Goals in life Essay Example | Topics and Well Written Essays - 750 words

Goals in life - Essay Example Starting with what you know involves getting to know yourself a little better without all the hang-ups and expectations of the world you were brought up in. To get to know yourself better, you have to sit down and really think about what’s important to you, what your morals are and what you feel is ethically correct. This is all about those intangible things that are meaningful to you. If you’re thinking about how impressive a 15 bedroom house would be to your friends and family, you’re on the wrong track but if you’re thinking about how it might be necessary to have 15 bedrooms in order to house all those children you want to have, you might be onto something. Follow the thought a little deeper and you might discover that what is important to you is that you have a close relationship with a number of different people. The next step after figuring out what’s really important to you is to experiment with those areas that you aren’t all that familiar with. Do you like to do things outdoors? If you’ve grown up in the inner city, this might be a very difficult question to answer. While you’re young is the time to experiment with different ways of living, different ways of looking at the world and different ideas of what you might wish to do in life. Talk with people who are from different countries, different backgrounds and different socio-economic classes. You might learn something about yourself and you will certainly gain a greater appreciation for the diversity of the world around you. You may discover that your inner city dreams of the 15 bedroom house meant that you want close relationships with people but that you also desire more personal space, meaning an office job will not make you happy. Finally, knowing what is really important to you and having had the chance to experiment with a variety of viewpoints, you are ready to begin setting your goals. Envision what your life might look like in 20 years

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Final global business plan Essay The ASEAN was founded in 1967 to promote the alliances of the countries in Southeast Asia. The current members of the ASEAN are the Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Indonesia, Singapore, Thailand, and Vietnam (ASEAN, 2010) Physical Environment The physical environment of Southeast Asia is primarily a warm climate other than the high elevation areas (Andaya, 2009). The physical environment also differs from the ocean and jungle geographical areas. A primary concern within the physical environment is the availability of safe drinking water in many areas of Southeast Asia and the air quality. Political Stability The political stability within Southwest Asia is very questionable in many areas of the region due to the terrorist activities; however with the support of the U.S. and other countries the threat is reduced just not eliminated. A scoring system was used to evaluate the region based on data that was provided by AMB Country Risk Reports. The rating system is; One Very Low Risk, two Low Risk, three Moderate Risk, four High Risk, and five -Very High Risk. The country leads the region with are risk score of one is Singapore followed by Indonesia two, Malaysia and Thailand three, Philippines and Viet Nam 4. The Philippines and Viet Nam have significant political risks that need to be taken into consideration (A.M. Best, 2010). Economic Conditions The economic risks within major countries of Southeast Asia are moderate at best. In the recent economic downward trend Southeast Asia is seeing the effects the slowing economic trend with their major trading partners the United States and Europe. The demands for exports are decreasing and forecasts for 2009-2010 expect this trend to continue (A.M. Best, 2010). A scoring system was used to evaluate the region based on data that was provided by AMB Country Risk Reports the rating system is; One Very Low Risk, two Low Risk, three Moderate Risk, four High Risk, and five -Very High Risk.† The country leads the region with are risk score of one is Singapore, followed by Indonesia two, Malaysia and Thailand three, Philippines and Viet Nam four. The Philippines and Viet Nam have significant economic risks that need to be taken into consideration (A.M. Best, 2010). Financial Options and Risks The financial system within the Southeast Asia region indicates a moderate to high risk on average other than the country of Singapore. As the global economy tightens credit requirements, this can have a significant impact on the financial stability in the region (Country Risk, 2010). A scoring system was used to evaluate the region based on data that was provided by AMB Country Risk Reports. The rating system is; One Very Low Risk, two Low Risk, three Moderate Risk, four High Risk, and five -Very High Risk. The country leads the region with are risk score of one is Singapore, followed by, Malaysia and Thailand three, Philippines and Indonesia four, and Viet Nam- five. The Philippines, Indonesia, and Viet Nam have significant financial risks that need to be taken into consideration (A.M. Best, 2010). Political stability There is a constant threat of terrorism according to the U.S. Department of State diplomacy in action website: http://www.state.gov/r/pa/ei/bgn/2794.htm, but the political stability is stable because of the continued efforts of the U.S. and other international entities such as the International Monitoring team. Economic conditions The economic conditions are stable; the Philippine government has been working over the past few years to reduce its deficits down to 0.2% of the GDP (Gross Domestic Product) and is continuously working to balance its budget. Finance options available According to an article Philippines: Types of Business Organizations that Foreign Investors may Establish in the Philippines there are several financial options available that are: These include the establishment by a foreign corporation of a (i) local subsidiary through a domestic corporation, (ii) a branch office, (iii) a representative office, (iv) a regional or area headquarters, or (v) a regional operating headquarters. Entry into the Philippines can also be achieved through joint ventures with other domestic corporations (Manalastas, and Guinto, 2000). Physical environment and its affect on trade The locality of the Philippines creates some environmental issues that needs to be taken into consideration there are three main issues the first two are seasonal; the typhoon season from June through November, the monsoon rain season from July through December. The third issue that is unpredictable is the volcanic eruptions that can happen at any time (The Philippines, 2010). Social, health, and environmental conditions The majority of the Philippine people do live in poverty and the mortality rate for babies is high; however the health care is improving the Philippines have been recognized for eliminating Polio (The Philippines, 2010). Although there is a pollution problem, the government of the Philippines is stepping in to help reduce pollution by enacting and enforcing laws that actually is helping clean up their environment. Cultural considerations When doing business in the Philippines there is a couple of cultural consideration to keep in mind such as it is unacceptable behavior to correct a person in public, to cause a person to lose face by refusing or saying no to a person, and do not accept an invitation to a family meal when first asked, if the invitation is asked a second time then it is all right to accept (The Philippines, 2010). Organizational Description Apple Computer, Inc. is headquartered in Cupertino, California. The company is a worldwide producer, designs, markets, manufactures computers, digital music and video players. Founded on April 1, 1976 by Steve Wozniak, Steve Jobs, and Ron Wayne, apple sells to all consumers small, mid-sized, and large businesses. The company sells its products through retail stores, online stores, and also third party wholesalers. The increase in awareness of value of the internet, and convenience it gives to its users will soon bring more to the table for the Philippines. Since the internet has been a big expansion for many markets many businesses have found use to this to expand their business overseas. Since 2000 to 2009 the internet usage has gone up from 2,000,000 (2.6%) to 24,000,000 (24.5%) in the Philippines. Apple’s line of digital music players has taken advantage by providing iPod users to download digital music files to their iPods. Apple Inc., sales a line of iPod digital music and video players to both the Windows and Mac users that also provides online services that can, as described in this article Reuters Profile: Apple INC. (AAPL.O) which states; â€Å"distribute third-party music, audio books, music videos, television shows, movies, podcasts, and applications† (Reuters, 2010), through the iTunes Store. ITunes is a digital music application for downloading and playing digital audio and video files. Since Philippines have about 24,000,000 internet users as of June 2009 which is about 24.5% of the population in the Philippines there is potential growth for this market to grow. With new information about Netflix possibly signing an agreement with Apple Inc. sales can possibly increase since there will be more possibilities for iPod users to download through Netflix servers. Risk Analysis Week 3 The purpose of this document is to analyze the risks that are involved in establishing a global business operation in a foreign country of the Philippines. The document will detail the risks of introducing Apple Incorporated and the iPod to the Philippines. The risks that will be covered include political risks, legal risks, exchange rate financial risks, and taxation risks. The document will also detail a variety of additional risks, specific marketing strategies and performance measurement that will impact the overall success of Apple Incorporated within the country of the Philippines. Political/Legal/Regulatory risks The Philippines is a bureaucratic country. It has a complex network of regulations, permissions, procedures, and authorities with approval procedures. Many of these restrictions are designed to bar off newcomers entering the country’s existing industries. This will not be the case for Apple Inc. The political, legal, and regulatory risks of opening an Apple store in the Philippines vary. Apple’s plan is to acquire an existing retail store and moving under the Apple brand. Even though the political risk is high Apple Inc. is in no way threatening to the political climate in the Philippines. The Philippines has been working in developing relationships with neighboring countries, â€Å"build close ties with neighboring countries in Southeast Asia through the Association of Southeast Asian