Thursday, October 31, 2019

A Life Journey of Mao Zedong Essay Example | Topics and Well Written Essays - 500 words

A Life Journey of Mao Zedong - Essay Example Mao was born when the Qing Dynasty was on the course of the breakdown of its powers over the ruling of China. For two hundred fifty years, Qing Dynasty ruled China with strictness. But they were in a quandary as to how to hold on to their authority. The rulers were in a difficulty over the peoples’ unrest. For over thirty years the Qing rulers had been trying to reorganize their land and naval forces and to equip them with modern Western weapons but Japan easily won in the war of 1894. (1) Foreign nations colonized the different parts of China. Powerful nations like Japan, France, Germany and Great Britain were interested in dominating China. Rebels tried to fight to regain Beijing in 1900, killing foreigners and Christian Chinese. This brought about more foreign invasions. Authorities in the other parts of China beheaded rioters and rebels. Qing Dynasty crushed down in October 1911 by the uprising of militant rebels. Though Spence briefly skimmed historical events during the early years of Mao’s life, significant dates, events, and persons were included. The book is a brief but close up portrait of Mao Zedong from his childhood years to the time when he ruled China. Spence combined history and storytelling on Mao’s climb to power. From a common villager without extraordinary talents to a learned man, Spence connected the series of events that led Mao to the peak of his rule. An interesting biography to read and understand this man with a great vision of China’s social and economic change.

Tuesday, October 29, 2019

Ethics Assignment Example | Topics and Well Written Essays - 500 words - 5

Ethics - Assignment Example gher standard of behavior by society, because they are stewards of the public trust and are empowered to apply force and remove constitutional privileges when lawfully justified† (Gleason). Police does not only take an oath of protecting the nation, but is also expected to adhere to the highest standards of ethics and respect the laws they enforce upon others. Proper ethical training helps the police recognize ethical dilemma, identify solutions, select the most appropriate solution from among a range of options, take prompt action, and take responsibility for the consequences. There are certain strategies that the police leaders can adopt to instill ethics in the organization. (Zuidema and Duff) highlight some of them; The police leaders should make the ethical behavior a necessary part of the organization’s mission and values. These values include but are not limited to leadership, dedication, and professionalism. This way, it becomes more convenient for the employees of the police department to recall the terms since they are part of in the organization’s initials. The best way to achieve this effect is to display the values of ethical behavior for the officers and the community members on the brochures, website, and cars used by the organizational personnel. The police leaders should emphasize upon the ethical behavior in such organizational events as meetings and sessions of training and skill development. Inviting the sworn officers of law enforcement at all public ceremonies held by the organization to recite the oath of honor can be a potential way to achieve this. Police departments can also place emphasis on the ethical behavior in the philosophy of their organization. For example, the officers may be granted the power to solve problems individually and make the required decisions in mutual consensus with the citizens. If the officers are granted this right, this would not only make them more particular about the ethical concerns and implications

Sunday, October 27, 2019

Building on Porters Value Chain Model for Design Management

Building on Porters Value Chain Model for Design Management Building on porters value chain model (1985), design management creates value at three different levels: management of design activities, integration of design function into all business processes and decisions to the design vision within the company vision and strategy (Sinha, 2002). What is Design? Design is a process of seeking to optimise consumer satisfaction and company profitability through the creative use of major design elements (performance, quality, durability, appearance and cost) in connection with products, environments, information and corporate identity (P Kotler, GA Rath, 1984). It involves a wide range of professions in which products, graphics, services, interiors and architecture all take part. Design is a problem solving, systematic, creative and a coordinating activity (Borja de Mozota, 1998). It is a creative and management process. Design is a process that has four essential characteristics (Walsh et al, 1992). The 4Cs Creativity: the creation of something new Complexity: decisions on large number of parameters and variables Compromise: Balancing multiples and conflicting requirements Choice: making choices between many possible solutions to a problem at all levels Why is Design Important? Design enhances products, communication, environment and corporate identity. Design objective is to create high satisfaction for target customers and profits for the enterprise. It is an important strategic tool in firms unending search for a sustainable competitive advantage. Design seeks to discover and assess structural, organisational, functional, expressive and economic relationships with the task of enhancing global sustainability, environmental protection, giving benefits and freedom to entire human community, supporting cultural diversity despite the globalisation of world. (Borja de Mozota, 2003). Designers play an important role in how companies use information, how product information is documented and communicated (Lawson 1990, vossoughi 1998, French 1994). Design involves finding and identifying problems as much as solving them (Lawson, p.136, 1994). What is Design Management? Peter Gorb, 1990 defines design management as the effective deployment of the design resources available to a company by line managers in order to help the company achieve its objectives. Design management involves managing the creative process within the corporation and managing the company according to design principles. it is about managing the processes of innovation and design. Design management analyzes the diverse elements necessary for the successful integration of design as an essential component of design strategy (Gianfranco Zaccai). Importance of design management pg 68 Creativity is a process which results in a novel work that is accepted as tenable or useful or satisfying by a group at some point in time (Stein 1956). Creativity has been considered as a type of problem solving (Matlin, 2002). Puccio, 1997 illustrated that creativity contributes to effective leadership and discovering new and better ways of solving problems, the effective use of human resources and the rapid growth of competition in the business. Design is regarded as a creative process. The process has five phases, each having a different objective and corresponds to the production of visual outputs. (Borja de Mozota, 2003) These design phases are identical no matter what the design project is. PHASES OBJECTIVE VISUAL OUTPUTS 0. Investigating Idea Brief 1. Research Concept Visual concept 2. Exploration Choice of style Rough of ideas, Sketches, Rough of presentations 3. Development Prototype detail Technical drawings, Functional  model, 3-D mock up for visual  correctness 4. Realization Test Documents of execution,   Prototype 5. Evaluation Production Illustration of the product The design process (Borja de Mozota, 2003) In preliminary phase, the idea is generated and the problem is identified which can be solved by the design. In phase 1, the designer analyzes the positioning of product and discovers the technical and functional parameters of the project. In phase 2, the designer makes rough sketches of different possibilities using all his creative resources for the clients. Selection is made between different solutions which are to be developed in phase 3. In phase 3, the selected solution is formally represented in three dimensions. The model is used for various tests and the final model is then adopted ending the creative process. In phase 4, the designer works on realization of a prototype for the project. This requires the collaboration of different departments. In phase 5, tests are launched in three different directions: technical control, calculation test, and marketing evaluation. FCUK French connection, also known as fcuk, founded in 1972 by Stephen Marks was designed to create fashionable clothing aimed at a broad target market. French Connection offers a fashion-forward clothing range with a quirky spin on design, priding itself on quality and affordable prices. Fcuk represents French Connection United Kingdom, and is the casual French Connection clothing range; it has developed into a brand name which is highly renowned and an acronym that relates to the French Connection logo. The French Connection brand operates in the fashion-orientated high street retail market offering a fashion-forward range of quality products at affordable prices. Customers, typically aged 18-35, appreciate that the brand is at the leading edge of high street fashion and offers quality and style in its products. The design teams are based in London and products are manufactured in specialist facilities in Europe and Asia (Fcuk.com, 2009). French Connections operations cover several dist ribution channels, from their own retail outlets, wholesalers in North America, franchises, mail order, to concession stores in a variety of department stores such as Selfridges. French Connection is now one of the most recognisable fashion brands on the high street with a global reach, operating in over 30 countries, with over 1,000 stockists worldwide (fcuk.com, 2009). In February 2001, French Connection paid  £23 million pounds sterling to its US joint venture partner Best of All Clothing who had been operating the 24 French Connection stores before the buyout. Now French Connection holds complete independent ownership. Product/service offering The company design ranges of products for both men and women from underwear to outerwear, casual wear to suits, denim, accessories and childrens wear. French Connection has expanded into new markets at a phenomenal rate and the product range is now hugely diversified. The company began by selling clothing to the mens and womens market, originating as a fashionable clothing range, and has now extended its brand in recent years to include fashion accessories, make-up, toiletries, even condoms and not forgetting more recently alcoholic drinks. Brand licensing plays an important part of the companys strategic plans for expansion with licensing deals revenue. The company has developed into a brand licensing company rather than solely a fashion retailer. The brand had even expanded into radio, with the launch of FCUK FM. The core plan behind the idea is to target 18- to 35 year old to the brand in the future. Fcuk follows a specific pattern to achieve its organisation goals. FCUK advertise d Scent to bed in publications, print ads in magazines that included cosmopolitan, Marie Claire, Maxim and FHM whose readerships were primarily consisted of girls in their early and middle teenage years. Fcuk remained convinced that the campaign was right for its target market. Focus remains to produce fashion-forward products to build on the success of the ladies wear ranges (Fcuk.com, FY09 presentation). USPs French connections controversial ad campaigns with the fcuk fashion developed the brands bold, and witty attitude that has made customers think; with a desire to be innovative, distinctive and yet be affordable and accessible. Their adverts are not like the usual fashion advertising, they leave it open to interpretation of the customer. Fcuk witnessed a sudden fall in late 1980s, but it became one of the hottest brands in England in late 1990s and early 2000s, thanks to its controversial marketing campaign and subsequent rebranding. FCUK has always adopted out of the way advertising and selling techniques, for example their logo FCUK, or the eye catching visuals on the high streets. Accessories such as hats, sunglasses, backpacks, fragrances and the companys new cosmetics line complement the brands fashion (Plunkett 2009). The fcuk logo works as a unique selling point for the brand and separates it from its competitors. Also the exclusive designs, customer satisfaction and service pr ovided by the employees are the unique selling points of the brand. French connection has become synonymous with style and fashion. It strives to maintain the brand credibility and its uniqueness in the market. Innovation and creativity are the characteristic of the designs and the company blends high quality with exciting ideas as well as affordability. Multi -Channel Strategy Apart from the store network such as mail order and the internet the company uses a number of other lucrative channels. With e-tailing, French Connection realised how important their online business is, where they were adamant to win the rights to fcuk.com. In addition to these varied channels deployed, French Connection also grants licenses to retailers worldwide in order to expand their business into new markets. French Connection is aware of the volatility of expanding into new markets. Therefore they are more cautious and get involved with their licensees to follow progress. FCUK and the Market French Connection operates as a multiple specialist fashion retailer, competing against the likes of Zara, HM, Top Shop, Miss Selfridge, Next, River Island and Warehouse. This industry is highly competitive with numerous international brands fighting in the segment. As like all other fashion retailers FCUK has monitored the progress of the Spanish clothing brand Zara. Due to Zaras lean production and efficient logistics, it has taken over a huge share of the market. To compete with them, the design and production teams at FCUK now only commit to less than sixty percent before the launch of the season .The company acknowledges that speed-to-market is crucial in order to give customers what they want, when they want, at the price they want. It sells its products at higher price points than the likes of Zara and HM. However daring its marketing may have been, French Connections clothes were in reality considerably less interesting than those stocked at faster-growing rivals Zara and HM, and the truth finally caught up with the company in 2004. That year, sales began to slow significantly, encouraging the company finally to drop the FCUK slogan from its advertising. That tactic failed to arrest the decline in performance. In May 2009, French Connection announced that like-for-like sales in the UK and Europe rose by 2% during the 3 months ending 16th May, thanks to a strong performance in the women wear sector. Total retail sales in the UK and Europe were up by 8% over the period. French Connection said that women wear had continued to show growth, but that menswear remained difficult (mintel.com). Read Supply chain report. http://tutor2u.net/business/strategy/what_is_strategy.htm Conclusion French Connection has set a personality to its brand, which is exciting and original; this is considered to be exceptional with the number of different brands in the high street. The key to their success is a combination of their stylish clothing range, affordable pricing, merchandising, and controversial advertising. As the brand is continuously innovating itself, they aim to create more fashionable clothing ranges by taking the opinion from important people in the fashion industry. The advertising will remain innovative and creative but will focus more on the clothes itself; creating a unique look that is distinctively, French connection. The brand celebrates individual fashion whilst constantly developing products, market and future goals to expand

