Describe the Benefits of Mobile Technology Essay

Nothing is beyond human imagination. If we had been told just five years ago that we would be able to see the person on the phone, we would not have believed it at all. Today almost everything is doable thanks to the technological progress that has been made in the last 20 years. We are now able to access any kind of information at an incredible rate and communicate with people regardless of time and space with mobile technology. Despite having several drawbacks that some people are growing concerned about, mobile technology is an indispensable aspect of human life in terms of comfort and abundance of facilities it offers. Doubtlessly, enhanced mobile technology is a golden opportunity for all humans to get the utmost enjoyment of life in comfort. Initially, the latest technology lets people do what they cannot imagine. For instance, they are able to connect to the Internet at far greater speed through wireless service and make video calls on their mobile phones with â€Å"3rd Generation (3G) Technology†. Moreover, 3G also enables them to use their phones for entertainment purposes as well. That is, they can watch and download videos as if they were using their laptop computers. Secondly, mobile technology has increased the speed of accessibility to sources. Humans are no longer obliged to go to libraries and flick through the pages of numerous (countless) books, journals or magazines. This means, with only one click, you can have access to a great deal of information such as articles, pictures, statistics, latest news and videos. In brief, today’s mobile technology presents a vast world where any source of information is available. Mobile technology also organizes our relations with others in both private and work life. To begin with, thanks to our laptops and mobile phones which have been made smaller and smaller in appearance, we are able to store any information we will use. To illustrate, it is possible to save birthdays, anniversaries or important meetings in our computer and mobile phones so that they can remind us of these dates in due course. Another advantage that mobile technology grants us is making our work life easier. That is, we can overcome the problems stemming from a hectic work life and heavy work load. To exemplify, we have the opportunity of keeping in touch with our colleagues instantly when something unexpected occurs through either with our mobile phones or the Internet connection on the computer. Likewise (Similarly), we can deal with the hundreds of pages of documents on the laptop with ease instead of keeping their hard copy in many files. This, undoubtedly, facilitates our lives and we can save our invaluable time without getting exhausted. To sum up, having an advanced mobile technology has many advantages such as comfort and easiness. As a means of communication, mobile technology is a sine qua non of our daily lives and it offers a variety of facilities that make our lives easier. In my view, without advanced mobile technology, it is virtually impossible to cope with the challenges of life since it guarantees an organized and systematic life style.

Education Essay

The current, test based, American Educational system fails to instill in student a desire for life- long learning and does not prepare them to be well rounded and successful adults. A change in educational philosophy needs to be made in this country before it is to late. Educations is what defines a person life and without a proper education, people wont be able to go anywhere in life. Students usually study for their test and forget what they studied the next day. After school all students want to do is get away from their work and not have to do it anymore. There is not necessarily a perfect educational system, but it could be better than what we have now. People are not going where they are supposed to after schooling. There is a book, That Used To Be Us by Thomas L. Friedman and Michael Mandelbaum, which can prove this. I recently read That Used To Be Us. This book explains how America used to lead the world in technology, education, economy, research and creativity. Now we are falling way behind many other countries. The authors explain that we are failing to meet major challenges that we face and if we don’t find a way to rise past this it will effect future generations. One major flaw in America right now is the educational system. If our future generations lack the education, especially in math and science, they will not have the skills to navigate through the new economic turn. If we can’t access new talent and develop new markets then other countries will beat us to it. This is definitely something to think about. The current test based system is a joke to the students who only care about what they receive on the exam. Especially in High school, everyone’s trying to get into the best college they could. Grades are all that matters to colleges and kids will do what they need to do to get them. Once they have them, they no longer care about the material they needed to achieve those grades. Now with all this studying and homework the student are given, they are from then on turned off from learning anything new. Once a student graduates college and can try and get a job, he no longer wants to further his education. Without the further education it gets harder to find jobs and support ones family. The last part of the educational system, that most tend to skip, is the most important part. This is the part where one becomes exceptionally knowledgeable in a certain field. With these degrees it makes it much easier to find work and make enough income for what you have. The current system has to be changed for all these reasons. A student should leave each grade with all the information he learnt, stuck in his head. He should leave each grade excitedly knowing he has another year coming, to further his education. Right now that is no possible.

Sarbanes-Oxley and Enron Research Paper Example | Topics and Well Written Essays - 1750 words

Sarbanes-Oxley and Enron - Research Paper Example The accounting profession is self-regulated and its practitioners are supposed to follow the generally accepted accounting principles (GAAP). The GAAP framework was created in 1973 by the Financial Accounting Standard Board (FASB). In order for accounting to function properly the practice requires compliance of high ethical standards. Back at the beginning of the 21st century there was an avalanche of accounting scandals with the most notorious one being the Enron case. At the time investor confidence went down a lot as the credibility of the accounting profession came into question. In order to raise investor confidence the Securities and Exchange Commission (SEC) in alliance with the US congress passed a law called the Sarbanes-Oxley Act of 2002. The purpose of this paper is to describe the Enron case and to provide a detail analysis of the different aspects included in the Sarbanes and Oxley Act of 2002. The Enron Corporation is one of the worst cases of corporate corruption Ameri ca has ever seen. The situation was very odd due to the fact that Enron Corporation was regarded as one of most respected companies in the energy industry in the late 1990’s and at the beginning of the 21st century. ... e its collapse the firm was the 7th largest company in the United States with over 21,000 employees on payroll including an international operation that spread across 40 countries (Bbc). On December 2, 2001 Enron Corporation file for bankruptcy which at the time was the biggest bankruptcy in the United States history. The demise of Enron occurred due to a lack of corporate ethics. The unethical behavior started at the executive management level and spread throughout the organization like a virus. An example of how unethical the employees had become is the actions of the energy traders. The traders would intentionally shutdown power grids leaving entire towns without energy with the sole purpose of driving the price of energy up once the energy was turned back on. A lack of ethics and corruption was more evident at the executive management corporate level. The managers of the company were cooking up the accounting numbers of the firm. The corrupt managers colluded with its auditor, Au thor Anderson, so that they would look the other way and not revealed the fact the accounting numbers did not add up. A technique the firm used to hide losses and its debt was designing a complex web of partnership which used off-balance sheet accounting to alter reality. The firm completely mismanaged the pension fund of the employees. Instead of saving the pension money and using a sound diversification strategy the managers decided to use the pension fund to finance the firm’s illicit activities. The fund was depleted and invested solely in Enron common stocks. The managers of Enron prior to the full scandal being revealed decided to sell all their shares of Enron stocks at full market value; a few months later the Enron stocks became junk penny stocks. Insider trading is an illicit

Nuclear Fission Essay Example | Topics and Well Written Essays - 1000 words

Nuclear Fission - Essay Example A uranium atom is bombarded by slow moving neutrons. Nucleus that split produce three neutrons creating a chain reaction that must be controlled. Control in a nuclear reactor is obtained by using two isotopes of Uranium and . does not split when bombarded with neutrons and thus stops the chain reaction. Graphite modulators and control rods are also used in nuclear reactors to control the nuclear fission reaction. Graphite modulators slow down the fast moving newly generated neutrons. Carbon rods are moved in and out of the reactor to absorb neutrons and control or complete stop the nuclear fission reaction. The main disadvantage in using nuclear fission reactors is the disposal and storage of nuclear waste which remain very harmful for several thousand years. The sun generates its heat energy by using nuclear fusion reactions that takes place on the sun. Even though, both nuclear fusion and fission generate energy. However, fusion is the reverse of fission. Fission is simple in relation to fusions. Fission requires lots of highly radioactive material, creating by-products with very long half-lives, whereas fusion uses only small amounts of fuel. Fusion occurs when light atomic nuclei are forced close enough together that they combine to form heavier nuclei. On the other hand fission heavy nuclei are broken downs into lighter fragments (POST 2003, p.1). Controlling fusion reactions involves the use of two light nuclei, deuterium and tritium, which are isotopes of hydrogen. Fusion takes place when the nuclei obtain enough energy to overcome their mutual repulsion, they can undergo the fusion reaction shown in the following figure: Figure 1: simple Fusion Reaction Nuclear fusion reactions involve the fusion of two nuclei to generate helium and a neutron in addition to a large amount of energy. The particles form a high density and super hot ionized gas called plasma. At high temperature the electrons escape from the nuclei producing a plasma of positive ions. To create nuclear fusion reactions on earth, the plasma must be confined to minimize heat losses from the system. Nucleogenesis: Lithium is generated in the stars by the process of nucleogensis. This process uses the most abundant elements of hydrogen and helium to generate lithium. In the sun, the nearest star, a large quantity of energy is generated when hydrogen is converted into helium by the following nuclear fusion reaction: (Woods 2006, p9) After hydrogen is used up in the sun, a new series of fusion reactions occur in which helium generates beryllium, which then reacts with helium to generate carbon, which then reacts with helium to generate oxygen, which then reacts with helium to generate neon, which then reacts with helium to generate magnesium. All of these fusion reactions generate energy in addition to the different elements that are produced as shown in the following series of reactions (Woods 2006, p9): Once helium is used up, carbon regenerates hydrogen and helium in addition to a number of other elements as demonstrated in the following fusion

Batting Biofilms Assignment Example | Topics and Well Written Essays - 500 words

Batting Biofilms - Assignment Example If genes which are responsible for the formation of these adhering protein molecules are deleted the bacteria are unable to form biofilms. However, it is now proved that bacteria form biofilms after communicating with each other through signal molecules, for e.g. in P. aeruginosa the relevant signaling molecules are acylated homoserine lactones which each cell produces at a low level, when enough cells assemble the concentration of these compounds increases which in turn trigger the activation of certain genes, the mechanism is known as quorum sensing, which is critical for the formation of biofilms. Since biofilms formed by P. aeruginosa is responsible for causing cystic fibrosis pneumonia, i.e. they turn virulent (disease causing). algC gene is responsible to synthesize alginate, the gelatinous polymer that makes extracellular matrix. Thus, signaling molecules to control the genes that code for virulence. During stage 1 when the bacterial cells move or swim freely and arrange themselves in cluster in order to form a biofilm; Attack strategy is employed that coats the molecules and block or disrupt microbial arrangement or attachment. During stage 2- when the collected cells begin producing a gooey matrix; Attack strategy is employed which coat the surfaces with substances that interfere with the matrix production so that film is not formed. During stage 4- when chemical gradient arise and promote the coexistence of diverse species and metabolic states; Attack strategy is employed which delivers multiple antibiotics or disinfectants to undermine the varied survival strategies of biofilm cells. Microbiologists took a very long time to size up the microbes in the biofilm. Since the establishment of germ theory, in the late 19th century by Robert Koch, bacteria were envisioned as single cells that float or swim through some kind of watery

Poverty and Pollution Essay Example | Topics and Well Written Essays - 1750 words - 1

Poverty and Pollution - Essay Example This paper outlines that Cubatao in Brazil, which may be the most polluted area in the whole world, has about 100,000 people living in the valley. Inhabitants have refused to sell their land and resettle elsewhere because of the readily available jobs from the industries and the cheap life around. This paper will examine the ethical implications of pollution in the third world, pollution as the price for progress, moral right to human beings of a livable environment, and global pollution standards. Additionally, the paper will examine whether the wealthy nations have an obligation to provide poorer nations with resources to develop greener industries. Ethical implications of businesses polluting in a third world country are common. First, every animal, plant, and other living things have a right to a better environment. It is unfortunate that pollution destroys their habitat shortens their lives. Additionally, pollution causes the extinction of some animals resulting in an incomplete life cycle of such animals. Living things depends on one another for survival and human beings depend on them. It is unethical that a human decision can result in death and loss of livelihood. Although human beings are superior to other beings, they have an obligation to other human beings and nonhuman beings. Secondly, right to bodily security supersedes all another human right including the right to property. The health of the environment is more important than all other rights because they protect human life. Therefore, pollution is unethical as it undermines a basic human right. Some businesses may conduct operations in a third world country and disregard any standards of pollution control. To reap the benefit of cheap labor and circumvent the strict conditions of working, many companies have moved their factories to third world countries.  