Nations (ASEAN)† (A.M. Best Company, Inc, 2009).Legally, the risk associated with opening the store could be great, and the company must make sure it is in compliance with rules and regulations regarding the opening and operation of the store. The most immediate regulatory risk to business is because of mandated price agreements used by the government to combat inflation. Apple Inc. sees Philippines as a country poised for a great economic turn-around in the Internet and electronics market. Indicators such as World Stats forecast that the country is on a steady uphill swing. Exchange/ Repatriation of Funds Risks Exchange rates and repatriation of funds needs to be considered with Apple opening a store in the Philippines. Philippines are very open to foreign investors as a way to grow the local economy. However on January 2007, in an ongoing effort to promote two key goals, â€Å"the Philippine government has issued the Seventh Regular Foreign Investment Negative List† (Baleva, 2007), protecting domestic industries and encouraging foreign investors to participate in certain areas of enterprise. Pricing will also be a factor if the company bases there pricing by US standards. Exchange rate on US dollars to Pesos needs to factor in. Competitive Risk Assessment Apple’s key competitors are already doing business in the Philippines and creating a strong and profitable presence. Competitors such as Sony, Samsung, and Sansa have been doing business in the Philippines for many years. Apple’s target entrance into the market will give consumers more options and encourage more competition within the market. Taxation/Double Taxation Risks The agreement of double taxation outlines what taxes are covered, defines who the parties are and the context of the agreement and itemizes what is covered under the agreement. Underlining the rules under which a business’ profits are taxed and when double taxation comes into action. The double taxation agreement defines the establishment of permanent residence, which Apple Inc. would seek to have by opening a store in the country on a permanent basis. HM revenue customs defines permanent establishment as, â€Å"a fixed place of business in which the business of the enterprise is wholly or partly carried on† (HM Revenue Customs, n.d.). Based on the information contained in the agreement it is possible that Apple will be possibly doubled taxed. Market risks (four Ps price, place, promotion, and product) One of the risks that every business needs to address when selling their product in a foreign country is pricing the product to high that only a small portion of customers can afford to buy the product. According to the article Manila’s living costs, wages among the lowest it states; â€Å"To illustrate, workers in Zurich are paid $22.60 per hour ($30.30 gross), while workers in Geneva are paid $20.40 per hour ($29.20 gross)—a far cry from what average workers in Manila are paid: $1.40 per hour ($1.60 gross)† (Victoria, 2009). One of the ways to address this issue is to buy in large quantity, so that cost can be driven down. Currently the Philippines is experiencing a power crisis, which is a risk within itself in the article Philippines power at crisis point of the Asian Times it states; â€Å"Recent electricity outages in the Philippines has sparked concern that the country is on its way to its second power crisis in 20 years† (Rubrico, 2010). If there is no electricity, it will be hard to sell iPods to customers especially in the dark. Our company can purchase generators that can be used during the power outages. The Ipods are very popular and expensive in the Philippines, which has created a market of iPod thieves. According to Davao Today article iPod Thieves on the Rise in RP that states; â€Å"iPods may now be joining wallets and mobile phones as attractive targets for thieves and pickpockets† (No author mentioned, 2010). Train both employees and customers how to avoid being a victim, this will show the customers we just don’t think of them as a sale but as a person. Marketing Research Approach The marketing research approach for the Apple Store is a five step process that includes defining potential problems, developing a research plan, collecting relevant information by specifying data, developing findings, and taking marketing actions based on the analysis of data findings (Marketing Research, 2006). The research objectives will be to determine if there is a demand for the products offered by the Apple Store. The research plan will consist of surveying a minimum of 1,000 to 2,000 consumers in the target region of the Philippines. Contact information will be gathered to later obtain positive or negative feedback on the products that are offered by the Apple Store. An online survey will also be conducted through the Apple Store via the internet. This will assist in later developing marketing strategies applicable to the products offer by the Apple Store that are in demand in the target region. Some types of questions that will be asked during the Apple Store survey are as follows: 1) What is your age? 2) What is your gender? 3) Would you purchase the products offered by the Apple Store? 4) What did you like about the product? 5) What did you dislike about the product? 6.) Was the product easy to use? 7.) What would you change about the product, if anything? 8.) Will you continue to use the product? 9.) Would you recommend the product to a friend? 10.) What would you consider a fair price for the product? Apple Store Marketing Mix The marketing mix of product, price, place, and promotion is a crucial part of the introduction of the products being offered at the proposed Apple Store. A strong strategic marketing plan developed by the marketing team will assist the Apple Store in getting of to a positive start. The products offered by the Apple Store will include all items that a consumer can purchase through the on-line Apple Store web address http://store.apple.com/ph. The products include the wide variety of iPod products, iPhones, and Mac products. The physical location of the Apple Store needs to be in a high traffic public area that will attract many customers. The pricing strategy of the products offered at the Apple Store in the Philippines will targeted to under cut the competition in the region during the first 6 months of operation while still maintaining reasonable profit margins on the Apple Store products. This strategy will help in initially establishing the presence of the Apple Store in the target region. Apple Store executives will consistently monitor the progress of the Apple Store in the Philippines during the first 6 months of operations and recommend solutions to any potential risks that come up during this time period. After the first 6 months of operation in the region the product pricing strategy will be revisited. The location of the Apple Store will be critical to the overall financial success of the business. The attributes that are desirable for the physical location of the Apple Store include a highly visible location with heavy consumer traffic. An additional attribute is needs to be considered is the location of the store will be easily accessible for ease of the distribution channels to replenish inventory needs with minimal risk. In selecting a location with these attributes the Apple Store will have a higher probability of meeting or exceeding business goals and objectives. The strategic marketing plan will identify specific dates that will provide the best dates for a promotional sale grand opening of the Apple Store in the Philippines. To start the promotional period the marketing team will start advertising the grand opening of the Apple store several weeks prior to the grand opening. Apple Store products will be advertised by using magazine ads, internet and television spots, and any other means of promotion detailed as a strong promotional tactic in the region. The marketing team will need to pay close attention to see how quickly the product inventory will move from the shelves during the first few weeks of operation if the Apple Store is approved for implementation in the Philippines. The marketing strategy also needs to verify that there is sufficient demand for the Apple Store products. Distribution and supply chain risks There are a few items that make distribution and supply risky in the Philippines, as stated in the Spend Matters article Apple’s Risky iPod Supply Chain; What types of risk? Well, try an active volcano located less than 20 miles away, proximity within an earthquake zone (which makes San Francisco’s seismic activity look tame), and the very real threat of tropic storms and typhoons. And thats not even considering that the area around the plants is subject to regular flooding from storm water, blocking ingress of people and egress of goods [the factories] even sends people home early when a serious storm is forecast, because of the risk that the roads will be impassable.† (Busch, J. 2006) No one can prevent Mother Nature from happening, but we can be prepared by staying updated on the weather reports and staying alert to nature’s surroundings. By staying prepared and knowing what to do in the event of a natural disaster, will prevent personal injuries to emp loyees and customers as well as minimizing damages to our product. Distribution Channel Management The marketing team will perform extensive research before the introduction of the Apple Store begins business operations in the Philippines. Determining a reliable distribution channel in a global business operation is an important formula for success. The main distribution channel will start in the United States and products will be distributed to the Philippines based on inventory needs transmitted through an electronic data base. The distribution of the Apple Store products from shipping destination within the Philippines to the Apple store location is an addition characteristic that needs to be considered because of the threat of theft that exists within the target country. Once the store headquarters has been established then logistics such as shipping, receiving, and storage in smaller warehouses will be considered based on distribution risk factors have been evaluated. One prime objective of the Apple Store in the Philippines is to meet or exceed our customers’ needs. Physical and environmental challenges to entering and operating in a target market There are several physical and environmental challenges when operating a business in the Philippines, some of the physical challenges include political unrest, corruption, terrorism, and extortion these are just a few that needs to be address. The environmental challenges include pollution (water and air), natural disasters (volcano eruptions and flooding), unemployment according to Index munbdi: Philippines unemployment rate that shows for 2010 to be an estimated 7.5% (No author mentioned, 2010). Staying