Friday, October 25, 2019

Is This Really Happening To Me? :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  One bright early morning at around 7:00 A.M. I woke up. After waking up I proceeded to use the restroom then took a shower. After showering I then ate breakfast then began to brush my teeth and got dressed for school. Finally, I was done with my morning routine and then I headed out for my day at school.   Ã‚  Ã‚  Ã‚  Ã‚  On my way to school I followed the speed limit to avoid getting a ticket. When I got to school I proceeded to go to my first class which is Sociology. When class was let out I went to the quad where I smoked a cigarette and did home work for my classes for the next day. Then at approximately 12:00 P.M. I met up with my friend Tonya then we walked to our next class, Theatre, which we had together. While in our Theatre class we joked around and criticized different movies, and the bad acting in several of those movies. When that class ended my friend Tonya and I decided to got to the mall.   Ã‚  Ã‚  Ã‚  Ã‚  When we got to the mall we parked at the food court so we could get something to eat at Chick-Fil-A after our long day at school. On the way walking to Chick-Fil-A we decided to stop at Abercrombie and Fitch, our favorite store. While in Abercrombie and Fitch I saw this really fine outfit but I only had enough money on me for me to eat that day. So my friend told me that I should just steal it so I could wear it when we went out that weekend. But I knew better I knew it would be wrong so I decided we should just leave and go eat and I would go back and get the outfit once I had enough money for the outfit on me. After we ate we decided to leave the mall. While I was bringing her back to her vehicle another friend of mine, Kenny, called. He called to invite me over before work because he was going to be cooking and few people were going to go over. So I told him I would but I had to go home and get dressed for work before I went out there to meet them. I then went home and got dressed for a long night at work.   Ã‚  Ã‚  Ã‚  Ã‚  After I took my shower and got dressed I left and went to Kenny’s.

Thursday, October 24, 2019

Multiple Perspectives vs. Single Perspective Approach Essay

The focus of my paper is going to be Pluralism, Monism and Interdisciplinarity in the context of a multiple perspective approach. I will discuss the advantages of taking a multiple perspective approach of viewing things which are, Pluralism and Interdisciplinarity, as opposed to a single perspective approach, which is Monism. Pluralism can be used as the term to define the integration of different values and cultures within a given society. Monism, (comes from a Greek word Monos meaning one) is defined as â€Å"any philosophy that denies that there are many separate beings in the universe† and instead looks at a unified one (James and McDonald). Interdisciplinarity looks at different disciplines, the combination of which can help create something new and different. I agree with both Berlin and Moran that it is better to take a multiple perspective approach. Though people may dismiss multiple perspective approach, I believe that Pluralism is a response to Monism and Interdisciplinarity, being the advancement of knowledge into something better and new in the context of the disciplines that have long become outdated and old fashion and which gave rise to other disciplines. Both Pluralism and Interdisciplinarity are a multiple perspective approach of looking at things. Pluralism as a response to Monism: Monism as defined earlier in the paper is a view of looking at the universe as a unified whole, meaning that it is a singular way of looking at things as opposed to pluralism which looks at things in different ways, the multiple perspective approach. The reason why I agree that it is better to have a multiple way of looking at things is because, as the world keeps changing, societies too change and evolve. New innovations are made, ideas and ideals change and therefore, we cannot have a single outlook on things. People come up with different views, ideas and have their own interpretations to what they believe in and/or agree with. Berlin states â€Å"there is a plurality of ideals, as there is a plurality of cultures and of temperaments† (11). This means that Pluralism is having multiple values, perspectives that people can value more than one thing. Different people have different values and we may not always believe in or agree to them but there is an understanding of why we as human beings, pursuit what we believe in and we may therefore, have some values that are similar. People may have different cultures that they follow and those that are important to them, but this does not mean that they are not aware of or respect other cultures. Monism is the belief that only one set of values is true and the rest being false. This is not true and that is why it is better to have a pluralistic approach as opposed to believing in those who think they know how societies should be arranged or who know what the ways of living should be. Today we are living in a pluralistic society where people around the globe share their knowledge and expertise with each other. The advantage of pluralism is the diversity of cultures which give the freedom of communication between people of different cultures and backgrounds, who come together and work together have the liberty to follow what they believe in as opposed to following those who are in authority and those who think they know it all. Berlin sates, â€Å"true knowledge is knowledge of why things are as they are, not merely what they are† (7). In this day and time, globally, we are seeing a new era emerging where nations that had accepted dictatorship as gospel, are now rebelling and voicing their opinions and liberating their nations. Interdisciplinarity – a multiple perspective approach: Joe Moran defines Interdisciplinarity as â€Å"any form of dialogue or interaction between two or more disciplines† (16). In my opinion what it means is that Interdisciplinarity is the transformation and the organization of knowledge into something new within the context of the disciplines that were already existent but have become obsolete. He points out three main aspects that explain really well the concept of Interdisciplinarity and what it actually does and how it has helped society evolve and transform knowledge for what it was then and what it became. Moran mentions bureaucratization, professionalization and specialization (Berlin, 12). Bureaucratization means a formation of a set of rules and regulations that need to be followed. It can be said that this is similar to what the monists believed about the people who are in controlled and need to be followed but he also talks about professionalization where a pastime is turned into a profession an also specialization sepa ration of areas into discrete areas of concentration. Professionalization and specialization are a contradiction to what the monists believed in because this leads to a freedom of what people were able to do and they managed to transform knowledge into something more substantial than just following rules and regulations that would not allow them to change their ways of thinking as people who had the knowledge were to control and were the ones to be followed. Interdisciplinarity gave rise to different disciplines within the framework of a university where students were given the opportunity to learn more and gain new knowledge and that knowledge was not only limited to a few people. We can say that, Interdisciplinarity is a multiple perspective approach of looking at things, in this context the disciplines that were obsolete and that gave way to the rise of knowledge that was transformed into something new. With this came the rise of natural sciences, social sciences and the humanities that became disciplines in their own because of the different cultures and value systems that are embodied within these disciplines and not just one set of discipline that was to be followed. I conclude by agreeing with both Berlin and Moran that taking a multiple perspective approach of looking at the world and viewing things with different ideas is better than to have a single view of things. This is because a multiple perspective approach brings together different ideas from different mind sets which are more beneficial than ideas of just one person who is in control and who looks down upon people as his inferiors. Today, technology has advanced to an extent that we can get information on our finger tips by just using the internet. Social media such as Facebook and Twitter are the means of communication between people around the world and are much faster as opposed to the old days when the use of telegrams was the norm. News travels fast through these social media outlets than by watching television, or listening to news on the radio or reading newspapers. This is possible due to the fact that multiple perspective approach has allowed different mind sets to come up with and share these innovative ideas. References Berlin, Isaiah. â€Å"My Intellectual Path.† The Power of Ideas. New Jersey: Princeton University Pres, 2002. 5-7, 11-14. Print. â€Å"Monism and Pluralism.† Hugh James Francis Joseph McDonald. N.p., n.d. Web. 22 Oct. 2012. . Moran, Joe. â€Å"Introduction.† Interdisciplinarity. London: Routledge, 2001. 1-18. Print.

