Challenges Faced by Companies While Entering a Foreign Business

10 Important Factors to Consider Before Starting Your Own Business Published on May 10, 2008 by Educate And Learn in Small Business Comments (46)|59 Liked It Certain key factors which need to be addressed before starting your own business. This article describes different factors which need to be kept in mind before starting your own business. It mainly talks about a business from a proprietorship point of view, rather than from a corporate point of view. Thus it is intended for small business. A number of factors are important in order to start a successful business. Here an effort is made to describe some of the key factors.Knowledge/Expertise Any business requires some amount of basic knowledge and experience. The owner needs to be aware about the business he intends to start. Knowledge and expertise about the product or service are keys to a successful business. In case of limited knowledge the owner may not be able to sustain the business and can be fooled by the vendors, suppli ers and competitors. When you ask yourself a question â€Å"What business shall I start? † you need to get a convincing reply about what you intend to do and how you are going to go about it. Read more in Small Business Small Business Survival in a Down Economy Four Easy Ways to Double Your Economic Stimulus Check  » Expert knowledge is especially required if the field of business is a niche field. For instance the construction or software industry would require more knowledge as against a retail business selling a particular brand of clothes or shoes. Market/Demand Once a decision is taken on the business you intend to start, the next step is to explore the demand / market for the product / service. Certain products will only have a domestic market for them whereas others can be successful on an international level.The key question is â€Å"Who are the customers? † A market survey can be conducted to identify the market for the business to be started. If the product / service is expected to be sold locally, the demand for it needs to be assessed. In case an international market is expected then rules and regulations for dealing internationally need to be found out. Total Project Costs It is important to correctly assess the total project cost required to set up and run the business successfully. In a capital intensive business such as starting a manufacturing plant, the start up costs can be very high.You need to identify the total amount which will be spent on the land & building, plant & machinery, furniture and office equipment, vehicles etc. If a business is in the nature of retail you will need to identify the cost of the store and furniture. Amount required for the decoration of the store needs to be assessed. Similarly in case of an office the major cost will be for the furniture and office equipment. An office or firm can be started at a relatively lower cost initially with only the basic requirements. One also needs to take care of th e working capital requirement.This will mainly consist of the inventory which needs to maintained and the credit which is extended to the customers. From this the supplier’s credit is deducted to arrive at the Working Capital Requirement. The Working Capital Requirement can be quite high for certain industries for example inventory will need to be maintained in a garment store. Similarly in case of a grocery shop there is need for huge inventory for which credit may not be given initially by the suppliers. Financing/Capital After identifying the initial costs required for starting the business, the financing pattern will need to be decided.The financing pattern will be mainly by way of capital introduction by the owner and borrowed funds. Depending on how much capital the owner can introduce the balance amount will need to be borrowed. Funds borrowed will be either short term loans or long term loans. The terms and conditions for borrowing funds will need to be studied such a s the cost of borrowing, security required, rate of interest and the repayment terms. The owner will need to approach a number of banks to get information about their terms of lending and draw a comparative analysis to identify which funding is the most beneficial for him.As a thumb rule short term funds should not be utilized for the purchase of fixed assets. Short term funds are mainly used to meet the working capital requirement. The logic is that if short term funds are used to purchase fixed assets how are you going to repay the short term loan if the business has not progressed. Once the financing pattern is identified the owner will need to decide how the money is going to be utilized. Competition Before entering new business, information about market competition needs to be found out.In case a product is a monopoly then the competition will not matter. Otherwise the success of the business will depend upon the demand and supply gap. Thus if there is a huge demand then you ca n enter the business inspite of the market competition. Otherwise you will need to be stronger than the competitors to gain an entry. Normally existing firms will always have an advantage due to the experience they have and because they may be well equipped. The question which needs to be answered is â€Å"What is unique about the product / service which will be offered to survive the market competition†?Information such as who are the competitors, what is their market strategy and what factors are required to compete with them are important. Location Deciding an optimum location for the business is a strategic and an important one. A good location goes a long way in making the business successful. The location needs to be carefully chosen. Some places have advantages over the others. You can save out on taxes, water and electricity costs if you are located in some areas. The raw materials can be easily sourced, the manpower would be easily available and you can save out on t ransportation costs in case of certain locations.Setting up a business in certain location could lead to subsidy and rebates from the Government. In the case of a retail business one needs to be located in a well populated area and one which is easily accessible. Certain niche products / services of different competitors are available at a single location. For example there are software belts having all software companies. Similarly there are gold marts which have different gold vendors and jewelers at a single location. Laws, Rules, & Regulation Setting up a new business would require compliance with various laws & regulations.Each country is governed by separate laws and regulations which require that any new business be registered with certain authorities and meets certain compliance. Thus registration of the name of the company may be required with Ministry of Commerce for instance. Further details need to be provided regarding the workforce and certain deductions may be require d from the staff (such as tax) which would need to be deposited with the respected Government bodies. Awareness is required of such rules and regulations. It is always better to consult a lawyer before setting up a new business in an unknown environment.There are certain accounting / consultancy firms which would have a division giving advise on legal and statutory compliance. In case of lack of expertise it is better to approach a lawyer / accounting / consultancy firms. Non compliance with the statute could lead to huge fines and penalty and hamper the success of a new business. Return on Investment Return on Investment (ROI) is calculated as Net Profit divided by the Investment made. The ROI is low in the initial years and is expected to grow on a year on year basis.The ROI needs to be compared with the return that would be earned from alternative business options available. For instance it could be compared with any other source of income such as money earned from investment in the stock market. Similarly the Return On Capital must be greater than the rate of interest earned from a fixed deposit kept with a bank. Staff/Manpower Any business requires efficient manpower to succeed. The staff needs to be carefully chosen since they are the ones who could make or break the business. The cost of manpower varies depending on the location of the business and thus this needs to be factored well.The business needs to be set up in a location where there is sufficient availability of manpower both skilled as well as unskilled. This remains one of the key criteria’s whether the business is going to be run with a staff of 2 or 2,000. Technology It is always better to invest in the best technology at the time of start up itself. Post investment, monitoring of the technology purchased is required. Technology would include plant & machinery as well as latest office equipment. One should not exclude the software required to monitor the business. Choosing optimum sof tware is a challenging task.A technologically advanced business is expected to perform much better in the longer run. All the above factors are important to start a successful business. Compromising any of these factors could hamper the growth. Starting a business these days is very challenging and an all round knowledge of various factors is required to run a successful one. It is important to make a Project Report on the basis of the above factors before starting a new business. Read more: http://bizcovering. com/small-business/10-important-factors-to-consider-before-starting-your-own-business/#ixzz2O2yGVG1w

