Merseyside Essay

This case involves the dilemma between two mutually exclusive projects that Victoria Chemicals wants to proceed with, but can only choose one earning them 7% increase in polypropylene output per plant. The two proposals will be proposed by the plant managers and evaluated according to corporate criteria. They are to be evaluated on four credentials; Net present value, IRR, payback, and growth in EPS. However the two proposals are fairly different. The Rotterdam projects calls for the expenditure of 10. 5 million GBP spread over three years, firmly committing Victoria Chemicals to the new process technology. The Merseyside project calls for 12 million GBP for renovations, retaining the flexibility to later add the technology in the future. The question is which project should the company take on based on the financial calculations including the company decision criteria. Rotterdam Proposal The Rotterdam proposal consisted of a 90 page document with strategic analyses, and financial projections. The basic discounted cash flow (DCF) shows the project having a positive NPV of 11 million GBP with a IRR of 15. 4%. The initial invest spread over 3 years would help convert the plants polymerization line from batch to continuous-flow technology and to install sophisticated state-of-the-art process controls throughout the operations. This process has already been installed in several other production facilities in Japan and the improvements in cost and output had been positive on average. This proposal consists of 90 pages and already is giving a hint. In this proposal there can be a lot of bogus information which cant lead to false and misleading predictions. It can be looked at as very sketch as to why it seems to be the â€Å"better† proposal. In essence, the Rotterdam proposal seeks to accomplish their goals by having the option to purchase the pipeline for GBP3. 5 million in initial capital investment for overhauling the plant, having a value of 6 million GBP which can be later sold 15 years later for approx.. 40 million GBP. This violates the stand-alone principle. Subsequently, the plan calls for spending another GBP5 million in 2001, GBP1 million for 2002, and another GBP1 million for 2003. Total investments are roughly GBP10. 5 million, spread out in 3 years. These initial investment figures have a negative impact on the firm’s finances, affecting a series of other factors, which raise concerns among board of directors and executives. One major concern is that in the financial associated with this project they include 40 Million GBP from the selling of sale of the right-of-way pipeline in there cash flows in year 15 when in fact this is not substantial cash flow directly associated with the project. Some senior Victoria Chemicals executives firmly agreeing with this speculation saying â€Å"Our business is chemicals, not land speculation. Simply buying the right-of-way with the intention of reselling it for a profit takes us beyond our expertise. Who knows when we could sell it, and for how much? How distracting would this little side venture be for the executive committee? This then can affect the NPV as well as the IRR. The proposal also doesn’t account for the 3 percent inflation that is expected which also can change the estimates of gross profit also affecting the free cash flows for this project. As a result of these loses in output the first three years (from 2001-2003), there is also a reduction in gross profit. The report shows loses of -7. 79 GBP for 2001, -GPB5. 73 for 2002, and –GBP3. 40 for 2003 caused from the initial investment of 10. 5. The total loses amount to a staggering –GBP16. 92, a substantial amount for the firm during these first three years of upgrades and preparation for the new technology. These loses have a direct impact in sales figures, noticeably, thus creating a longer payback period for this project around 11 years, meaning that the project is a bit more risky considering a given 10 percent discount rate. I also noticed that this project seems to have the higher NPV of 14. 87 when they factor in the 40 million GBP from the sale of the pipeline in 15 years. Without that it then falls under the other proposal and is not the preferred project and has a lower NPV of 5. 29. Merseyside Proposal The Merseyside proposal consisted of a 12 million GBP expenditure creating significant opportunities for improvement in polypropylene production. Other opportunities stemmed from correcting the antiquated plant design in ways that would save energy and improve the process flow: relocating and modernizing tank-car unloading areas, which would enable the process flow to be streamlined, refurbishing the polymerization tank to achieve higher pressures and thus greater throughput, and renovating the compounding plant to increase extrusion throughput and obtain energy savings. No question that Morris’ plan is the more conservative of the two, suggesting a phased-in approach to the upgrades. In essence, Merseyside sees the need to make some technological upgrades as well. They want to slowly upgrade to the new controls system, and after a few years, make the full switch to the new software. In all, this 12 million GBP proposal retained the flexibility to add the technology in the future. The entire renovation would cause the plant to be down for 45 days causing the customers to go to other suppliers and competitors for the needed products due to the fact the other nearby plant (Rotterdam) is already working at maximum capacity. Some benefits of the renovations would be the improvement on gross margin up 1 % from 11. 5-12. 5. As you look at the financials associated with this project you notice that Merseyside met all the requirements for the corporate criteria with a greater NPV that Rotterdam when they do not include the 40 million sale of the pipeline. They also include and take inflation into account when giving their proposals as well. The initial investment is a bit more that Rotterdam but essentially the payback period is lower with only around 4. 1 years. This means this proposal is less risky then the other, both assuring the expected return of 7%. However there is a crossover rate at 15. 2 meaning with the discount rate at 15. there is no proposal that is preferred to one another if Rotterdam includes the 40 Million. Without the 40 million Merseyside project will always be preferred to Rotterdam because the NPV will always be greater. According to the case and my calculations I have come to the conclusion that it is best to accept the Merseyside project and reject the Rotterdam. Based on many financials and the corporate criteria Merseyside seems to be the best option. While evaluating both proposals I noticed that the Rotterdam project purchases a right-of-way pipeline for 3. 5 million included in the 10. million GBP investment to later sell in 15 years for 40 million GBP violating the standalone principle. However being that they are not in this type of business and are in the plastic manufacturing industry producing a wide variety of products; including medical supplies, carpet fibers, and automobile components, they should not account for the sale which would then put the NPV for this project from 14. 87 to 5. 29, which is then lower then the NPV for Merseyside which is 9. 12. When comparing mutually exclusive projects you want to focus on NPV and the project with the higher NPV is usually preferred to the oth er like in this case. Also when making my decision to choose Merseyside I noticed there was a smaller payback period meaning it will take a shorter time to recover your initial investment proving that the project can be less risky as well. I was also a little sketched out when the plant manager for Rotterdam presented a 90-page proposal. This can mean the managers put in a lot of false and misleading info to get the project approved. This can rest my case as to why I would prefer to choose the Merseyside project to the Rotterdam.