Wednesday, October 23, 2019

Aes Cost of Capital

International Capital Structure and the Cost of Capital Agenda 1 2 3 4 5 International Capital Structure and the Cost of Capital Analyzing Cost of Capital among Countries Cross Border Listing of Stocks International Asset Pricing Model (IAPM) The Financial Structure of Subsidiaries Case Analysis – AES Corporation 6 International Capital Structure and the Cost of Capital Your Logo International Capital Structure and the Cost of Capital †¢ Firms are becoming multinational in both scope AND in capital structure †¢ Fully integrated financial markets = the same cost of capital both domestically and abroad o If not, opportunity may exists to decrease cost of capital Cost of Capital †¢ The minimum rate of return an investment must generate to cover its financing cost †¢ Firms will undertake projects if the return is expected to exceed the cost of capital †¢ Return = Cost of Capital : value unchanged †¢ Return > Cost of Capital : firm’s value incre ases †¢ Return < Cost of Capital : bad investment Weighted Average Cost of Capital (K) †¢ When a firm has both debt and equity financing, weighted average cost of capital: K = (1-? )K+ ? (1- t)i K = (1-? )KL + ? i(1- t) †¢ (1- ? = weight of cost of capital that is from equity †¢ KL = cost of equity capital †¢ ? = debt-to-total-market-value ratio (weight of total cost of capital that is from debt) †¢ i = before-tax cost of debt capital (borrowing) †¢ t = marginal corporate income tax rate o Interest payments are tax deductible K = (1-? )KL + ? i(1- t) †¢ (1- ? ) = weight of cost of capital that is from equity †¢ KL = cost of equity capital †¢ ? = debt-to-total-market-value ratio (weight of total cost of capital that is from debt) †¢ i = before-tax cost of debt capital (borrowing) †¢ t = marginal corporate income tax rate o Interest payments are tax deductible K = (1-? )KL + ? i(1- t) †¢ (1- ? ) = weight of cost of capit al that is from equity †¢ KL = cost of equity capital †¢ ? = debt-to-total-market-value ratio (weight of total cost of capital that is from debt) †¢ i = before-tax cost of debt capital (borrowing) †¢ t = marginal corporate income tax rate o Interest payments are tax deductible K = (1-? )KL + ? i(1- t) †¢ (1- ? ) = weight of cost of capital that is from equity †¢ KL = cost of equity capital †¢ ? = debt-to-total-market-value ratio (weight of total cost of capital that is from debt) †¢ i = before-tax cost of debt capital (borrowing) †¢ t = marginal corporate income tax rate o Interest payments are tax deductible K = (1-? )KL + ? i(1- t) †¢ (1- ? ) = weight of cost of capital that is from equity †¢ KL = cost of equity capital †¢ ? = debt-to-total-market-value ratio (weight of total cost of capital that is from debt) †¢ i = before-tax cost of debt capital (borrowing) †¢ t = marginal corporate income tax rate o Interest payments are tax deductible Example †¢ K = (1-? )KL + ? (1- t)i o Company is financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 0)0. 10 + 0. 30(1-0. 15)0. 06 Example †¢ K = (1-? )KL + ? (1- t)i o Company is financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 70)0. 10 + 0. 30(1-0. 15)0. 06 Example †¢ K = (1-? )KL + ? (1- t)i o Company is financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 70)0. 10 + 0. 30(1-0. 15)0. 06 Example K = (1-? )KL + ? (1- t)i o Company is financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 70)0. 10 + 0. 30(1-0. 15)0. 06 Example †¢ K = (1-? )KL + ? (1- t)i o Company is financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 70)0. 10 + 0. 30(1-0. 15)0. 06 Example †¢ K = (1-? )KL + ? (1- t)i o Company s financing 30% of capital by debt (? ) ? So they’re financing 70% (1-0. 30) by equity (1-? ) †¢ Cost of equity capital is 10% †¢ Before-tax cost of borrowing is 6% †¢ Marginal corporate tax rate is 15% K = (0. 70)0. 10 + 0. 30(1-0. 15)0. 06 K = 8. 53% Minimizing weighted average cost of capital(WACC) †¢ Lowest WAC C is obtained when the optimal combination of debt and equity are used †¢ Increases # of profitable capital expenditures o Firm value is increased as long as the return on new projects exceeds the firm’s WACC †¢ Internationalizing the firm’s capital structure helps to decrease the cost of capital Firm’s Investment Decision and the Cost of Capital †¢ A firm that can reduce it's cost of capital will be able to increase the profitable capital expenditures that they can invest in †¢ This results in increasing shareholder wealth †¢ We can do this by internationalizing our cost of capital Factors that affect the WACC Controllable Uncontrollable †¢1 Capital structure policy Proportion of debt and equity †¢ Interest rates Increases cost of debt, may indirectly increase cost of equity †¢ Investment Policy Degree of risk associated with new projects †¢ Tax rates Increase in corporate tax rate decreases cost of debt decreases WA CC Economic conditions Ie. Financial crisis of 2007/2008 Calculating the firm’s equity cost of capital Usually estimated using the Capital Asset Pricing Model (CAPM): †¢ Ri = Rf + ? (Rm – Rf) †¢ Ri: Expected return of security I †¢ Rf: Risk-free interest rate †¢ ? : measures volatility of security i compared to the market portfolio †¢ Rm: Market portfolio Cost of capital in segmented vs. integrated markets †¢ Ri = Rf + ? (Rm – Rf) †¢ In segmented markets, Rm is usually proxied by the S for the United States †¢ In integrated markets, Rm can be proxied using the MSCI World index Cost of capital in segmented vs. ntegrated markets†¦ continued †¢ Same future cash flows are likely to be priced differently in different countries in segmented markets, why? o ? is measured against the domestic market portfolio a this differs from country to country †¢ In fully integrated markets, same future cash flows will be priced the same as ? is now measured against the same world market portfolio Analyzing Cost of Capital among Countries Your Logo Does the Cost of Capital Differ among countries? ? Researches suggest that although international financial markets are not segmented anymore, they are still not fully integrated ? The empirical evidence is not clear-cut If the international financial markets = less than fully integrated, then there can be systematic differences To illustrate that capital markets are less than fully integrated, McCauley and Zimmer (1994) provided a direct comparison of the cost of capital among the 4 major countries: Germany, Japan, UK and US Method: 1. estimate the cost of debt and equity capital 2. compute the cost of funds (weighted average cost of capital) – using capital structure in each country as the weight 3. compute the cost of capital in real terms after adjusting for the inflation rate Effective Real After-Tax Cost of Debt Cost of Equity Debt -to-Equity Value Ratios Real After-Tax Cost of Funds Example – Novo Industri †¢ Produces industrial enzymes and health care products †¢ 1970s, management decided to finance planned future growth of company by entering international capital markets †¢ Danish stock market was small and illiquid – company needed to internationalize †¢ Novo management felt they were facing a higher cost of capital than competitors because of the segmented nature of the Danish stock market Example – Novo Industri Went international by: Increased transparency by presenting financial and technical statements in Danish and English †¢ Cross-listed on the London Stock Exchange, †¢ Listed ADRs (so that US investors can invest in US dollars rather than Danish) The Result: †¢ Novo Industri’s stock price increased while other Danish stocks didn’t Implications of the example Firms operating in small, segmented domestic capital market can gain access to new capit al and lower the cost of capital by listing their stocks on large, liquid capital markets like the New York and London Stock Exchanges. Cross border listing of stocks Your Logo Cross-Border Listings of Stocks †¢ Firms can potentially benefit from crossborder listings †¢ Why? o Gain access to additional sources of capital while lowering cost of capital by increasing investor base o Increase in stock prices due to more demand and trading of the stock Cross-Border Listings of Stocks †¢ Firms seem to prefer to list in neighbouring markets †¢ Why? o Similarities in markets o A â€Å"home bias† Cross-Border Listings of Stocks †¢ Generally, o Potentially expand investor base, which leads to a higher stock price and lower cost of capital lower transaction costs ? improvement in quality and quantity of firm specific information available to investors o Creates a secondary market for the company’s shares and facilitates raising new capital in foreign mar kets liquidity of a company’s stock o Enhance Cross-Border Listings of Stocks †¢ Generally, o Enhances the visibility of the company and it’s products in foreign markets shares may be used as the â€Å"acquisition currency† for taking over foreign companies o Cross-listed o May improve the company’s corporate governance and transparency Cross-Border Listings of Stocks May improve the company’s corporate governance and transparency† †¢ Once companies cross-lists its shares on foreign exchanges (NYSE, LSE), they are required to follow strong disclosure and listing requirements †¢ On average, foreign companies listed on U. S. exchanges are valued ~17% higher Cross-Border Listings of Stocks †¢ Disadvantages o Meeting disclosure and listing requirements can be costly (U. S. GAAP) in overseas markets o Volatility o Foreigners may take a controlling interest in the company and challenge domestic control International Asset Pricin g Model IAPM Your Logo IAPM For understanding the effects of international cross-listings. †¢ assuming cross-listed assets are internationally tradable assets and internationally nontradable assets. IAPM †¢ CAPM: Ri=Rf+(RM-Rf)Bi Bi = Cov(Ri , RM)/Var(RM) =; Ri=Rf+[(RM-Rf)/Var(RM)]Cov(Ri,RM) AMM risk-aversion: Y*=[E(r)-rf]/(A? 2)  » AM is a measure of aggregate risk aversion  » M is aggregate market value of market portfolio =; Ri=Rf+ AMM Cov(Ri,RM) IAPM †¢ Asset pricing mechanism under: †¢ Complete integration – assets are trade internationally according to world systematic risk Complete segmentation – assets are trade respected to country systematic risk. Suppose two countries: Domestic Country and Foreign Country †¢ IAPM Complete Segmentation †¢1 Domestic Country E(R): †¢ Foreign Country E(R): Rg = Rf + AFF Cov (Rg , RF) Ri = Rf + ADD Cov (Ri , RD) Complete Integration Both Domestic and Foreign: Ri = Rf + AwW Cov (Ri , RW) In re alty, assets are priced as partially integrated world financial markets IAPM Partially Integrated World Financial Markets †¢ Internationally tradable assets are priced as if world financial markets were completely integrated †¢ Non-tradable assets will be priced by world systematic risk (pricing spillover effect) and a country-specific systematic risk. o o Spillover effect – externalities of economic activity or processes those who are not directly involved in it. Pollution, technology, even financial markets IAPM Nontradable assets of the domestic country: Ri=Rf+ AwW Cov*(Ri,RW)+ ADD [Cov(Ri , RD)- Cov*(Ri , RD)] Cov* (Ri , RW) Indirect world systematic risk Cov*(Ri,RW) is the indirect covariance between the ith nontradable asset and world market portfolio. Cov(Ri , RD)- Cov* (Ri , RD) Poor domestic systematic risk Cov*(Ri , RD) is indirect covariance between the future returns on the ith non-tradable asset and domestic country’s market portfolio that is ind uced by tradable assets. IAPM implications: 1. International listing (trading) of assets in otherwise segmented markets directly integrates international capital market by making these asset tradable. 2. Firms with non-tradable assets get free ride from firms with tradable assets in sense that former indirectly benefit from international integration in terms of a lower cost of capital and higher asset prices. Effect of Foreign Equity Ownership Restrictions †¢ Restrictions on maximum % ownership of local firms by foreigners †¢ Mexico and India: limited to 49% †¢ Two different classes of equity Chinese firms issue A shares and B shares †¢ Ensuring domestic control of local firms Pricing-to-market (PTM) phenomenon †¢ Constraint is effective in limiting desired foreign ownership eg. Korean firm’s restriction on foreigners is 20% Foreigners want to buy 30% †¢ Foreign and domestic investors may face different market share prices Asset Pricing under For eign Ownership Restrictions †¢ A firm’s cost of capital depends on which investors, domestic or foreign, supply capital. †¢ A firm can reduce its cost of capital by internationalizing its ownership structure. An Example of Foreign Ownership Restrictions: Nestle †¢ Nestle used to issue two different classes of common stock: – Bearer shares: foreigners – Registered shares: Swiss citizens – The bearer stock was more expensive. Nestle An Example of Foreign Ownership Restrictions: Nestle †¢ On November 17, 1988, Nestle lifted restrictions imposed on foreigners, allowing them to hold registered shares as well as bearer shares. †¢ A major transfer of wealth from foreign shareholders to Swiss shareholders. †¢ The total value of Nestle increased substantially when it internationalized its ownership structure. †¢ Nestle’s cost of capital therefore declined. An Example of Foreign Ownership Restrictions: Nestle †¢ The Ne stle episode illustrates: – The importance of considering market imperfections – The peril of political risk – The benefits to the firm of internationalizing its ownership structure The Financial Structure of Subsidiaries Your Logo The Financial Structure of Subsidiaries Three different approaches to determining: 1. Conform to the parent company’s norm – where the parent company is fully responsible for the subsidiary’s financial obligations – not necessarily consistent with minimizing the parent’s overall cost of capital The Financial Structure of Subsidiaries Three different approaches to determining: 2. Conform to the local norm of the country where the subsidiary operates – When the parent company is willing to let its subsidiary default, or the guarantee of obligations becomes difficult to enforce across national borders – Not the optimal one approach (immature nature of local financial markets) The Financial Structure of Subsidiaries Three different approaches to determining: 3. Vary judiciously to capitalize on opportunities to reduce financing costs and risks – Most reasonable and consistent with minimizing firm’s overall cost of capital – Take advantage of subsidized loans Taxes deduction of interest payment – Take advantage of various market imperfections (ex. political risks) CASE: Globalizing the Cost of Capital and Cost Budgeting at AES BRIEF BACKGROUND AES Originally Applied Energy Services †¢ Founded in 1981 †¢ Publically traded since 1991 †¢ In 2003 – Leading independent supplier of electricity in the world – $33 Billion in asset (eg. Power plants, generation facility, other energy related businesses) stretched across 30 countries and 5 continents AES Early Success †¢ †¢ †¢ †¢ †¢ 1983: 1st cogeneration facility is built in Houston, Texas 1988: Net income = $1. million 1991: AES goes public, net income = $42. 6 million 1991-1992: AES initiates international expansion 1996-1998: estimated 80%-85% capital investment is overseas †¢ 2000: Revenue = $4. 958 billion Net Income = $778 million AES Typical Investment Structure AES AES stock price (market cap in 2000 reached $28 billion @ $70/share) AES AES stock price (market cap in 2002 fell 95% to $1. 6 billion @ $1/share AES What Happened? †¢ It's recipe for success (international exposure) became their recipe for disaster o Much of AES' expansion took place in developing countries (there was more unmet demand vs. eveloped countries) †¢ Main factors: o Devaluation of key South American currencies ? Argentine, Brazilian, Venezuelan currency crises o Adverse changes in energy regulatory requirements ? Government mandated energy rationing and competition o Decline in energy commodity prices AES AES ISSUES AES Simple Domestic Finance Framework †¢ 12% discount rate was used for all contract generation projects o al l dividend flows from projects were deemed equally risky ? fair assumption because businesses had similar capital structures o most risks could be hedged in the domestic market AES Same Model was Exported Overseas Worked well initially, when they first expanded to Northern Ireland o had many of the same characteristics as domestic projects †¢ Model became increasingly strained in Brazil and Argentina o Hedging key exposures was not feasible (currency, regulatory.. ) AES SO†¦ AES needed of a methodology for calculating Solution by AES valuation & cost of capital for capital budgeting at AES businesses in diverse locations around the world AES How did AES deal with it? †¢ Rob Venerus, director of Corporate Analysis & Planning questioned whether the traditional CAPM would suffice †¢ He did not advocate the use of a world CAPM o AES owned businesses in poorly integrated capital markets Countries such as Tanzania and Georgia did not have any meaningful capital markets †¢ He did not advocate the use a local CAPM either o AES How did AES deal with it? †¢ So Rob Venerus developed a new model: Step 1 †¢ Calculate the cost of equity using U. S. market data for each of AES' projects o Average the unlevered equity betas from comparable U. S. companies o Relever the beta to reflect the capital structure of each of AES' projects o Cost of equity = Rf + ? (Rm – Rf) AES How did AES deal with it? Step 2 †¢ Calculate the cost of debt by adding the U. S. risk free rate and a â€Å"default spread† o Cost of Debt = Rf + Default Spread o The â€Å"default spread† is based on the relationship between EBIT ratios for comparable companies and their cost of debt. AES AES How did AES deal with it? Step 3 †¢ Add the sovereign spread to both the cost of equity and the cost of debt o this accounts for country-specific market risk, which is the difference between local government bond yields and corresponding U. S. Treasury y ields. †¢ These steps allow AES to calculate a WACC that reflects the systematic risk associated with each project in its local market. AES AES How did AES deal with it? BUT†¦ †¢ Most of these local markets are developing markets where â€Å"access to capital was limited and information less than perfect† –> project-specific risk could not be diversified away †¢ â€Å"Project-specific risk† must be accounted for! AES How did AES deal with it? Example of project-specific risk: †¢ There are 2 hydro plants in Brazil that are identical in every aspect, except for the rivers that feed them. River #1 produces cash flows that vary +/50%, River #2 by +/- 10%. If they are financed by 100% equity, CAPM says they are worth the same. Rob Venerus thought this was unconvincing Seven types of â€Å"Project-specific risk†: 1. Operational/Technical 2. Counterparty credit/performance 3. Regulatory 7. Contractual Enforcement/Legal 4. Construction 5. Commodity 6. Currency Weights estimated from AES' ability to anticipate and mitigate risk. Then given a grade between 0 (lowest exposure) and 3 (highest exposure), multiplied by their weights to yield a â€Å"business-specific risk score† AES Example Risk Score Calculation for Lal Pir Project (Pakistan) Business-specific risk score Used to calculate an adjustment to the initial cost of capital o 0 = no adjustment to WACC o 1 = +500 basis points (5%) o 2 = +1000 basis points (10%) o 3 = +1500 basis points (15%) †¢ Overall (exhibit 8 from case): 1. calculate cost of equity and cost of debt using U. S. market data 2. add sovereign spread to each 3. calculate WACC 4. Add a business-specific risk adjustment to WACC SUGGESTION & RECOMMENDATION FOR AES CORPORATION Suggestion & Recommendation †¢ AES Corporation’s current method of valuing risk is clearly inadequate. Not enough risks were being considered in their model, especially political and economic risks in dev eloping countries that the company expanded to. Under this current model, country-specific risk is also difficult to measure. †¢ This new model to value cost and risk should be implemented by AES. – It gives the company a more realistic projection of the risks that they may face with projects that they take on internationally. – Risks such as political, economic, country-specific and business-specific risks are now considered, where in the previous model they were neglected. THE END THANK YOU! Your Logo