A Letter from the Trenches

I had attended to write earlier, however the Germans had us covered with the constant rain of shells falling, we had to stay on Guard duty to make sure they did not get here. On the way back, Zack got caught in a mudslide after one of the bombs hit the nearby hill. He went out like the others. My company just acquired some new novices to fight and obviously they hadn’t seen rats before, consequently they were scared and it wasn’t helped by our stories of how the brown rats ripped through the Germans brains and was still hungry. In fact, he got scared so much, we tried to hide in No Man’s Land to get away but their snipers shot through him quite literally.By the time it was safe, we had finished breakfast from the last of our uncontaminated supplies. And just after that we got on ‘Lice Duty’, picking out all those eggs was futile, as there were some hidden in the seams of the clothing. Those slugs and beetles were worse than ever, crowding the walls o f the little area for themselves. Just got a haircut so I am bald again so I have avoided the new nits problem.During when I am free, I like to do loads of stuff but I decided to make a war poem, I mean everyone else does. How does it sound? (Extract from Jesse Pole, ‘The Cole’)Who's for the trench– Are you, my laddie? Who'll follow French– Will you, my laddie? Who's fretting to begin? Who's going out to win? And who wants to save his skin– Do you, my laddie?What I am not going to include, is that rat problem. It is just to insensitive in my opinion as they killed 1.7million people so far because of their diseases and their extremely high fertility rate makes it almost impossible to get rid of them. Them are like a swarm of bees they will constantly annoy you. You know that trench foot I had, I finally got rid of it, I am cured no more shall those fungi on the side of the wall get the better of me.Stand to and Morning Hate wasn’t any differen t, repairing those bayonets. Those 3 hours of peace while breakfast was just amazing, the relief of not having to be in a trench, but there is Guard duty. You know, when someone out of each company waits behind at the machine guns, it’s yet to be me, but I’ve leaving the front line soon thankfully it’s been 70 days and the whole trench cycle thing will take over and I’ll be free for a year.Our platoon is quite lucky in my opinion as we are being provided free rum for our duty along with breakfast, because some of the others don’t get anything. Breakfast is during stand to and morning hate. Just cause the guns stopped firing, doesn’t mean there is rest, I mean if you come here, you will find yourself scurrying across like a mouse, because of the cleansing and checking of equipment. Both of the sides unofficially declare a truce I think, I mean at the time we are most off-guard; there is no gunfire. Just wait until a SO, senior officer, finds out that it happened again, he will send out one company to the German’s trenches through No Man’s Land and deserters were just killed.The kind of things we have to do after breakfast can be tiring I mean it is fun refilling sandbags and repairing duckboards but the amount of time it takes is forever. We would normally find out what we do by our NCOs. They’d assign us each a chore everyday just to try and make it more comforting to stay. After another heavy storm last night, I suspect we have to spend at least 2 hours reshaping the walls of the trenches to the correct shape because what usually happens is that the rain deforms the walls and makes the floor super muddy and almost impossible to work in. But that is not as hard as it seems, the equipment here is actually quite good compared to back out at home. The pumps functioned and all the muddy water was taken away without all the hard labour. There were a few other small roles that the NCOs would give us, tha t is to repair the trenches from yesterdays shelling  for todays and also to prepare all the ammunition.The main problem out here is boredom, the snipers on the Germans side look out over the 500 yard gap between us and them so it is almost impossible to move during daylight, otherwise you would be ‘moving’ ducks. Whilst stand to and morning hate was going on, if you finished your chores you do personal stuff like reading or writing letters back home. Most of them are censored, luckily being an Officer, I can write these types of things.Today I’m on patrol duty so I’ve been training in hand to hand combat skills such as knifing and boxing because whilst patrolling if we find a German patrol, we would have to either fight or run, and to me, running is not an option. Out on No Man’s Land, there is a variety of things to do such as repairing barbed wire and going to listening posts. However the most gruesome thing you could possibly do out there is r etrieve the dead bodies,, I mean that is gross.When you see dusk coming, you know you have to get ready for a big fight or probably a small battle, you would know it’s coming cause the general will launch a special cannon into No Man’s Land just to tell you to get ready. During these times supplies are normally shipped over because you would be likely to see enemy and friendly movement, and also that crawling over long grass to repair barbed wire can make a lot of sound and theoretically, get you killed Sometimes, lucky men would be sent to the supply trenches to pick up rations and ammo, whilst we are all on firing duty.During these times there is some one normally operating a machine gun for 2 hours. Any longer and they’d fall asleep. If they did, the penalty of risking the lives of everyone, is getting killed by the firing squad, but I don’t see how that is fair, I mean we are all sleep-deprived.Men were relieved form their roles as marksman and ground troops at night as well, these men would then cross the maze of networks to get back to safety. It once took an hour or two, because our equipment is heavy and it takes forever to actually get anywhere.Something you’ll have to get used to around here is that horrid smell. When something dies, it rots away and if not disposed of, it can really stink. Once, I heard this story that at the Somme Line, approximately 200 000 men were killed and it stank out the entire place, I mean dead corpses and noses just don’t go together well. The smell of creosol in the morning is OK now but when I first came, I almost killed myself.Well that’s all I can think of on the top of my head right now, got to go and do morning hate soon you know. Writing whilst I am meant to be sleeping doesn’t exactly help my sleeping problems but it does comfort in me knowing I’ll have the time to write it. You could come and help out one day, I mean they don’t ‘need†™ you back home working with the land girls and business men to grow and sell the food that you are making on mom’s farm.You’re sincerelyChristopher, your dear Brother A Letter from the Trenches My Dear BrotherI had attended to write earlier, however the Germans had us covered with the constant rain of shells falling, we had to stay on Guard duty to make sure they did not get here. On the way back, Zack got caught in a mudslide after one of the bombs hit the nearby hill. He went out like the others. My company just acquired some new novices to fight and obviously they hadn’t seen rats before, consequently they were scared and it wasn’t helped by our stories of how the brown rats ripped through the Germans brains and was still hungry. In fact, he got scared so much, we tried to hide in No Man’s Land to get away but their snipers shot through him quite literally.By the time it was safe, we had finished breakfast from the last of our uncontaminated supplies. And just after that we got on ‘Lice Duty’, picking out all those eggs was futile, as there were some hidden in the seams of the clothing. Those slugs and beetles were worse than ever, crowd ing the walls of the little area for themselves. Just got a haircut so I am bald again so I have avoided the new nits problem.During when I am free, I like to do loads of stuff but I decided to make a war poem, I mean everyone else does. How does it sound? (Extract from Jesse Pole, ‘The Cole’)Who's for the trench– Are you, my laddie? Who'll follow French– Will you, my laddie? Who's fretting to begin? Who's going out to win? And who wants to save his skin– Do you, my laddie?What I am not going to include, is that rat problem. It is just to insensitive in my opinion as they killed 1.7million people so far because of their diseases and their extremely high fertility rate makes it almost  impossible to get rid of them. Them are like a swarm of bees they will constantly annoy you. You know that trench foot I had, I finally got rid of it, I am cured no more shall those fungi on the side of the wall get the better of me.Stand to and Morning Hate wasnâ₠¬â„¢t any different, repairing those bayonets. Those 3 hours of peace while breakfast was just amazing, the relief of not having to be in a trench, but there is Guard duty. You know, when someone out of each company waits behind at the machine guns, it’s yet to be me, but I’ve leaving the front line soon thankfully it’s been 70 days and the whole trench cycle thing will take over and I’ll be free for a year.Our platoon is quite lucky in my opinion as we are being provided free rum for our duty along with breakfast, because some of the others don’t get anything. Breakfast is during stand to and morning hate. Just cause the guns stopped firing, doesn’t mean there is rest, I mean if you come here, you will find yourself scurrying across like a mouse, because of the cleansing and checking of equipment. Both of the sides unofficially declare a truce I think, I mean at the time we are most off-guard; there is no gunfire. Just wait until a SO, seni or officer, finds out that it happened again, he will send out one company to the German’s trenches through No Man’s Land and deserters were just killed.The kind of things we have to do after breakfast can be tiring I mean it is fun refilling sandbags and repairing duckboards but the amount of time it takes is forever. We would normally find out what we do by our NCOs. They’d assign us each a chore everyday just to try and make it more comforting to stay. After another heavy storm last night, I suspect we have to spend at least 2 hours reshaping the walls of the trenches to the correct shape because what usually happens is that the rain deforms the walls and makes the floor super muddy and almost impossible to work in. But that is not as hard as it seems, the equipment here is actually quite good compared to back out at home.The pumps functioned and all the muddy water was taken away without all the hard labour. There were a few other small roles that the NCOs w ould give us, that is to repair the trenches from yesterdays shelling  for todays and also to prepare all the ammunition.The main problem out here is boredom, the snipers on the Germans side look out over the 500 yard gap between us and them so it is almost impossible to move during daylight, otherwise you would be ‘moving’ ducks. Whilst stand to and morning hate was going on, if you finished your chores you do personal stuff like reading or writing letters back home. Most of them are censored, luckily being an Officer, I can write these types of things.Today I’m on patrol duty so I’ve been training in hand to hand combat skills such as knifing and boxing because whilst patrolling if we find a German patrol, we would have to either fight or run, and to me, running is not an option. Out on No Man’s Land, there is a variety of things to do such as repairing barbed wire and going to listening posts. However the most gruesome thing you could possibly do out there is retrieve the dead bodies,, I mean that is gross.When you see dusk coming, you know you have to get ready for a big fight or probably a small battle, you would know it’s coming cause the general will launch a special cannon into No Man’s Land just to tell you to get ready. During these times supplies are normally shipped over because you would be likely to see enemy and friendly movement, and also that crawling over long grass to repair barbed wire can make a lot of sound and theoretically, get you killed Sometimes, lucky men would be sent to the supply trenches to pick up rations and ammo, whilst we are all on firing duty.During these times there is some one normally operating a machine gun for 2 hours. Any longer and they’d fall asleep. If they did, the penalty of risking the lives of everyone, is getting killed by the firing squad, but I don’t see how that is fair, I mean we are all sleep-deprived.Men were relieved form their roles as ma rksman and ground troops at night as well, these men would then cross the maze of networks to get back to safety. It once took an hour or two, because our equipment is heavy and it takes forever to actually get anywhere.Something you’ll have to get used to around here is that horrid smell. When something dies, it rots away and if not disposed of, it can really stink. Once, I heard this story that at the Somme Line, approximately 200 000 men were killed and it stank out the entire place, I mean dead corpses and noses just don’t go together well. The smell of creosol in the morning is OK now but when I first came, I almost killed myself.Well that’s all I can think of on the top of my head right now, got to go and do morning hate soon you know. Writing whilst I am meant to be sleeping doesn’t exactly help my sleeping problems but it does comfort in me knowing I’ll have the time to write it. You could come and help out one day, I mean they don’t ‘need’ you back home working with the land girls and business men to grow and sell the food that you are making on mom’s farm.You’re sincerelyChristopher, your dear Brother

