is Nairobi. English is the language of choice when doing business in Kenya and is also used in Kenyan schools.Swahili (also called Kiswahili) is the national language of Kenya. It is a unifying African language spoken by nearly 100 percent of the Kenyan population. CLIMATIC CONDITIONSKenya has a warm and humid climate along its coastline on the Indian Ocean, which chan ges to wildlife-rich savannah grasslands moving in-land towards the capital. Nairobi has a cool climate that gets colder ap-proaching Mount Kenya (5. 166m), which has three permanently snow-capped peaks. 1. OVERVIEW OF THE COUNTRY 2. POLITICAL CRITERIA 2002 transitional election 2007 accusation of electoral ma-nipulation resulted in violent riots in KenyaAugust 2010: peaceful referen-dum in passing a new constitution Kenya has seen significant political changes in the last decade. The his-toric 2002 transitional election, in which the National Rainbow Coalition (NARC) defeated the long-ruling Kenya African National Union, created a major political shift and inspired optimism among citizens about the future of their country as a multiparty democracy. Kenyans went to polls in large numbers for the December 2007 general elections, but the elections turned violent after accusations of electoral manipulation. More than 1. 00 Kenyans died and more than 600. 000 were displaced. Peace was r estored following the signing and enactment of the National Accord and the creation of the Grand Coalition Government (GCG), a power-sharing deal ending a political stalemate between President Mwai Kibaki of the Party of National Unity and Raila Odinga of the Orange Democratic Movement. The National Accord also set out an ambitious reform agenda including a review of the country’s constitution. In August 2010, a largely fair and peaceful referendum resulted in pass-ing a new constitution.The new constitution was a landmark NEW ELECTIONS IN 2013 risk of new post-electoral vio-lence and rumorsachievement for the GCG as it enforces broad changes to the govern-ance framework, including: a new devolved system of government; reduced presidential powers, a reformed electoral process, more defined separation of powers between the three branches of government; land reform; and an expanded bill of rights. Government institutions, civil society, political parties and citizens face an am bitious and challenging period as they enact the reforms dictated by the new constitution.Kenya’s political dynamics also are likely to be influenced by the outcome of the International Criminal Court (ICC) proceedings in which six prominent Kenyans are accused of involvement in the 2008 post-election violence. It is not yet clear whether the charges will be upheld by the ICC. Kenyan leaders are under increasing pressure to continue rebuilding their country and to avoid a repeat of the 2008 post-election crisis as the country heads into general elections in 2013. 3. KENYA’S DOMESTIC ECONOMY DOMESTIC ECONOMY The economy experienced moderate growth in 2011 but is expected to rise modestly in 2012 and 2013 respectively.The year 2011 witnessed drastic currency depreciation and rapid inflation, both of which are ex-pected to stabilize in 2012 and 2013. Youth unemployment constitutes 70% of total unemployment. In 2011 Kenya’s economy recorded â€Å"checked† gro wth, primarily driven by financial intermediation, tourism, construction and agricultural sectors. Gross domestic product (GDP) growth rate for the first nine months was estimated at 4. 2%, down from 4. 9% in the same period in 2010. Overall, growth in 2011 was curtailed by an unstable macroeconomic environment characterized by rising inflation, exchange rate depreciation and high energy costs.The country also experienced limited rainfall in the first half of 2011, which affected aggregate food production. In January 2011, the Kenyan government was forced to ask the IMF for support to counter the mounting financing pressures caused by a widening current account deficit. Certain other structural constraints, such as widespread corruption and poor infrastructure, also continued to undermine Kenya’s growth potential. 4. KENYA & FOREIGN ECONOMY IMPORT While Kenya had just spent 3. 3 billion US Dollars on merchandise im-ports in 99’, they imported goods worth to 13. 49 bill ion US Dollar in 2011 which is an increase of over 400%.The depressed performance during the 2008-09 was due to a number of adverse shocks including the post election violence in early 2008, a severe drought that affect-ed most parts of the country, high international commodity prices and spillover effects of the global financial crisis, but the economy rebounded in 2010. IMPORT PRODUCTS The major import products for the year to June 2011 were oil, manu-factured goods, chemicals, machinery and transport equipment. The increase in the value of imports was mainly due to imports of oil (International oil prices increased) IMPORT PARTNERS1. United Arab Emirates -> 13. % 2. China -> 12,1% 3. India -> 11. 6% 4. South Africa -> 5,8% 5. United Kingdom 4,6% EXPORT Kenya had received 2. 2 Billion US Dollar in 99’, while they could in-crease their receivement for exports in 2011 to 5. 