Tuesday, October 22, 2019

legal process essays

legal process essays There are many steps that must be taken before John would have a case that could go to trial.In the case of John vs. his employer there is a process that is involved when filing discrimination charges. John needs to report to his EEOC counselor within 45 days of the charge. However, he also needs to file a complaint with the Equal Employment Opportunity Committee for them to determine that there is enough evidence to support Johns claim of discrimination. This is when the EEOC does a priority investigation of the initial facts to see if these facts appear to support a violation of the law. In investigating a charge, the EEOC may make written requests for information, interview people, review documents, and, as needed, visit the facility where the alleged discrimination occurred. (www.eeoc.gov) Once the agency finishes its investigation, John may request a hearing before an EEOC administrative judge or an immediate final decision from the agency. At any point in time John or his emplo yer may form a settlement out of court and this would suffice EEOCs requirements as well. Then John can choose to file a civil lawsuit and go to the federal court system since he is in the private sector. John would then file a complaint and then both parties would pay a fee of $150.00 by statute. Because, John is a defendant in a civil case then he would then have to hire his own attorney. In the state system however, he would have an attorney appointed for him. The federal court system also wants the litigants to prepare for the case, also known as discovery. Both John and his employer must provide information to each other about the case, such as witnesses, dates, times of events etc. This helps the litigants prepare for their trial by assembling evidence and preparing all of the witnesses. (www.uscourts.gov) In the federal court system, there are many rules that the courts must follow. They are designe ...