informed is key to handling these types of risks, some things can be handled by local authorities and others will have to be dealt with the best way possible depending on the situation. Social and cultural risks In the social and cultural circle, the risk of misunderstanding in many categories is very easily done such as those listed in the article Centre for intercultural learning: Cultural Information Philippines that are: â€Å"Conversation, Communications Styles, Display of Emotions, Dress, Punctuality, Formality, and Decision Making† (No author mentioned, 2009). Not knowing how to address each of these items can lead to offending the Filipino people, which will cause problems in doing business in the community. Common sense and proper communications will just about handle each of these risk, also by participating in community events and helping the community during a time of crisis will promote unity between the company and the local people. Cyber or Technology Stealing technology and cyber attacks are a big risks, the government of the Philippines still needs to catch up the laws concerning today’s technology. In the article, Experts Call for Stringent Laws against Cyber Crime in Philippines states that; â€Å"The security researchers states that these kinds of e-mail attacks occur more commonly across the Philippines since there arent any cyber crime laws in the country to catch and prosecute Internet criminals, particularly e-mail fraudsters† (No author mentioned, 2010). Common sense applies to these risks as well, making sure that our computer systems maintain the most recent updates on security programs and training the employees to never give out passwords and shut down the computer every night before going home are just some suggestions that will prevent problems down the road. Define and clarify mission and objectives The Mission Statement of Apple Incorporated will remain the same as researches through multiple sources according to Investor Relation of Apple (located on the FAQ page) it states that; Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone (Apple-History, 2010 6). Philippines Internet use has grown remarkably throughout the years. Internet World Stats estimated as of March 2009, there are 20.6 million Internet users coming to about 21.5% of the entire population in the Philippines. Apple Inc. has selected the Philippines to begin expansion providing stores and Internet downloading over the web for users to download digital audio, video, and podcast files. The primary business objective is to establish a 15% profit margin in the first year of operation within the Philippines. In each subsequent year after the first a 5% increase to the profit margin has been established as a goal until the profit margin reaches a 30%. Additional objectives include obtaining a 10% market share of the products offered by Apple Incorporated and a 4% increase per year over the next 3 years. Customer satisfaction has also been established at a target percentage of 97%. SWOTT Analysis SWOTT analysis is a useful tool to determine the strengths, weaknesses. Opportunities and threats that exist within a global business entity or region are being evaluated for risk factors. The team has developed a SWOTT analysis for the target region to identify these factors prior to engaging in any business operation within the Philippines. This will assist the team in identifying key characteristics in the structure and development of Apple Incorporated within the Philippines. Current Competitors Competitive Landscape The competitive landscape for Apple Store are the following companies that have a strong hold on a large portion of the population that Apple Store will have to compete with in the global market place. These companies manufacture similar technology devices that Apple Store is competing for to increase global market share. Their products are known throughout the global technology market where competition is extremely competitive. Competitors’ of the Apple Store include Dell Incorporated, Hewlett Packard, and Gateway. The engineering development of new improved technology will assist the Apple Store in gaining competitive advantage over the competitors. Customer satisfaction is a primary objective at the Apple Store. A recent survey conducted in 2008 by the University of Michigan named the American Customer Satisfaction Index ACSI indicated that Apple had a ten point advantage over its closest competitor (Computerworld, 2010). The Apple Store that is being considered in the Philippines will have the same target goal in reference to customer satisfaction in the target region. Strategy Selection The strategy selection of Apple Incorporated is to establish a base store that strategically reports back sales results and inventory needs to a home base location within the United States electronically. The strategy of the company will be to promote the iPod through lower price cost structures than existing competitors. The company will also launch a marketing campaign to promote this strategy through established marketing structures that exist within the Philippenes. This will assist Apple Incorporated in notifying consumers of company existence in the region while promoting our lower priced product. The mode of entry to develop Apple Incorporated to enter the Phillipenes will be the direct investment mode. Apple Incorporated will be establishing a location within the country and then based on all business results will determine if additional locations within the country are needed to meet customer demand. Advantages of this mode of entry include high sales potential, low political risk, and the company could be viwed as an insider (Quick MBA, 2010). Because of some of the high risk elements that exist within the Philippenes Apple Incorporated will need to be cautious by limiting the amount capital that the company will spend in the direct investment mode. Control and Evaluation Specific measures will be monitored on a weekly basis to track the progress and continous improvement opportunities that exist to set up operations within the Phillipenes. The key characteristics that impact overall business results will be evaltated to establish a proactive approach to issues that will have an impact these results. The key characteristics will include sales, inventory, taxes, and process limitations. This will assist Apple Incorporated in providing a quick responsive action to any underlying problems that need to be resolved. Sales goals and profit margins will also be evaluated to determine the overall success within the Phillipenes. Contigency Plan Apple Incorporated will need a contigency plan to account for risk factors that have some probability of resulting in business profitability not reaching overall expectations. The contigency plan that Apple Incorporated has in place consists of closing the existing store if business objectives are not achieved with leaving options open for changing the mode of entry into the Phillipenes to exporting the product through established distribution channels. This contigency plan still allows the company to establish sales within the Phillipenes while reducing investment risk. Financial Overview Apple has the possibility for a strong financial investment in the expansion into the Philippines. The risks associated with the investment into the Philippines do not outweigh the benefits that can realistically be achieved. After thoroughly researching the Pilipino market, the Ayala Group, one of the largest firms in the Philippines is supposedly involved in a project to put up an official Apple store in the Philippines (Technograph, 2009). This is beneficial because less money will have to be invested in research and development, as well as marketing and advertising since the organization is already known throughout the Philippines. The economy in the Philippines has not shown extreme changes or any sudden implications that the economy is getting stronger. The Philippine GDP for the year 2009 has barely risen 1% but has, â€Å"weathered the 2008-09 global recessions better than its regional peers due to minimal exposure to securities issued by troubled global financial institutions† (index mundi, 2008). Operating Expenses As projected for expenses for one apple store, the budget chart shows total operating expenses at $5, 482 and operating income at $11,740 and other income and expenses at $326. There are many providers that impact operating expenses such as utilities, taxes, and advertisement. Apple has projected a total operating expense at $5,482 for one apple store. When assembling a budget chart, it is essential to take into account all factors to properly manage a business. It is important to trust that focused investments in Research and Development (RD) are significant to a company’s future competitive and expansion position in a foreign market and are directed towards the development of new and improved products that are central to the company’s core business strategy. As such, Apple expects to make further investments in RD to expand and remain competitive in the Filipino market. Other factors of influence that can help expand Apple into the foreign market, is the company’s persistent expansion of its retail division in both international and domestic markets, top stock-based return expenses and higher spending on marketing and advertising (Apple Investor 2010). The chart below shows the estimated monthly general budget of the operation of one store in the Philippines, providing that the decision is made to proceed with the plans to set up and begin operations. This is a rough estimate, because of the many factors that may and will fluctuate either in a positive or negative way can cause a change on the expense side, however the further we proceed the more accurate our budget will become. Financial Overview General Budget Foreign Exchange Risk Studies have found that many Asian-Pacific businesses are exposed to one or more of the world’s major currencies: the Euro, the US dollar, the British pound, and the Japanese Yen. Some of the greatest dangers were produce by fluctuations in the US dollar. This impacted 58 percent in the Philippines, â€Å"currency fluctuations affected the profitability of companies whose financial assets and liabilities (most notably debt) were held in foreign currencies† (Vanderbilt, 2007). When choosing to invest in the Philippines, the foreign exchange risks associated with business ventures are significant because of an Asian financial crisis during (1996-1998), â€Å"more than half of the studied companies in Indonesia, Korea, Malaysia and the Philippines, and about a third of those in Japan and Singapore, were exposed to the dollar, and about a quarter of the firms in Singapore were exposed to the yen† (Vanderbilt, 2007). Risk Management Transaction risk refers to the fact that the cash flow value of foreign currency