Air Traffic Control

The National Airspace System of the U. S is one difficult system to work with today. It consists of thousands of people, procedures, facilities and equipment, which, enables for safe travel across the United States and over great portions of the world’s major oceans. The entire system consists upwards of about 5000 air traffic controllers, and over 10000 safety inspectors and technicians. All together, there’s about 41,000 facilities within the system and over 71,000 pieces of equipment like radar. Over 50000 flights use the NAS everyday. As one can see, the NAS is extremely important. One may ask what it has to do with NEXTGEN of which I am writing. NEXTGEN itself is a name given to a new NAS that will be implemented in stages around the U. S between the years of 2012 and 2025. The air transportation system around the U. S will be undergoing major transformations. What’s the point of the transformation the FAA is having the U. S going through? Mainly, it’s to reduce major gridlock not only in the air, but in the airports as well. The NEXTGEN has been undergoing its formation ever since 2003 by JDPO which was established by the U. S congress. Lately, the Air Transportation System of the U. S has been undergoing increasing stress. This will only lead to more costly delays of flights, and thus creating concerns of flight safety and then degrading even further the U. S ATS. Mainly, NEXTGEN is a transformation of the ENTIRE NAS, not only bits and pieces of it. It’s to meet any future demands and help avoid gridlock of traffic. NEXTGEN â€Å"moves away from legacy ground based technologies to new and more dynamic satellite-based technology. The new capabilities and the highly interdependent technologies aim to change the way that the system operates, reduce congestion, and improve passengers' experiences. Throughout the paper the NEXTGEN will broken down and dissected until we know it through and through. The NEXTGEN consists of several different elements such as ADS-B, SWIM, NNEW and NVS. Starting with the ADS-B also known as automatic dependent surveillance broadcast. The ADS-B is going to use GPS to help pilots and ATC to separate planes and not only in the sky, but on the ground as well. The GPS will paint a more accurate picture to see other planes in the area. The transponders in the aircrafts will receive the GPS signals and will thus use them to see the precise location of the aircraft. The data will then be broadcast to other aircraft and ATC, and for the first time will see a real time display of other traffic. Later on down the road the FAA will mandate what kinds of avionics are necessary to implement the ADS-B. The FAA will require that all aircraft will need to be equipped with it by no later than Jan 2020. The ADS-B is going to bring many new safety features in and out of the airplane. Within the aircraft, a pilot can bring up information about aircraft surrounding his, with details such as heading, speed etc. It will also show the pilot about terrain and any weather that may be headed his/her way, and what seems to be more importantly, it’s free. Next, the NEXTGEN consists of SWIM, System Wide Information Management. â€Å"SWIM will provide a single infrastructure and information management system to deliver high quality, timely data to many users and applications. † SWIM is going to rid NAS of any repetitiveness so the users may use the information more efficiently. It also allows for the information to become more easily accessible. Euro control first pitched the SWIM to the FAA 14 years ago, and since then, it’s been under development. However it’s not only a concept that’s going to be implemented within NEXTGEN, but Europe’s research facility is also trying to implement the same thing. The main improvement that SWIM will bring to NEXTGEN is it will create an increase in situational awareness, which, in the air, is important. How it’s possible is the fact that the information provided to all positions (ATC, pilots etc) is consistent. Next is the NNEW, Next Generation Enabled Weather. As earlier stated, NEXTGEN is used to help create less delays for flights, which thus cost money for the airlines. This element of NEXTGEN will help reduce the delays of airlines because of the fact that about 70 % of all delays are related to weather in some way. It’s predicted that NNEW will quite possible reduce the amount of weather related delays in half of what it already is. All the different ways a person can gather weather (weather towers, airborne, in space) will all be combined into one source and will update it every hour in real time. Like it has been seen, receiving common