77 Billion US Dollar. This is an increase of about 260%. The depressed performance during the 2008-09 w as due to a number of adverse shocks including the post-election violence in early 2008, a severe drought that affect-ed most parts of the country, high international commodity prices and spillover effects of the global financial crisis, but the economy rebounded in 2010.EXPORT PRODUCTSThe agricultural sector continues to dominate Kenya’s economy, alt-hough only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. Tourism currently is Kenya’s third largest foreign-exchange earner after tea and horticulture (flowers) EXPORT PARTNERSCOMESA (East-South Africa) -> 35. % European Union ->30% United States -> 5,6% Pakistan -> 4,2% United Arab Emirates -> 4,1% IMBALANCE IN TRADING Kenya is largely a trade deficit country.The negative balance of trade occurs because the country's exports are vulnerable to both interna-tional prices and the weather conditions. The gap between imports and exports, also called current account deficit, n ow stands at above 10% of GDP – one of the highest in the world! Today, Kenya’s main exports do not even earn enough to pay for its oil imports. ECONOMIC COOPERATION, REGIONAL INTEGRATION & TRADE COMMON EXTERNAL TAFFIFF VISION STRATEGIC OPPORTUNITYThe East African Community (EAC) countries – Kenya, Tanzania, Uganda, Rwanda and Burundi – transformed into a fully-fledged and enforceable customs union on 1 January 2010 allowing for the free movement of goods, services, people and capital in a zone with a combined population of some 135 million people. The next phase of the integration will see the bloc enter into a Monetary Union and ultimately become a Political Federation of the East African States. They adopted a common external tariff (CET) with three bands: 0% (raw materials and capital goods), 10% (intermediate goods) and 25% (finished goods).Tariffs of up to 100% are applicable to products that are deemed to be sensitive to member states. These includ e maize, rice, cement, sugar and dairy products. The Vision of EAC is a prosperous, competitive, secure, stable and politically united East Africa; and the Mission is to widen and deepen Economic, Political, Social and Culture integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments. EAC has a combined population of more than 135 million people, land area of 1. 2 million square kilometres and a combined Gross Domestic Product of $74. 5 billion. This bears great strategic and geopolitical sig-nificance and prospects of a renewed and reinvigorated East African Community 5. CONCLUSION POTENTIAL OF KENYAAll in all Africa has a big potential for exports and investments as there are still big growth opportunities. Kenya has the greatest growth potential in the Sub-Saharan area after South Africa. However there are some recommendations to bear in mind (e. g. Letter of credit, creditwort hiness check,†¦) ADVANTAGESRISKSStable economy and good eco-nomic prospectspolitical instability ? political riskBUT: increasing political instability since peaceful referendum in 2010 ? adoption of a new constitution Favourable strategic geographical position and access to export mar-kets (? Eastern Africa) corruption and impunity (=Straflosigkeit) BUT: High efforts to bring the problem un-der control: since 2010 ? Kenyan Anti-Corruption Commission forced high-profile cabinet ministers to step aside and the International Criminal Court publicly named perpetrators of violence (=Gewalttater) ADVANTAGESRISKSMembership of the largest African common market, the EAC (Eastern African Community), COMESA and the Southern African Development Community (SADC) ? enables the free movement of goods and ser-vices across the member statesInadequate infrastructure for absorption of economic devel-opmentBUT: High efforts to catch up on infrastruc-ture English languagewidespread poverty ? crime Mombasa seaport ? most impor-tant seaport + Nairobi ? political and economic stronghold in the Eastern African Areacompanies are often undercap-italized ? risk of late or non-payment Small time difference Small taxes and levies (=Abgaben)Low wages compared to European countries and well trained em-ployees Emerge of a middle class with increasing purchasing power OUR RECCOMENDATIONS Exporters/Investors†¦ †¦ need to check the local partner/customer in Kenya carefully It is very important to have a reliable, reputable partner in Kenya. Cre-ditworthiness should be checked prior to doing business with them. †¦insist on payment by letter of credit Especially when doing business with a customer/partner the first time it is advisable not to sell under open payment terms. It could than occur that the exporter would never receive his money.A letter of credit is used to eliminate the risk such as unfamiliarity with the foreign country, customs or political instability. †¦ s hould not admit corruption Corruption in a foreign country is also indictable in Austria. Austrian exporters may also be reliable for their Kenyan partners. Therefore it is advisable to agree on anti-corruption clauses in the contract. In case an Austrian exporter would admit corruption the export insur-ance will not be valid anymore. †¦ need to consider and watch the political situation When political unrests occur it may be advisable to stop exports until the unrests have calmed down.