Amazon.com Essay Example | Topics and Well Written Essays - 1250 words

Amazon.com - Essay Example Amazon advertises extensively on the internet to help raise awareness of their brand. Also, Amazon maintains high-speed growth introducing new products and services available online. Innovations and adaptation policies help to appeal to a particular target audience in diverse markets. The main weakness of Amazon is a negative image of online banking and financial transaction. Many customers do not buy products online afraid of fraudulent actions of companies. Undeveloped banking sector in less developed countries prevent the company from rapid international growth. The opportunities included: high potential to growth based on the technological change and increasing number of internet users. The choice of communications mix should be the most cost-effective solution for achieving the organization's communication objectives. Call centers and the Internet give online booksellers great opportunities to promote its services. Competition and possible legal changes is the major threat forAm azon (Amazon Home Page 2009). In his book "Competitive Advantage" Porter identifies five forces that drive competition within an industry (Johnson and Scholes 54). The threat of entry by new competitors is possible but they will create a real threat for Amazon. The intensity of rivalry among existing competitors has a great impact on Amazon facing with strong competition (Barnes & Noble and other small online companies). Thus, Amazon has positioned itself as a superstore. Pressure from substitute products will not have a great impact on Amazon's activity. Today, Amazon proposes a wide range of e-texts and CD-ROMs which can be regarded as substitute products. The bargaining power of buyers is crucial for Amazon. The aim of customers is to pay the lowest possible price to obtain books or other products that they require. The advantage of Amazon is that it purchase in such large quantities that its suppliers are dependent on the customers' business. The bargaining power of suppliers does not have a great impact on Amazon because most firms are highly differentiated and need an effective distribution channels for their products (Amazon Home Page 2009). For Amazon, the most successful of four growth stages was the Growth stage. This success can explained by a strong web culture and environment created by its team. In order to be effective Amazon is responsive to external environmental influences. Amazon operates within a dynamic environment and it requires a structure and culture that are sensitive and readily adaptable to change (Johnson and Scholes 55). Amazon's organizational climate influences the level of morale and attitudes which members of the organization bring to bear on their work performance and personal relationships. Also, strong web culture attracts millions of buyers to this store. Web culture is based on non-price competition and strong brand image (Amazon Home Page 2009). Amazon.com is a leading internet-based company operating on a global scale. Amazon.com becomes the first mover in the e-retailing market proposing a wide product range to diverse customer targets. E-business allows the company to connect customer service and good levels, increases customer satisfaction and decreases retention artistries. The main strategy is a virtual bookshop which helps the company to promote and sell its products to customers. Similar to traditional marketing, a virtual bookshop

Discuss how job redesign can improve organisational performance Essay

Discuss how job redesign can improve organisational performance - Essay Example This paper sheds light on how job-redesign improves the overall organizational performance, by enlisting a myriad of advantages that are linked with job redesign. 2. Job Redesign and Organizational Performance 2.1. Employee Motivation The basic objective behind job redesign is to motivate the employee so that he is willing to perform better and produce greater results than before (Zhang & Bartol 2010). Employee motivation brings about increased worker productivity because it guarantees high quality worker job experience. Smith (1994) discusses the reason why employee motivation is at all necessary, and comes up with the answer that organizations need to implement motivational strategies through job redesign to ensure their survival in the market, because when employees are motivated, they perform better. Lindner (1998), in his research about what motivates employees, found that job redesign includes motivating factors such as interesting work, good wages, appreciation, encouragement, job security, healthy workplace environment, promotions, participation in decision-making, and sympathy shown from the supervisors on personal problems. 2.2. Employee Empowerment Job redesign empowers employees, which leads to a boost in employees’ morale, job persistence, productivity, and organizational performance; and, the absence of these factors can destroy the whole organization (Kuo et al. 2010). Gitman and McDaniel (2007:323) have called this â€Å"investing in people† which includes four trends called employee â€Å"education and training, employee ownership, work-life benefits, and nurturing knowledge workers†. Bilton (2007:71) suggests that job redesign must empower the first-line entrepreneurs instead of controlling them, and that it should give â€Å"greater autonomy and flexibility† to the employee, as there are commercial reasons for it like achievement of business goals. 2.3. Job Satisfaction Tella, Ayeni and Popoola (2007, par.15) defin e job satisfaction as a comfortable feeling that results from â€Å"employees’ perception of how well their job provides those things that are viewed as important†. The most precious asset that a company may cherish is its employees, and it needs to be seriously concerned with all issues that may dissatisfy, frustrate or depress them. Without happy employees, no strategy is going to work, and no progress will be seen in the long run. After job redesigning, employees work harder because they have enough motivation to learn and excel (Tims & Bakker 2010). They help their employers to increase productivity and achieve customer satisfaction. Tietjen and Myers (1998) state that organizational support through job redesign guarantees improved turnover behavior among employees, because they want to stick to their jobs when they find that their employers are there to value their strengths and eliminate their weaknesses through proper training. This creates a trustworthy relatio nship between employees and employers, which also results in reduced workplace conflicts and enhanced organizational performance. Today, employers are spending thousands of compensation dollars to devise and implement benefit plans,

DQ1 Questions Assignment Example | Topics and Well Written Essays - 250 words

DQ1 Questions - Assignment Example A bachelor’s degree is the minimum requirement needed to work in the advertising industry. A master’s degree opens up many opportunities for professionals in this field. The average salary of a marketing advertising executive is $67,014 (Salary). The global economic crisis of 2008-2009 affected the economy a lot. In the marketing field the impact was devastating. Massive layoffs left thousands of workers in the marketing field out of a job. The downsizing initiatives put a lot of pressure and added workload on the marketing departments of many organizations. Another variable that was affected by the recession was overall marketing spending. Cost cutting initiatives lowered the money available to spend on advertising. Customers affect the products and services provided by companies. The customer taste and preferences are two variables used by marketers in the design process of new products (Kotler). Marketing should become the responsibility of entire work staff. Word of mouth advertising and placing advertising material on employee’s cars are two ways to increase employee involvement in marketing activities. â€Å"Word-of-mouth advertising is important for every business, as each happy customer can steer dozens of ne w ones your way† (Entrepreneur). The customer’s needs and wants can impact advertisers because that input can be use to create products that companies