information is the key to improving the airlines’ performance and safety, and NNEW is no different. NNEW will give a common picture of weather across the nation making it easier for pilots to make the decision whether or not to fly at that particular point in time. More impressively, the NNEW is making to create not a 3-D picture, but a 4D weather data cube (lateral, vertical time dimensions). Not only will this create an increase in flight safety, but it will allow more planes to get off the ground because they thought the weather would be poor, thus increasing airspace capacity. Lastly, there’s the NVS, NAS voice switch. There’s plenty of voice switches within the NAS, in fact there’s over 17 different switches. With some being active for more than two decades, NVS is planning on making things a little bit easier all for the sake of performance by creating air/ground and ground/ground communications. The NVS is set to be put in place to help controllers that may be overworked in their areas particular â€Å"on† season. It will allow airspaces to be reconfigured due to workload of other airspaces. The catchy thing about all of this is, with these reconfigurations, they’re possible without an actual, physical movement of staff. A person from across the country can be assigned to airspace without moving anywhere. Also a change between analog to VOIP is also being considered before this is to be implemented. Simply put, NVS is just the new class of communication with airborne aircraft, replacing those out of date equipment. There, of course are many benefits to the NEXTGEN. Now, the pilot would be able to choose its direction of flight, which preferably it’s a direct flight, which goes to show that it will increase performance, and not need to necessarily follow the grid in the sky that exists today. Like never before, an airplane will receive precise location and time it and another aircraft are to cross paths along their route of flight, which will allow ample time to redirect itself as necessary. Also, the same information will be accessible to those on the ground, both pilots and air traffic managers, thus making the sky a much safer place to be in. As previously stated, weather related delays and emergencies will be avoided almost all together by giving precise information to pilots and air traffic managers via improved information sharing. NEXTGEN will improve surface movements at airports, because of this; as much of a separation isn’t needed, and that allows for more aircraft into a specific area. This will allow for a better management of flow into and out of busy airspace. Like stated on several occasions above, NEXTGEN is used to increase efficiency in the air, and with every element combined we will be able to better use our busiest of airports and make sure we’re getting their potential out of them. The USA and Europe are working together in what I like to call interoperability to get each other on the same page. As of October of 2010 the US and the European Authorities have reached a preliminary agreement on the integration of their respective Air Traffic Management improvements. Co-coordinating the two is one giant step towards the standardization of ATM. The USA and the European Union will pursue such a feat through the CAO. In my opinion, the integration of the two is not only essential, but it almost needs to be required, once aircraft leave US airspace, then it’s back to the old way of communicating. With the integration of the two, planes will be able to fly across the world or at least from the US to Europe without having many variances in communication. As this paper is drawn to a close, there’s one point that I feel needs to be brought up time and time again, and that’s flight safety. NEXTGEN with the combined efforts of Euro control, our skies are going to be incrementally made more efficient and safe at the same time. The information people read across our country and vast amounts of ocean will be uniform and consistent which is very important, because it will remove any confusion which is unsafe and not effective. NEXTGEN has a very bright looking future for ATM; it’s a 12 year span that will show a great deal of improvements in many areas for aviation. Bibliography * Derber, Alex. â€Å"Europe and USA Take Step towards ATM Interoperability. † Aviation News and Aviation Jobs from Flightglobal. Web. 05 May 2011. ;http://www. flightglobal. com/articles/2010/06/24/343582/europe-and-usa-take-step-towards-atm-interoperability. html * Wikipedia contributors. â€Å"National Airspace System Voice Switch. † Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 9 Jul. 2010. Web. 5 May.