Chowking Food Corporation Essay

1.4 Background History of the Company Chowking (Chinese: è ¶â€¦Ã§ ¾ ¤) is a Philippine-based chain that pioneered the Asian quick-service restaurant concept in the Philippines. The concept combines a Western fast-food service style with Chinese food. Chowking predominantly sells noodle soups, dimsum, and rice toppings. The company was founded in 1985 at a time when Western-style burger joints were dominating the Philippine fast food scene. Its first store is strategically located at the Makati Commercial Center. In 1989, Chowking started expanding its market share amid the volatility in the domestic market. It started its franchising operations and made its entry into the provincial markets the same year particularly in Meycauayan, Bulacan. It also released its first Chowking TV commercial. In 1991, Chowking launches its Food Delivery Service. Annual system-wide sales hit P118.1 Million. In 1992, Chowking Food Corporation enters the Visayas with the opening of the Bacolod Era Mall store, and Mindanao with the opening of the Limketkai outlet in Cagayan de Oro. Its annual system-wide sales reach P342.8 Million as of 1993. Its annual system-wide sales hit P522 Million in 1994. In 1996, Chowking opens 100th store and the sales increase to P1.31 Billion. On January 1, 2000, Chowking became a wholly owned subsidiary of Jollibee Foods Corporation, the Philippines’ biggest fast-food chain. The change in ownership gave rise to store renovations and a new corporate look and mindset that is visible from front-end to back-end. In 2008, Chowking announced the completion of a Php270-million (USD 5.65-million) modernization program, which will help set  the stage for the company’s future growth. Called â€Å"Project DMSSM† (pronounced â€Å"dimsum†) for â€Å"Designed, Modernized and Streamlined Supply Chai n and Manufacturing,† the two-year modernization program that started in 2006 involves the expansion and renovation of Chowking’s Noodle Building, increased automation, and the improved integration of food manufacturing processes in its two commissaries in Muntinlupa City. The CHOWKING FOOD CORPORATION gained entrance to the Philippines’ highly competitive fast-food industry in 1985, at a time when it was dominated by western-style burger joints. It positioned itself in a niche where it could be a strong leader, by adopting the best features of two distinct restaurant personalities – on the one hand, the traditional Chinese restaurant, with its menu of delectable, sumptuous but easy-to-prepare and reasonably-priced dishes; on the other, the modern, western-style fast-food joint, with its eye-catching faà §ade, bright interiors and young staff dispensing friendly and snappy service – and fused them into a unique concept: the Oriental quick-service restaurant. With focus on its core competencies to create differentiated, superior product value, Chowking has stood the test of shifting tastes, changing lifestyles and a volatile market, to develop its own set of loyal customers that keeps growing year in and year out. In 1989, in an aggressive bid to expand its client base and capture a bigger share of the market, the company initiated its franchising operations and marked its entry into the provincial market. The twin moves enabled the company to pursue an ambitious expansion program that has made Chowking the largest Oriental quick-service (QSR) chain in the Philippines, enjoying high visibility in all the major cities and towns in the country’s main island groups, Luzon, Visayas and Mindanao. To ensure its continued growth, Chowking explored markets outside the Philippines. As of 2008, Chowking has over 400 stores within the Philippines and in markets such as the United States, Middle East and Indonesia. Chowking has steadily been expanding its network in the Philippines. It is able to ensure the freshness of its food and the reliability of its supply through its main commissaries in Highland, Muntinlupa City and Sucat, Paraà ±aque City as well as satellite commissaries in Iloilo, Cebu, Cagayan de Oro, Davao, and Pangasinan. In Dubai in the United Arab Emirates, Chowking’s commissary serves ten stores and is expanding to other areas. Emboldened by its success on the  domestic front, the company ventured into the global market in 1995, with the opening of a Chowking store in California, USA. Today, Chowking outlets are operating in the US West Coast under a licensing agreement with a Filipino expatriate family. A similar agreement has been forged with a Dubai national for the operation of Chowking stores in the Middle East. The turn of the millennium was a turning point for Chowking Food Corporation. On January 1, 2000 Chowking became a wholly owned subsidiary of Jollibee Foods Corporation, the largest, most respected restaurant chain in the Philippines. With the merger came numerous changes in Chowking. The change of ownership gave rise to renovations and improvements, beginning with a fresh corporate image made concrete by a brand-new retail identity. This identity manifests itself in almost al l the physical aspects of the store – the logo, faà §ade, layout, dà ©cor, counter, menu board, furniture, equipment and even the staff uniforms. Launched in June 2000, the new corporate look is worn by all new stores, while old stores are undergoing renovation to conform to the new image. All these changes are complemented by front-end and back-end systems designed to ensure cost-efficiency, speed up service and increase customer satisfaction. Hand in hand with the new physical features is the renewed pursuit of high standards in Food, Service and Cleanliness (FSC), the three pillars of the restaurant business. The goal has been still is as fundamental as it is simple: To serve consistently delicious and hot food in five minutes, amid sanitary and clean-smelling surroundings. The acquiring of the Chowking Food Corporation by the Jollibee Foods Corporation it bolsters their individual positions in the Philippine market – Jollibee as the undisputed market leader in the fast-food industry, Chowking as the No.1 Oriental quick-service restaurant chain. Jollibee lends its experience and prestige as the Philippines’ dominant player in the fast-food industry, while Chowking is poised to contribute significantly to the annual system wide sales of the Jollibee group. As they gear up for the challenges ahead, both companies are optimizing the advantages of the merger with synergies aimed at cutting costs and improving efficiency in their stores. 1.4.1 Facts and Figures Usually Chowking is just next to the leading competitors like Jollibee, McDonald’s, KFC, Max’s Restaurant and Pizza Hut. Yet, because of its being  competitive in terms of services, it is on the top 10 in the food industry with the expected annual system – wide sales of almost P12 Billion with a local store network of 400 at yearend of 2010. The strategic alliance between Chowking and Jollibee has proven mutually beneficial to both companies, bolstering their individual positions in the Philippines market – Jollibee as the undisputed market leader in the fast-food industry, Chowking as the country’s No. 1 Oriental Quick – Service restaurant chain. The hard work and vigilance have paid off: Chowking has been logging double – digit growth in system – wide sales since 2001, the fastest in the industry. 1.4.2 Types of restaurants 1.4.3 McDonald’s in the Philippines Chowking have the Commissary in Highland, Muntinlupa City and Sucat, Paraà ±aque City as well as satellite commissaries in Iloilo, Cebu, Cagayan de Oro, Davao, and Pangasinan which supplies the entire raw and processed product in all branches in the Philippines of its food to ensure the freshness and the reliability of its supply. Accessibility of resources is at best because ordered stocks needed come on time. Also if unexpected run out of products they can borrow from nearby branches. 1.5 Wedsite Address www.chowking.com 1.6 Vision-Mission and Values Statement 1.6.1 Vision 1.6.2 Mission Our dream:to be the largest Oriental food chain in the world. Our aim:to satisfy the discriminating needs of our global consumers by serving them consistent, High-quality food products in a friendly, caring atmosphere at prices they can truly afford. 1.6.3 Values (CMITE) CORPORATE VALUES These are the set of beliefs and values shared by the members of the Chowking family that guide us in achieving our mission and vision. These are the way we do things around here. These are the character of our organization. 1. CUSTOMER CARE The customers have preferred us over many competitors. The hard-earned money they spend in our store enables us to buy our food, pay us to earn our living that allows us to buy our food, pay for our rent, send our children to school, buy our medicine, and pay for our other needs. Therefore, they deserve no less than the best from us: our superb FSC, our heartfelt care, warm attention and friendly smiles. 2. INTREGRITY/HONESTY Being honest and true to our words and actions are God-given and invaluable treasures passed on to us by our parents, and which we will pass on to our children. We will live by its principles in our place of work, at home and in all our dealings with others. We may not be rich but can proudly look straight into the eyes of our fellowmen, because of our unblemished integrity. 3. INDUSTRY The only sure way to prosperity and to having access to God’s rich blessings is being industrious. Fate is kind, luck smiles and opportunities abound to the hardworking. 4. COMMITMENT/LOYALTY Chowking is the fountain spring of our livelihood. It is an extension of our home. We will give it our best. We believe that we are not an insignificant component of what makes Chowking great. We will be forever proud of our company and ever vigilant to keep it always number one. 5. RESPECT / TEAMWORK No man is an island. Life lived and shared with others is a meaningful and happy one at all times. As the golden rule states: â€Å"I will do to others as I would like it done to me. 6. CHEERFUL / FUN Having fun – smiling and laughing to our heart’s delight as we work hard in giving our best – keeps us energized and inspired. In all things we do, it never makes us tired or bored. It gives meaning, and even adds healthy years to our lives. 7. PASSION FOR EXCELLENCE We aim for the best. We drive ourselves to be the best. We take every day as a learning experience. We seize all opportunities to improve our skills, increase our knowledge, and be better persons today than we were yesterday.

Real Income convergence Across states Assignment

Real Income convergence Across states - Assignment Example Real Income convergence Across states The countries or states with poor economies experience increased levels on returns as compared to the rich economy states, a fact attributable to the diminishing returns to capital. Analyzing the neoclassical model on an international platform, it becomes noticeable that the effect of convergence is strengthened by both technological and capital outflow from rich economies to poor and, outflow of labor to rich economies from the poor ones. In ascertain whether real personal disposable incomes were converging to a certain constant value, we formulated our null hypothesis such that: Ho: there is income convergence across states (unit root exists for income series) H1: There is no income convergence across states (no unit root for income series and thus it`s stationary) Previous empirical analysis focused on the increase of per capita income and the production level of the U.S. states (Shekhar, 115). Extensive studies have been undertaken on the analysis of the data regarding the personal income from the 1840s and on the cumulative produce of the state dating back from 1963. For analyzing purposes on what determines the growth of the states’ economy, the familiarity with the U.S. states acts as representation of resources that are not properly utilized: basically, there exists information on the 48 states for a period of more than a century.

Fukushima nuclear plant incident in 2011 Essay Example | Topics and Well Written Essays - 2000 words

Fukushima nuclear plant incident in 2011 - Essay Example This is the largest nuclear catastrophe recorded in the world after the 1986 Chernobyl disaster and it is believed to have released approximately 10 to 30% of radiation material of what Chernobyl incident emitted (Povinec, Hirose and Aoyama 2013, p. 9). In the event of the tsunami, the backup power equipment that was meant to cool the reactors was destroyed and this caused fuel melting, hydrogen outburst, and radioactive gases. This radioactive release at the Fukushima plant forced the neighborhoods up to 25 miles estimated at more than 100,000 residents were all evacuated away from the plant. The subsequent lack of AC power in Units 1 to three prohibited the valves and pumps from working normally which was necessary to eliminate heat and pressure that occurred due to radioactive decay from the nuclear fuel within the reactor hubs. The fuel rods therefore, overheated and in combination with the steam, huge quantities of hydrogen were generated causing an explosion. This is the explos ion that prevented the plant workers from cooling the reactors and the radioactivity spread rapidly (Elliott 2012, p.7). The Pollutant Source and Pathway The source of the Fukushima nuclear plant disaster is directly related to the earthquake of a 9.0 magnitude that hit Japan in 2011. This earthquake caused damage to the external power supply and the backup diesel emergency generators were flooded leading them to fail. After the failure of the diesel backup generators, the reactor operators initiated the emergency battery power but they run out after 8 hours of operation. The enduring heat therefore, could not be carried out and this led to fuel failure. Fuel failure occurs because of mechanical, chemical or even thermal failures when there is too much heat in the valves (Brook, 2011). The nuclear power plant workers had now to focus on managing the core while the heat was building up to allow the fuel cladding to keep going as much as possible. In reality, the reactor is made up of several independent and different cooling systems that operate to ensure smooth flow. These cooling systems include the reactor water clean-up mechanism, the decay heat exclusion, the core isolating cooling system, and also standby cooling mechanism among others. It is evident some of these cooling system failed and caused damage to the core and therefore, the disaster occurred (Elliott 2012, p.7). When the workers lost most of the cooling systems because of loss of power, they had to come up with other means of eliminating the heat. However, in a situation where the heat production is greater than its removal, the pressure immediately keeps rising as the boiling water builds steam. The operators now focused on keeping the temperature below 1200Â °C, while also maintaining a manageable level of the pressure. Maintaining a manageable pressure level is necessary to get rid of steam and this is done by pressure relief valves that are contained in the reactor (Elliott 2012, p.7). The process of maintaining pressure requires venting or emitting steam to keep the levels in a steady rate. It is important to note that steam and other gases eliminated are radioactive fission materials, which are in small quantities. In this case, when the workers at Fukushima nuclear plant were emitting steam, some form of radioactive emissions were released into the