Change Model Essay Example for Free

Change Model Essay The aim of this essay is to critically analyse the background of the Qantas and its decision to launch Jetstar on May 2004 that operated around 800 flights a week across network of 14 destinations within Melbourne, Sydney and Brisbane. Secondly, this essay will evaluate how Data Collection Feedback Cycle change model is used to gather major information and to critically analyse it. Thirdly, this essay will critically evaluate the background of Qantas and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the Jetstar. Fourthly, this essay will also critically analyse the revenue and profit performance of Qantas prior the introduction of Jetstar i.e. 2002. Fifthly, it will continue to critically evaluate the trend in Qantas and Virgin Blue in 2003. Then the sixth paragraph will also critically evaluate the trend in Qantas after the launch of Jetstar. Lastly, the essay will also look into the annual reports of the year 2005-2009 and critically analyse the significant value added by the Jetstar to the Qantas group; and will critically analyse whether the executive decision of Qantas to launch Jetstar in order to retain the 60% domestic aviation market from its competitors has been a strategic success or not. This paragraph will critically analyse the change management information gathered to launch Jetstar low cost airline in May 2004 by using the Data Collection Feedback Cycle change model. Nadler (1977) as cited in Cumming and Worley (2009:122) highlights that the Data Collection Feedback model consists of five phases that are (1) planning to collect data, (2) collecting data, (3) analysing data, (4) feeding back data and (5) following up on the data collected. In planning to Gather information to justify change Nadler (1977) argues that primary methods such as, direct interviews with CEO and key change agents, observing and identifying the need for change and the use of un obstructive measure as sampling technique, force field analysis and scatter diagrams, could be used to gather major information. In contrast Danaher have used various published data to trace the evolution of the Jetstar strategy of its initial position, to its efforts to attain price competitiveness and service parity, followed by its highly focused, cost-effective service delivery strategy. Based on it they have developed a hierarchical model with parameters estimated at the  individual level. This allows us to study not only how service design and pricing initiatives shift the perceived performance of Jetstar relative to its competitors but also how the airline can move market preferences toward areas in which it has competitive advantage. After done with the planning of the collection of data from competitors performance on its revenue, sales profits, passenger numbers and market share in 2002, 2003 and 2004 against Qantas key performance indicators for the same period between 2002, 2003 and 2004 from the Annual Reports of both Virgin Blue and Qantas domestic operations. Nadler (1977), after the data has been collected data they are analysed using the qualitative change data such as directors report, World Business Briefing /Australia: Airline Profit(2004).The reminder of this essay will critically analyse the data collected from secondary sources such as Annual Reports, newspaper articles and journal articles to analysis the data sourced to evaluate what would be the most effective change to be implemented by Qantas in responding to Virgin Blue competition the Australian aviation domestic sectors. This paragraph will evaluate the basic background of Qantas and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the Jetstar. After the deregulation of Australian aviation market there were several airline companies entering the market however the most significant entrance was of low fare airlines Impulse in June and Virgin Blue in August 2000. The arrival of Impulse Airlines and Virgin Blue doubled the number of players and dramatically challenged the stable duopoly of Qantas (after its merger with Australian Airlines) and Ansett, setting off a vicious price war (Traca, D., 2004). However, Impulse facing a major trouble in the cash flow agreed on May 1, 2001 to hand over its operations to its biggest rival, Qantas Airways. As per the deal Impulse stopped its passenger service under its own name on May 14 and leased 21 aircraft as well as cabin crews and pilots to Qantas. The deal led the stock of Qantas heaved by 26% closing at $3.40 per share giving Qantas a significantly stronger position in the Australian market (Gaylord, 2001). Qantas, Australia’s leading domestic and international carries launched a budget airline called Jetstar in May 2004 (Qantas annual report, 2004). With Jetstar Qantas’s aim was to cover the low fare segment of the aviation  industry, which came into existence in the year 2000 with its competitor, Virgin Blue. Virgin had been successfully eating up QANTAS market share by attacking it from below as a no frills provider. In 2001 the collapse of Ansett in domestic market, led Qantas to lease extra flights, add hundreds of special flights in order to help stranded travellers due to Ansett crisis. At the time Qantas flew more than 50,000 former Ansett passengers for free and other 65,000 on heavily discounted fares. Due to this Qantas was able to deliver a profit before tax of $631m and net profit after tax of $428 million at the end of 2002, 30 June, despite of the fact that the world’s aviation market was suffering from â€Å"constant shock syndrome†, due to the September 11 attack followed by bombings in Bali, the war in Iraq and of course the devastating outbreak of Severe Acute Respiratory Syndrome (Qantas annual report, 2003). The shutdown of Ansett also highly benefitted Virgin Blue, since the event provided a wide opportunity for Virgin Blue to grow rapidly and become Australia’s second leading domestic carrier. In 2000 it started with only one route (Brisbane to Sydney) with two aircrafts and a team of just 200 people. In 2001, with the opportunity to widen its market segment, 14 new routes were launched (virginaustralia – history). The aim of this paragraph is to highlight how Qantas and Virgin Blue became the only two players in the Australian domestic aviation market in 2002. It will also look in to the key financial indicators of both the companies so that a comparison could be drawn out. In 2002 there were only two companies that survived the fare war of 2000-2001. One of them was Qantas that gained 80% of the domestic market share following Ansetts cessation. Whereas, the number of international passenger declined by 11% which makes an average decline of about 25% in global aviation market (Traca, D., 2004). In the same year Qantas domestic carried 1485 million passengers making a RPK of $2034 million and the ASK of $2503 million (Traffic and capacity statistics, 2002). Qantas announced its financial results for the year ended 30th June 2002. As per the financial result the company had $631 million of profit before tax, a net profit after tax of $million, revenue of $ 10,968.8 million and earnings per share of 29.1 cents (Qantas annual report, 2002). The other survivor of the fare war, Virgin Blue managed to emerge as second Australian Domestic carrier, covering of about 20% of the domestic market  (Traca, D., 2004). Due to its strategic low operating cost and soaring market share, it was able to achieve net profit before tax of $34.8 million and revenue of $388.3 million. In this year the airline carried 3.2 million passengers, its traffic as measured by RPK’S was 3169 million, capacity measured by ASK’S was 3898 million (Virgin Blue annual report, 2004). In March 2002 Patrick Corporation, the premier port cargo handler, bought 50% of the airline. This change made Godfrey, chief executive of Virgin Blue confident about the enlargeme nt of the domestic operation and also expansion into the international market with service to South Pacific (Traca, D., 2004). This paragraph critically analyses the key financial indicators of the Qantas and the Virgin Blue of the year 2003. It will also highlight how Virgin Blue concentrating only of the leisure domestic market was slowly overcoming the market share of Qantas. In 2003 Qantas domestic carried 1768 million passengers making a RPK of $2262 million and the ASK of $2683 million (Traffic and capacity statistics, 2003). Qantas announced its financial results for the year ended 30th June 2003. As per the financial result the company had $502.3 million of profit before tax, a net profit after tax of $343.5 million, revenue of $11,374.9 million and earnings per share of 20 cents (Qantas annual report 2003). Speaking of announcements, in the Annual General Meeting held on 16th October 2003 it was announced that â€Å"the airline is investigating the establishment of separate domestic low cost airline to service the leisure market in Australia† (Preliminary monthly traffic and capacity statistics, July 2003).In this same year Virgin Blue carried 6.8 million passengers, its traffic as measured by RPK’S was 7194 million, capacity measured by ASK’S was 9078 million. Taking advantage of the fact that Virgin Blue had no other competitor serving the price sensitive market of Australia, it earned revenue of $914.6 million, compared to previous year the revenue earned up roared by 135.5% and the number of passengers carried also increased by 107% (Virgin Blue annual report, 2003). This paragraph will critically analyse the launch of Jetstar in May 2004 and the changes that it brought in the key financial indicators of Qantas and as well as of Virgin Blue. Following the announcement made in 2003 Annual  General Meeting Qantas Introduced Jetstar in May 2004. In the first year Jetstar alone carried 273,000 passengers. Prior Jetstar Qantas already had Qantas Domestic and Qantas Link serving domestic passengers. With these three Qantas in total carried 1973 million passengers. Compared to 2003/04 the number increased by 9.4% (Traffic and capacity statistics, 2004). In the same year Total Domestic (Qantas, Qantas Link and Jetstar) traffic was measured in Revenue Passenger Kilometres (RPKs) of $2451 million while capacity, measured in Available Seat Kilometres (ASKs) increased to $3021 million (Traffic and capacity statistics, 2004). On 19 August 2004, Qantas announced its financial results for the year ended 30 June 2004. In the announcement it was stated that the company had achieved a profit before tax of $964.6 million and a net profit after tax of $648.4 million. Similarly, $11.4 billion of revenue, earning per share of 35.7 cents (Qantas annual report, 2004/05). Despite increasing domestic competition during the year Virgin Blue continued to show strong growth and profitability. During the year Virgin Blue carried over 10million (m) passengers, an increase of 53% compared to previous year. Doubling its passenger number the third time in a row in this same year it welcomed its 20 millionth passenger. Its revenue for the 2004 financial year was $1362.3million which is 49% more than the previous year. In the same year profit before tax was up by 45% to 226.2million and a Net Profit After Tax of 158.5million (Virgin blue annual report, 2004). Till March 31, 2004 Virgin Blue had 44 Boeing Net Generation 737 – 700 737 -800 aircraft out of which 36 were leased and 8 were owned. However, during the year the fleet was increased by 15 aircrafts. Since the day of establishment Virgin Blue was committed to keep its cost base low and they are continuously working through it so that they could consistently provide their customers with low fares travel. Their cost per ASK for the financial year 2004 was 8.16 cents whereas a year before it was 8.48 cents. A decrease of 3.5% put the company on a good front in terms of scale and productivity (Virgin blue annual report 2004). The Australian discount airline Virgin Blue, has won 30% of the market from Qantas, the national carrier, which will introduce a low-fare airline, Jetstar. Fare surcharges are being imposed by both groups as fuel pri ces rise (Shaw, 2004). Jetstars initially offered $48 for Melbourne to Hobart route and from $54 for Sydney to the resorts south of Brisbane. The price was similar  to what the price Virgin Blue was offering at the same period. All Jetstar flights offered one class of travel, with unreserved seating. In contrast Virgin Blue offered assigned seating and baggage connections to final destinations (Henly, 2004). This paragraph critically analyse the key indicators for Qantas and Virgin Blue for launching Jetstar in May 2004. It is very clear with the annual report that Jetstar has been profitable ever since it was launched in the year 2004 (Jetstar Media centre). However, the road wasn’t quiet smooth in the initial years. From its launch Jetstar was exclusively using a â€Å"low price† message in its communication, but it was lagging way behind Virgin Blue in terms of quality. The Jetstar overall quality disadvantage was greater at 22.3% (6.02 versus 7.75) (Danaher et.al, 2011. pp. 586 -594, Fig 3). Jetstar was already appealing on the price front, and then it addressed its deficit in quality and tackled that by focusing on some specific sub attributes (not disclosed by the company) that provided Jetstar a good opportunity to overcome the point of difference with Virgin Blue. Then the price perception of Jetstar relative to Virgin Blue dramatically improved from 6.9% deficit in March 2008 to 2.5% deficit in only 3months i.e. 7.42 versus 7.62 (Danaher et.al, 2011. pp. 586 -594, Fig 3). Since the establishment the main concern as a parent company for Qantas Group was that whether Jetstar would financially be profitable in its own right. Hence, it did by earning revenue of $1.020 billion, $1.414 billion, and $1.605 billion in the year 2007, 2008, and 2009 respectively. It was 7%, 10%, 12% of Qantas group revenue respectively (Qantas annual report, 2009). Similarly, in the same order the profit earned was $79 million, $104 million and $118 million (Danaher et.al, 2011. pp. 586 -594, Table 2). Similarly, speaking of market share of Jetstar, it has increased by 29% from the year 2008-2009. Earlier with the perceived mediocre price competitiveness and low quality it was in a poor position as compared to Virgin Blue, whereas, with the necessary remedies taken within the 1st quarter of 2008 it was in position almost equal to Virgin Blue in terms of covering the large proportion of the target market. Jetstar Market Share of Domestic Australian Leisure Air Travel was 14% in the first quarter of 2008, with the changes made the market share increased to 14.6% and it gradually kept on increasing and it had 18.1% of market share in March 2009. Further, with the increase in profit it improved its perceptual position, whereas,  Virgin Blue has remained relativ ely stationary. In conclusion if we are to pay close attention to the domestic growth strategies of the country’s largest airline company; Qantas, its decision of launching Jetstar seems be a successful strategic decision. It was matter of concern that the Virgin Blue an airline company focusing on the price sensitive market would whether survive the competition with 82 year old veteran airline company. However, with its striking approach of low fare Virgin Blue today covers 35% market share of the domestic aviation sector. By critically evaluating the financial indicators of both companies for the year 2002-2004 and also following the series of events, it becomes quiet clear that though Virgin Blue had started small it managed to cover 20% of the target market in 2002. In further years concentrating only in the no frill travel it was able to hold the 30% of the market share, which became a matter of concern for Qantas because though it was making more profits then Virgin Blue it was losing it domestic market grip, therefore, led to the launch of Jetstar. However, even after the Launch of Jetstar Qantas performance was not like it was expected because in the year 2004 Qantas domestically carried only 2061 million passengers which were only 88 million more than the last year. However, with the necessary major changes (not disclosed by the company) Jetstar alone was able to regain the market share of 18.1% by March 2009. REFERENCE LIST Gaylord, B. (2001). Qantas to Absorb Competitor As Fare War Takes a Victim. The New York Times; Business Day. 11Shaw, J. (2004). World Business Briefing /Australia: Airline Profit. The New York Times; Business Day. Henly, G, S. (2004). Travel Advisory; New Offshot of Qantas Offers Lower Fares. The New York Times; Travel Danaher. J. P., Roberts. H. J., Roberts. K., Simpson. A. (2011). Applying a Dynamic Model of Consumer Choice to Guide Brand Development at Jetstar Airways. Marketing Science, 30(4), 586 – 594. Doi: 10.1287/mksc.1100.0619 Traca. D., (2004). Virgin Blue Fighting With National Champion. INSEAD, 5179. Traffic and Capacity Statistics. Retrieved from: http://www.qantas.com.au/travel/airlines/investors-traffic-statistics/global/en Jetstar Media Centre. Retrieved from: http://www.jetstar.com/mediacentre/facts-and-stats/jetstar-group Nadler, D. (1977). cited in Cumming and Worley (2009). Organization development change, 9th edition, South- Western Cengage Learning. Qantas annual report (2002). Retrieved from http://www.qantas.com.au/infodetail/about/investors/2002AnnualReport.pdf Qantas annual report (2003). Retrieved from http://www.qantas.com.au/infodetail/about/investors/2003AnnualReport.pdf Qantas annual report (2004). Retrieved from http://www.qantas.com.au/infodetail/about/investors/2004AnnualReport.pdf Virgin Blue annual report (2004). Retrieved from http://www.virginaustralia.com/cs/groups/internetcontent/@wc/documents/webcontent/~edisp/annual-rpt-2004-a3.pdf