Particular religion Essay

I do not subscribe to any particular religion, but I believe in the transcendence of the human spirit, and that there is something greater than ourselves out there—an absolute entity that encompasses us all. Many could qualify this absolute being as a God, but the word holds many sociocultural implications such as worship or a personification of that being’s attributes that I choose not to call it as such. I believe in the universality of goodness and that the only way one could achieve happiness and fulfillment is by living an good and honest life. My life’s experiences led me to believe in the concept of an absolute being, however, religion is not integral to my beliefs. My beliefs are determined my my experiences and not by religion. I have realized that most religions are man-made, and thus do not have any legitimate claim to the truth. It is all too apparent today that there exist many different religions, sects, churches, and denominations, most of which have conflicting beliefs. I have not encountered any one that works for me. Growing up, I was initiated to the religion of my parents—that is, Christianity. As a youngster, it easy to unquestioningly accept whatever it was that was inculcated in me. However, as I have gotten a better understanding of the world and myself, I have realized that that religion is lacking—for me it does not provide the adequate explanation as to living my life in the fullest sense. Over the years, religion has become irrelevant. For me, religion is a matter of faith—something I have but not to the extent that I accept that everything one religion tells me is true. Being a generally empirical person, that is to say, that I believe that something must be proven for it to be true, the idea of a religion, as we traditionally know it does not hold any weight for me. Having qualified what religion means to me, I can say that my definition does not reduce it to what I, as Frederick Streng says, â€Å"happened to be acquainted with by accident of birth and socialization. † I recognize the existence of a myriad of ultimate realities and pluralities when it comes to reli ¬gion and that having an open mind is the key to understandings what each belief really mean to the people who have them. I would not say that I have an anti-religion view, but having said that I do not subscribe to one may give that impression. My belief does not mean that I eschew every other religion as being false. I believe that religion have redeeming qualities, and that anything that influences a human being to be good and be the best that one can be could not be that bad. I would like to believe that my open attitude towards the concept of religion eliminates any perceptual bias, or reduces in the least. In the same token, my definition encompasses all, since I do not believe in the absoluteness and infallibility of any one. I regard new and emerging religions on the same ground as the old ones. All provide the means to potentially transform an individual. While my definition attempts to encompass all religions, it may not have enough precision to address each and every one of them. Just as beliefs evolve as one matures, so does one’s definition of concepts and ideas. It’s possible that I still have not experienced enough to qualify a universal definition that applies to every one. However, I believe that the search for the true understanding of religion is an ongoing process, that a closer study of it would make a clearer picture of the religious life emerge.