contracts may change due to exchange rate fluctuations. Additionally, since the organization will be buying and selling goods in foreign currency to a certain extent, the foreign exchange risk increases. The potential negative aspects associated with doing business in the Philippines are significant since the business will be using Filipino Pesos, which has an inflation rate of 4.4 percent. As a result, there is a risk that the exchange rate as with any currency may change unfavorably before the currency is actually exchanged. However, these risks can be counteracted by utilizing forward hedging, which is a way to lock in an exchange rate on an agreed future date. This will allow the organization to be completely aware of future cash inflows and outflows, as well as the value of the organization’s profits in US currency since the exchange rate will not change due to the purchase of forward hedging. Financing Given the current international economic instability, the choice of choosing from domestic or international financing is tough because there are significant risks associated with each. The European Investment Bank (EIB) has offered financing opportunities to the Philippines; currently the EIB has one billion euro allocations in 18 Asian countries including the Philippines. If the company chooses to move forward with the international venture, the company would choose to finance through the EIB. The EIB, â€Å"has provided over 600 million euros in funding for multiple projects in the country coursed through the government and private sector† (European Chamber of Commerce of the Philippines, 2009). Centralized versus Decentral ized The parent company and its iPod department within the parent company, both works as a centralized organization because having an effective control is essential to the everyday operations for both the domestic and global sectors. It would be essential for the parent company to make the final decisions regarding all aspects of the company’s operation, because every unit and sub-unit such as manufacturing plant located in Mexico and the shipping department located in the U.S. of the company has to report all information of their daily operations to the parent company allowing the parent company to know what the left and right hand is doing basically at the same time and can make an informative decision for whatever situation may arise. Both the domestic and global units and sub-units operate as a decentralize company, because certain situations such as environmental changes, customer needs, or political unrest will cause problems and disrupt a part of the company operations or even all parts of the company operations these problems to be addressed immediately and cannot wait for the parent company on the other side of the world to make an informed decision, even if the problem had happened before at a different location because what may work domestically may not work globally and vice versa. When making an informed decision whether at the unit, sub-unit, or the parent company level there is a need for a communication chain of command, starting with the employee who is out in the field working upwards to the parent company which may be the CEO (chief executive officer) who usually has the authority to make final decisions that will affect the company or the owner if there is no CEO available. The line of communications should always remain open, in the event of a minor glitch or a major emergency. Regardless of the value of the information, if the line is broken then a decision cannot be made in a timely manner or may not be made at all causing a problem to grow bigger or missing a profitable opportunity. The communication chart below shows the chain of command from the field representative to the parent company, not all information will reach the top because some decisions can be made at lower levels, for example; the parent company should not be bothered with whether a field representative needs office supplies. Exit Strategies The future is unknown, even if there is a planned exit strategy years from now does not guarantee it will happen as planned. Depending on the situation that is either planned, forced or requires our business in the Philippines to implement its exit strategy would determine the best strategy to use. In the event of a political uprising or civil unrest that results in raising the level of possible war, then the shutting down procedure would be best since it involve very little (if any) paper work and is the fastest way for U.S. employees and their families to get out of the country. If there is no time at all complete abandonment might be forced, either course of action will involve a monetary loss. If time allows and there is no rush in exiting the Philippines, handing the business over to our joint venture partner would be the best, this exit does involve legal paper work and would minimize loss (if any), it would also leave the path open for possible future ventures back into the co untry based on a friendly and healthy transfer of the business. Recommendation The Philippine iPod risk analysis team recommends proceeding with entering the Philippines market. After the exhausting task of finding the risks of entering the country, we had found that the benefits (profits) do exceed the risks (costs) even during the economic troubles that the U.S. is currently experiencing. Although we are not the first iPod and iPhone Company to enter the Philippines market, we still can become a major player and take a large percentage of the market. With the Apple Company creating a direct store that basically eliminates the middle man and develops a presence in the area that shows the potential customer that they will get the original iPhone without the worry of receiving a fake and less dependable copycat, which is a major problem in this region. Having direct shipping, of iPhones and iPods from the parent company will help with the recovery costs and to make a profit quicker. The company will gain additional profits once the store becomes fully operational and service contracts are purchased by new customers. Finally with the current economic stability of the Philippines, this is a good time for Apple to enter into this market because like our domestic customers love to have the latest technology, the Filipinos consumers also love to have the latest technology too. Because no other local company can offer the security or the guarantee of authenticity of the iPhone products, this gives our company a very unique position in the Philippine market. The company will be experiencing and dealing with many issues brought up by our customer base, because of the one on one contact with the customers this will help our operation on a global level allowing our technical department to learn from these new problems and coming up with new solutions this will make our product better and easier to sale globally. Conclusion In analyzing the risks invoved with Apple Incorporated conducting business within the Philippines the company will be in a better position to achieve the financial success. The process of risk assessment provides a clearer picture of the obstacles that need to be overcome within the Philipines. Strategic marketing plans can assist the company in establishing positive sales results in the target country. Electronic communication to proactively respond to business needs and issues will lead to satisfied customers. The initial mode of entry and an alternate mode of entry detailed in the contingency plan also indicate the company’s preparation. Establishing key business characteristcs to monitor on a regular basis will identify continous improvement opportunities for the company in conjuction with items identified in the SWOTT analysis. The combination of these critical factors will guide Apple Incorporated to make a more informative decision based on all the factual information c ollected. References Andaya, Barbara, 2009. Introduction to Southeast Asia. Retrieved April 4, 2010 from http://www.asiasociety.org/countries-history/traditions/introduction-southeast-asia A.M. Best Company. Ratings and Analysis Center: Country Risk, Retrieved April 4, 2010 from http://www3.ambest.com/ratings/cr/crisk.aspx ASEAN, 2009. ASEAN Member States. Retrieved April 4, 2010 from http://www.aseansec.org/18619.htm Manalastas, J. M. and Guinto, B. L. 2000, Philippines: Types of Business Organizations that Foreign Investors may Establish in the Philippines. Retrieved April 3, 2010, from website: http://www.mondaq.com/article.asp?articleid=9340login=truenogo=1 No Author Mentioned, 2009, TDS: Philippines Asia, Economy. Retrieved April 3, 2010, from website: http://www.traveldocs.com/ph/economy.htm No Author Mentioned, 2010, The Philippines. Retrieved April 3, 2010, from website: http://www.everyculture.com/No-Sa/The-Philippines.html Internet World Stats. (2010). Asia Marketing Research, Internet Usage, Population Statistics and Information. Retrieved from http://www.internetworldstats.com/asia.htm#ph Thomas Reuters. (2010). Apple Inc. (AAPL.O). Retrieved from http://www.reuters.com/finance/stocks/companyProfile?rpc=66symbol=AAPL.O Internet World Stats. (2009). Internet Usage Stats and Marketing Report. Retrieved from http://www.internetworldstats.com/asia/ph.htm Kian, C.C. (2004). Internet market in the Philippines shows full potential for growth. IDC. Retrieved from http://www.idc.com.my/philippines/press/IDC%20Philippines%20-%20Internet.asp A.M. Best Company, Inc. (2009). AMB Country Risk Report. Retrieved from http://www3.ambest.com/ratings/cr/reports/Philippines.pdf Baleva, M. (2007). Philippines Issues Foreign Investment List for 2007-2009. ALBLegalNews. Retrieved from http://au.legalbusinessonline.com/law-firms/philippines-issues-foreign-investment-list-for-2007-2009/1076/23599 Busch, J. (2006), Apple’s Risky iPod Supply Chain. Retrieved April 10, 2010, from http://www.spendmatters.com/index.cfm/2006/11/3/Apples-Risky-iPod-Supply-Chain Hicks, R. (2009). Philippines launches study on internet use. futureGOV. Retrieved from http://www.futuregov.net/articles/2009/jul/27/philippines-launches-study-internet-use/ HM Revenue Customs. (n.d.). DT15354 DT: Philippines: double taxation agreement, Article 5: Permanent Establishment. Retrieved from http://www.hmrc.gov.uk/manuals/dtmanual/DT15354.htm Rubrico, J.G.U. (2010), Philippines power at crisis point. Retrieved April 10, 2010, from http://atimes.com/atimes/Southeast_Asia/LD10Ae01.html Toby C. Monsod, (2009). The Philippine Bureaucracy: Incentive structures and implications for performance (4th ed.). Quezon City, Diliman: Human Development Network. Victoria, E. (2009), Manila’s living costs, wages among the lowest. Retrieved April 8, 2010, from http://www.asianjournal.com/dateline-philippines/headlines/2767-manilas-living- costs- wages-among-the-lowest-.html No author mentioned (2009), Centre for intercultural learning: Cultural Information – Philippine. Retrieved April 11, 2010, from http://www.intercultures.ca/cil-cai/ci-ic-eng.asp?iso=ph No author mentioned (2010), Experts Call for Stringent Laws against Cyber Crime in Philippines. Retrieved April 11, 2010, from http://www.spamfighter.com/News-13688- Experts-Call-for-Stringent-Laws-Against-Cyber-Crime-in-Philippines.htm No author mentioned (2010), Index Munbdi: Philippines unemployment rate. Retrieved April 10, 2010, from http://www.indexmundi.com/philippines/unemployment_rate.html No author mentioned, Foreign Market Entry Modes, Retrieved April 12, 2010 from http://www.quickmba.com/strategy/global/marketentry/ No author mentioned (2010) What is Apple’s Mission Statement. Retrieved April 12, 2010 from http://www.apple-history.com/?page=faq#1500 Index mundi. (2008). Philippines Economy Profile 2010. Retrieved from http://www.indexmundi.com/philippines/economy_profile.html Technograph. (2009). Official Apple Store to Supposedly Open in the Philippines. Retrieved from http://technogra.ph/2009/05/05/official-apple-store-to-supposedly-open-in-the-philippines/ Apple Investor Relations Annual Reports. (2010). Investor Relations. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=107357p=irol-reports Bangko Sentral ng Pilipinas. (2005). Philippines-Central Bank of Philippines. Retrieved from http://www.bsp.gov.ph/ Vanderbilt. (2007). Foreign Exchange Risk of Firms in Asia-Pacific. Retrieved from http://mba.vanderbilt.edu/vanderbilt/About/faculty-research/featured-research