Medical Sociology Essay Example | Topics and Well Written Essays - 1000 words

Medical Sociology - Essay Example Robert Koch, a German physician, continued work related to the bacteriological revolution and discovered, along with others, the reasons for specific diseases by linking them with specific bacteria as identified by their different types. As a result, medical science reached new heights as hospitals became safe havens for treatment for a multitude of diseases. The mortality rates of Europe declined primarily because of the bacteriological revolution-led improvement in medical treatment. The bacteriological revolution took place over many years and in phases. The first one began, roughly, around 1835 and lasted till 1875 in Berlin by Theodor Schwann, who experimented in the laboratory to observe the phenomenon that alcoholic fermentation took place in unheated air i.e. in the presence of microscopic organisms. Louis Pasteur took forward Theodor Schwann’s work, and conducted the fermentation of wine, bread, cheese, etc, twenty years later. Unlike others, Pasteur experimented in an artificial environment which was controllable, and so, each micro organism could be studied in isolation. After immense research, training students and publishing numerous papers and books on the subject, Pasteur established his own school of research. Pasteur’s methods were considered very difficult and thus, were not adopted by many people (Mendelsohn, 2010). Louis Pasteur was teaching at a university when he was persuaded by a wine company to find out why some wine becomes sour in the process of being made. He discovered, during his research, that germs in the air which could be seen under the microscope are behind this phenomenon. Consequently, the process of pasteurization came into being whereby, germs are killed by boiling the liquid and then cooling it—in this case, the liquid was wine. From this process, Pasteur went further to prove that germs are present in the air and so, could be stopped from getting into the liquid. This formed

Title invention needed Essay Example | Topics and Well Written Essays - 1500 words

Title invention needed - Essay Example Therefore, this paper will focus on the lessons learned from The Seventh Victim and discuss elements of noir and horror using three other articles. The Seventh Victim has many psychological impacts to the characters as well as to the reader. The first emotional impact is witnessed as the story begins when Mary has to leave her studies on revelation that the sister has disappeared. Mary felt the emotional impact of realizing the only relative she had, the only sister, and the only one capable of paying her fee was missing. This made her leave school to go search for the sister. Although the school administration showed her amnesty by letting her work as an assistant teacher to reduce the balance, the emotional effects were much high and decided to leave everything behind. From all these, it is evident that emotional impacts run so deep into peoples life that makes them unable to cope with any other thing. Mary was disturbed and unable to continue with education. Secondly, the feeling indicates that the continuous search for the sister leads Mary to desperation. There were many cases when the search for Jacqueline resulted in despair and death, especially to Mary and the investigators she contacted to help in the quest. For instance, desperation made Mary contact Irving August and agreed to accompany her to La Sagesse before being killed by an unknown assailant. This made Mary run away for her life before meeting another team of drunkards who one happened to be the murdered detective. Her desperation did not end there; she met lawyer Gregory Ward, a boyfriend to the sister. He arranged to give her a job as a kindergarten teacher as she continues to look for her sister. The lawyer kept many secrets from Mary knowing very well that he is the husband of the sister whom she is searching. All these indicate the frustration cases that the movie portrays the characters. The film is paramount in making people realize the

Textual Analysis Essay Example | Topics and Well Written Essays - 1000 words - 3

Textual Analysis - Essay Example She tries to compare the human ears with the dried peach halves (Forche 1). The use of this simile brings out a stark image where she shows how lifeless the ears were but after dropping them in water, they became lively. The contrast and comparison elaborates on the Colonel’s brutality. Simile has also been used to compare the window gratings in the house with those that are found in the liquor stores. The use of irony is evident in the poems title â€Å"the Colonel† where Forsche is treated to a very sumptuous dinner. They are served with lamb racks, wine and green mangoes which tend to reflect a feast. However, they are also served with bread, which they do not know its type. As the writer puts it, there is a golden bell which is used to summon the maid. It is ironical to have a golden bell just to summon the domestic worker. Another type of irony is evident where the parrot joins their conversation on governance issues. On another perspective, the parrot does not com prehend anything on governance since it is not human but from the poem, it contributes to the interesting topic. The parrot reinforces the ugly events that the Colonel is talking explaining. It is also ironical in situations where the writer nods her head to agree to the Colonel’s stories that are brutal and horrifying (Forche 1). Irony is also evident in the scene where Forche claims that her friend talked to her with her eyes so that she should not say anything after the Colonel kicks the parrot out. The author also brings irony where she talks about the fence that had broken bottle glass, which would rip off and individual’s kneecaps. Repetition has also been used to create emphasis of the story. The writer has emphasized on the use of the word ‘some’, which has been used three times. For example, the Colonel says ‘something for your poetry’. The word has also been used in cases where Forche says ‘some of the ears on the floor’ . The use of ‘some of the’ has been used twice at the end of the poem to emphasize of the number of ears that had been thrown on the floor. Repetition is used in poems to create a rhythm that will help the reader. In this poem, repetition has been used to express emotions that have come up due to the Colonel’s brutality. For poets to come up with good poems, most of them employ the use of repetition since it creates a rhythm and alliteration for the reader. How the visual special devices affect the viewer and their effectiveness In the poem â€Å"The Colonel†, the writer has used visual impacts to reveal the image of the Colonel and his brutal acts. From the start of the poem, the poet tries to bring out a clear picture of the Colonel’s house. The author starts by describing the family members, the house, and its surroundings and later brings out the aspect of brutality after the Colonel brings out the ears. For emphasize on brutality, the author al so says that there is a pistol put on a cushion beside the Colonel. The author has also included every single detail that is happening in the house to create an imaginary house in the reader’s mind. She also explains what was on the television as they walked into the house. These special devices have led to visual imagery in the poem. According to the poem’s structure, the author has presented her work in just one paragraph that emphasizes on concrete poetry. The line placements and flow of words in the poem brings visual imagery. The longest lines in the poem try to

Goya's third of May, 1808 and Velazquez's Surrender at Breada Essay

Goya's third of May, 1808 and Velazquez's Surrender at Breada - Essay Example One needs to have a thorough understanding of the historical and cultural backgrounds in which these masterly paintings were composed. The 17th century Dutch witnessed the full ushering of painting, architecture, and sculpture. It was actually the Golden Age in the history of the Dutch. Culturally the country got advanced. The citizenry played a major role in the all round development of the country especially in the cultural advancement of the country. There were many cultural associations in the cities which contributed very much to the development of literary activities like poetry, drama, discussions etc. Calvinism as a form of religion got great impetus in the period. Even though lack of political stability created much chaos in the minds of the people it did not affect the ushering of arts in any way. It was in this background that Velazquez composed his ever memorable work namely Surrender at Breda. Culture of Spain is mostly Iberian culture marked by Roman influence in every realm. Muslim influence is vividly seen in the country during the period. It was against this background that Goya composed his master piece Third of May, 1808. There was an overall development in every field in the country. Culture of the country is manifested in its literature, painting, music etc. They are the main cultural aspects in which these works of art were given shape. Goya's Art are characterized... In this master piece many of his characteristic styles are imprinted. The work is famous for its use of realism, rich colors, lights and shadows etc. These characteristics styles can be found in almost all his works. The subject matter of The Third of May 1808 by Goya is that "it commemorates Spanish resistance to Napoleon's armies during the occupation of 1808. The work has an emotional force which secures its status as a ground breaking, archetypal image of the horrors of war." (Thomas). On the other hand Surrender at Breda by Velazquez is about" an event that took place on June 2 , 1625 when the Dutch governor, Justin de Nassau, delivered the keys of the city, symbolically, to Ambrosio de Spinola, the Spanish commander. This happened in fact three days after the city was taken. In 1639, shortly after the canvas was painted, Spain lost the city forever; it was conquered by Frederick Henry of Orange." (Velzquez). Symbols, colors and iconography are lavishly used in Velazquez's Surrender at Breda to bring effectiveness to the work. The use of these literary devices was very much the part of the culture of that time. In Goya's The Third of May 1808 the literary device symbolism is abundantly used to bring about catharsis on the beholder. Symbolism in the work explains its influence on the art world and the society. The other literary devices like iconography are not so lavishly used in Goya's The Third of May 1808 as in Velazquez's Surrender at Breda. There are many differences rather than similarities between these two works of art namely Goya's third of May, 1808 and Velazquez's Surrender at Breda. The main similarity between these works lies in their mode of painting i.e. both are oil on