Media production Film and Tv Essay Example | Topics and Well Written Essays - 1500 words

Media production Film and Tv - Essay Example This means that the current media landscape is mostly working towards getting more people to be involved and participate in the interaction. Such interaction between the media and participates can also be defined as the liveness that has been traditionally marked by the bringing of global events to the attention of a nationally situated populace. However, the notions of liveness are becoming more complicated with the development of mobile phones, blogging and social networking (Hirst, 2014, 32). Acknowledging, the purpose to get a critical picture of the changing liveness, this essay will firstly present a general description of the current media landscape. Following this, this essay will critically investigate how liveness is changing the current media landscape. Furthermore, the present essay will continue to examine how our relationship to liveness is changing the current media landscape. Finally, what has been discussed in the present essay will be concluded in the end. It is beneficial to get a general knowledge of the current media landscape before investigating how liveness and our relationship to it are changing the current media landscape. First generated by Goldmark, new media refers to the notion that is constantly changing. As a matter of fact, the current media landscape is mainly characterized by new, which can be understood from four fronts. The "new" characteristic can be demonstrated by new notion, a new pattern, new effectiveness, and new value. Specifically, the new notion refers to the reducing of boundaries between traditional media, boundaries between countries, communities, and industries, and boundaries between information providers and receivers. The new pattern refers to the pattern transformation from the point-points pattern of points-points pattern, which enables every individual to have the opportunity to get involved in information broadcasting, and can further enhance public participation

Stem Cell and Embryos Essay Example | Topics and Well Written Essays - 250 words

Stem Cell and Embryos - Essay Example It is therefore a thing of value because it involves the very existence of a person, in fact, the vital stage in the beginning of life. Genetic diversity is a very important concern in cloning (Bonnicksen 169). If cloning babies were safe, then those who have superior genetic modification will most likely prevail in some circumstances. For example, this is depicted in the movie Gattaca, where there was a distinction between valid and invalid person. Those valid have higher value in the society because of their advanced genetic make up. Cloning babies therefore is a special concern because it brings with it social, political and economic issues, which at the moment are vital matters linked with inequality. For example, cloning is expensive so not all will benefit from it, only the powerful few. Curing genetic diseases is a vital promise of stem cell research. In this case, the government should promote it and further encourage more experimentation. However, since stem cell research substantially includes genetic concerns, the government should ensure important guidelines and even regulation for this

Cultural Issues and Business in the Russian Federation Research Paper

Cultural Issues and Business in the Russian Federation - Research Paper Example In terms of social protocol, there are not many differences between Russian culture and Western culture. However, specific cuisine and the custom of first-time meeting and gift exchange is common. For instance, if an individual business associate is invited to the home of another, it is expected that they should bring a gift, either for the family as a whole or at the very least – for children that might be exhibited within the household. As far as taboos, it is expected that individuals will remove their shoes once entering someone else’s place of residence. Traditionally, male and female interactions do not differ greatly as compared to other Western European nations and gestures and body language remains ultimately the same as well. Furthermore, with respect to the monetary system, the Russian Federation, as well as the Soviet Union before it, has operated on the monetary unit of the rubble for centuries. The rule, of course, fluctuates with respect to its overall strength against the dollar; however, at the current time, the ruble is approximately 29:1 USD. Compared to the United States, wages paid to workers are of course quite low. For instance, the average salary within the Russian Federation per year does not yet approach $20,000. The greatest expense with respect to doing business has to do with the long wait times and difficult to navigate bureaucracy defined so much of the Russian Federation. For instance, many firms have found themselves waiting up to one year for a permit as simple as gaining access to existing public water.