The Affect Of Intellegence Of The Hair Colour Cultural Studies Essay

The Affect Of Intellegence Of The Hair Colour Cultural Studies Essay In past research, Kyle and Mahler (1996) examined whether a female applicants hair color and use of cosmetics might affect perceptions of her ability for a professional position. One hundred thirty six college students reviewed the identical professional resume of a female applicant for the position of a staff accountant. Attached to the resume was a photograph of the stimulus female applicant either wearing or not wearing cosmetics and depicted with brunette, red, or blonde hair color. The results demonstrated significant main effects of both hair color and cosmetic use. Specifically, the applicant was rated more capable and was assigned a higher salary both when depicted with brunette hair color and when depicted without cosmetics. There were no interactions between hair color and cosmetic use. In a study of stereotyping based on physical appearance, 3 different photographs of the same attractive female, as a blonde, as a brunette, and as a redhead, were used. These were rated with a standard set of photographs of other attractive females on a number of dimensions that included intelligence and temperament by different groups of 75 male and 75 female undergraduates. Male Ss attributed significantly lower intelligence to blondes than to brunettes. The hypothesis that the target female would be rated as more temperamental as a redhead than as a blonde or a brunette was supported by the results. The authors suggest that the findings have serious implications for the way in which men view women. Methods Participants This research was conducted at Hunter College and New York metropolitan area, the participants were chosen through convenience sampling. There were 253 participants and only 245 participants reported their gender, 100 males (40.8%) and 145 females (59.2%). The participants were 18+ years old (N = 253, M= 23.99, SD= 7.41).Researchers marked the participants hair color after the survey was returned and there were 22 blondes (8.7%), 209 brown/dark hair (82.9%), 7 redheads (2.8%) and 14 other hair color (5.6%). Participants race was reported too, 56 Caucasians (22.2%), 46 Hispanics (18.3%), 58 African Americans (23%), 67 Asians (26.6%) and 25 reported as other (9.9%). There were 32 homosexuals (12.7%), 211 heterosexuals (84.1%), 5bisexuals (2%) and 3 as others (1.2%). Materials This experiment used a novel stimulus material that was produced by the researchers through face research lab website. The stimulus faces of Caucasian male and female, and mixed race male and female were generated using PsychoMorph, facial averaging software. Through Taaz.com, a makeover software, the stimulus faces were given natural looking hair style and hair color. The hair style chosen for females was Kirsten Dunst wavy hairstyle and males had Mia Wasikowska short hair. Females were given golden blonde, ash brown and red hair color. Whereas, males were given golden blonde, darkest brown and red hair color. The novel stimulus material consisted of one Caucasian male face, mixed race female face, mixed race male face, and Caucasian female face presented to the participants with identical hair color for each face. The survey had same set of ratings from 1-7 (7 being the extremely attractive, friendly and intelligent) and every stimulus faces were rated on their level of attractiven ess, friendliness and intelligence. There were also questions about the participants age, gender, ethnicity and sexual orientation (Appendix A). Only Caucasian faces were analyzed for the purposes of this experiment to avoid the potential confound of using hair colors that appear unnatural for mixed race faces. We also did not analyze friendliness or attractiveness ratings as our focus for this experiment was only intelligence. A consent form was given to all the participants discussing the purpose of the experiment to peoples first impressionbut no revealing the hypothesis of the study. Procedure The experiment took place in November 2012. Researchers discussed the stimulus material on Sunday, before the day of the experiment, and decided to conduct the research on weekdays instead of weekend. The researchers with the instructor discussed on the average type of stimulus faces and hair colors to be used for this research. Stimulus faces were generated using PsychoMorph, all faces had symmetrical and gender-appropriate features in order to appear attractive. Hair and hair color was generated using Taaz.com Makeover software (www.taaz.com/makeover).Then also discussed how the participants would rate the stimulus faces on their attractiveness, friendliness and intelligence. The researchers disbursed through various locations i.e. Hunter College and work place surveying the students and coworkers. Participants were selected through convenience sample in each of the locations. All the participants filled out a consent form prior to rating the faces, stating that the purpose of the research was to investigate peoples first impressions. The researchers handed out the novel stimulus material to the participants and were asked to rate the stimulus faces from 1-7 on attractiveness, friendliness and intelligence. Each participant was surveyed only on one set of hair color and the same procedure followed for rest of the hair colors for each participant. Each participant was given only one survey and after the survey was handed back to the researcher, they noted each participants hair color as either blonde, brown/black, red and other. After the survey was collected, the researchers inputted their own data on SPSS and then all the data was merged into one to create a larger sample. For inferential statistics, report that we ran a one way between subjects ANOVA and Tukey post-hoc tests for intelligence of all Caucasian faces. Results A one way between subjects ANOVA was conducted to test the differences between Caucasians with blonde, red, or brown/dark hair on intelligence. Our results showed us the effect of hair color on intelligence in males F (2, 250) = .53, p = .15 and in females F (2, 250) = 5.51, p = .08. For males, a post-hoc Tukey test compared the three groups, revealing no significant difference in perceived intelligence between Caucasian males with blonde hair (M = 4.52, SD = 1.36), dark hair (M = 4.71, SD = 1.13), or red hair (M = 4.57, SD = 1.22). For females, a post-hoc Tukey test compared the three groups, revealing that brunette Caucasian females (M = 5.25, SD = 1.27) were rated as more intelligent than blondes (M = 4.61, SD = 1.53), p = 0.006 and redheads (M = 4.73, SD = 1.24), p = 0.03.There was no significant difference between intelligence ratings of blondes and red-heads (p = 8.4). Overall, Caucasian females with dark hair were perceived as more intelligent than females with blonde or red hair. Male perceived intelligence ratings were not significantly affected by hair color.

Perfume Essay -- essays research papers

(Continue from page 310, after "For the First time they had done something out of love") Grenouille does not feel dead oddly enough. One would figure after being torn to shreds and devoured by cannibals that your life would be over and you would be no more. However why does Grenouille's feel alive as if life had just begun? He sits there, feeling no physical presence to call his own and yet he feels vibrant and exhilarated. Like the many scents memorized throughout his life, thousands upon thousands of options as to why life is still felt by Grenouille flow through his mind. He knows that this is not physically possible, so he must think of it in another arena, not just physically. After many days of transparent being and thought, Grenouille has come to a major conclusion. His quest for the perfect scent must not be finished and he must go on. There must be some scent, some odor that has eluded him and thus barred him from making the perfect scent and ending his journey. Now in his new form he must continue his work that he had once thought finished. Only this time Jean Baptiste had more than olfactory powers, he has found that like most lost spirits and souls, he has to some degree the ability to control and overcome a living beings body. Grenouille found this out by merely walking into somebody on the street while walking, and finding himself going the other way walking awkwardly. He took a moment and stopped himself to see what had just happened to him. After this revelation, he knew he had new and possibly powerful abilities. Grenouille realized this is more than just a power, but a close ally that will help him on his quest to find that scent with out much problem, like before. So for many months Jeean Baptisite toiled around town until the over heard a conversation in a local eatery that caught his fancy. It was Pierre Paul and his colleague at the traveling circus that was in town. They were discussing a young female they had seen on their journey here and were just remarking on her strange beauty and elegance. This peaked his interest because with such beauty, must come a scent. Grenouille followed Pierre home and took over his body. Having used Pierre Paul to find out which towns they have recently visited, Grenouille was off. Over the next few we... ... went to work. Only this time, in his new body, he didn't need to be as stealth. He quickly acquired her scent in the usual fashion and left the body, deprived of any scent or even that white hair, and left Montece. The tale of the murder spread quickly throughout the region and there was a new interest in finding Grenouille the killer. However, that name nor its presence was ever felt again by the people of France. Although that is not entirely true... There is a tale about a mountain in France that seems to make people happier. It is a mountain called Mount de Bobricke, which is south of Paris. Grenouille now resides in his old mountain home for eternity but as he has found his perfect scent he shares it with those that pass by his mountain. He continually makes it and sends it out into the surrounding air for people to enjoy. Over time, this mountain has become a vigil to some, almost a fountain of youth if you will. To this day, people visit Mount de Bobricke for the scents and beautiful atmosphere that his scents make around the surrounding area. They feel a presence and happiness while sitting around the mountain. Perfume Essay -- essays research papers (Continue from page 310, after "For the First time they had done something out of love") Grenouille does not feel dead oddly enough. One would figure after being torn to shreds and devoured by cannibals that your life would be over and you would be no more. However why does Grenouille's feel alive as if life had just begun? He sits there, feeling no physical presence to call his own and yet he feels vibrant and exhilarated. Like the many scents memorized throughout his life, thousands upon thousands of options as to why life is still felt by Grenouille flow through his mind. He knows that this is not physically possible, so he must think of it in another arena, not just physically. After many days of transparent being and thought, Grenouille has come to a major conclusion. His quest for the perfect scent must not be finished and he must go on. There must be some scent, some odor that has eluded him and thus barred him from making the perfect scent and ending his journey. Now in his new form he must continue his work that he had once thought finished. Only this time Jean Baptiste had more than olfactory powers, he has found that like most lost spirits and souls, he has to some degree the ability to control and overcome a living beings body. Grenouille found this out by merely walking into somebody on the street while walking, and finding himself going the other way walking awkwardly. He took a moment and stopped himself to see what had just happened to him. After this revelation, he knew he had new and possibly powerful abilities. Grenouille realized this is more than just a power, but a close ally that will help him on his quest to find that scent with out much problem, like before. So for many months Jeean Baptisite toiled around town until the over heard a conversation in a local eatery that caught his fancy. It was Pierre Paul and his colleague at the traveling circus that was in town. They were discussing a young female they had seen on their journey here and were just remarking on her strange beauty and elegance. This peaked his interest because with such beauty, must come a scent. Grenouille followed Pierre home and took over his body. Having used Pierre Paul to find out which towns they have recently visited, Grenouille was off. Over the next few we... ... went to work. Only this time, in his new body, he didn't need to be as stealth. He quickly acquired her scent in the usual fashion and left the body, deprived of any scent or even that white hair, and left Montece. The tale of the murder spread quickly throughout the region and there was a new interest in finding Grenouille the killer. However, that name nor its presence was ever felt again by the people of France. Although that is not entirely true... There is a tale about a mountain in France that seems to make people happier. It is a mountain called Mount de Bobricke, which is south of Paris. Grenouille now resides in his old mountain home for eternity but as he has found his perfect scent he shares it with those that pass by his mountain. He continually makes it and sends it out into the surrounding air for people to enjoy. Over time, this mountain has become a vigil to some, almost a fountain of youth if you will. To this day, people visit Mount de Bobricke for the scents and beautiful atmosphere that his scents make around the surrounding area. They feel a presence and happiness while sitting around the mountain.