Criminology ucr and nibrs crime data Research Paper

Criminology ucr and nibrs crime data - Research Paper Example Secondly, the National Incident-Based Reporting System or NIBRS compiles crime data from law enforcement agencies regarding personal crime occurrences reported to them. The NIBRS is collected from local, regional, state, and federal law enforcement agencies (U.S. Department of Justice, Federal Bureau of Investigation, 2009). The aim of this paper is to compare and contrast the Uniform Crime Report, and the National Incident-Based Reporting System as the primary crime data sources used in the United States. The Uniform Crime Reporting program is an FBI data collection program started in 1929, and it is based on gathering of data on a number of crimes as reported to law enforcement authorities by the victims (U.S. Department of Justice, Federal Bureau of Investigation, 2009). The program documents crime data for the entire nation including the states, counties, the cities, colleges, towns, and even the tribal law-enforcement regions. This widespread recording allows crime assessments between neighboring jurisdictions, especially those with comparable populations. On the other hand, the National Incident Based Reporting System is a crime reporting system that is incident-based for offenses known to the police forces. Hence, any crime incident in which the law enforcement authorities become aware of, an assortment of data are collected regarding that particular incident. The individual law enforcement agencies are then required to include aggregate number of crime occurrences by offense e very month (Akiyama & Nolan, 1999). The UCR reporting categorizes eight crimes to be reported by the agencies, and they include criminal murder, rape, theft, aggravated assault, and burglary. Others include larceny, robbery, and automobile theft. Following the UCR substantial methodological redesign in 1970, the questions under NIBRS were enhanced, so

Technology and Jobs Essay Example | Topics and Well Written Essays - 500 words

Technology and Jobs - Essay Example the newly introduced electronic typesetting equipment swallowed around 4200 type setters in New York but created new job opportunities for the people who can operate the new type setting equipment. In 1920s American railway employed more than 2, 00,000 people and the number was reduced to only for 40 thousands because of advanced technology. Between 1947 and 1957 there were 10 thousands of workers in oil refineries of America. After 1957 though the production was increased the number of workers was reduced by three percent. However, there is a simultaneous increase in job opportunities for the people who can work with the advanced technology. In automobile division, robots replaced man power, but the people who could operate the robots could retain their jobs. Electronic mails, E-banking and computerization definitely cause the reduction of jobs. One cannot run away from the modern technology to save the jobs, but should use the technological developments to increase the business as well as the employment opportunities. In the case of reduction of jobs and retrenchment, the role of state can find legality in maintaining the retention as providing employment is part of the duties of the government. If the government confines itself to the regulatory function, one cannot find legality in saving the jobs. However, the legality for saving the jobs comes from the fact when government realises that providing or creating employment is a responsibility of the government. The legality can be maintained by continuing with public investment projects thus intensifying public sector employment programmes by adapting industrial financing to the companies who retain the employees in the wake of technological developments. 1 The changes in technology can be termed as a boon for the people who could adopt themselves to the new system. However, it is a curse for the workers who failed to improve their skills. So it’s the prime responsibility of the Federal and the local

Imagine you are Marco Essay Example for Free

Imagine you are Marco Essay Imagine you are Marco. Write a letter to your wife telling her about your journey to America, where you are staying and your work. Eddie and Beatrice Carbone 441 Saxon Street BROOKLYN NEW YORK U. S. A Dear family and friends I am missing you all desperately. It has been two months since I have seen you all. The journey was in cramped conditions, we experienced a mix of storms and showers. This didnt bother Rodolpho or me as the fishing trips to Africa and Yugoslavia prepared us well. I spent most of my time conversing with another group of Sicilians. We shared our hopes of America. Our main worry was that we would be caught getting off the boat and deported. The travelling was long and boring with loud thunderstorms at night, which made it impossible to sleep. Because of the large amounts of people on the ship it was very cramped. We had to sleep on the floor, which was hard and uncomfortable. The only way I stayed sane was thinking of succeeding at the American dream and returning to Sicily as rich as some of the tourists! When the ship docked in Brooklyn a very kind and hospitable man named Tony Bereli met us at the pier. He dropped us off at Beatrices house were we are temporarily staying. I was surprised at how nice Beatrices house was after Bereli described it as a slum. Over here in America people live in apartment blocks and estates instead of the shacks were used to back home. New York is a great city. At first I was some what taken aback by the citys daily hustle and bustle. Its so different from the town in Sicily where we know everyone. Beatrice looked very pleased to see us and asked after you and the childrens welfare. She introduced us to her niece Catherine who has stayed with them all her life as her parents died when she was very young. They were both very welcoming but Beatrices husband Eddie seemed as though he was a bit uneasy with our presence. Eddie told us about working on the docks as a longshoreman. He said we could earn up to forty dollars a week! The house is small with five people in it but I cannot complain otherwise I would be out on the streets. I am pleased to say both Rodolpho and me have found work as longshoremen loading and offloading things from other countries like coffee and tea. Whenever I get paid I will send the money home for you and the children. The main things I miss apart from you and the children are the scenery and the warm weather. In New York its cold with wall-to-wall skyscrapers. Rodolpho has taken to the bright lights of New York like a duck to water. He and Catherine seem to have something going on. Last week she took him on a grand tour of the city ending up in up in the Paramount Cinema. They arrived back at about midnight, Eddie was furious. He said Catherine had never been out so late. Eddie is too over protective of Catherine; he treats her like a kid! Its as if he is trying to keep Catherine for himself! Eddie treats Rodolpho like dirt. He insulted him calling him Danish because of his blonde hair. Eddie then went on to teach Rodolpho boxing classes in which he gave himself a good excuse to beat him up. Unprovoked incidents like these anger me. I wanted to get up and defend Rodolpho but didnt want to offend Beatrice. I asked Eddie if he could lift a chair from the bottom, he failed to do this. Then I lifted the chair over my head and looked him in the eye. This was my way of gaining a physical and mental advantage over Eddie. The look of defeat on Eddies face was a picture! How are Maria and Luigi? I am missing them so much. As soon as I get paid I will send money so you can buy Luigi some money for his chest. Tell them I wish I could be with them but I had no choice about leaving, wed have starved otherwise. I am working overtime everyday so I can come home to you and the kids soon. Then we will have plenty of food and will never have to worry about starving again. Take care of yourself and the kids. I will write soon Marco xxxxxx Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Arthur Miller section.