Monday, October 21, 2019

Free Essays on A Real and Present Wireless Danger

Cellular phones have quickly become the essential part of our everyday lives. It is not surprise that last couple of years we see more reports that medical equipment doesn’t work properly because of cellular phones. Cellular phones cause harmful interference for medical equipment. This is serious problem that can cause anything from minor inconveniences to serious injuries or even death. There are number of studies that show if cellular phone is being used near a cardiac pacemaker, it causes interference. It was proven that little more than a quarter of all patients with implanted pacemakers could have problems if they are using digital wireless phones. Good news is that distance of only 8 inches from the phone is needed to make sure that digital wireless phone doesn’t cause any problems. Another interesting fact is that only those phones that operate in 900 MHz frequency can cause problems. Phones that operate in 1800 MHz frequency don’t cause any problems. All patients with pacemakers need to make sure they don’t carry phone close to the pacemaker. Another good news is that mostly all new pacemakers that are currently manufactured are guaranteed to be safe to use near cellular phones. Also, there were other tests done with implanted medical equipment that helps patients to inhale. Forty-one patients were tested using digital 900MHz phones. Those tests prove that none of the patients had any problems. The tests were double checked by testing same medical equipment close to a field of cellular-phone antennas. Second test however indicates that strong magnetic field caused by lots of cellular phone power can cause temporary shutdown of implanted medical equipment. Therefore it is recommended for patients with implanted inhalation medical equipment to keep at least small distance between them and digital cellular phone. Nine of external pacemakers from four different manufacturers were also tested. They showed lots of diff... Free Essays on A Real and Present Wireless Danger Free Essays on A Real and Present Wireless Danger Cellular phones have quickly become the essential part of our everyday lives. It is not surprise that last couple of years we see more reports that medical equipment doesn’t work properly because of cellular phones. Cellular phones cause harmful interference for medical equipment. This is serious problem that can cause anything from minor inconveniences to serious injuries or even death. There are number of studies that show if cellular phone is being used near a cardiac pacemaker, it causes interference. It was proven that little more than a quarter of all patients with implanted pacemakers could have problems if they are using digital wireless phones. Good news is that distance of only 8 inches from the phone is needed to make sure that digital wireless phone doesn’t cause any problems. Another interesting fact is that only those phones that operate in 900 MHz frequency can cause problems. Phones that operate in 1800 MHz frequency don’t cause any problems. All patients with pacemakers need to make sure they don’t carry phone close to the pacemaker. Another good news is that mostly all new pacemakers that are currently manufactured are guaranteed to be safe to use near cellular phones. Also, there were other tests done with implanted medical equipment that helps patients to inhale. Forty-one patients were tested using digital 900MHz phones. Those tests prove that none of the patients had any problems. The tests were double checked by testing same medical equipment close to a field of cellular-phone antennas. Second test however indicates that strong magnetic field caused by lots of cellular phone power can cause temporary shutdown of implanted medical equipment. Therefore it is recommended for patients with implanted inhalation medical equipment to keep at least small distance between them and digital cellular phone. Nine of external pacemakers from four different manufacturers were also tested. They showed lots of diff...

Sunday, October 20, 2019

Internet Marketing and Online Business Training Program

Internet Marketing and Online Business Training Program Internet Marketing and Online Business Training Program Internet Marketing and Online Business Training Program By Daniel Scocco No writing tip on this post, be warned. If you are interested in learning Internet marketing and in creating your own online business, though, read on. My name is Daniel Scocco, and I am the owner of Daily Writing Tips (most of you probably know this by now or so I hope!). Luckily for you guys, Maeve handles most of the post writing these days, so I just need to manage the administrative tasks on this blog. That is pretty much what I do full time. I create web properties and manage them. Sometimes I create blogs, other times websites that sell services, and other times yet I play with PPC (Pay-per-Click) and affiliate marketing. I have been working from home on the Internet for almost three years now, and I really cant see ever going back. I know that many of you also want to follow a similar path. Maybe you are tired of your 9 to 5 job. Maybe the economic crisis is putting some pressure on your banking account. The Internet is THE market place these days, and learning how to make money online is an aspiring idea right? How do you go about doing that though? Where do you start? Using what tools? It was thinking about those problems that I gathered some friends of mine to create an Online Marketing and Business training program, called Online Profits. The program is launching today, and it will stay open for new members only until the end of the week (Friday 16 is the last day to join). The Online Profits members will have access to: 21 training modules and 66 lessons Video tutorials Exclusive interviews and case studies Private Forum where you will get all your questions answered The Social Club to boost your social media traffic and exposure Exclusive tools and resources And here is what is covered on the 21 training modules (each of them has several lessons inside): Introduction and Business Principles Domain Names Setting Up Your Website WordPress Web Design for Entrepreneurs Business Models Choosing Your Niche Blogs Other Types of Websites Web Content and Copywriting Basic SEO Advanced SEO Generating Traffic Social Media Web Metrics Selling Advertising Email Marketing Affiliate Marketing PPC (Pay-per-Click) Landing Pages Selling Your Products Now to the key question: how much does it cost? The members joining on the first launch will be able to attend the training program for $48 monthly instead of the official price which is $98 monthly. The program has a duration of 6 months, and the training modules are added gradually over time to ensure that members wont be overloaded with too much information right after signing-up. If you are planning to get started with Internet marketing and with your online business in 2009, I am sure this training program will get you going on the right direction. Click here to check all the info and the sign-up page. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the General category, check our popular posts, or choose a related post below:30 Synonyms for â€Å"Meeting†The Parts of a Word45 Idioms with "Roll"

Saturday, October 19, 2019

Week 5 Project #2 Research Proposal Example | Topics and Well Written Essays - 1250 words

Week 5 Project #2 - Research Proposal Example Malicious damage could be prevented through the utilisation of different security checks aimed at authenticating identities of individuals utilising the system. Passwords remain a common method utilised in identification of authorised individuals accessing an information system The system shall consist of a self assessment strategy aimed at ensuring multi-level security of the entire system. The approach adopted for the system shall occur at different layers of the system stack. The various layers shall include the following These applications are implemented to monitor malicious activities within an information system platform (Whitman & Mattord, 2009). Network behaviour analysis shall be utilised in the prevention of intrusion. This kind of prevention analyses network behaviour and identifies threats through monitoring unusual activities. Statistical anomaly based detection shall be employed in detecting threats occurring within the network. Information system audit is aimed at analysing the development strategy for the information system. The auditing process shall be undertaken by a professional IT organisation to ensure all aspects of the system are effectively checked. The working processes and practices must also be analysed as a way of improving the functioning of the system. Information assurance could be defined as the application of numerous methods of providing protection for information systems, like computer networks. In providing protection of computer systems there are five fundamental qualities which as system must sufficiently satisfy to ensure successful protection. The five qualities are as listed below Non-repudiation – this ensures that the system maintains a record of all activities undertaken. This works in ensuring that individuals remain responsible as their actions can be retraced within the system. This refers to the process of encoding information to ensure only

Friday, October 18, 2019

Marketing for Dell Computers Essay Example | Topics and Well Written Essays - 2750 words

Marketing for Dell Computers - Essay Example On account of promoting their printer business I am to describe their marketing management team the basic concepts of marketing related techniques to promote the sales of printers. Based on an overall analysis regarding past performances of the company, I adopted a systematic plan of marketing strategy for the promotion of company’s printer sales. I find this marketing strategy is worth for their management to achieve the objective within minimum time frame in an efficient and effective manner. On the basis of the case study on the company’s performance, and further analysis, I prepared a report incorporating various aspects and techniques of marketing management and submit to the Chairman-cum-CEO of the company. This report will definitely be a suitable guide for senior management team of M/s Dell Computers which would as I presume, rejuvenate the team for delivering their maximum efforts in a right perspective for achieving the goal. In this report the different stages of marketing, marketing approach, targeting, positioning and related relevant topics are explained. As a result to the efforts taken by me for the research and analysis , the best possible techniques and application of marketing management are narrated in this report and necessary recommendations compiled from the analysis are also mentioned at the end. The top management of the company must adhere to the guidance on account of rendering their best services to ensure improvement in sales of printers by reaching right customers across the difference parts of the world in right time. Here is a marketing related quote.† (Contardo 2004). Once Mr Peter Drucker, an eminent management thinker and the father of business consulting stated that "Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions:

IMPROVING BUSINESS Performance Essay Example | Topics and Well Written Essays - 1250 words

IMPROVING BUSINESS Performance - Essay Example The research in this case targets the improvement of performance of the company. The main activity in this case would be the analysis of the current performance of the company to determine the current performance, requirements and the challenges (Maginn 2007, p, 288). The solution of the challenges will result following the formulations of means to transform the challenges into opportunities. The exercise targets the division of the company into sectors of performance. The difficulties will then be determined in regards to the company’s performance. Recommendations for the solution of the problems in every perspective will then be made. Eventually, assessment will be made on the recommendations to pride from more efficient mechanisms for improving the business. Introduction The fact that PIPEWORK plc is an old established UK company, it is not at its performing at its best due to various reasons. The company has challenges with lack of a succession plan that makes it look visi onless. Lack of morale is a characteristic of many stakeholders hence hindering performance. Computerization of functions and departments is lacking leading to discrepancies in accounting and delivery delays. All these would be best addressed using the Business Process Reengineering. Moreover, there exist challenges with status quo who wish to maintain their status hence hindering the capacity of the company to get new technologies and managerial skills. Most of the staff and heads of department are untrained and incompetent leading to low quality products and poor service delivery. These challenges can only be best addressed by the Kaizen approach PIPEWORK plc is a UK based company that is a market leader in the pipework sector. PIPEWORK plc is divided into three divisions namely the Drainage Division, Do-it-yourself (DIY) Division and Boilers Division. Though they are operated as independent business units, with individual balance and profit sheets that are later amalgamated, the company has recorded losses with respect to the previous year’s performances (Patterson et al 2012, p, 624). This year’s turnover was ?700m with a pre-tax profit of ?35m though it is a loss compare to last year’s which was at ?900m with a pre-tax profit of ?50m. The average age of senior management staff being 56 years implies the company lacks in new managerial skills methods in the market. Lack of a succession plan by the Head of Human Resources and Divisional directors is clear indication for lack of a vision in the company. Only two divisions have staff and management appraisal procedures which are long overdue in terms of re-evaluation. In order to have a deeper establish the context for evaluation of PIPEWORK plc, it is vital to consider the vital sections considered for its maximal performance. Drainage Division Overreliance on the olden traditional way of making clay pipes using kilns leads to wastage rates due to fractures and malformation. The fracture s and malformations are as a result of long time the clay takes in the kiln and the fire used. Though the engineers have recently introduced PVC pipes, PIPEWORK lacks the internal resources to develop brand new products. This has made the company incur extra costs to suppliers to help them develop a new plastic pipe making machine to facilitate the division create newfangled products appropriate for present day market. It is expensive to produce the PVC pipes alongside the clay ones. In as much as PIPEWORK has opened a major manufacturing plant in Germany