Witches :: essays research papers

In the Malleus Maleficarum, Sprenger and Kramer’s basic argument about the origins of witchcraft is that witchcraft is found chiefly in women due to several reasons that focus on characteristics of women. Sprenger and Kramer argue that witchcraft in women is more probable because women were very naà ¯ve and impressionable, carnal lust is never satisfied in women, and they are of lower intelligence and weaker memories than men.   Ã‚  Ã‚  Ã‚  Ã‚  Women are viewed as very naà ¯ve and impressionable because they are influenced much easier and therefore they are more likely to become involved with the devil. Women were â€Å"more credulous, and since the chief aim of the devil is to corrupt faith, therefore he rather attacks them†(120). Women being credulous and naà ¯ve makes it easier for the devil to entice them into witchery. They were also much more impressionable making them prime targets for â€Å"disembodied spirits† to influence them and cause wickedness (120). The spirits referred to are those of evil and without faith, and since women were more vulnerable they would be more likely to abandon faith and be inclined to follow the devil. Sprenger and Kramer state that a â€Å"wicked woman is by her nature quicker to waver in her faith, and consequently quicker to abjure the faith, which is the root of witchcraft† (121). This further shows how much more likely it would be for women to become witches since the naivety and impressionability of women is what would cause the quickness to waver and abjure faith.   Ã‚  Ã‚  Ã‚  Ã‚  Sprenger and Kramer felt the insatiable carnal lust that was part of women led them to witchery because their lust cannot be satisfied and it would lead to involvement with the devil. Proverbs xxx states â€Å"There are three things which are never satisfied, yea a fourth thing which says not, It is enough; that is, the mouth of the womb† (127). Women basically are viewed as women obsessed with sexual encounters that could not be satisfied by man alone, so they in turn would become involved with the devil to fulfill their desires. This is also shown when a woman falsely accuses Joseph because he would not agree to have sex with her and he ends up imprisoned (121). As explained in the selection â€Å"when she hates someone whom she formerly loved, then she seethes with anger and impatience† (121). This shows how the lust of the woman who accused Joseph caused her wickedness to accuse him.

Grades Encourage Students to Learn Essay

These days there are a lot of discussions over education in many colleges and universities. One of the matters under consideration is whether grades encourage students to learn. Some people think that students are not encouraged to learn by grades. From my point of view, I believe that marks actually stimulate students to study for the three following reasons: First of all, grade obviously is a good way to estimate students. If a student gets a good mark, he could feel proud of this result. Moreover, he could be praised for his studiousness as well as intelligence by his teacher and parents and get admiration from his friends. As a result, he would try his best to get at least the same grade in the next time. On the contrary, students getting bad grades would give their whole mind on to their study so as to get higher grades and not be dropped back. In short, grades motivate students to learn much more just because they are supposed as a mirror reflecting students’ performances. Second, grade could enable students clearly understand their performance as well as help them become aware of their strengths and weaknesses. For instance, when I was in high school, I always got good marks in English tests and I realized that I had an aptitude for English. So I decided to choose English as my major at Huflit university. And now, I always get good grades, even excellent ones in English. This makes me feel satisfied with my choice. I will also choose a job as teacher of English after graduating from the university. If there had not been grades, I think I wouldn’t have known what major really suitable for me and I would not be pleased with my present major. So, grade plays an essential role in students’ study. Furthermore, students with good grades could easily reach their dreams in study and career. They have more opportunities to get noble rewards in the national as well as international examinations. Also, attending prestigious universities would become easy for them. This will help heighten their job and promotion opportunities after graduating form those universities especially in today’s ompetitive labor market. For this reason, students always try to get high grades to gain a lot of advantages in their lives. In short, grade actually encourages students to learn much more simply because students are not only evaluated by grades, but also know clearly their strong and weak points. And specially, students with good marks could have much more chances to achieve success in life. So, there is a question for all of us: â€Å"What would happen to students if there was not grade? †

Feasibility Study on Investment in Brazilian Paper and Pulp Industry

IMG-6 Global Business Environment Feasibility study for investment in the Brazilian Paper and Pulp Industry Report By: Ashish Jindal (063011) Avneesh Luthra (063012) Aayush Singhal (063013) Deepak Arora (063014) Feasibility study for investment in the Paper and Pulp industry in Brazil An overview of Brazil Brazil is the largest country in South America. It is the world’s fifth largest country, both by geographical area and by population, with over 192 million people. It is the only Portugese-speaking country in South America. Brazil is the largest national economy in Latin America.It is the world’s sixth largest economy at market exchange rates and seventh largest in terms of purchasing power parity, as per the International Monetary Fund and the World Bank. Brazil has a mixed economy with abundant natural resources. The Brazilian economy has been predicted to become one of the five largest in the world in the decades to come. It has large and developed agricultural, mi ning, manufacturing and service sectors, as well as a large labour pool. Brazil’s current GDP is estimated to be $2. 294 trillion and Per Capita GDP $11,769The Paper and Pulp Industry in Brazil Brazil is the largest producer of paper and pulp in South America. On the world stage, it is the 4th largest producer of pulp with a production of 13,315,000 tonnes and 9th largest producer of paper with 9,428,000 tonnes (2009). Brazil’s Pulp & Paper Production Source: Bracelpa Brazil is predominantly a tropical country. As a result, the soil and climate in most regions of Brazil are favourable to forest growth. The main geographical areas in the paper and pulp industry are the states of Sao Paulo, Parana and Santa Catarina.Furthermore, eucalyptus trees in Brazil have short growing cycles (approximately 7 years), compared to 10-12 years in Chile and 25 years in the United States. Thus, production of wood in Brazil requires less time and a smaller growing area when compared to Eu rope and North America, resulting in higher yields. Industry Overview- 222 companies spread in 539 municipalities, located in 18 states. – 2. 2 million hectares of planted area for industrial use. – 2. 9 million hectares of preserved forests- Total certified forest area: 2. 0 million hectares- Exports 2010: US$ 6. billion- Trade Balance 2010: US$ 4. 9 billion- Taxes: R$ 2. 2 billion- Investments: US$ 12 billion in the last 10 years- Jobs: 115 thousand direct jobs (industry 68 thousand, forests 47 thousand) and 575 thousand indirect jobs. | Source: Bracelpa, March 2011 Macro Environmental Analysis Political & Legal environment The Foreign Direct Investment regime in Brazil has been fairly liberal and foreign capital is viewed with sympathy by the large majority of political currents and parties, who see it as a source of employment and modernization of the economy.The 1990s saw a host of path-breaking liberalisation reforms in the Brazilian economy. Certain investment p olicies were formulated in the 90s to attract more FDI in to the country. The Central Bank of Brazil simplified the registration procedure for FDI inflows. This led to a decline in the administrative costs associated with the entry of FDI inflows into Brazil. A series of constitutional amendments were enacted within 1995 and 1996, which helped remove constitutional distinction among national companies and foreign companies.In 2002 Investe Brazil was set up to promote investments in Brazil. Despite a formally well functioning business environment, corruption and bribery are still serious obstacles to doing business in Brazil, especially in business dealings with the government. Multiple corruption scandals have emerged over the years, involving politicians and bureaucrats taking kickbacks from companies in exchange for awarding public contracts. The levels of bureaucracy and lack of transparency in rules make Brazil a difficult country to do business in. Economic EnvironmentThe paper and pulp industry is one of the mainstays of the Brazilian economy. The Brazilian paper and pulp sector is comprised of nearly 200 companies. Most companies in this sector are privately owned. Foreign-owned companies account for about 6% of the output. Therefore, there is great scope for foreign investors to enter into Pulp & Paper Industry in Brazil. Latin American Pulp and Paper Producers Composition in 2010 In recent years, there has been a marked increase in paper consumption in Brazil, which is an important indicator of the economic development of a country.Between 1997 and 2008, the average annual rate of paper consumption increased by approximately 3% per year, reaching 9 million tons in 2008, according to estimated figures from Bracelpa. Improvements in the purchasing power of Brazil's citizens have led to growth in the newsprint market (up to 18% in 2009). In the same year, 21% of paper and board and 33% of pulp production was exported. Brazil’s paper industry has p otential for growth in both the domestic and export markets. Domestic consumption has huge growth potential, because per capita consumption in Brazil is still low when compared with other developed nations.Consumption of paper and board in Brazil is close to 44 kg per capita. Furthermore, differences are enormous between the north and south-east parts of the country. In Western Europe, consumption of paper and board is 173 kg and in North-America 333 kg per capita. Social Environment Brazil has skilled labour in abundance. Minimum wages in Brazil are way lower in comparison to other nations. Brazilian legislation is, however, relatively inflexible and outdated in relation to labour costs, making things complicated. A continued shift towards a wealthier population has been apparent in Brazil since 2004.There has been significant growth in the populations’ real disposable income. Strong consumption (Household consumption above 60%, Government consumption close to 20%) has been supporting Brazil’s growth profile over the past two decades. Formal job creation increased from 1. 2 million jobs in 2009 to 2 million jobs in 2010. The cost of living in Brazil is approximately 30% lower than in the UK and Europe, and for those with a foreign income there is a guarantee of value for money. Technological ; Natural FactorsBrazil’s high technology and natural advantages in forestry make it one of the world’s lowest-cost producers of pulp, and in the last 20 years Brazil has become an important pulp exporter. Brazilian exports of high quality papers to Europe are growing in volume, and expected to increase in the near future. This growing market is truly attractive and one can grab the share in this market by setting up a new industrial venture in Brazil. However, this industry sector is very competitive for reasons like state-of-the-art mills, sound management and well-established plantation forestry technologies.Furthermore, availability of raw material is not a problem in Brazil as there is huge availability of good quality raw materials required for extracting and manufacturing pulp and paper. By analyzing the rotation and yield comparison of different pulp species in different countries, it is found that Brazil has the best rotation (years) and yield (m3/ha/year). This shorter maturing period also enables Brazilian producers to expedite the process of genetically improving the Eucalyptus species utilized Species| Country| Rotation (years)| Yield (m3/ha/year)| Eucalyptus| Brazil| 7| 44| Eucalyptus| South Africa| 8-10| 20|Eucalyptus| Chile| 10-12| 25| Pinus spp| Brazil| 15| 38| Pinus spp| Chile| 25| 22| Pinus spp| New Zealand| 25| 22| An association named ABTCP – Brazilian Paper and Pulp Technical Association – is currently one of the most important associations worldwide in its segment. It was established with the purpose of technically qualifying the paper manufacturers in Brazil, in order to raise basis f or a sustainable industry. In addition, technological development in the paper ; pulp industry has been supported by the research efforts of major producers and by financing from BNDES, the Brazilian Development Bank.Opportunities The paper and pulp sector in Brazil is fast becoming the third largest in the world. The financial crisis of 2009 affected the Brazilian pulp and paper industry greatly. Brazil ultimately postponed its investment programmes. However, with the economy showing signs of recovery and emerging market’s increase in demand, those programmes have resumed Over the next seven years, an estimated US$20 billion is going to be invested in the nation’s forest base and in the construction of new mills. 10 new plants are due to be built in Brazil by 2020. At this moment pulp production is at 13. million annual tonnes, by the end of 2017 this is expected to reach 20 million annual tonnes. Also, during the same period, planted forest areas are predicted to gro w by 25% and paper production will rise from 9. 3 million tonnes to 12. 5 million tonnes. This has all come about through the new global scenario in the pulp and paper sector. While the international financial crisis reduced global consumption, prices and raw material demand in traditional markets it also opened up opportunities to expand sales in growing markets, in particular China and India.Challenges The pulpwood market in Brazil has gone through major transformations. From a point where it had the lowest conifer fibre costs in the world, it now is close to the global average. Any rise in fibre costs is a concern for forestry companies as the key factor determining a company’s global cost competitive position remains its raw material base. Brazil also faces a strong challenge as businesses in Brazil have to deal with a number of problems, which includes bulky tax regulations, inefficient government bureaucracy, and corruption.Brazil has become less competitive in the last few years as a reason of this. Conclusion The Brazilian paper and pulp industry offers enormous potential to potential investors. The industry, with its advantage in terms of rotation, is expected to grow substantially in the coming few years with various investment programmes being in the phase of implementation. There is the challenge of a complex bureaucratic environment but the long term benefits outweigh the costs. FDI is thus recommended. Bibliography http://pulp-paperworld. om/ex1/item/768-abtcp. html http://www. forestry-invest. com/2010/brazil-becomes-world%E2%80%99s-3rd-largest-pulp-and-paper-producer/513 http://www. bracelpa. org. br/bra2/sites/default/files/estatisticas/booklet_eng. p df http://www. roundtownnews. com/rtn-features/rtn-money/item/36741-ten-reasons-to-invest-in-brazil. html ftp://ftp. fao. org/docrep/fao/009/j9425e/j9425e04. pdf http://riotimesonline. com/brazil-news/rio-business/brazil-among-most-expensive-for-business/# http://www. pulpandpapercanada. c om/news/the-case-for-brazil/1000225895/