DADA movement Essay Example | Topics and Well Written Essays - 750 words

DADA movement - Essay Example Traditional art was considered to be creative because the works were created out of nothing but still were appealing to art enthusiasts. This paper advances the view that Dadaism is partly a precursor of today’s art. Looking at Picasso’s Les Demoiselles D’Avignon, one sees the originality. Originality was the cornerstone of traditional art. Picasso’s work is a painting done from scratch. It is original and makes a lot of sense. These are aspects of art that were ignored purposefully by Dadaism. They were deviants and haters of norm and traditions. Use of found objects had never been a part of traditional art. It was traditionally not considered artful. Dadaism came and changed it. Michael Duchamp, a Dadaist champion, used found object to make a fountain. Traditional artists hold the view that taking found objects and just modifying them a little bit as Dadaism advocated was itself not artistic. There are instances where anti art can take the form of art, and there are other cases where it is a total deviation from art. Using silence a music, for instance, is nonsensical and irrational, but Dadaism appreciates it because it serves a purpose. In traditional art, people expect to get entertained, but Dadaism would deliberately go against entertainment. Where a person felt bored by a Dadaist art, Dadaism meant it to bore. Hugo Ball’s Karawane poem does not make any sense; that’s just what it was intended to be. The artistic sense of Dadaism and some associated works of art was that objects that were traditionally not considered as art were made to serve aesthetic purposes. There’s nothing that could be more artistic that making something out of nothing, or rather deriving art where none ever existed. This is basically what Dadaism was all about. Several movements that came after Dadaism, such as surrealism, were, to a great extent, inspired by the ideals of Dadaism. They have led to a lot of today’s creative art. Pop art, performance

How do UK companies' Mechanisms Affect and Help their Corporate Dissertation

How do UK companies' Mechanisms Affect and Help their Corporate Governance - Dissertation Example Throughout the entire period in fulfilling the objectives of this dissertation, I was greatly blessed with his extensive guidance and supervision over my work. I cannot complete this part without saying ‘thank you, sir’. Subsequent to that, my colleagues and friends who also played their part have extended their hand for my project; the successful culmination of this dissertation has also observed the role of my friends. For such contribution, I am also indebted to them. Abstract The purpose of this paper was to understand and highlight corporate governance mechanisms pursued by the different organizations. For this purpose, the annual reports were used to extract the relevant information. Subsequently, the empirical analysis was carried out the understand interplay between the financial performance and the corporate governance mechanisms. The results indicate that the strongly established corporate governance mechanisms considerably improve the financial performance. Th e results indicate that the companies having strong corporate governance mechanisms were experiencing strong financial performance. However, more focus should be given to cooperation and coordination between executive and non-executive directors. Table of Content Introduction 5 Literature Review 8 Methodology 11 UNILEVER PLC 13 TATE & LYLE PLC 18 TESCO PLC 21 THORNTONS PLC 24 SAINSBURY PLC 27 SABMILLER PLC 32 MORRISON PLC 35 MARKS & SPENCER PLC 38 DIAGEO PLC 41 DIARY CREST GROUP PLC 44 CRANSWICK PLC 47 BRITVIC PLC 51 BOOKER GROUP PLC 55 ASSOCIATED BRITISH FOODS PLC 61 A.G. BARR PLC 65 Conclusion and Recommendation 70 Bibliography 77 Appendices Introduction Board governance mechanism haves experienced the focus of a range of reports in the United Kingdom, especially the Cadbury Report (1992)1 and the Hampel Report (1998)2. However, from these reports along with the support of Green bury Report (1996)3 came the Combined Code of best practice.4 In the United Kingdom, companies are expe cted to understand and implement board structures in accordance with the principles and provisions of the Combined Code. As a prerequisite of listing on the London Stock Exchange, firms are required to include a corporate governance statement in their annual reports. The purpose of this inclusion is to mention the ways in which companies apply the principles and provisions of the Combined Code. Subsequently, this elaborates the concept of the ‘comply or explain’ rule for the companies registered in the United Kingdom. In this regard, it has been provided that the Combined Code mentions three significant corporate governance mechanisms: duality and setting up of board sub-committees and the number of Non-Executive Directors. A considerable amount of literature is available to highlight that boards should include and ensure a balance of Non-Executive and Executive Directors. In this regard, Raheja contended that Executive Directors provide benefit to companies because of the extent of their company-related information.5 In addition to that, various studies provide that Non-Executive Directors have a constructive and positive effect and studies find that boards dominated by the Non-Executive Directors have more tendencies to act in the best interests of the shareholders.6 The UK Combined Code of best practice have recommended that Non-Executive Directors should make up at least one-third of the Board and consequently there have been