Advanced Medical Essay Example | Topics and Well Written Essays - 8000 words

Advanced Medical - Essay Example The blood-brain barrier is very selective in its functions and would normally not allow for the introduction of drugs or any other chemicals into the brain. There is a need for active transport processes which would call for the use of energy (Battison, et.al., 2005). Mannitol can open the barrier by reducing the size of the endothelial cells, and then also stretching the closed junctions. Water then would exit the cell and enter the artery in order to facilitate osmotic balance (Vialet, Albanese, Thomachot, and Antonini, 2003). Water loss would lead to cells shrinking. The opened gap would peak after five minutes following mannitol administration. At this point, drugs are introduced into the artery and the brain. The impact of mannitol in decreasing intracranial pressure has caused its widespread use in neurosurgery (Lawson, 2007). In general, the impact has been credited to the hyper-osmotic impact of mannitol which causes the extraction of water from the swollen brain. However, this pharmacological action has been put at issue due to different observations (Lawson, 2007). One is that there is a decrease in intracranial pressure prior to any reduction in white matter content. Another is based on the observation that where the intracranial pressure is significantly decreased, there is no major shift in the white water content (Cruz, Minoja, and Okuchi, 2001). Intracranial pressure also stays high even with a decrease in white matter water with the administration of intravenous albumin. Author Hartwell (1993) discussed that soon after mannitol has been transfused, there was a slight rise in white matter water content. This was followed by an eventual fall having lowest values manifesting afte r 60 minutes and with levels being much less than pre-mannitol infusion. With the introduction of evidence-based medicine, the impact of mannitol was soon questioned (Wani,

Thursday, October 17, 2019

Benefits of Effective Human Resource Management Essay

Benefits of Effective Human Resource Management - Essay Example Zakaria, Zainal and Nasurdin define human resource management as â€Å"a philosophy, policy, system and practices that can affect the behavior, attitudes and performance of employees† (2011, p.77). Durkovic (2009) acknowledges the importance of human resource management noting that organizational success significantly depends on the manner in which human potentials are managed. This implies that managers of human resources have to be equipped with the necessary skills in order to produce the best from the employees despite the challenges involved in managing people. The concept of human resource management Human resource management has undergone significant change in theory, practice and research over the previous decades. The pressure from both the internal and external environments has caused HRM to deviate from its administrative tasks as personnel management to adopting its new role as a root of sustainable competitive advantage in organizations (Durkovic, 2009). Previousl y, the functions of HRM as a key driver of success in an organization were ignored. However, in the modern economic environment, its potential role in enhancing the performance of organizations has been appreciated with its practice improving performance through customer and employee satisfaction, productivity, innovation and developing good reputation in an organization’s community. ... Through scientific selection process, it supplies an organization with skilled workers. Similarly, human resource management prepares workers so that they fit within the changing environment through training and development. It encourages experimentation and innovation so that costs would be reduced and productivity increased. This shows that human resource management plays a key role in an organization and should therefore not be undermined. It relates to all organizational activities including production, marketing and finance among others. Jackson, Schuler and Werner (2012) further observe the importance of human resource management in satisfying various stakeholders in an organization including investors, owners, employees, other organizations and the society at large. The concern in this would be in people as resources and not as factors of production. It encompasses the cycle starting from recruitment to selection, hiring and training so as to develop human assets. Required ski lls Effective human resource management requires one to possess the required skills for appropriate management to ensure that organizational objectives are achieved. The basic skills cited by Jackson, Schuler and Werner (2012) include listening, presentation, communication and leadership skills. Negotiation skills would also be critical in ensuring that these managers recruit the best skills in the market at competitive rates. Due to group dynamics in an organization, human resource management calls for skills in group problem solving so as to ensure harmony among the employees. This would be coupled with the demand for team building skills to ensure that the organization works as a team towards a

Book Review for Principles of Curriculum Construction Essay

Book Review for Principles of Curriculum Construction - Essay Example makes serious note of this, and, as powerful examples of his approach in this book, Gardner describes an education that illuminates the theory of evolution, the music of Mozart, and the lessons of the Holocaust, for instance. Within this book, Gardner envisions an education that preserves the strengths of a traditional humane education while at the same time fully preparing younger generations for the many challenges that will face them in the future. This book is truly one of great intelligence and efficiency, and there are many different issues within it that need to be discussed in order to be able to actually gain a proper and knowledgeable understanding on the book and the purpose of the book overall. The aim of this paper is to show the reasoning and purpose behind the book, as well as the key and significant issues that are dealt within the book. This is what will be dissertated in the following. Howard Gardner is a man whose work around multiple intelligences has had an incredibly profound impact on thinking and practice in education, and although his theory of multiple intelligences has not yet been readily accepted within academic psychology, it has however met with a strongly positive response from many educations, and as well it has truly been embraced by a range of educational theorists and, significantly, applied by teachers and policymakers to the problems of schooling. In this particular book of his, Gardner makes several points in particular quite major, such as the fact of how he believes that there is much more information that students need to know compared to the amount that they are presently receiving. The way in which Gardner’s theory of multiple intelligences has been translated into policy and practice has really been quite varied, and although Gardner certainly did not initially spell out the actual implications of his theory for educators in any detail, but subsequently, he has worked by looking more closely at what the theory

Wednesday, October 16, 2019

Benefits of Effective Human Resource Management Essay

Benefits of Effective Human Resource Management - Essay Example Zakaria, Zainal and Nasurdin define human resource management as â€Å"a philosophy, policy, system and practices that can affect the behavior, attitudes and performance of employees† (2011, p.77). Durkovic (2009) acknowledges the importance of human resource management noting that organizational success significantly depends on the manner in which human potentials are managed. This implies that managers of human resources have to be equipped with the necessary skills in order to produce the best from the employees despite the challenges involved in managing people. The concept of human resource management Human resource management has undergone significant change in theory, practice and research over the previous decades. The pressure from both the internal and external environments has caused HRM to deviate from its administrative tasks as personnel management to adopting its new role as a root of sustainable competitive advantage in organizations (Durkovic, 2009). Previousl y, the functions of HRM as a key driver of success in an organization were ignored. However, in the modern economic environment, its potential role in enhancing the performance of organizations has been appreciated with its practice improving performance through customer and employee satisfaction, productivity, innovation and developing good reputation in an organization’s community. ... Through scientific selection process, it supplies an organization with skilled workers. Similarly, human resource management prepares workers so that they fit within the changing environment through training and development. It encourages experimentation and innovation so that costs would be reduced and productivity increased. This shows that human resource management plays a key role in an organization and should therefore not be undermined. It relates to all organizational activities including production, marketing and finance among others. Jackson, Schuler and Werner (2012) further observe the importance of human resource management in satisfying various stakeholders in an organization including investors, owners, employees, other organizations and the society at large. The concern in this would be in people as resources and not as factors of production. It encompasses the cycle starting from recruitment to selection, hiring and training so as to develop human assets. Required ski lls Effective human resource management requires one to possess the required skills for appropriate management to ensure that organizational objectives are achieved. The basic skills cited by Jackson, Schuler and Werner (2012) include listening, presentation, communication and leadership skills. Negotiation skills would also be critical in ensuring that these managers recruit the best skills in the market at competitive rates. Due to group dynamics in an organization, human resource management calls for skills in group problem solving so as to ensure harmony among the employees. This would be coupled with the demand for team building skills to ensure that the organization works as a team towards a