Globalization and International Business Essay

Globalization and International Business The Concept of Globalization – putting everything into one village * The process of integration and convergence of economic, financial, cultural and political systems across the world. * Globalization – refers to the integration and interaction between different people and nations. * Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. Globalization – A holistic approach 1. Economic Globalization: the increasing integration of national economic systems through the growth in international trade, investments and capital flow. 2. Financial Globalization: the liberalization of capital movements and deregulations, especially of financial services that led to a sport in cross boarder capital flows. 3. Cultural Globalization: convergence of cultures across the world E.g. Dress codes, ways of living. 4. Political Globalization: the convergence of political systems and processes around the world. Dimensions of Economic Globalization {what has changed} * Globalization of production – the increased mobility of the factors of production especially the movement of capital that has changed countries’ traditional specialization roles. (process is made shorter and cheaper) * Globalization of Markers – technological strides in communication, transport and travel have created new consumer segments. The global markets have become easily accessible. (producing standardized products that are advanced, functional reliable and low priced). * Globalization of competition – it has intensified in such a way that businesses are forced to form mergers or enter into new strategic alliances, competing with new players around the globe. * Globalization of technology – it has advanced rapidly and thus creating shorter cycles for production of goods and services. The running of businesses becomes more effective and efficient. In some cases though, several businesses might have difficulty keeping up with the advancements due to financial constraints. * Globalization of corporations and Industries: – Economic liberalization has led to economic growth in Foreign Direct Investments and relocation of business enterprises as a result, there has been fragmentation in business processes. Where different stages of production are coming out in different countries E.g. Toyota manufactures in Japan and assembles in South Africa. Factors influencing Globalization (Movers) * Economic Liberalization * Technological Breakthrough * Multilateral Institutions * International Economic Integrations * Move towards free marketing systems * Rising research and development costs * Global expansion of business operations * Adverts in logistics management * Emergence of the global customer segment Factors restraining Globalization * Regulatory controls * Emerging trade barriers * Cultural factors * Nationalism * War and civil disturbances * Management myopia – thinking within the box/boarders Quiz: what is meant by internationalization of a firm’s value chain? Reasons for support of Globalization * Maximization of economic efficiencies (learning to use economic resources of a country to the fullest potential) * Enhancing trade * Increase cross-boarder capital movement * Improves efficiency of local firms * Increases consumer welfare Criticism of globalization * Developed Vs Developing countries: unequal players in globalization * Widening gap between the rich and poor * Wipes out domestic industry * Leads to massive layoffs and unemployment * Brings in problems related to balance of payments * Increased volatility of markets * Diminishing power of nation states * Loss of cultural identity * Shift of power to multinationals Response Strategies to Globalization forces for emerging market companies: Defender Extender Dodger Contender 1. Defender Strategy – When pressure to globalize is low, local companies adopt the defense strategy that focuses on leveraging local assets in the market segments where multinationals are weak. 2. Extender strategy – when companies’ posses competitive skills and assets that can be transferred abroad, companies can focus on expanding to markets similar to home base using competencies developed at home. 3. Dodger strategy – when pressure to globalize is high, local companies have no option but to dodge competition by cooperating through a joint venture or becoming a supplier or service provider selling off to multinational enterprises e.g. Skoda Czech car maker sold to Volkswagen. 4. Contender strategy – companies that have high pressure to globalize and competitive advantages that can be leveraged overseas can aggressively compete by focusing on upgrading their capabilities in the niche segment to match multinationals globally ie. TATA India Concepts of International Business 1. International Trade – exports of goods and services to a foreign-based buyer (importer) 2. International Marketing – refers to marketing carried out by firms/companies across the national boarder line. 3. International Investment – cross boarder transfer of resources to carry out business activities. 4. International Management – application of management concepts and techniques in a cross country environment an adaptation to different social-cultural, economic, legal, political and technological environments. 5. International Business – all those business activities which involve cross-border transactions of goods and services and resources between two or more nations. 6. Global business – conduct of business activities in several countries using a highly co-ordinate and single strategy across the world. Types of International Business Transactions * Transactions – exchange of values between buyer and seller typically involving intermediaries and currency as medium of exchange. * Exchange of: production inputs, components partially/nearly finished products, goods/services, ideas/know how. Boarders: their significance * State boundaries – denote sovereignty, citizenship (political authority), legal jurisdiction, security. When there’s no boarder, there’s no state!! * National cultures, National Identity * Economic Unit – eroded due to globalization, economic transactions are mainly domestic. * Boundaries – of mind and habit, boundaries are psychological not just physical. How boarders make a difference: As soon as you have different cultures, different contact forms, different legal structures, different taxation environments, the complexity introduced by that is immense. The reason why businesses that expand overseas fail is: they underestimate the complexity that’s enlarged in an international organization. The Internationalization of Business: * Bringing in new ideas * Moving across the boarders * Companies conduct value adding actitvities on a global scale, primarily to organize, source, manufacture and market. * A Level play field – international activities appealing to all types of firms; large or small. Manufacturing and services sectors E.g. Banking, Transportation, Design, Advertising and retailing. Nature of International Business * Value adding activities * Firms internationalize via experts, foreign direct investment, licensing, and collaborative ventures. * Foreign portfolio investment – less than 10% * Foreign Direct Investment – More than 10% Reasons for International Business Expansion 1. Market seeking motives * Marketing opportunities due to lifestyle cycles * Uniqueness of products or services 2. Economic motives * Economies of scale are achieved * Profitability * Spreading research and development costs 3. Strategic motives * Growth * Risk spread Differences between Domestic and International Business * Economic environment * Social * Infrastructure * Legal * Political * Competition * Technology The Four risks of International Business 1. Cross- cultural risk – occurs when a cultural misunderstanding puts some human value at stake. * Cultural differences * Negotiation patterns * Decision making styles * Ethical practices 2. Commercial risk – refers to a firm’s potential loss or failure from poorly developed or executed business tactics. * Weak partners * Operational problems * Timing of entry * Competitive intensity * Poor execution of strategy 3. Currency risk (financial risk) – the risk of adverse fluctuations in exchange rates * Currency exposure * Asset evaluation * Foreign taxation * Inflation and transfer 4. Country risk (political risk) – refers to the potentially adverse effects on company operations and profitability caused by developments in political, legal and economic environments in a foreign country. Risks: will always be present but can be managed: Managers is such situations should: * Anticipate the risks * Understand the implications thereof * Take pro-active action * Reduce adverse effects Some risks are extremely challenging e.g. the East Asian Economic Crisis in 1998. It generated substantial commercial, currency and country risks. Participants in International Business: 1. Multinationals E.g. Kodak, Nokia, Samsung, Multinational Enterprises own worldwide network of subsidiaries. 2. Other participants * Small and medium sized enterprises; In the USA a small/medium enterprise sized entity is described as that having 500 or fewer employees. * Comprises of 90-95% of all firms in most countries . * Increasingly more SME’s participate in International Business. Why do firms Internationalize? * Seek growth opportunities through market diversification * To earn higher margin profits * Gain new ideas about products, services * Better service to customers that have relocated abroad * Be closer to supply sources * Benefit from global sourcing advantages * Gain flexibility in sourcing products * Gain access to better value factors of production * Develop economies of scale in sourcing, production, marketing and R&D * Confront international competitors more effectively or thwart the growth of competition in the home market. * Invest in a potentially rewarding business venture. What caused the East Asian Economic Crisis Theories of Trade Absolute Advantage: when a country is efficient in producing a commodity than any other country. Countries should therefore specialize in producing a product of which they are efficient in producing and then trade such product for goods produced by other countries. Output per hour of labour – using the same resources | Cloth| Wheat| Country A| 100| 200| Country B| 250| 160| Total| | | Interpretation: clearly The Political Economy of International Trade The political reality of International Trade is that while many nations are nominally committed to free trade, they tend to intervene in international trade to protect the interest of politically important groups. Instruments of trade policy are tariffs, subsidies, import quota, voluntary export restraints, local content requirements, administrative policies and anti-dumping duties. * A tariff is a tax levied on imports that effectively raises the cost of imported products relative to domestic products. * Specific tariffs are levied as a fixed charge for each unit of a good imported. * Ad valorem tariffs are levied as a proportion of the value of the imported good. * A subsidy is a government payment to a domestic producer. Subsidies may take form of a tax break, cash grants, low-interest loan. * Subsidies help domestic firms by lowering production costs * Help them compete against foreign imports * Gain export markets * Government pay for subsidies by taxing individuals(consumers) * Import Quota – is a direct restriction on the quantity of some good that may be imported into a country. * Voluntary export restraints – are quotas on trade imposed by the exporting country, typically at the request of the importing country’s government. * A local content requirement demands that some specific fraction of a good be produced domestically. * The requirement can be in physical or value terms. * Local content requirements benefit domestic producers and jobs, but consumers face higher prices. * Administrative policies are informed bureaucratic rules designed to make it difficult for imports to enter a country. For example Japanese customs inspectors insist on opening a large proportion of express packages to check for pornographic materials. * This process that can delay express packages has made it difficult for FedEx to expand its global shipping services to Japan. * These policies hurt consumers by denying access to possibly superior foreign products. * Dumping is selling goods in foreign markets below their cost of production/fair market value. * Anti-dumping policies are designed to punish foreign firms that engage in dumping. Dumping is viewed as a method by which firms unload excess production in foreign markets sometimes at prices below the cost of production. * The goal is to protect domestic producers from unfair foreign competition. * US firms that believe a foreign firm is dumping can file a complaint with the government. * If the complaint has merit, antidumping duties, also known as countervailing duties may be imposed. Why Governments intervene? Basically there are three reasons: Political, Economic and Cultural 1. Political reasons include: * Protecting jobs and industries from foreign competition, trade controls usually result in higher price for consumers. * National Security – defense related industries often get this kind of protection. * Retaliations are threats used as bargaining tasks to help open foreign markets and force trading partners to play by the rules. It is usually in retaliation to a trading partner’s trade policy. Protect consumers from unsafe products. 