Need for Risk Assessment of Biotechnology Projects Essay

Need for Risk Assessment of Biotechnology Projects - Essay Example And also, the extend of risk varies from situation to situation. In the case of agriculture , the engineered species are applied on the field and hence major apprehensions would be the environmental impact and various issues related to the human health . When it is related to industrial products, the concerns would be more towards the worker safety and the potential threat to their health. The perception of risks and benefits of genetically modified organisms or plant varieties in the minds of public decides the extend of attempts that industries would have to involve in the test production and marketing of these products. Often the sense of apprehension that have permeated across the society about this high technology is due to the absence of proper scientific explanations and not the large scale tests (Wolt and Peterson, 2000) . The acceptability of these technologies by the public is related to the extend of knowledge transmitted. When this factor becomes limiting, the public has limited appreciation of technology and the emotive factors that often lead to the risk perception turns highly skewed (Wolt and Peterson, 2000). Thus , the public perception of the risks related to the biotechnological developments would be totally different from the knowledge led perception of the experts.

Thomas Hobbes and John Locke in Social Contract Theory Essay

Thomas Hobbes and John Locke in Social Contract Theory - Essay Example In these two books, Locke and Hobbes’ views on the social contract can be studied. Although Locke and Hobbes differ in their arguments and perceptions of social contract, they both agree that, in the state of nature, people will be more willing to choose state protection over their liberty. This is the core of social contract theory (Morris, 1999). In the social contract theory, both Hobbes and Locke argue that the state of nature is more likely to experience chaos. However, Locke views the state of nature and natural law from a more positive perspective as compared to Hobbes. Hobbes on the other side argues that highly egoistic people, whose probability of initiating war is very high, inhabit the state of nature. The function of Hobbes and Locke’s social contract theory was to serve as a way of citizens’ rights protection. However, these two differed on the manner in which this could be conducted. While Hobbes thought that a central authority could be responsible for the protection of citizens’ rights, Locke thought that division of power was necessary so that all citizens, including those in authority are held accountable to the law in society (Mack, 2009). Hobbes and Locke similarly address the roots of civilization using their concept of the state of nature. This is a term in political philosophy, which refers to the society without the emergence of the government system. Hobbes describes the state of nature as devoid of rule of war and inhabitants live in fear of death, and in brutality. He links brutality in the state of nature to the lack of rights, including property rights. Therefore, in this state, enmity between people crops from the competition for resources, as there are no rules that determine the legitimacy of property ownership by people. However, Locke’s view on the state of nature sharply contrasts Hobbes’ view. Locke thought that a central authority is not responsible for