Tuesday, October 15, 2019

MS A.S.Thafeni Essay Example for Free

MS A.S.Thafeni Essay 1. How did I engage myself with the group? Deciding which group or organization to engage with was not easy for me. I had to play around with some ideas and think which one because we have plenty of them around here. In my community we have Trauma Center, FAMSA; we also have lay counselors who are making a difference in more informal way. However deciding how to approach one of them wasn’t easy at all. I felt anxious every time I had to make a choice. I reflected to one of my experiences I encountered long time ago when I relocated to another country (Angola) for three years. When I had to meet different people, different culture, language and so forth. It was totally new environment for me and I had to adjust very fast. The first step I took was to make an appointment with one nurse in charge in our local clinic to authorize me to do my observation in the clinic with the help of my nephew who was employed at the clinic. She agreed. I also went to FAMSA and try to negotiate my entry there as person who needs help, unfortunately, they were not in that day. Then I decided to engage with the group located in my clinic where I got permission. . I learned lay counselors are in attempt to bring change in our community. Targeted members are those patients who visit or come to clinic on a daily basis for various reasons. The group meets during the week (Monday to Friday) at 8am – 10pm. The establishment of the group was two years ago because the concern some few community members had. It seems it has been started by local community members who were concerned about certain issues that affect people. They felt that buy working together as community would bring a difference and enhance life of other people. They also thought that this group will bring some changes in their homes and to community as a whole. This awareness program is not static, new members are introduced daily, weekly and monthly as the group is informal. The program compels no one to stay, people do have right to choice and freedom and it’s being respected by everyone. The goal of this program is to make the people aware of some disease and illness that affect us and consciously and unconsciously. I understand since this program started two years ago, it has been successful. People show interests  and others report that there has been a radical change in their lives as now they know the importance of taking their treatment especially on time, completing the treatment, eating healthy, exercising, teenage pregnancy decreased as youth now know how to protect themselves against the diseases, abortions decreased and so forth. This kind of reports is what kept the program alive. I also understand this program reached so many people every month as they count approximately 300 to 400 monthly. Again they hope that in the long run the community will be better, HIV/AIDS, TB, Teenage pregnancy will be decreased by 50%. What made them certain is that in 2012 when this program commenced within six to seven months, TB and HIV/AIDS was combated seriously and clinic reported that 2% less/ reduced. I also learned that people wants to be taught with the language they understand so that they can participate fully about the things affect their lives on the daily basis. I came to know the group because I am also a community member who also uses the facilities available to my community such as the clinic. Most of the time when I visited my clinic I used to see people entering certain door and I asked a friend who was sitting next to me and also as I have mentioned above I have a nephew who is employed there about the group and she explained to me. Initially, I never give myself time to join or to be interested in whatever they are doing but studying this module made me to be interested in the group. My nephew who works at the clinic helped me to enter the space by introducing me to the nurse in charge. I made appointment with appointment with the nurse. I had to make an appointment because for me it indicated respect as I wouldn’t just enter as I please in the group without permission. I had five minutes with the nurse and explain who I am? What do I want to do? Why, How? When? And after that she gave me permission. What is important I  indicated that whatever I am going to observe here is strictly confidential; it’s only for my assignment purpose. The nurse introduced me to the facilitator who was facilitating the group and I was highly accepted as part of the family but as an observer. The main area of focus is to teach or  make the community members aware about various issues that affect them on the daily basis. Issues such as Teenage pregnancy, HIV/AIDS, TB, STI’s, etc. They also focused on teaching morality because they believe good morality will result in reduced mortality. 2. I had few assumptions before engaging in the context. Assumption 1- The Environment= the environment should be conducive so that members should be comfortable. Assumption 2-The group share common interest. Assumption 3- They group should share common problem. Assumption 4- They must have open communication. Assumption 5 They should have solution to their problem. Assumption 6 – Decisions are made collectively. All these assumptions are only based on my observations that are not confirmed. I was also aware that even though they form a group but they are still unique individuals with their unique experiences (proposition 1 2). These unique experiences will bring change to their lives. I also believed that as a group they have collective knowledge, skills and potential. The only thing that is required is the facilitator to release that potential resource. Aspects pertaining to the social context as well as social issues that the group is grappling with or the challenges the group is facing are denial and distortions about the disease such as HIV/AIDS. Some member of the group came with the interesting aspect that HIV/Aids caused by super natural causes. It is caused by people casting a spell over you (bewitched) (boloi- South Sotho). Some will say the disease can be cured, they know the traditional healers who cured somebody. Some will say its indication  of ancestors calling. Some claims that they don’t have food in order for them to take treatment. Because of these challenges the program had to be adjusted a little bit to accommodate these challenges. The members will somewhere somehow include God and super naturals in their discussions, for an example, a woman was taught about the HIV/AIDS illness, how we contact it and so forth, and she also made her inputs that in the Bible all these illnesses where predicted, therefore its not a miracle. During my observation I realized that people are struggling to relate with the  environment also with one another. For an example, during the session the group members were afraid to talk their hearts out. I can assume that members know each other perhaps as a neighbor, friend. Therefore, their friendship or neighbor relationship deprived them freely participation in the group as one will think that what others will do or say or one doesn’t want others to know about his /her business or issues the one struggling with. According to part two of the study Guide – The ‘cracked’ landscape Society in crisis. I have realized that people are not aware that they are not alone, they are not individuals. They failed to cherish the idea of ‘motho ke motho ka batho ba bang’ – ‘Humanity’. They still isolate themselves, still have negative thinking that no one can help them and yet they don’t realize that this behavior is abnormal as it makes us to live like animals – where we should be on a look out everyday – who says what, to w hom? In what manner? This behavior also creates tension between the people, create hunger, poverty, violence, discrimination (Study Guide for PYC3705:24). Our society is broken into smaller pieces. However, As I was observing this group I realized positive things about the members. Even though disclosing in public is not their way of life but they do need help. I saw this after the first session ended. Some of them wanted private dialogue with the facilitator. Others shared their experiences with others in private. That private conversation gave them hope and less despair and that allowed development among the group itself. The second session – the following day I saw different group than  yesterday in terms of enthusiasm, energy. The dialogue was just open and free and that also helped other to open up. I heared other member of the group says â€Å"Ka ikutlwa ke fodile† – â€Å"She now feels better or healed†. That where I learned that talking or opening up indeed heals and assist the government cost on medicine. I think the are some similarities and differences I have observed with regard to what constitute a counseling setting. Why I am saying this is because firstly, as I have mentioned above about the well reception I received from the group and the counselors. This indicated positive regard for others  Unconditional positive regard is one of the climate that the counselor should create so that people should feel accepted, and that how I felt. As I observed the counselor/ facilitator’s. According to study guide for PYC3705:40, explains that unconditional positive regard is being present is the basis from which people can explore thoughts, feelings and experiences. This is what I saw from the lay counselor. That is reason why members of the group were able to express their feelings about the HIV/AIDS issues. Even though members introduced their knowledge about traditional healers who can treat various illnesses, she was non – judgmental, she showed warmth through body langu age – used posture, maintained eye contact and that indicated one of the values that she should have – Respect. Secondly, she created the safe environment (proposition 17). She allowed the group members to be themselves. She let them to deal with the issues they felt strong about e.g. (What do you guys want us to talk about today?). She let them to self determine (proposition 4). She never judged them. She respected every one’s ideas. She listens to each and every one of them. She was attending every member of the group. The lay counselors even though they conduct counseling informally as they have no formal training in psychology , like Mrs. Bengu in the study guide for PYC3705 they provide emotional support in the community in collaboration with others. What I also observed in this group is ‘Confidentiality’. We know that this is a dilemma. One member in the group requested that what they discussed in there it should end there. She herself she doesn’t want to hear her problems outside that group. If her request is not respected, then she will be very disappointed. All members including the facilitator agreed on that and made promise to one another that they will be confidential. This indicated the unity of the group (proposition 3). The differences I saw was lay counselor couldn’t recognize the discrepancies between what the member was saying and how was said or behaved. She was just accepting what ever the member said. Two, non-verbal communication, what the member was communicating through her body language e.g. member is communicating something but she puts hands on her mouth. She doesn’t use minimal encouragers, open question paraphrasing and so forth. The lack of attentiveness skill. According to (Grobler and  Schenck 2009:46), attentiveness is the way in which the facilitator orientates him or herself physically and psychologically towards the clients. However, the counselor will answer her phone during the session with the client without apologies. This is the evidence that I have conducted a proper research. As I have mentioned earlier the group is located in my local clinic and is informal, is not registered, the counselors are not qualified or trained. Therefore, they make use of the pamphlets available in the clinic such as Drug-resistant, TB and HIV and TB in the Workplace. REFERENCES Grobler, H. Schenck, R. 2009. Person centred facilitation. 3rd edition. Oxford University Press Modutla, K. Semenya, B. 2010. Only study Guide for Transformative counseling encounters. University of South Africa. Louw, H. 2008-2010. Only study guide for Participatory community development in social work and the social service professions. University of South Africa.