2. Economic Reasons: * The infant industry argument(protecting them) * Strategic trade policy – policies that government enact to ensure that firs-mover advantages are reserved for local firms in industries where substantial economies of scale exist. 3. Cultural Motives – unwanted influence causes great distress and can force governments to block imports. Many countries have laws that protect their media programming for cultural reasons – for example in Canada about 35% of music played on TV and radio must be of Canadian origin. Economic Integration The abolition of trade restraints between nations. It is the growing economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers to trade and investment. * Three Levels of Economic Integration * Global: trade liberalization by GATT or WTO * Regional: preferential treatment of member countries in the group ie. SACU, SADC, COMESA ,etc. * Bilateral: preferential treatment between two countries * Regional and Bilateral agreements are against the MFN clause (normal trading relations), but allowed under WTO. * Visit www.wto.org for regional trade agreements. Regional Economic Integration * Growing economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers of trade and investment. About 40% of the world trade now occurs via economic bloc agreement. Cooperating nations obtain: * Increased product choices, productivity, living standards * Lower prices and * More efficient resource use. Economic Bloc A geographical area that consists of two or more countries that agree to pursue economic integration by reducing tariffs and other restrictions to cross-border flow of products, services, capital and in more advanced stages, labor. Examples: EU, NAFTA, MERCOSUR, APEC, ASEAN and many others. There are five possible levels of economic integration * Customs Union * Common Market * Economic Union * Political Union 1. Free Trade Area – countries agree to reduce tariffs but not eliminate everything The simplest most common arrangement, member countries agree to gradually eliminate formal trade barriers within the bloc, while each member country maintains an independent international trade policy with countries outside the bloc. Eg. NAFTA 2. Customs Union – similar to a free trade area except that the members harmonize their trade policies toward non-member countries, by enacting common tariff and non-tariff barriers on imports from non-member countries. E.g. SACU(Lesotho, Swaziland, Namibia, SA). Members have a revenue pool and it is shared according to how much each has contributed. 3. Common Market (single market)- like a custom union except products, services and factors of production such as capital, labor, and technology can move freely among the member countries. E.g. COMESA – requires much cooperation among the member countries on labor and economic policies. 4. Economic Union – like a common market, but members also aim for common fiscal and monetary policies, standard commercial regulations, social policy, etc. E.g. the EU is moving toward economic union by forming a monetary union with a single currency the EURO. 5. Political Union – perfect unification of all policies by a common organization. Submersion of all separate national institutions e.g. former USSR * Remains ideal, but yet to be achieved. The European Union What is the European Union? * Shared values: liberty, democracy, respect, for human rights and fundamental freedom, and the rule of law. European Coal and Steel Community * In the aftermath of the World War II, the aim was to secure peace among Europe’s victorious nations an bring them together as equals, cooperating within shared institutions. * Based on a plan by French foreign minister Robert Schuman. * Six founding states/countries: Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands – signed a treaty. History of the EU * Treaty of Paris (1951) Formation of ECSC Treaty of Rome (1957) Formation of ECC (European Economic Community) -initially free trade area, becoming a customs union in 1967. * The Stockholm convention in 1960 created EFTA by seven countries to counteract ECC. * Single European Act of 1993 * Creation of single market (common Market) effective on January 1 1993 * Rename EEC by EU (15 members) * Treaty of Maastricht (1992) * Creation of an economic union, EMU * Establishment of European Central Bank on July 1998 * Introduction of a common currency, Euro on 1 January 1999 * Circulation of Euro on 1 January 2002. The EU features: A full-fledged Economic Union 1. Market access: tariffs and most non-tariff barriers have been eliminated. 2. Common market: removed barriers to cross national movement of production factors i.e labor, capital and technology. 3. Trade rules: eliminated customs procedures and regulations, streamlining transportation and logistics within Europe. 4. Standards harmonization: harmonizing technical standards, regulations, and enforcement procedures on products, services and commercial activities. 5. Common fiscal, monetary, taxation and social The European Union Today * 27 members * New members e.g. Poland, Hungary, Czech Republic are low-cost manufacturing sites. * Peugeot, Citroen(france) – factories in Czech Republic. * Hyundai (South Korea) – Kia plant in Slovakia. * Suzuki (Japan) – factory in Hungary. * Most new EU entrants are one-time satellites of the Soviet Union, and have economic growth rates for higher than the 15 Western European counterparts. * Developing economies e.g Romania, Bulgaria, may take decades of foreign aid to catch up. Four Institutions that govern the EU 1. Council of the European Union – the main decision-making body. Makes decisions on economic policy, budgets, and foreign policy and admission of new member countries. 2. European Commission – represents the interest of the EU as a whole. Proposes legislation and is responsible for implementing decisions of the Parliament and the council. 3. European Parliament – up to 732 representatives, hold joint sessions each month. Three main functions are: * Devise EU legislation * Supervise EU Institutions * Make decisions on the EU budget. NAFTA (Canada, Mexico, USA) NAFTA passage (1994) was facilitated by the maquilladora program, in which US firms allocated manufacturing plants just South of the USA border to access low-cost labor without significant tariffs. NAFTA has: * Eliminated tariffs and most non-tariff barriers for products and services. * Established trade rules and uniform customs procedures. * Instituted investment rules and intellectual property rights. * Provided for dispute settlements for investment, unfair pricing, labor issues, and the environment. NAFTA Results: * Trade among the members more than tripled, and now exceeds 1 trillion per year. * In the early 1990’s Mexico’s tariffs averaged 100% and gradually. How the Mexican Economy benefited from NAFTA * Mexico exports to the US grew from 50 billion to over 100 billion per year. * Access Canada and the US helped launch many Mexican firms in industries such as electronics, cars, textiles, medical products, and services. * Yearly US and Canadian investment in Mexico rose from 4 billion in 1993 to nearly 20 billion by 2006. * Mexico’s per capita income rose to about 11 000 in 2007, making it the richest country in Latin America. * Why nations pursue economic integration 1. Expand market size * Greatly increases the scale of the market place for firms inside the economic bloc. Eg. Belgium has a population of just 10 million; the EU has a population of nearly 500 mil. * Consumers can access much bigger selection of products and services. 2. Achieve economies of scale and enhance productivity * Bigger market facilitates economic scale * Internationalization inside the bloc helps firms learn to compete more effectively outside the bloc. * Labor and other inputs allocated more efficiently among the member countries, leading to lower consumer prices. 3. Attract investment from outside the bloc * Compared to investing in stand-alone countries, foreign firms prefer to invest in countries that are part of an economic integration bloc. E.g General Mills, Samsung, TATA invested heavily in the EU. 4. Acquire stronger defensive and political posture * Provide member countries with a stronger defensive posture relative to other nations and world regions, an original motive of the EU. Factors contributing to the success of Regional Integration 1. Economic Stability – the more similar the economies of the member states, the more likely the bloc will succeed. Eg. Wage rates, economic stability e.g. SADC, EU 2. Political Stability – similarity in political systems is key. Countries should share similar aspirations and a willingness to surrender national autonomy e.g EU 3. Similarity of culture and language – Helpful but not absolutely necessary. 4. Geographic proximity – facilitates transportation of products, labor, and other factors. Neighboring countries tent to share a common history, culture and language E.g. NAFTA, EU Consequences of Regional Integration * Trade Creation – as barriers fall, trade is generated inside the bloc. * Trade Diversion – as within the bloc trade becomes more attractive, member countries discontinue some trade with non-member countries. * Aggregate effect – National patterns of trade are altered. More trade occurs inside the bloc. * A concern: a bloc might become an economic fortress leading to more within-bloc trade and less between bloc trade: can harm global free trade. * Loss of National Identity – increased cross-boarder contact makes members more similar to each other E.g. in response Canada has restricted the ability of US movie and TV producers to invest in the Canadian film and broadcasting industries. * Sacrifice of Autonomy – in later stages of regional integration a central authority is  set up to manage the bloc’s affairs. Members must sacrifice some autonomy to the central authority, such as control over their own economy. E.g Britain in the EU. * Transfer of power to advantaged firms – can concentrate economic power in the hands of fewer larger firms, often in the most advantaged member countries. * Failure of small or weak firms – as trade and investment barriers fall, protection is eliminated that previously shielded smaller or weaker firms from foreign competitions. * Corporate restructuring and job loss – Increased competitive pressures and corporate restructuring may lead to worker layoffs or re-assigning employees to distant locations, disrupting worker’s lives and entire communities. * Internationalization by firms inside the bloc – internationalization gets easier after regional integration. * Rationalization of operations – managers develops strategies and value-chain activities suited to the region as whole, not individual countries, by restructuring and consolidation company operations. The goal is to reduce costs and redundancy, increase centralized distribution, instead of decentralization to individual countries. * Mergers and acquisitions – Economic blocs lead to mergers and acquisitions, the tendering of one firm to buy another, or of two or more firms to merge and form acquisitions. Cross – Cultural risk * A situation or event where a cultural mis-communication puts some human value at stake. * Arises when we enter environments characterized by unfamiliar languages and unique value systems, beliefs, attitudes and behaviors. * One of the four major risks in international business. Manifestations of Cross-Cultural