The Indian Manufacturing Sector Performance Economics Essay

The Indian Manufacturing Sector Performance Economics Essay Chapter 2 Introduction The manufacturing sector performance has always been the focus of academic and polity debates and especially so in India, due to the deviation of the same from theorized behavior (Developmental theory of transition of economies). Even recently, in the discourse on the recession, its aftermath and revival, the highlight was the manufacturing sector performance, since it is seen to be on retreat (After the 2008 crisis, it regained momentum (from a drop of about 10 percentage points in 2008 09) in 2009 10 at 9.7% (simple average annual growth) but since then it has been on a decline and in 2011 12 it was at 2.5%). The major industries (automobiles, chemicals, machinery equipment, textiles etc.) experiencing receding growth rates has seen the National Manufacturing Policy (2011) (which introduces the NIMZs (in addition to SEZs) to address the infrastructural bottlenecks faced by the industry) and other such critical measures from the government, especially since it fears that a recov ery is unseen in the horizon, given the probable interactive effects of rising interest rates, escalating fuel and input costs, the volatile exchange rate, falling domestic demand, uncertain global economic scenario and policy paralysis (Bhandare, 2011). This importance accorded to the sector arises from three main points, namely, its importance towards macro economic stability, its employment implications (given that the services sector, though the highest contributor to the GDP, contributes only about a quarter of the total employment and given that manufacturing sector employs, unskilled, semi skilled and skilled labour), its forward and backward linkages with the other sectors (which makes it the key to boosting the economys vital signs) and finally due to the emphasis that was placed on it (for an industry led development) by the development theories and Indias early development strategy. As Bhandare, rightly puts it, neither reforming the primary sector nor the leapfrogging of the services sector alone can deliver India a BALANCED and long term (sustainable) development. The idea of self reliance was at the roots of Indias development plans in the immediate decades after independence and this was the reason for the heavy emphasis on developing a strong industrial base for the country and thereby for the heavily monitored and regulated industrial policy regime. The focus and the responsibility to bring about the same (through strategic promotion of the heavy industries), fell on the public sector and as Trivedi et. al (2011) notes, the private sector was to play only a supplementary role. Some notable features of the Restrictive Regime were direct physical controls like capacity licensing, reservation of certain industries to the public sector (or rather the restriction of private sector from certain industries), tariff and non tariff barriers to imports, foreign exchange and investment regulations, other market regulations like MRTP etc. The transition to the Limited Liberalisation Regime (as termed by Burange Yamini, 2011) happened towards the la te 1970s and was marked by a slow shift from direct physical controls to indirect controls through selective delicensing and deregulation, encouraging the private sector in some industries, marginal relaxation of the tariff rates etc. The main aim of the reforms were to unleash the growth potential of the sector since the performance of the sector, prior to the late 70s, mirrored the performance of the economy which was characterized by growth rates which ranged at around 3%, that were infamously dubbed the Hindu growth rate. The Industrial policy regime then followed has been pointed to as the cause for the industrial stagnation by many, including Ahluwalia (1991) who also argues that the 80s reforms succeeded in bringing about a positive shift in the growth path of output and productivity. The 1991 reforms reflected explicit liberalization in the Industrial sector with the New Industrial Policy (1991) and were enacted with the primary intent of wading through the severe fiscal and macro economic crisis that India was mired in, at the time. These reforms were comprehensive and macro economic in nature and structural adjustment and stabilization were at the core of the 90s reforms (Trivedi et. al, 2011). These differences naturally generated expectations of higher growth paths of output and productivity than that of the 80s period. But as they note, the reforms succeeded in pulling the economy out of the crisis and in alleviating the foreign exchange constraint and controlling inflation but not in bringing about an upward shift in the growth of output and productivity. These expectations about the performance results of liberalization stems from the theorized behavior of Liberalisation (from cross country analyses of the effects of liberalization by developmental theorists), especially in developing countries. The logic behind this argument that liberalization leads to growth, especially in developing countries, has been covered by the developmental theory literature under four threads. First being that, liberalization leads to technological improvement which generates more efficient capacity utilization and thereby promotes investment and exports. This eventually leads to more robust output growth. Second theory states that liberalization increases competitive pressure in the economy and this will result in the exit of inefficient firms. The exit of the inefficient tail would leave the average efficiency in the economy higher up and thereby result in better output growth. The third is that liberalisation will release the producers from the disadva ntages of inefficiencies and increase the incentives for geographical diversification which implies capture of new export markets and expansion activities like mergers and acquisitions and these will raise the rate of growth of output of the sector. Another theory that stems from the Hecksher Ohlin model and proposes that liberalization will free the factors of production from inefficient regulations and costs and thereby will benefit the countrys abundant factor. Performance is usually considered synonymous with growth performance and therefore, is always assessed keeping growth as the key measure. Krugman (1994) notes that economic growth is the sum of two sources of growth, namely, increase in inputs and increase in output per unit of inputs (i.e, productivity). Growth Accounting calculates explicit measures of both to calculate what percentage of growth accrues to each input and what percentage to productivity and efficiency. The separate but interdependent concepts of Productivity, Efficiency and Competitiveness are indicators of performance. Growth via improved productivity (and not increased inputs) is the focus of any strategy that aims at sustainable growth and therefore productivity analysis is an integral part of any performance analysis. Mouelhi (2007) considers output growth, employment growth, productivity growth, exports growth and capital intensity growth as the indicators or elements of performance of the manufacturing sector . In this paper we analyse output and employment growth using data from the Annual Survey of industries and productivity growth using prior literature. Motivation Figure 1. Simple Annual Growth in GDP At Factor Cost, Constant Prices, Base Year 2004 05 Source: RBI, Handbook Of Statistics on the Indian Economy From the above figure it could be considered safe to say that the manufacturing sector and its growth rates do (quite heavily) influence the economys growth rate. That is to say, the direction of the manufacturing sector does reflect the mood of the economy or vice versa. Also, it is noted from the movement of the GDP and Share in GDP of both the Industry and Manufacturing sectors that Manufacturing pulls Industry (by a vastly higher measure) as compared to Mining Quarrying And Electricity, Gas Water Supply (namely, the other components of Industry). So it is assumed safe to use the IIP for the analysis under the study. So, it would be imperative to study the movements of the manufacturing sector especially under the current context of uncertainty over the global dynamics and Indias own concerns. Literature on the impact of liberalization is vast and divergent, with disagreements on the results, data quality and data sources, methodology, indicators and their scope, model specification etc. and therefore, as Rodrik (1997) says, the nature of the relationship between trade policy and economic growth remains very much an open question. Theories Examined Despite the aforesaid emphasis on the manufacturing sector in Indian planning outlays and strategies, share of manufacturing in GDP and its growth rate has only been modest at around 16% in 2009 10, from about 13% in 1970 71 and 15% in 1990 91. So, Trivedi et. al (2011) argues that the 90s reforms brought about increase in growth and productivity as did the 80s reforms. But these fell short of expectations especially when considering the fact that the reforms of 1991 were macro economic in nature while those of the 80s were restricted to the fiscal and industrial sector reforms. And further they cite Rodrik and Subramanian (2005) that there has been no structural break