Corporate Social Responsibility In Developing Nations Sociology Essay

Corporate Social Responsibility In Developing Nations Sociology Essay The phenomenal stretch of Globalization has touched and affected, positively or negatively as well, practically every aspect of human existence, through its varying tentacles in its ever-propagating areas of influence. The recognition and acceptance of the phenomena of Corporate Social Responsibility (hereinafter referred to as CSR), in developed as well as developing countries, is a doting example of the same. It needs a special mention that CSR is nowhere a legally sanctioned document or observance, but it indeed, has come forth as a minimal standard as to the governance of business at global level, with international reference standards set by the United Nations, Organization for Economic Co-operation and Development (OECD) guidelines and International Labour Organization (ILO) conventions. The primary reason as to why this phenomena is rising at such a fast pace, is the global competitiveness ensuing between the business houses of different countries. The corporates mainly demonstrate the extra responsibility to earn the goodwill of the market, and CSR helps in building loyalty and trust amongst shareholders, employees and customers. In this sense CSR denotes a voluntary endeavour by the big business houses to look into the varied issues and concerns of the public at large, apart from the profit-maximising objectives. CSR is closely linked with the principle of sustainable development, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends but also based on immediate and long term social and environmental consequences of its activities. CSR has a significant role in controlling the perils of uncontrolled development, satisfying the needs of the present generation and at the same time ensuring that the resources of future generations is not jeopardized.  [1]  The inclusion of the objective of sustainable development within the CSR agenda magnifies the duties and responsibilities of the big business houses, upto a large extent, which cannot be made limited as per any parameters. The realization of the ultimate objective of sustainable development is a long and continuous process, and is rather more inclusive, which includes the interest of the developing nations also. The impact of CSR in context of developing nations, as evident, is rather a negative impact. The primary reason as identified by the authors seems to be the inappropriate approach towards the practical applicability of the CSR in the developing countries. There is lacunae in the structural approach towards implementation of the CSR agenda within the developing countries, mainly due to the irresponsible inactiveness on the part of the government of the developing countries, in framing its policies and regulations as per the international norms and requirements, as CSR is largely a global phenomena. In this research paper, a structural and conceptual analysis is done with regard to the difficulties faced by the developing countries in implementing the CSR initiatives. This paper is an attempt to identify such issues which attributes to the failure of CSR in developing nations, and also identify the correct possible approaches to properly reap up the benefits of the CSR agenda and initiatives evolved mainly through the internationalization of the initiatives taken in the developed countries, by various approaches to be discussed herein. EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY AS A FULCRUM OF SOCIAL RESPONSIVENESS What exactly is inferred from the social responsibility of the corporations? The corporations are generally expected to strengthen and mobilize the economy by enhancing profit, the social implications of which are highly overlooked. The concept of CSR refers to the general belief held by many that modern businesses have a responsibility to society that extends beyond the stock holders or investors in the firm. That responsibility, of course, is to make money or profits for the owners.  [2]  In 1960, Keith Davis suggested that social responsibility refers to businesses decisions and actions taken for reasons at least partially beyond the firms direct economic or technical interest. Also it has been argued by Eells and Walton (1961) that CSR refers to the problems that arise when corporate enterprise casts its shadow on the social scene, and the ethical principles that ought to govern the relationship between corporation and society.  [3]   The current wave of interest in CSR dates from the early 1990s.  [4]  However, in recent years the CSR has emerged as an inclusive and global concept to embrace corporate social responsiveness, and the entire spectrum of socially beneficial activities of businesses. It follows the trend of a diffusion process of policy instruments from North to South and therefore of a global convergence of policy structures.  [5]   Now the term social within the CSR is again a vague concept and enlarges the sphere of the corporate responsiveness. The social dimension of the CSR can effectively be attributed to the organizations stakeholders, who are in the immediate connect to the corporation. Stakeholders denote the group of persons who have a stake, a claim, or an interest in the operations and decisions of the corporation. This bond of the corporation with the stake-holders practically denotes the area of social operation of the corporations. The The idea of CSR cannot be traced as to the place of its origin and evolution, since it is mainly a progeny of the globalization, which is encumbrancing in itself, the world at large. Therefore, the concept of stake-holder management becomes an effective instrument to analyse the social impact of the corporations. This methodology can have, or rather it has appeared to be an aberration, which practically excludes the impact on the developing nations, as it is a very common fact that the activity of the stake-holders of the developing nations cannot match upto that of the developed ones. One tangible result that has certainly been achieved by the current CSRmovement is that it has got people talking about worker rights, global governance, sustainable enterprise and all manner of topics that have relevance to the well-being of the poor and marginalized.  [6]   The effective implementation of CSR in developing countries has come forth to be recognized as a challenge after the vision in the year 2000 was instilled in the Milleneum Development Goals (MDGs) as a world with less poverty, hunger and disease, greater survival prospects for mothers and their infants, better educated children, equal opportunities for women, and a healthier environment. CSR AND DEVELOPING COUNTRIES: IDENTIFYING THE CONNECTION The CSR in connection with developing countries can be considered as to represent the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts.  [7]  The analysis of the effectiveness of the CSR cannot be considered to be complete unless its impact on the developing countries is identified, as they represent the most rapidly expanding economies, providing for a lucrative market for the growth of the corporate business. It is a common fact that the worlds poor are distressingly plentiful, and despite of the vastness of their market, they are largely unexplored by the multinational companies, in assumption that the people of the developing countries are more busy in sustaining their normal living rather than going for any developmental incentives. Also it is ass umed that various barriers to commerce corruption, illiteracy, inadequate infrastructure, currency fluctuations, bureaucratic red tape etc, make it impossible to do business profitable in these regions. The authors assert this fact that the above notions and assumptions are largely outdated. It is well-evident in the current scenario that the large number of corporate houses prefer the markets in the developing countries only, as it provides them with ample oppurtunities to maximize the profitability, and the restrictions assumed are hardly existent. Moreover, certain positive trends in developing countries from political reform, to a growing openness to investment, to the development of low-cost wireless communication networks are reducing the barriers further while also providing businesses with greater access to even the poorest city slums and rural areas.  [8]   Since in developing countries, rural areas represents more than half of the population, for instance in India, 60% of GDP is generated in rural areas. The critical barrier to doing business in rural regions is distribution access, not a lack of buying power, but new information technology and communications infrastructures especially wireless promise to become an inexpensive way to establish marketing and distribution channels in these communities.  [9]   CURRENT STATE OF CSR IN DEVELOPING COUNTRIES It is argued that the practice of CSR is a work in progress. The idea of evolution of CSR as a concept clearly envisages the fact that it has mainly evolved through an active participation of the developed world, and then it got internationalized, and ultimately it is in a process of reaching to the developing ones also. In the present scenario, no matter what kind of effect it is producing, but it is propagating at a very fast pace, in the developing countries due to the ample market available therein. It has been seen that the developing countries also opened up their economy and whole-heatedly welcomed the advent of foreign companies into their territory as a part of their liberalization strategies. It has been quite beneficial for the foreign investors as well, since the developing countries enrich them with huge profitable market. With increased emphasis on the profit-making, the CSR development agenda has definitely taken a backseat in the developing countries. In his analysis of the relationship between companies and poorer local communities, Newell concluded that mainstream CSR approaches assume a set of conditions that do not exist in most of the world. CSR can work, for some people, in some places, on some issues, some of the time  [10]  . And in the process, the CSR looses the connect with the real life situations of the developing world. Following are the bases on which the CSR is rendered ineffective in context of developing countries: The Stakeholder Concept It has been observed that, in the present time, it benefits some people and some companies in some situations. The success of CSR initiatives can be linked to the stakeholder dialogue and stakeholder engagement, who can bring together representatives of business, non-governmental and public sectors in order to identify and address aspects of social responsibility. However, in context of developing countries, this stakeholder dialogue cannot be effectively realized due to various unwanted barriers such as language, culture, education and pluralistic values, which adversely affects the negotiations and decision-making. Moreover, one more obstacle that hampers the positive advantage of CSR in developing countries is the prioritization of the interest. As the stake-holders represents the common will of the civil society, but it depends upon their priorities and interest, the success of the CSR, for instance, those groups whose issues and problems are not taken up by the civil society organizations may also be ignored by firms. Notwithstanding the role of organized labour, the unorganized sector can rarely present a threat to a firms productivity, nor is the firms dependence on them likely to be high. Elaine Sternberg alleges that stakeholding is unworkable and destroys accountability within a firm, as the stakeholders are usually seen as all those who affect or are affected by a corporation.  [11]  This shows that the CSR for the unorganized sector, which represents a significant proportion of the population in developing countries (more than 50% in India) is highly neglected. The CSR business case It is a common practice that the companies are generally meant for their profit-maximising attributes based on the competitive advantage, and to maintain corporate reputation, the beneficial impact on staff morale, etc, and thereby the lessening the involvement of theirs in developing countries. The business case is simply the arguments and rationales as to why business people believe these concepts bring distinct benefits or advantages to companies, specifically, and the business community, generally. One of the possible explanation to the business case of the corporate is given by Simon Zadek, who says that the corporate follow the defensive approach, i.e., companies should pursue CSR to avoid the pressures that create costs for them.  [12]  The second approach identified by Zadek is the cost-benefit approach, which holds that firm will undertake those activities that yield a greater benefit than cost. The third approach can be that the firms will recognize the changing environ ment and engage in CSR as a part of a deliberate corporate strategy. As a consequence, CSR is commonly focused on add-on measures and technical solutions, to a certain extent neglecting the contextual environment or even the intended beneficiaries that are addressed by the CSR measures. In this sense, the big business-hubs only act so as to maintain their healthy reputation, and thereby neglecting their social responsibilities, and even if they pursue their social responsibilities, the interest of the developing countries is even not represented there, as the issues are normally evolved in the developed world, which are quite different to that of the developing world. The inappropriate CSR agenda Though CSR has evolved as an umbrella concept, but still there many issues which are left unaddressed under the ambit of CSR, and which renders the effective applicability of CSR in developing countries, a potentially difficult task to achieve. The CSR agenda are mainly framed in developed countries, and hence they could not identify the practical situations faced by the developing world, like tax avoidance and transfer-pricing problems, the resource curse effects of the influx of the foreign aid or revenues, etc. This problem is ever-propagating since there is inactiveness on the part of the developing countries, mainly represented through the very few stakeholders, who do not at all represents the actual situation. The appropriateness of the CSR agenda can be ascertained once the representation of the developing countries is adequately ensured while framing the agenda, so that a more inclusive approach can be taken into consideration, including the varied concerns of the developing countries, ab initio. POSSIBLE APPROACHES TO EFFECTIVELY IMPLEMENT THE CSR IN DEVELOPING COUNTRIES So far, the concept of CSR has mainly evolved through the concerns and interest of the investors, companies, campaign groups and consumers based in the developed countries. As a result of this, the CSR agenda with regard to the developing countries is very difficult to realize. It has been observed that the impact of CSR in context of the developing countries is rather negative, due to various conceptual as well as structural inadequacies. However, as observed, the developing countries are a potential hub for the growth of CSR accordingly to achieve its ultimate cherished goal of sustainable development. Although the CSR is a global phenomena, its implications can very well be sensed at the local boundaries of the individual States as well. Due to various structural differences within the developing countries, the State Activism needs to be enhanced to properly harvest the ripe benefits of the CSR initiatives. The States need to mould the national policies so as to recognize the conc erns of the stakeholders of the developed countries. The following initiatives could go a long way for procuring the positive outcome of the CSR in developing Countries: Free acces to market As it is well-known that the markets in the developing countries provides for a potential market and the CSR mainly acts through the stake-holders, the CSR objectives can be effectively realized by making possible maximum number of participation from the consumers, so that minute interest of the consumers which are often neglected being unidentified, can be given due consideration. The market policies of the States should be so formulated, as to promote extended participation from the consumers. This becomes especially relevant as more and more companies from developing countries are globalizing and needing to comply with international stock market listing requirements, including various forms of sustainability performance reporting and CSR code compliance. Socio-Political Reforms The Government of the developing countries should induce political reforms so that the problems and issues at the ground level can be identified, and then only the CSR initiatives could be effectively realized forthwith. For example, De Oliveira (2006) argues that the political and associated social and economic changes in Latin America since the 1980s, including democratization, liberalization, and privatization, have shifted the role of business towards taking greater responsibility for social and environmental issues.  [13]   Enhancing the investment incentives It is a common assumption that there is not much scope for investment in the poorer countries as they are largely occupied by the fulfilling of their basic requirements. There comes the responsibility of the concerned Government to frame policies so as to promote socially responsible investment (SRI), so that the corporate houses could be attracted to invest in the developing countries. For instance, In some developing countries, like South Africa, the SRI trend is well documented (AICC, 2002). In addition to featuring prominently in the SRI movement in the 1980s through the anti-apartheid disinvestment phenomenon, since 1992, South Africa has introduced more than 20 SRI funds nationally which track companies social, ethical, and environmental performance (Visser, 2005a). Propagating Stakeholder Activism As discusses earlier, that the CSR mainly works with respect to the stakeholders, who have certain pecuniary interest in the whereabouts of the business house, and they represent a very segregated part of the actual mass of population, and hence, the interest of the large part of the developing world could not be identified. The stakeholders are generally confined in the furtherance of their own petty interest, and therefore, it becomes impossible for the Corporate to identify the interests of the consumers at large. And hence, the onus shifts on the concerned government to intiate such policies to enhance stakeholder activism. In the developing world, the stakeholders agencies such as NGOs, Trade Unions, International Business Associations could be mobilized to ensure their participation in CSR activities, as they represent the class of stakeholders who mainly work at the primary level and are well aware of the existing issues and circumstances. Newell identifies the Stakeholder Act ivism in developing countries as civil regulation, litigation against companies, which go a long way in procuring the interest of the developing world. There are numerous examples of civil regulation in action in the developing world of which South Africa is a rather striking case in point. This has manifested itself mainly through community groups challenging companies over whether they are upholding the constitutional rights of citizens. Various landmark cases between 1994 and 2004 suggest that, although civil society still tends to lack capacity and resources in South Africa, this has been an effective strategy. Stakeholder activism has also taken a constructive approach towards encouraging CSR, through groups like the National Business Initiative and partnerships between business and NGOs.  [14]   The theory of Organizational Legitimacy as a possible solution the implementation of CSR in developing Countries This theory of Organizational Legitimacy can have various dimensions, but through a strategic view-point, the focus rests on the organization and assumes a relatively high degree of managerial control over the legitimating process. In the institutionalist tradition, a broader perspective is taken (society looking in), focusing on how organisations or groups of organisations adapt to their institutional environments in order to manage legitimacy. Here, legitimacy is not seen as an operational resource, but rather as a set of external constraints, forming the actions of the organization.  [15]  Therefore, this theory of organizational legitimacy imposes upon the business houses, a certain kind of ethical constraints, to be complied with, for effective implementation of the CSR agenda. Suchman defined Legitimacy as a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, belie fs, and definitions. This definition denotes the principle of moral legitimacy which the organizations follow to appear consistent with ones external expectations in order to be able to continue business as usual. This theory need not be made universally applicable as in the judgment whether an organization and its actions are legitimate or not, is rather socially construed, and therefore subject to change depending upon the socio-political environment, the organization is established into. CONCLUSION In view of the above discussion, it is well-evident that the CSR has not been able to properly stretch its tentacles in the developing world, due to various conceptual and structural obstacles. The reason could be primarily attributed to the fact that mostly the issues are not recognized and thus have not come forth within the ambit of the CSR agenda, due to the shortcomings in the policies of the developing countries. It is pertinent to observe the conceptual aspects of the CSR beyond the customary approaches being carried thereon. It cannot be necessarily assumed that CSR is ineffective in context of developing countries, rather there is problem with the identification and acknowledgement, of the issues which needs to be addressed. If the CSR standards with respect to the workers right and natural resource management are looked into, it is observed that for people in developing countries, it has been inadequately addressed. This issue of identification of the problems at the ground level can be mainly attributed to the fact that the stakeholders, who are primarily in touch with the CSR agenda, represent a very minimal proportion of the actual working population, and also the stakeholders are primarily bothered about their own self-interests. The policy of Stakeholder Activism initiated by certain States is a welcome move in this regard, and this could go a long way in ensuring the representation of the larger mass of population in the mainstream CSR agenda. Thus it is inferred that the failure of CSR agenda in the developing countries is a mainly a structural inadequacy rather than any practical or procedural aberration. However, regarding CSR in the context of developing countries, the explanatory power of organizational legitimacy goes beyond its customary tradition. The institutional array of organizational legitimacy proves as a useful body of theory to inform CSR in a developing country context, since it is able to address cultural factors and goes beyond business case considerations. Therefore, the CSR initiatives being seen through the organizational legitimacy theory can effectively solve the problem of non-implementation of the CSR policies in the developing world. It is pertinent to observe at this juncture, that State Activism is urgently required to mobilize the dormant effect of the CSR policies, in the developing countries. The State needs to frame regulations and policies, in their municipal laws so that CSR initiatives could reach to the people at large, rather than being confined to the minor stakeholders. The ineffective realization of the CSR policies is mainly a structural aberration, which needs to be solved by taking into consideration the issues and problems at the ground level.