risk * Ethnocentric orientation – using our own culture as the standard for judging other cultures. * Polycentric orientation – a mindset in which the manager develops a greater affinity with the country in which he/she does business than the home country. * Geocentric orientation: a global mindset in which the manager is able to understand a business or market without regard to national boundaries. * Managers should strive for a  geocentric orientation. Definitions of Culture: * Incorporates both objective and subjective elements. * Objective aspects of culture include tools, roads, television programming, architecture and other physical artifacts. * Subjective aspects include norms and values, ideas, customs and other meaningful symbols. * Hofstede, a well-known Dutch organizational anthropologist views culture as a collective mental programming of people and the software of the mind; how we think and how we reason. Culture Is: * Not right or wrong – it is relative. There is no cultural absolute, different nationalities simply perceive the world differently. * Not about individual behavior – culture is about groups. It refers to a collective phenomenon of shared values and meaning. * Not inherited – culture is derived from the social environment. We are not born with a shared set of values and attitudes, we learn and acquire as we grow up. Culture is learned: * Socialization – the process of learning the rules and behavioral patterns appropriate to ones given society. Eg. Cultural learning * Acculturation – the process of adjusting and adapting to a culture other than one’s own. Commonly experienced by expatriate workers. * Culture is like an ice-berg-above the surface. Certain characteristics are visible, below the surface is massive base of assumptions, attitudes and values that strongly influence decision making relationships, conflict and other dimensions of business. Cross-cultural proficiency is paramount in Managerial tasks. Examples: * Developing products and services * Communicating and interacting with foreign business partners * Negotiating and structuring international business ventures * Interacting with current and potential customers * Preparing advertising and promotional materials. Cross cultural differences may create challenges: * Teamwork – what should managers do if foreign and domestic nationals don’t get along? * Lifetime employment – workers in Japan often expect to work for the same firm throughout their careers; How should foreign firms handle that? * Pay for performance system – In China and Japan, a person’s age is important in promoting workers. Yet how do such workers perform when merit performance-based measures are used? * Organizational Structure – preferences for centralized, bureaucratic structures may deter information sharing. * Union-management relationships – workers in European firms enjoy a more equal status with managers. * Attitudes towards ambiguity – if you’re uncomfortable working with minimum guidance or taking independent action, you may have difficulty fitting into some cultures. Three approaches to interpreting culture: * Metaphors – refer to a distinctive tradition or institution strongly associated with a society – a guide to deciphering attitudes, values and behaviors. * Stereotypes – are generalizations about a group of people that may or may not be factual, often over looking real, deeper differences. * An Idiom – is an expression whose symbolic meaning is different from its literal meaning. The Nature of Stereotypes * Are often erroneous and lead to unjustified conclusions about others. * Still most people employ stereotypes, either consciously or unconsciously, because they are an easy means to judge situations and people. * There are real differences among groups and societies, we should examine descriptive behaviors rather than evaluate stereotypes. * An example: some Latin Americans procrastinate via the manana syndrome. E.T. Hall’s High and Low context cultures: Low Context * Rely on elaborate verbal explanations putting much emphasis on spoken words. * Tend to be in northern Europe and North America which place central importance on the efficient delivery of messages. * Communication is direct and explicit – don’t beat around the bush. High Context * Establish trust first * Personal relations and goodwill are valued * Agreements emphasize trust * Negotiations slow and ritualistic * Emphasis is on non-verbal messages and use communication as a means to promote smooth harmonious relationships. * Prefer an indirect, polite, face-saving style that emphasizes a mutual sense of care and respect for others, careful not to embarrass or offend others. * It is difficult for Japanese people to say No when expressing disagreement. Much more likely to say it is different – an ambiguous response. * In East Asian cultures, showing impatience, frustration, irritation, or anger disrupts harmony and is considered rude and offensive. * To succeed in Asian cultures, it is critical to notice non verbal signs and body language. Hofstede’s Classification of National culture 1. Individualism Versus Collectivism – refers to whether a person primarily functions as an individual or within a group. 2. Power Distance – describes how a society deals with inequalities in power that exists among people. 3. Uncertainty avoidance – refers to the extent to which people can tolerate risk and uncertainty in their lives. 4. Masculinity Vs Femininity 1.1 Individualistic Society – ties among people are relatively loose,  each person tends to focus on his/her own self interests. E.g Australia, Canada and the UK 1.2 Collectivist Societies – ties among individuals are more important than individualism: business is conducted in the context of groups where everyone’s norms are strongly considered. E.g China, Panama, and South Korea. 2.1 High Power distance societies – have substantial gaps between the powerful and the weak: are relatively indifferent to inequalities and allow them to grow. E.g. Guatemala, Malaysia, the Philippines. 2.2 Low-power distance socities – have minimal gaps between the powerful and weak. E.g. Denmark and Sweden governments instituted tax and social welfare systems that ensure their nationals are relatively equal in terms of income and power. * Social stratification affects power distance. In Japan almost everybody belongs to the middle class, while in India the upper stratum controls decision making and buying power. * In high distance firms, autocratic management styles focus power at the top 3.1 High Uncertainty avoidance societies create institutions that minimize risk and ensure financial security, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity. 3.2 Low-uncertainty avoidances societies – socialize their members to accept and become accustomed to uncertainty: managers are entrepreneurial and comfortable with risk taking, decisions are made quickly, people accept each day as it comes. 5.1 Masculine cultures – value competitiveness, assertiveness, ambitions and the accumulation of wealth. Both men and women are assertive, focused on career and earning money, and may care little for others. E.g Australia and Japan. The US is a moderately masculine society, as are Hispanic cultures that display a zest for action, daring and competitiveness. In business, the masculinity dimension manifests as self-confidence, pro activeness and leadership. 5.2 Feminine cultures emphasize nurturing roles, interdependence among people, and caring for less fortunate people – for both men and women. e.g. Scandinavian countries welfare systems are highly developed and education is subsidized. Subjective Dimensions of culture Subjective dimensions – values and attitudes, manners and customs, deal versus relationship orientation, perceptions of time, perceptions of space and religion. * Values represent a person’s judgment about what is good or bad, acceptable or unacceptable, important or unimportant and normal or abnormal. * Attitudes and preferences are developed based on values, and are similar to opinions, except that attitudes are often unconsciously held and may not have a rational basis. * Prejudices are rigidly held attitudes, usually unfavorable and aimed at particular groups of people. Examples: values in North America, Northern Europe, and Japan – hard work, punctuality and the acquisition of wealth. Deal Vs Relationship Culture * Deal Oriented cultures- managers focus on the task at hand are impersonal, typically uses contacts and want to just get down to business. Example, Australia, North Europe, and North America. * Relationship Oriented cultures- managers have affiliations with people, rapport and get to know the other party in business interactions, relationships are more important than the deal – trust is highly valued in business, agreements. Example, China, Japan, Latin America etc. It took nine years for Volkswagen to negotiate an automobile factory in China. Manners and Customs * Manners and Customs are ways of behaving and conducting oneself in public and business situations. * Informal cultures – egalitarian in which people are equal and work together cooperatively * Formal cultures – status, hierarchy, power and respect are very important. * Varying Customs: eating habits, mealtimes, work hours and holidays, drinking, appropriate behavior at social gatherings (handshaking, bowing and kissing), gift-giving (complex), roles of women. Religion * A system of common beliefs or attitudes concerning a being or system of thought people consider to be scared, divine, or highest truth as well as the morals codes, values, traditions, and rituals associated with this system. * Influences culture, and therefore business and consumer behavior. * Example: The protestant work ethic emphasizes hard work, individual achievement and sense that people can control their environment – the underpinnings for development of capitalism Language as a key dimension of culture * The mirror or expression of culture, essential for communication; provides insight into culture. * Linguistic proficiency is a great asset in International Business. * Language has verbal and non verbal (unspoken, facial expressions and gestures) * There are nearly 7000 active languages including 2000 in Africa. Technology, the Internet and Culture * Technological advances are a key determinant of culture and cultural change – more leisure time, and computers, multimedia, and communications systems that encourage convergence in global culture. * The â€Å"death of distance refers to the demise of the boundaries that once separated people, due to modern communications, information, and transportation technologies – more homogenized cultures are developed. * The internet also promotes the diffusion of culture, with rapidly growing numbers of internet users. Are cultures converging? The concept of Sovereignty Sovereignty – meaning Self Rule is when a state or government is able to make and enforce laws within its boundaries without interference from foreign nations. It is also connected to the ability of a country to guarantee the best interest of its own citizens. How does Globalization affect sovereignty? Discuss the effect of Globalization on National culture: 1. Stripped us of our culture since people become more attached to western culture and neglect their ways of doing things. Critically evaluate various dimensions of Economic globalization and their impacts on business enterprises: explain how it is affected and give examples. 1. Globalization of Production: increased mobility of the factors of production has changed traditional specialization roles 2. Globalization of Competition: competition with international businesses has intensified and therefore cost reduction is encouraged to improve efficiency. 3. Globalization of markets: markets have become easily accessible, allowing for expansion and growth. Goods are made of a standard level since customers worldwide have the same tastes and preferences. 4. Globalization of Technology: it has advanced rapidly leading to shorter production cycles. It also makes managing a business more effective and efficient. Advancements in technology have also become difficult to maintain due to financial constraints for some businesses. 5. Globalization of Industries: they have the options of putting up shops anywhere in the global village, giving customers a variety of choices in terms of goods and services. Convergence – bringing together two or more things Globalization – putting everything into one village.