in either output or productivity growth since the initiation of the 90s reforms and that the 1980s reforms had resulted in an improved growth performance of Real Gross Output (compared to the Restrictive regime). But though this growth momentum has been maintained in the 1990s, they find no statistically significan t improvement in the same. As noted by Chaudhuri (2009), Nagaraj (2011), Burange Yamini (2011), Kalirajan (2004) and many others, the pattern of manufacturing growth observed before 1991 was that of periods of high growth invariably followed by periods of low growth. The period after 1991 has brought no difference to this trend. The rate is seen to fluctuate widely even in the post-reforms period, registering a decline since the early years, picking up in 1993 and decelerating again in the late 1990s. It has recovered since 2002-03 and fell back after 2007-08. The factors behind this instability of the sector ranges from famines to business cycles to shifts in policy regimes. Chaudhuri (2009) makes the following observations. The (compound annual) rate of growth for the manufacturing sector between 1991-92 and 2007-08 at 7.18% is only marginally higher than that attained during the first three plan periods (6.45%). Taking only the registered manufacturing sector, the increment betw een the periods is negligible at 0.1 %. In fact the growth rate (for the registered manufacturing sector) during 1952-53 to 1964-65 (8.87%) and during 1980-81 to 1990-91 (8.29%) was higher than that in the post-reforms period (between 1992-93 and 2006-07) at 7.99%. Using the Kinked Exponential Model for structural break analysis in growth rates, we find that there is only a marginal difference between the coefficients b1 and b2 which means that there is no substantial structural break in the Manufacturing GDP data. The analysis is for the period from 1980 81 to 2000 01. The kink is analysed at 2 different years, namely, 1990 91 and 1996 97 and no significant break is found in either year. But on analysing the same period for the Manufacturing Value Of Real Gross Output we note the structural break at 1996 97 is significant. The structural break is highly significant if Net Value Added of Manufacturing is brought under the analysis, over the same period. This implies that the analysis backs the argument that there hasnt been any substantial increase in the growth path of the Manufacturing output in the 1990s from that of the 1980s, in terms of Sectoral GDP. But when considering the Value Of Real Gross Output or Value Added of the sector, it seems there has been a structural break in 1996 97. Therefore, the analysis cannot be taken to validate or refute Rodrik and Subrahmanians argument that there hasnt been a structural break in output growth since 1991. Figure 2. Kinked Exponential Model for Manufacturing GDP (1980 2000) Source: Own calculation Table 1. Kinked Exponential Model for Manufacturing GDP (1980 2000) Source: Own calculation Figure 3. Kinked Exponential Model for Manufacturing RGO (1980 2000) Source: Own calculation Table 2. Kinked Exponential Model for Manufacturing RGO (1980 2000) Source: Own calculation Figure 4. Kinked Exponential Model for Manufacturing NVA (1980 2000) Source: Own calculation Table 3. Kinked Exponential Model for Manufacturing NVA (1980 2000) Table 4. CAGR Of Manufacturing GDP and its Share in GDP Source: Own calculation Table 5. Summary Statistics Of Manufacturing GDP and its Share in GDP Source: Own calculation Table 4, provides the Compound Annual Growth Rates for the different sub periods, from 1950 51 to 2011 12, and it can be seen that there has been only a marginal improvement in the CAGR in the 1990s as compared to that of the 1980s. And as table 5 shows, there has been a decrease in the absolute volatility in the growth in Manufacturing GDP in the 1980s (as seen from the Standard Deviation values) which is followed by an increase in the 90s only to further decline in the 2000s. The relative variability in the period 1991 92 to 2000 01 at 0.87 is higher than that of the previous period at 0.40. Growth rate of Share of the Manufacturing sector in GDP also follows the same trend. Another point worth noting is that there has been a consistent decline in the average growth in share of Manufacturing in GDP and this confirms what has been noted by Kalirajan (2004). Since 1997 98, along with the decelerating growth there has been a decline in the share of manufacturing in total GDP. Al so, as noted by Mani (2011) and Nagaraj (2011), the share of manufacturing sector in GDP was stagnating at around 15% even as the growth of the sector was at around 10% for over five years. Therefore, the data seems to point that the 90s reforms have not led to substantial positive changes in the growth path of output from that of the 80s. Another point to note is that there is an improvement all the figures in the 2000s (starting from the late 90s). Rodrik and Subrahmanian (2005) explains this as the J Curve effect of Productivity and Output growth. The J Curve rationale blames the major structural changes ensuing liberalization (and the adjustment process thereafter) for the initial slowdown in the sector (Hashim et al, 2009). Virmani (2005, 2006) proposed the hypothesis of the J-curve of productivity and output growth following major reforms and the differences in the pattern of productivity that was noticed to be brought about by the pacing of reforms. From empirical evidence we also see that the timing (pace) and sequencing of the reforms impact growth performance. The productivity and output growth path is hypothesized to take the form of a J, S or a hybrid S-J Curve which is explained by the pacing of the reforms (namely, major reforms or gradual reforms). Virmani Hashim (2011) notes that in India, the hypothe sis was proved true during the 1980s but not during the 1990s. Their analysis shows a clear J-curve pattern of total factor productivity growth for Indian manufacturing as predicted by the J- curve hypothesis which, in turn, was reflected in output growth. Nagaraj (2011) puts forth the recurrence of booms and deceleration (in itself) as the pattern of growth in output after finding out that after a (theoretically) expected dip in 1991-92 (on account of the crisis and adjustment), output boomed for four years, peaking in 1995-96 at 13% (following the predicted J curve) and that the boom petered out quite quickly, followed by a steep deceleration for seven years until 2002 03 while the next boom lasted for  ¬Ã‚ ve years, from 2003 04 to 2007 08. As Kochhar et al (2006) notes, India has not confirmed to the development theory of transition economies whereby the usual trend is a massive transfer of unskilled labour from agriculture to manufacturing (or industry). That is, the manufacturing employment post reforms has been stagnant and Indias services sector led growth has been laid to blame for this. Contribution of manufacturing to total employment is the lowest, that is, in India, services sector absorbs more labour than the manufacturing sector. The trend in employment generation of the registered manufacturing sector tells a different story from that of its output generation. Employment in the factory sector has been declining despite the acceleration in the growth rate of output since 2000 01 and in 2003 04 and the figure was 10% lesser than that in 1995 96 (Chaudhuri, 2009). This pans the issue of Jobless Growth that has been (nearly) comprehensively covered by literature bringing forth the issue of growing capital intensity, and cheaper relative price of capital resulting in substitution of labour for capital as the primary cause. This poses a theoretical impasse, since (market oriented) economic policy reforms are conventionally expected to result in an acceleration in the rate of growth of output and productivity thanks to the underlying short term gains in static efficiency (through re-allocation of factors to efficient uses) and dynamic efficiency gains. One view (Goldar, 2000, 2011) says that there is a substantial increase in organised manufacturing employment in the liberalised regime of 1990-91 to 1997- 98 and 2003 04, as compared to the 80s. Nagaraj (2004, 2011) has contradicted this noting that the employment growth when analysed in the same picture as that of capital growth asserts the jobless growth phenomenon. According to him, the whole period can be termed as a period of jobless output growth where output has grown with more capital-intensive technology. Stagnant per capita real wages are said to be another paradox whereby the natural transition of output growth into growth in real wages has not transpired yet in Indian manufacturing thereby raising concerns on lack of domestic demand. Trivedi et. al (2011) note a U trend emerging in the growth of real emoluments (from a revival in the figures from negative rates in the 90s) and the consistent decline in growth in real wages. They consider this to imply increasing compensation to the managerial and supporting staff while the workers face stagnant real per capita wages and raise concerns of inequality and productivity implications. Table 6. CAGR Of Principal Manufacturing Aggregates Source: Own calculation Table 6 confirms the Jobless growth hypothesis which can be found to hold true for all three variables of labour, namely, Number of Workers, Number of Employees and Total Persons Engaged. What is to be noted is not only the definite declining (and negative) growth rates of the 90s, but also that Number of Workers and Number of Employees were on a declining growth path even in the 80s. And that growth in Number of Workers and Total Persons Engaged are seen to revive during the sub period 1999 08. Another major concern is the different patterns exhibited by the growth in wages and that in emoluments. While both are found to be on a declining growth path, the rate of decrease in the growth of emoluments is substantially lesser than the steep and concerning decline in that of wages. The U trend noted by Trivedi et al (2011) cannot be brought forth due to unavailability of data on the same. Some other features of the data under analysis, that are brought out by these summary figures are the decline in the growth of Real Gross Output, Net Value Added and Net Fixed Capital Formation show the same patterns of decline in the 1990 2000 sub period and this extends to the 1995 04 sub period. But the 1999 08 figures of NVA and NFCF show revival. Therefore this analysis seems to come out in support of the J Curve hypothesis of output and productivity growth. Disaggregated Analysis is essential for assessing the structural dynamics of the sector. Guha (2008) noted that the inter temporal comparative analysis of the differences in the growth process at the disaggregated level explains the structural change that has occurred in the manufacturing sector (which in his analysis comes out to be substantial). An