Monday, October 14, 2019

Analysis of Zaras Marketing Plan and Strategy

Analysis of Zaras Marketing Plan and Strategy Zara is a retailing chain with several stores situated worldwide. Its marketing strategy is based more on expansion rather than advertising or traditional methods of promotion. This report will provide a brief outline and a critical evaluation of Zaras marketing plan particularly in relation to its environment. The report will also identify and evaluate how technology and the new media could impact on Zaras future marketing plans. The sustainability of Zaras marketing strategy and how it will affect their reputation in the future will also be examined. Zara has already begun the implementation of the marketing strategy so a brief look at the current position and the results has also been included in this report. 2.0 Marketing Plan 2.1 Mission Statement Zara moves at the pace of society, fashion ideas, and trends that society itself has natured. Hence its success among people, cultures and generations that, in spite of their differences, share a special sensitivity for fashion. 2.2 SWOT Analysis Zaras main strengths are its early development in technology which has resulted in smoothly operated logistics, its ability to produce good designs and recent trends promptly and efficiently, its investment intensity and its participative culture (see appendix 1: Company background). Its main weakness is its customer service but it has opportunity for growth in new markets, new countries and on the internet. The firms main threat is the possible effect of the worldwide economic recession on the strength of the Euro which could increase the costs of Zaras outsourcing and ultimately remove the competitive advantage gained by its pricing strategy. 2.3 Marketing Objectives Increase customer equity Increase purchase frequency among plus size customers Continue to grow by extending the Zara fashion brand Increase brand awareness and favourable attitudes among consumers Zaras main corporate objectives are growth through store expansion in large highly populated cities and maintaining a competitive advantage through the constant release of a variety of new fashions regularly. The marketing objectives to increase brand awareness and extend the Zara fashion brand will contribute hugely towards achieving the overall objectives particularly the store expansion. 2.4 Marketing Strategy The target group consists mainly of women aged between 18 40 who are either working in big cities or pursuing higher education, have a mid-range income and are generally interested in fashion trends as well as conscious about their looks. The company has positioned itself as a store selling a variety of medium quality high fashion clothing at affordable prices and has stores in about 70 countries worldwide. The pricing strategy is to produce clothes that are typically inexpensive and affordable by those who cannot spend much on fashionable clothing but want to have appealing and comfortable outfits as well as wealthy consumers who like good quality and style. Zaras marketing strategy is to create a customer focused product that will differentiate Zara from its competitors by bringing a fresh look to the plus size segment, feeding on the existing Zara name and values associated with the brand and stealing the variety-seeking customer from the competitors. 2.5 Marketing Mix Product Price Promotion Place Physical Evidence People Process Quality Inexpensive Store display Logistics Customers Outsourcing Appearance Affordable Public relations Store atmosphere i.e. wide open spaces Suppliers In-house production Brand Inclusive (i.e not exclusive) Advertising in high Fashion magazines e.g Vogue, Harpers etc. Each line with its own section in the store Store managers Backward integration Appeal Internet Designers CSR initiative to create awareness e.g design competition for students According to McDonald M, (2007), all organizations have a mix of products or services that could be classified as either, a disaster, lowest cost, niche or outstanding success products based on M. Porters generic strategies matrix. But Zara has very few disasters, in fact it has a new product failure rate of just 1% in comparison to the industry average of 10% (Pearson, n.d.). Through backward and vertical integration, Zara keeps its costs low and therefore is able to maintain low prices whilst still retaining profitability. It does not particularly aim to produce niche products as most of the designs are either a copy from the catwalk or from other store designs. However most of the time it does have outstanding success with its products as a result of its excellent supply chain which enables it to produce new designs promptly. Zara can produce and distribute new designs within two weeks of a new style appearing on the catwalk, a feat which has given the firm a competitive advantage over competitors such as HM (Hennes Mauritz) and Gap. The firms clothes are advertised mainly through the store displays in their numerous stores located worldwide and through their attentive customer service. They also advertise on the internet and very rarely in other forms of media. The products are distributed through a complex technology based system which ensures that goods are delivered to all the stores simultaneously and on a regular basis. 3.0 The Marketing Plan and its Environment 3.1 Pestel Analysis Zara originated in Spain and with over 500 of its stores currently located there, the market has become rather saturated. Hence it has expanded to 63 countries and consequently faces various challenges usually presented by unfamiliar environments. Zara has a policy of establishing its stores only in the city centre of large cities and each store must have a minimum size of 1000 square metres. In certain countries obtaining this can be a challenge which resulted in Zara partnering with one of its main competitors, Benetton in an attempt to penetrate the Italian market. The joint venture failed after two years as they were unable to secure the required property size in an appropriate location. Furthermore Zara originally had a policy of owning all its stores which it has had to review following the entry into various countries with a restriction on total foreign ownership. Zara was forced to consider joint ventures and franchises to combat this problem and currently has several co-owned stores. The worldwide recession is also an economic factor that could create challenges for Zaras marketing plan. The credit crunch has left the populace with less disposable income and for many people, keeping up with the fashion may not necessarily be a priority in the face of rising prices and costs. In addition, inflation in the less developed countries that Zara operates in could create a risk as the profits may be less than expected. Part of Zaras corporate objectives, is to protect the environment as much as possible, which includes producing less waste, recycling where possible, the use of ecological fabrics, production of PVC footwear and use of biodiesel fuel. Ensuring that this objective is achieved is quite crucial as the companys image could be affected by the activities of pressure groups or stakeholders who might raise environmental issues in the countries that Zara operates in. There are also cultural considerations to Zaras international expansion strategy which forms the basis of its marketing plan. Despite overwhelming success in Europe over the past few years, Zara has been unable to penetrate the American apparel market successfully. It could be as a result of a difference in tastes and preferences added to the fact that the firm has not developed a strong supply chain strategy as they have in Europe. Nevertheless, cultural differences in tastes and styles could remain a challenge for a company focusing on diversification to foreign countries. In Moslem countries, Zara adds extra length to the hemlines of its dresses and in its corporate web page, it states that our international presence allows us to conclude that there are no frontiers that would impede a shared culture of fashion. Efforts will have to be made to ensure that sensitive cultural issues in foreign countries are not ignored. 3.2 Five Forces Analysis The relationship of Zaras marketing plan with its environment can be further analysed with the use of Porters five forces model. Zaras main competitors are Gap, Benetton and HM. Zara has maintained a competitive advantage over its competitors through its ability to control its supply chain. It does not share most of its suppliers as it has acquired some of them through its parent company, Inditex and unlike its competitors, most of its operations are executed in-house such as fabric manufacturing and part of the cutting and sewing processes. Indeed Zara competes with its rivals for customers but through its creation of a brand has secured customer loyalty. Its customers visit the stores on average 17 times a year compared to the industry average of 3 times and on most of those occasions purchases are made. Zara releases around 10,000 different designs every year and deliberately produces styles in small quantities to create an aura of scarcity. This ensures that customers visit regularly to see the latest designs and purchase immediately because there is no certainty that the style will be there the next day. There is always a threat of substitution, as competitors will all release the same design eventually but again, Zaras speed gives it an advantage and it would have sold out its top designs, long before the competitors who have a longer lead production time (usually five months compared to Zaras two weeks), can put the designs on the market. There are no real barriers to entry into the industry that Zara operates in other than the fact that Zara has differentiated its product. It is not a pure differentiation however since it does not charge a premium price for its products nor is it a cost leadership as it does not have the lowest possible price and does not really aim to be the lowest cost producer. What Zara has, is a combination of differentiation and cost leadership which translates to a very successful product that new entrants would have great difficulty competing with. 4.0 Zaras Marketing Plan and the Impact of New Media and Technology In the past few years social media has become increasingly popular as a mode of communication between consumers and companies or institutions. It provides a forum for conversations about a companys actions and also a means for companies to test the publics level of awareness about their activities as well as the peoples perception of them. Social media such as Twitter, Facebook and other blogs or discussion groups can also provide companies with a unique platform to raise awareness of their corporate responsibility activities. Many brands are cautious about online interaction because they are uncertain as to how they will be perceived and also the limited control they would have over dissenting views and negative reactions voiced publicly. Many CR managers are hesitant to highlight corporate responsibility issues and enable debates because they feel that they may be inviting unwanted attention. (WGSN, 2009). Yet online environments actually offer companies a broader space in which to connect with customers, NGOs and peers around sustainability issues. Social media can also be used for advertising purposes which most of the companies in the retailing industry seem to use it for including Zara and its competitors. Zara has an impressive movement on Facebook where latest designs are advertised and consumers comment on each post with an average of 400 700 comments and about 10,000 likes. However Zaras stance on corporate responsibility issues are not highlighted in the social media like their competitor HM who have detailed positions on corporate responsibility in every country they operate in. They also have a full sustainability report in relation to their activities and its impact on the environment with a section inviting the public to email them with feedback and questions. Interestingly they do not have a public forum for the publics responses and views to be aired but addressing the issues publicly is a first step in the right direction. Zara could use the social media to have a more positive impact on the public by opening up discussion boards to debate ethical and social responsibility issues in relation to their activities in all the countries they operate in. Sustainability has become a core issue for business operations and widespread stakeholder participation is critical. The social media is a relatively cheap method of communicating with a vast number of people worldwide and presents an opportunity that no company should overlook. Zara has a small blog which outlines a few sustainability and global issues or activities that the firm has engaged in such as global warming, climate change and more recently help given to the victims of the Japanese tsunami. However, this blog is not widely publicised and is more likely to be stumbled upon rather than sought out as a Facebook or Twitter page would. Zara has in the past found itself in the midst of a corporate responsibility storm such as a link to a supplier with a sweat shop factory in Bangladesh, (Procurement Leaders Forum, 2008) and another factory (also in Bangladesh) occasionally used for production which collapsed killing three people. In each incident, Zara responded swiftly and offered reparations which has earned it a high rating in terms of social responsibility. Zaras timely and effective response was further emphasised by the fact that competitor firms who also used the same factory, offered less and in some cases refused to accept responsibility altogether. Zara would however benefit immensely from having a social site where such issues could be discussed publicly and potential dangers could be highlighted to prevent such disasters from recurring. 5.0 Sustainability of Zaras marketing Strategy The sustainability of Zaras marketing strategy depends on two major factors that could have a crucial impact on Zaras activities in the long term. Unlike most of its competitors, Zara tends to avoid outsourcing to developing countries where labour is very cheap. The main reason for this is to have more control over its suppliers and to enable a rapid delivery process in addition to contributing to the employment market of its home country Spain. The result of this is that the labour costs are higher than those of its competitors but this is compensated by the speedy production of the latest styles with reasonably consistent quality. Zara does produce some generic lines in developing countries but 60% of its outsourcing is in Spain or Portugal. The current worldwide recession may however have a serious impact on this strategy. With rising labour costs and the effect of the recession on the Euro, Zara may be forced to increase the outsourcing to developing countries. This would make them lose the competitive advantage of speed and may affect their corporate image as a result of the stigma attached to the use of cheap labour in sweat shops. Pressure groups and international campaigns are constantly demanding an improvement to working conditions for employees in developing countries. Consequently even outsourcing to the Far East may cease to be a profitable option in the long term too. Another factor that could have an impact on the marketing strategy is the ever increasing focus on environmental issues. The major environmental impacts in the fabric sector arise from the use of energy and toxic chemicals which are utilised widely in many manufacturing stages such as pre-treatment, dyeing and printing. Zara currently executes most of these tasks in-house and could therefore face pressure from consumers making demands for environmentally sensitive production. This may mean that Zara would have to invest in research to find alternative materials or recycling options that could reduce the threat to the environment. Zaras marketing strategy could also face other challenges which might arise from the use of the new media. As discussed earlier, Facebook is used quite extensively for advertising and other forms of promotion. The question is how sustainable is the use of this new media for marketing purposes? Seth Godin, author of Meatball Sundae, in his presentation14 Trends No Marketer Should Ignore (XXXX), described the web as a world of new marketing which requires various trends for its successful implementation. He stressed the importance of communication between consumers and the manufacturers and also suggested that with the advent of the internet, everyone is now a critic that cannot be avoided or ignored. One picture on Youtube showing a serious lapse could undo millions of dollars of advertising. The underlying message is that the internet is a new world that companies could embrace for their marketing potential at low cost or ignore at their peril. If a company is not on any of the socia l media, they may be unaware if a campaign is carried out against them and consequently unable to execute a damage control program. Any sustainable marketing strategy should include a role for social sites. Zaras marketing strategy is mainly based on expansion which the internet could play a vital role in. Last year the company launched its first tranche of websites for some of its European markets including the UK and two weeks ago it also launched websites for Denmark, Sweden, Monaco and Switzerland. It plans to open further sites in two of the worlds largest e-commerce markets, US and Japan later this year which will increase its presence online. Seth Godin believes that we are in the middle of the next, possibly biggest industrial revolution and that the internet represents a tremendous opportunity for people who understand it. The reality is that any marketing strategy that does not include expansion online may not be sustainable in the long term. Robert Hellar (Internet Selling, ) stated that shopping has already begun to move in some force out of the high street and onto the Website. Traditional retailers will have to join this revolution that will cut costs, increase variety and make home deliveries. This development however exposes the investments in high streets to a new vulnerability and risk. As part of its expansion, Zara purchased several properties where stores are owned and these assets may in future become liabilities. The Amazon experience and the internet banking developments have shown that stores as we know them could become quite redundant and possibly mutate into nothing more than showrooms and warehouses. The sustainability of the high street stores cannot be determined; however the expansion of the websites is likely to be a sustainable strategy and a good fall back option in the event that shopping on the high street does eventually become unfashionable.