Strategic business management

Strategic business management Introduction: Strategic business management has its roots in the thinking of the workforce; strategic thinking can no longer become a textual presence of words in the notebooks. The training programs and the meeting conducted at the sense of urgency do not mean that a company is on the right path. In the competitive era the stability of the market is doubted. Even though experts and analysts say the market is recovering from the slow down, the psychological impact that has changed the attitude of people had to be recovered, and it will take time on the long run. In this research of study certain tools and business strategies are used that exemplifies the impact that change bring in and how the company needs to manage the change. Resistance to chance would occur in the initial stages. The source of information that is used in this assignment. Comprises secondary data s by means of white papers, journals, magazines and case studies of the company were also used. The analysis part of this assignment includes the interpretation of psychological attitudes that exists when a change is implemented. And when a company decides to grow itself strategically impacts would be demographics and all the functional areas of the management such as production, operations, finance, human resource, marketing etc But all the outcomes of the results purely rely on the workforce and their attitude. The nature of the research is descriptive as the assignment examines the existing affairs of the company. And it also includes the Expost Facto method in sourcing of the datas. COMPANIES TAKEN IN TO CONSIDERATION FOR THE ASSIGNMENT: In this assignment as per the instructions laid down, as a must I have taken in to account the strategies and the process of International Business Machines one of the pioneers in information technology and computer hardware. And for the optional choice of opting the other company o have taken HONDA The power of Dreams, the reason I chose was personal and I always have a craze on the engine and the models of Honda. At the other end, Honda is known for its expansion and diversification in the recent past as they also pioneer in Intellectual Property Rights in getting the patent rights for their designs of engines. As this assignment needs a wide discussion on the change management I opted for Honda that has a strong workforce. TASK I SOURCES OF CHANGE AND ITS IMPACT CHANGE IS THE ONLY THING THAT CANNOT BE CHANGED without change it will be boredom for human beings and also for other living things. Liberalization, privatization and globalization all these have enhanced the frequency of occurrence of change. Competition exists everywhere smart people are defined by the way they adopt to change. Since the cultural impact plays a role in managing the change, traditional philosophy in the flow of communication in the management also defines the future. Information technology has created resistance to change, especially for the tradional and the baby boomers. As these generations of workforce stick on to the routine work and resist change. Not to blame them but its the responsibility for the management to sort out such things without dissatisfying. SOURCES OF CHANGE IN AN ORGANIZATION: PEST AND ITS ROLE ON CHANGE: Most of us would wonder the relation between a change and the PEST. _ SHAPE * MERGEFORMAT ____ POLITICAL: Legislative norms to be abided by the companies on the run might create a change in any of the management process. For example, few of the acts that had come in to enforcement like Paternity act and more had to be implemented by the human resource department. But the intentional movement and implications that are laid down by the ruling party should be abided by a company. This involves sudden change in the norms and the standard operating procedures followed by a company. But when again another party comes to ruling in the next 5 years another set of implications will be laid down at this time when a company is undergoing expansion it will face lot of resistance at this juncture. SOCIO CULTURAL: The employment opportunity that prevails in the current scenario is the worst of all times. The impact of the slowdown has thrown its roots psychologically in the mindset of the people and thus it has an impact on the productivity too. And the socio cultural patterns might also reflect on this as companies like Honda, IBM have a diversified workforce problems might arise when downsizing is done. The life style choices of the employees coming from various origins might also be reason to accept or refuse a change when a company diversifies its portfolio. And the cultural fit of new hires is also a subset that falls under this. TECHNOLOGICAL: Technological boom has helped the companies to automate work up to a great extent and the impact of the emerging technologies might have the urge to bring about a change in the organization. Internet intranet, remote and Tele Commuting has helped the workforce to balance their work and life. In order to beat the rivals and compete with them the Research and Development department has the key role and its is more or less dependent on the information technology. Change might also be viewed especially in this area. The transfer of technology when a company is in an expansion mode might also cause change and bring about problems. ECONOMICAL When a company is undergoing change either it is in an expansion mode the existing business cycle stage has its part for sure. Companies like HONDA, IBM are in the matured stage and so these factors contribute to the decisions that they take to opt for diversification. Pink slips and the unemployment rates along with the inflation and the growth rate have gone down. The U.S mortgage loan i.e., the sub prime crises has also hit the other markets and this is because of the reason the impact of globalization. The Labour costs and the availability of the manpower vs. the vacancies are also to be considered as these might force to bring about a change in an organization. TASK II INTERNATIONAL BUSINESS MACHINES AND ITS CHANGE (STRATEGIC MANAGEMENT) International Business Machines pioneering in hardware, software and also in IT service this baby was born in the year 1896. Herman Hollerith being the founder he maintains about 398,455 employees globally. With enormous diversifications across the world it has one if the best strategic team that opens its ears across the changes form time to time. Recession is said to occur recently, but IBM had learnt on how to cope up the changes that occurs due to recession. In the late 1986, IBM faced a recession this is sadi to be one of the worst time the company had faced but to be http://www.time.com/time/magazine/article/0,9171,1075217,00.html http://www.time.com/time/magazine/article/0,9171,1075217,00. (date:21-12-09, time: 3.35p.m) IBM The recession in 1986: In 1986, the IBM has slum down its market capability. Since 1981, the sales have slipped about 35% to 29%. It has sales around 3 million in personal computer in the year 1981. The market has continuously slipped in the year of 1986. The profit has comes down as 4% and the sales also move slowly. The market share ranges as 133% to 125% in a week. 9,370 computers are launched for the customer during the period of 1986. But it is inefficient to transport the computers to other branches. The customer should not wait till the computer reach to them. Only Loyal customer may wait for that. The IBM has decreased the retail sales during this period and they sales to the NYNEY, the New York based company. The recession was followed by the launch of nearly 9370 computers in the market. In this case the value chain got struck as the lead time to reach the customers got delayed. The primary stream of the value chain was good still the secondary chain including the retailers, dealers was having some problem. This might be because of the mass production that the company was in to. This led to dissatisfaction among the new customers as the word of mouth turned bad and at the other end the loyal customers might also get dissatisfied. And this led to a decision of destructing the sales that IBM was handing over to retail sales. http://www.time.com/time/magazine/article/0,9171,1075217,00.html (date:22-12-09, time: 5.15p.m) The EXIM norms that were laid down at south Korea and Japan led to imports at low tariffs and the logistics returns were not goods the other end the rivals were opting for smart thinking with the emergence of laptops and mini computers the rivals were capturing the market share and at the end of the day IBM was forced to push down the selling of computers. http://www.encyclopedia.com/doc/1G1-158239452.html (date:23-12-09, time: 3.45p.m) DEMOGRAPHIC FACTORS: In the case of IBM the fame that it had in its own origin was relatively high. It is very usual that the local market and the perceptions among the retailers and the customers would be positive. And at the other end, the corporate social responsibility that IBM has served to the origin would also serve as a catalyst for further prospects in the same region. And when it comes to the products competitive strength even though the value chain of IBM has proved to be poor, the product fitness is said to be quiet good an even it could be considered as a competitive edge. INFERENCE: The marketing strategies of IBM solely rely on the 4Ps Product, Price, Promotion, and Place. Hence, the inference from the analysis is that the competitors for IBM is more and even in the period of 1987, besides the decline they have grabbed lot of eco friendly awards for ensuring the hazardous wastes to be low. And to the surprise, IBM made it to a percentage of 96% which none of them scored. And the recent initiative that IBM had made in the name of GO GREEN IBM, in which when a project head shouts GO Green all the employees under his belt switches off the monitor they by reducing the green house gas content to the maximum. Coming to the market growth IBM is making ways to expand its market to a greater extent in the presence of competitors the strategies should be focusing on converting the strength at ease by making use of the opportunities. And also the intelligence team and the Research and development team should keep itself updated right starting from the job cuts and the cos t cutting impacts and its relation with the consumer behavior. IBM goes Green Business Week,29/12/09,06.00.p.m IBM IN THE EXPANSION MODE: The strategic team consisting of around 6-8 people in the IBM strategic department devised a growth strategy for expanding its services in all directions. At this juncture the management was much more concerned about ensuring the following things: Setting up a new R D plant in the areas to be diversified. The workforce at these places might consist of experts and also few people with a diversified mixture. The expansion should ensure that the resources by all means should be utilized effectively and efficiently. No room for psychological deviations should exist at the time of expansion. Headhunting a competent workforce candidates from the rivals at the area where the company is expanding After considering the golden rules IBM decided to sketch the road map for calking out the expansion. At the time of expansion IBM was concerned about achieving the growth by means of hike in sales, profits, assets and also the stake holder satisfaction by enhancing the value of returns. Cost cutting at the same of expansion was also a challenge that was hiding behind. Implementation of Total quality Management tools such as 6 sigma, 5S were the areas where IBM ensured perfection. For this a team of quality circles were also appointed and expenses over the Training and development were turning high but they were continuing it expecting Return on Investment through Proper Reinforcement that as possible only when IBM provides a conducive climate for working. This task was then focused towards the Human Resource Department. Several research and surveys were conducted to measure the existing working climate at IBM plants and necessary changes were also made to ensure the reinforcement is witnessed VERTICAL AND HORIZONTAL GROWTH PLANS OF IBM Soon after the plans got devised IBM started working at full phase, it was concentrating on enhancing the value chain in the secondary stream especially in the distributors and suppliers (retailers)and at the recent statistics IBM has gone for serving the customers at the door step. The use if SAP by means if ERP made the suppliers and the retailers to get connected directly. ERP VERTICAL GROWTH OF IBM: The need of Enterprise Resource planning across the service points was very high. IBM understood this and soon it acted on the opportunity. The extent of interaction went to such a level where the suppliers could place an order from the desktop of their service point to the production plant. This growth base was not easy as the implementation of ERP brought about psychological barriers. ERP implementation and Change Management: Both the backward and the forward integration was possible was IBM on the use of ERP. Still, resistance to change occurred at IBM and the company was pushed to the process of managing change. IBM CHANGE MANGEMENT STRATEGY THE LEWINS 3 STEP MODEL: IBM was in the process of managing the resistance to change that raised in the diversification of the plants as well as the implementation of ERP. UNFREEZING: IBM mad the communication transparent and so it also conveyed the plans for the growth in the individual career growth plan and devised ways to unfreeze the change. MOVEMENT: IBM ensured that the new state will reach soon and it also happened as per the devised plan. REFREEZING: IBM ensured the HR practice and the climate after their companies expansion at different areas did not affect the emotional quotient of the employees. Counseling and work life policies were also designed and certain fringe benefits also were provided Horizontal Growth: IBM also moved through the phase of horizontal growth and the acquisitions with the other companies like TOKYO OKHLOA and KOGYO CO LTD turned to be one of the successful strategic alliances by means of working through low consumption of solar energy. Diversification @ IBM: IBM devised new product lines and perfect products with the help of research and development dept .The diversification was a combination of both concentric as well as conglomerate. As the first involved in enhancing the production process with marketing strategies through the sales force and the later involved the merger in to the solar business industry. The new products at IBM after the year 1986 and the recent collaboration with LENOVO has also paved way for the emergence of laptops and other devices. IBM now is trying to capture the market where it has been lagging earlier the restructuring process at IBM under the guidance of CEO Louis U. Gerstner who rearranged the brand and the logos and also incorporated the GO GREEN. TASK III An international company and pioneer in manufacturing of engines. Equal competitor for the German automobile companies when no one dreamt of it this company right now stands as a leader in the automobile industry. The company surprised the customers and delighted them by selling its product CIVIC HYBRID. Yes of course its HONDA THE POWER OF DREAMS. These dreams were made true when a simple mechanic named Soichiro Honda founded the company in the year 1940 at Japan. Incepting with a normal 50 cc bike Honda has now emerged as the core competitor for the rivals. http://www.oppapers.com/essays/Honda-Passenger-Car-Industry/206913 http://www.1stgencivic.org/(date: 23-12-09, time: 5.45p.m) THE DOWNFALL OF HONDA: When we are asked to comment about HONDA we would say its leading company in the automobile industry, but the fact is like any other company Honda also faced a downturn and this was said to happen when the company failed to invest actual funds in to Research and development at the right time. This paved advantage to its competitors like Toyota and Nissan. As Honda was keen in designing the engine it failed to take in to account the customer perceptions and taste of the customers in other countries. Later, the company decided to opt for a strategic alliance to enhance the productivity and to capture the market share in the other countries other than its origin. When Hondas strategic alliance team was analyzing on which of the action to select it went for a mutual beneficial consortium with DONGFEN a Chinese company as this resulting in capturing of markets with cost cutting in the process that minimized waste of time and resource at certain levels. http://www.telegraph.co.uk/finance/newsbysector/transport/6259440/Hondas-UK-plant-is- leading-the-car-industrys-revival.html(date:24-12-09, time: 6.21p.m) OTHER ALLIANCES: Honda did not stop with a mutual consortium it also decided to take along step of opting for a Joint Venture with Siel Siddhartha and it produced nearly 38,849 and nearly 15.5 million engines and this decision turned to be one of the most important moves that actually leveraged the financial risk of Honda. Honda also opted for a joint venture with siel followed by a value chain partnership which actually has now made Honda to be one of the pioneers in automobile manufacturing with one of the best in class total quality management and it has now captured the customers and had made them to be at the top of ladder of loyalty. Thus these strategic alliances with the other companies by means of value chain partnerships and joint ventures followed by a mutual consortium. The following were the pros that Honda acquired because of the strategic alliance. Research and development team got stronger and the company was able to make focus on a specific target of customers that also paved way to a decline in the risk that is to be bared individually rather it turned to be mutual risk and profit sharing decision. Thus by holding hands through strategic alliance Honda was able to strengthen its base and acquire more of the market. http://www.myautoupdater.com/a29182-world-class-honda-car-parts-sold.cfm(date:24 -12-09, time: 5.35p.m) TASK IV ASSESSMENT OF RISK INVOLVED IN RUNNING A NBFC BUSINESS Risk is there everywhere, with out proper assessment of risk even a traditional company would collapse in a short span of time. Risk management has been given more importance in the field of non banking financial corporation. The recent slow down that has rooted out from the sub prime crises has made all the industry to rethink of its strategies in opening and sustaining in the existing market. The initial investments that is required to run the business is relatively high. Some of the risk factors are discussed below: The nature of the financial product might not be very attractive as the rivals will be more in number. Finding out the small gap in this segment would be the challenge. The negative of financing would be the competition that the company would face form the banking industry as customers are more aware of the shortcomings in this regard. In the team of marketing the attrition rate has witnessed to be very high amidst the financial crises. The fancy incentives are not stable and so the income and the job security are also not constant. The marketing department would sell of the loans to the consumers but the problem rises when the collection team keeps on insisting the customers to repay the amount when fails leads to loss in the concern. The present rates that is prescribed by the government of u,k to run a business related to non banking financial industry is quiet tough to maintain. And moreover the issues of the corporate governance and the disclosure of the financial statements are the issues. The policies are now made stringent rather it was lenient those days that led to the recession. The task of processing the loan for a new commercial vehicle becomes an important risk factor as the appraisal of the customer and his pay back ability could fail at any time and more over the loss incurred in case of the customer failing to repay the amount is relatively high than in that of refinancing. RECOMMENDATIONS: The recommendations that I would put forward in this issue would be to follow the risk management and assessment tools usage and also the use of porters competitive strategy would be an optimal solution for the NBFC business. Cost Leadership: The NBFC is a service oriented sector and so the cost would be much more on the interest rates and the IRR value that the company would yield on the long run. The implications that are laid down by the government should be followed strictly. And also the mortgage loans would have an impact. Differentiation: In order to differentiate the products the NBFC industry is all complicated with lot of products and the mode reaching the customers and converting them in to a loyal customer by offering special loans based on the track records would be the solution on this function. Cost Focus: Nothing much on the cost focus is needed provided the interest rates are low. The above strategies would find out an optimal solution for the business to run successfully. Sekaran Uma, Strategic Management, published by Tata Mc Graw Hill, 2005(date: 23-12-09, time: 6.14p.m) BIBLIOGRALPHY: Mcshane L. Steven VonGlinow Ann Mary Sharma R. Radha, Organizational Behaviour, Published by Tata McGraw Hill, 2006 (date: 22-12-09) Robbins Stephen P, Organisational Behaviour, 12th Edition, published by Prentice Hall Pvt. 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