S curve pattern is expected to be followed by the growth and TFP in positive response to the reforms, taking the sector from a lower steady state to a higher steady state. At the disaggregated level, we expect a majority of sub-sectors to follow an S-curve pattern, but also some fundamentally non-competitive sectors to project a decline (due to comparative disadvantage). Trends in productivity growth at the (disaggregated) sub-sector level of manufacturing showed a much more varied pattern of growth than at aggregate level. Out of the twenty two sub-sectors analysed in their paper, three followed an S-curve pattern (14%), eight followed a J curve pattern (36%), and ten followed a hybrid S-J pattern (45%). This is to be expected in a situation in which different policy reforms are paced differently and affect different industries to different degrees and the analyses by Guha (2008), Hashim, Kumar Virmani (2009), Kaur Kiran (2008) and others have empirically substantiated the diff erences in interpretation brought about by disaggregate analysis and the differences in impact of the policy reforms on different industries. Also, using dummy variables to determine the effect of reforms on the TFPg across a disaggregated table, they find that according to the Growth Accounting Analysis, there has either been no acceleration or deceleration in all the subsectors (except Metals) and states (except WB and Haryana). But in their analysis using the Production Function Approach, they find that there has been a revival in the TFPg post 90s. But even those figures reiterate that the revival fell much short of the expectations of Liberalization. Table 7. CAGR Of Principal Manufacturing Variables Across Major subsectors Source: Own calculation Table 7 gives the two digit level disaggregated analysis for the Indian manufacturing sector. Only 10 major industries that contributed above 2% as share in output and employment have been considered for the analysis. All industries show revival in the late 90s, with respect to growth in share in manufacturing employment. Dye and Fur industries, Chemical industries, Vehicle industries and Tobacco industries are the only sectors that do not exhibit negative growth rates, though without exception all show declining growth rates in the first two sub periods. In the case of growth in input intensity, all except the tobacco and textiles industry shows an increase in the last sub period (from a declining path, previously) which raises concerns over the sustainability of output growth in the sector. The rise in input intensity seen in the late 90s raises questions about the accuracy of the J curve inference that was reached upon earlier. The Food and Beverages sector shows the tendency of c onsistent decline in growth in RGO and NVA. Equally alarming is the dye and fur products industry which shows a steep decline in growth in share in RGO and NVA from a previously stable position. Vehicles industry is the only industry that manages to without a substantial decline with respect to growth in output. The organized sector contributes only 20% of the total manufacturing output but more than 60% of its output while the unorganized sector accounts for about 80% of the employment but only about 33% of the total output of the manufacturing sector. This duality in the Indian manufacturing sector and the resultant structural dynamics and its implications (in the form of imbalances) finds reference in almost all of the growth performance literature. The sectoral, regional and (especially) structural imbalances in the manufacturing sector is also reflected in the form of the high wage differential between the registered and unregistered sectors, the differential in the employment and output share (respectively) of the two sectors etc. That is, the relative income contribution of the unorganized sector vis a vis the organized sector has been on consistent decline and this affects the labour productivity differentials between the sectors (Trivedi et. al 2011). Data and Methodology This study focuses on the performance of the manufacturing sector using aggregate and disaggregated analysis of it. While keeping the aggregate picture, it examines the component industries to understand the effects of the structural dynamics of the sector on the sectoral aggregates. The period of study is 1981 82 to 2007 08 (though in some cases it is extended to include the periods 1971 72 to 1979 80 and 2008 09 to 2011 12, as a result of data availability). ASI is the main data source on aggregate and disaggregate level data. Data on IIP and GDP is from the RBI Database On Indian Economy. IIP is an index of industrial production and not just manufacturing production, though manufacturing sector is a dominant component of the IIP (contributing over 75% of the total weight) and therefore, additional variables like Value Added, Value of Gross Output and Sectoral GDP are used to complement the accuracy of the inference. Net Fixed Capital Formation series considered for analysis is at book value and not Real NFCF. The sub sectors considered for disaggregate analysis are the Food and Beverages industry, the tobacco industry, the textiles industry, dyeing and fur production industry, the coke refined petroleum and nuclear products industry, chemicals industry, the metal industry, Machinery and equipments industry, Electricals industry and Vehicles (Automobiles) industry. Trivedi et. al (2011) notes that the contribution of TFPg to output growth for the registered manufacturing sector ranges between 13 to 25% using alternative methodologies and therefore the analysis of the same is essential for any comprehensive performance assessment. But since the estimation and analysis of TFPg is vastly out of the scope and time frame of the current study, we confine ourselves to a literature based analysis on the topic. They note that the regional TFPg differences brings home the fact that states without much output growth but falling or negative rates of employment can also show high TFPg rates. Therefore, TFPg cannot be unconditionally used as an indicator of growth performance. TFP levels should be assessed alongside to get a clearer and more accurate picture. In using Dummy variables to determine the impact of the reforms on TFPg by demarcating the pre and post reform periods, they note that it is difficult to isolate the impact of reforms from that of the other factors (that impact TFPg) in the dummy variable analysis and also that the time lags in the impact cannot be taken into consideration, under the same. Conclusions We find that the Indian manufacturing sector is seen to have faced a structural break when considering the growth in Real Gross Output and Net Value Added instead of Sectoral GDP. But this break is in the late 90s which gives basis to the J Curve hypothesis of output and productivity growth. Also the phenomenon of jobless growth is found to have been a feature of the manufacturing employment in the decades post reforms, though latest data (till 2007 08) helps in finding a sign of revival in the same. The disaggregative analysis bringss forth the disturbing trend in growth in input intensity in almost all the industries of the sector, thereby questioning the sustainability of the output growth achieved through liberalization. Tobacco, Dye and Fur, metals and Electricals industries are the only sectors that follow the J Curve pattern with respect to output growth. Indian manufacturing landscape needs to be geared up through expansion, diversification, technological and competitive scaling up and skill enhancement, TFP growth, Efficiency growth and expansion of global footprint, namely, mergers and acquisitions and/or capturing new export markets (in the qualitative side) (Bhandare, 2011). There is a need to improve (all three performance indicators, namely) productivity, efficiency and competitiveness of Indias manufacturing sector. And this needs to be achieved along with improvement in employment growth, keeping in view the demographic theory (the potential demographic dividend) and countrys projected aim of inclusive growth (as declared in the 12th five year plan). With regard to the expectations and fears regarding liberalization, Nagaraj (2011) notes that industrial growth rate has not accelerated, nor has the growth rate of labour-intensive consumer goods gone up; but there has been no de-industrialaization either, as the critics feared.

Urban Cultures :: essays research papers

Abstract For those of us located within the United States, we often take or granted the nornal day to day business operations. Though the United States has a mix of several distict cultures, most companies operate in the same manner. In fact, Americans often make the mistake of assuming that standard business models are the norm in other countries as well. For the corporate executive charged with creating an overseas operation, lack of local culture understanding and its influence on business methods will most likely result in greater start-up dificulties if not complete faliure. This paper hopes to develop a better awareness of various cultures and their influence on business methods and models. It will focus on the challenges in dealing with people from two different countries, Moroco and Pakistan, and offer some insight as to developing solutions to cultural differences. Literature Review Several sources of information were used in drafting this report. Due to the internet I was able to obtain current articles on both countries. Also, I even went so far as to log onto chat rooms specifically created for and attended by Pakistanis and Moroccans. There I asked questions regarding the motovations, beliefs, and values of the people from both countries. The repose was postive in that Moroccans and Pakistanis were more tham happy to answer my questions. Both parties seemed to be very nationalistic and pround of their countries. It is interesting to note that most of the people I was chating with were expatriots, most of whom are located on the United States. Though I found the chat rooms an interesting place to speak with Pakistanis and Moroccans, the information I gathered was limited. I attribute this to chat room formats that only allow a person to respond with short sentences. I later found a Pakistani chat room that allowed real time voice data transmission (www.pakiso n.com) which functioned like a two way radio. There people were able to express their thought and opinions regarding their home countries in more detail. The next couple of sections will detail the main differences between the cultures of Morocco and Pakistan. As I was conducting my reasearch on the two nations I quickly came to the conclusion that Morocco and Pakistan are more similar to each other than they are different. Though they have many commonalities, this does not mean that the challenges are any less for the international manager.

Essay --

The grounds that the Europeans named the Americas were the home of numerous individuals before Columbus. Having relocated from Asia many years prior, the pre-Columbian Americans spread all around the Western Hemisphere and in the long run made extraordinary developments. Around most eminent of them were the Incas in peru, the Mayas, and the Aztecs in Mexico. In the districts north of what was later named the Rio Grande, the human populace was more modest and the developments less propelled than they were more distant south. Indeed in this way, North American locals made a group of human advancement that flourished and extended. There were numerous individuals living north of Mexico when Columbus arrived. When the European contact, there were numerous locals that recently settled in the Americas. In Peru, the Incas were the biggest realm in America. Likewise were the Mexica and the Mayans in Mexico. Mayans were the first to improve a composed dialect, a numerical framework, logbook, a development farming framework, and exchange tracks. In the northern part of America were the Esk...

Adirondack Wildcats :: essays research papers

Adirondack Wildcats Brevard Blue Ducks Franchise History: 1988-1998 Jacksonville, 1999-2000 Gulf Coast, 2001 Lakeland Blue Ducks, 2002 Brevard Blue Ducks Cedar Rapids River Raiders Ownership: Cedar Rapids River Raiders Corporation, Barry S. Smith, and Toni L. Smith Head Coach: Dave Joerger Assistants: Kenyon Murray President/CEO: Barry S. Smith Sales Account Representitive: Grant Guyer General Manager & Director of Operations: Sean McLaughlin Franchise History: Expansion Team - 2004 Dodge City Legend Ownership: Dodge City Basketball, Inc.; Ownership Members: Jim Lewis, Greg Goff, Pat George, Michael Morrison, Kent Smoll, Dr. Kelly Henrichs, Dr. Kelly Cohoon, George Henrichs, Rodger Davis, Michael Stevens, Jim Coffin, Carolyn Banning and Rick Reed Head Coach: Dale Osbourne President/Part Owner: Greg Goff General Manager: Chris Pyle Team Colors: Purple, Silver and Black Franchise History: Dodge City Legend (2000-) Local Newspaper Coverage: Dodge Globe Florence Flyers Arena: Florence County - Civic Center (7,000) Ownership: Capital Entertainment Group, Inc. Head Coach: Bryan Gates Director of Basketball Operations: Lynwood Lock Franchise History: Expansion Team (2004) Kansas Cagerz Arena: Bicentennial Center (7,000) Head Coach: Francis Flax General Manager: Carroll Long Team Colors: Red, White and Black Franchise History: Columbus Cagerz (1998), Kansas Cagerz (1999-) Local Newspaper Coverage: Salina Journal Oklahoma Storm Website: www.okstormhoops.com Arena: Mark Price Arena (2,000) Ownership: Eddie Robinson, Shawn Kemp, and Oklahoma Storm Basketball Inc. Head Coach: Todd Chambers President/Founder: James Bryant General Manager: Tom Nelson Vice President: Ann Bryant Dance Team Coordinator: Tenna Bergdall Team Colors: Red, Black and White Franchise History: Oklahoma Storm (2000-) Local Newspaper Coverage: Enid News - Eagle, The Oklahoman

Police Corruption Essay Essay

Police Corruption can be defined as a form of police misconduct in which law enforcement officers break their social contract and abuse their power for personal or department gain. There are three forms of police corruption. These forms are Nonfeasance, which involves failure to perform legal duty, another form is Misfeasance, which is failure to perform legal duty in a proper manner, and the third form is Malfeasance, which is commission of an illegal act. The three explanations of corruption are the â€Å"rotten apples†, â€Å"departmental†, and the other focuses on factors external to the department. An example of these would be an officer might feel unappreciated for their good work and actions and it might make them corruptible. An example of departmental explanation would be if officers feel uncommitted and unsupported, their outlooks and values are reinforced by others in the group which may lead to lack of commitment in their job, thereby leading to corruption. Some police officers may abuse their power because they see themselves as not enforcers of the law, but them as the law itself. The â€Å"blue wall of silence† is a term used in the United States to denote the unwritten rule that exists among officers, where they should not report on a colleague’s misconduct, errors, or crimes. This may impact an officer’s loyalty to their profession because they are not doing their job if they are letting another officer get away with crimes, and if they did report it then they would be breaking their loyalty to fellow cops. It’s important for officers to have a good ethical foundation before they enter into this job because it would help prevent them from doing wrong and abusing their power. In the â€Å"Stopped for Being a Mutt† video, I realized how bad some officers can act sometimes. The teen was stopped and questioned multiple times for looking suspicious, when really they were just racist. They were trying to provoke the teenager to justify an arrest. I feel the form of police corruption they were doing was misfeasance. Stopping someone because of their race, when they weren’t committing any crimes is humiliating to that person and is wrong of any cop to abuse their power in this way. The â€Å"Blue wall of silence† comes up in this type of situation because some other cops  witness it and knows that this goes on when officers have low numbers of stops, and they don’t want to tell because they don’t want to seem disloyal to their fellow police officers. In the â€Å"Los Angeles Police Department† video, they talked about the Rampart and Crash scandal. When I watched this video I was in disbelief that, that many officers were implicated in some form of misconduct. I understand that they wanted to get gangs and crimes off the street but this was no way of going about it. They would shoot or beat people when they were unprovoked. They would steal narcotics and plant false evidence, and frame suspects and cover up all that these officers were doing because it was getting rid of the gangs and â€Å"hoodlums†. I can’t understand how these officers didn’t think what they were doing was wrong and immoral. This form of corruption in this particular situation was malfeasance. What they were doing was illegal, and they are here to protect and obey the law. In the â€Å"Behind the Blue Wall† video. I was extremely shocked to see the police brutality that occurred in these cases. I don’t understand how an officer could deliberately torment a victim because of their race and think they can get away with what they’re doing and that it isn’t wrong. Malfeasance is the form of corruption that comes up in these cases because what they are doing is illegal. The unlawful beatings and shootings of these victims, when they are not provoking the officers; is completely wrong and these cases need to stop. The Blue wall of silence also comes up in these cases because there were officers who knew about what happened and what the other officers were doing and instead of reporting it, they attempted to cover it up. Co-workers should treat those who inform authorities of illegal activity in the police agency the same as how they treated them before they reported corruption. In the virtue ethics perspective, the habit of right desire, he was making the right choice by reporting corruption because he knew that what was going on in the agency wasn’t right and needed to be stopped. Frank Serpico’s response to this case was â€Å"It’s always worth it to be at peace with yourself.† I think this does imply reasoning of ethical thought. I  think Serpico meant that, as long as you feel good with what you are doing, and you are doing what you think is right, then that is all the matters. I agree with this because no matter what happens in the end, it is all worth it if you are at peace and happy with what you did. There are conflicts presented in terms of loyalty and duty. Loyalty is a good to have, but it is not a virtue. If loyalty is treated as a virtue, it can be misguided. It will lead to protection of illegal conduct and can turn into corruption. Officers may want to be loyal to fellow officers and not report what is really going on, however they also want to do their duty, and want to report because it is their duty to not participate in the corruption. The blue wall of silence impacts conflicting loyalty because it is an unwritten rule amongst officers to not report a fellow officer’s mistakes, misconducts, or crimes. This affects them if they want to be loyal to those officers and be loyal to their civic duty as well. If I was an officer in this situation, I would definitely report these crimes. I don’t believe in the blue wall of silence. I think that if an officer is doing something illegal then it needs to be reported and dealt with. Just because they are officers doesn’t mean they should be able to get away with things that they are arresting other citizens for doing.