On issue of reconstruction of Iraq after war Essay Example for Free

On issue of reconstruction of Iraq after war Essay One year after the war on Iraq was launched; the promise of improved human rights for Iraqi citizens remain far from realized, concludes a new report by Amnesty International. Twelve months on from the invasion of Iraq by the US-led coalition, the Iraqi people still suffer from serious human rights violations. The past year has seen scores of unarmed people killed due to excessive or unnecessary use of lethal force by Coalition forces during public demonstrations, at check points and in house raids. Thousands of people have been detained, often under harsh conditions, and subjected to prolonged and often unacknowledged detention. Many have been tortured or ill-treated and some have died in custody. Violence is endemic, whether in the form of attacks by armed groups or abuses by the occupying forces. Millions of people have suffered the consequences of destroyed or looted infrastructure, mass unemployment and uncertainty about their future. There is little or no confidence that all those responsible for human rights abuses, both past and present, will be brought to justice. After a year of war, lawlessness, spiralling violence and economic hardship, Iraqis face an uncertain future. For the next year to be better than the last, the occupying forces, Iraqi political and religious leaders and the international community must make a real commitment to protecting and promoting human rights in Iraq. A year after the war began Iraqi civilians are still being killed every day. Over 10,000 Iraqi civilians are estimated to have been killed since 18 March 2003 as a direct result of the military intervention in Iraq, either during the war or during the subsequent occupation. The figure is an estimate as the authorities are unwilling or unable to catalogue killings. Scores of civilians have been killed apparently as a result of excessive use of force by US troops, or have been shot dead in disputed circumstances. No US soldier has been prosecuted for illegally killing an Iraqi civilian. Iraqi courts, because of an order issued by the US-led authority in Baghdad in June 2003, are forbidden from hearing cases against US soldiers or any other foreign troops or foreign officials in Iraq. In effect, US soldiers are operating with total impunity. Iraqi civilians have also faced danger in the form of attacks, apparently carried out by armed groups that have been a growing feature of life in Iraq since the occupation began. The attacks have targeted the US military, Iraqi security personnel, Iraqi-controlled police stations, religious leaders and buildings, media workers, non-governmental organizations and UN agencies. They have resulted in the deaths of at least hundreds of civilians. To the extent that these bombings are part of a widespread or systematic attack on the civilian population of Iraq in furtherance of an organizations policy, they would constitute crimes against humanity. The lack of law and order continues to be a major concern in many areas of Iraq. Ensuring justice is fundamental for the countless victims of human rights violations in Iraq. Iraqis have suffered decades of grave violations by their government as well as abuses committed during the course of several conflicts, including the recent war and its aftermath. Fundamental changes to Iraq’s legal, judicial and penal systems are needed. Human rights must be at the centre of all efforts to rebuild and reconstruct Iraq. A failure to fully protect human rights in the process of change would be a betrayal of the Iraqi people, who have suffered so much in the past. CURRENT RECONSTRUCTION MOVEMENT The hopes to American and British plans of reconstruction of Iraq have cast serious doubts whether it will serve the rights of the Iraqis or the economic ends of US and UK. George Bush and company having a clear idea of the destruction they will unleash on the Iraqi people is beyond doubt. However, that does not deter them from following this disastrous course of action. The US government is prepared to spend around $12bn on attacking Iraq. So far it has only offered $65 million to provide them with the basics of life. This $65 million is expected to last less than 6 months but that is all right according to the calculations of the Bush administration. By then, the world media would have moved on to some new crisis, just as Afghanistan is now relegated to the inner most pages of newspapers. This $65 million should help contain the misery of the Iraqi people within some parameters for the brief period of time that they expect the world to pay attention to Iraq. The real â€Å"reconstruction† of Iraq has the US and UK, along with their cronies, salivating. In the name of reconstruction they will receive lucrative contracts for their respective private sectors. In the case of Iraq, the oil company Halliburton, which incidentally was headed by US Vice President Dick Cheney between 1995-2000, has already been awarded a multi-million dollar contract to clean up the Iraqi oilfields after the devastation of war, especially if a retreating Iraqi army puts them to fire. Other American and British oil companies are likely to exert complete control of Iraqi oilfields. Since the market for oil is relatively price-inelastic, and does not lend itself well to brand differentiation, control of supplies is everything in this industry. The prizes dont come any bigger than the Iraqi oilfields. Other equally substantial payoffs await these companies in the future. For instance, apart from the immediate profits and control of natural resources, first mover advantages in these markets are bound to be enormous. As Steven Schooner, a George Washington University law professor maintains the most sophisticated firms that come in first, and establish good will with the locals obviously will reap huge benefits down the road. These are going to become brand names in Iraq.

Modern Version of Romeo and Juliet Movie with Leonard Di Caprio Essay Example for Free

Modern Version of Romeo and Juliet Movie with Leonard Di Caprio Essay Old stories get forgotten unless they are rejuvenated for the young. In the media world of today, books are forgotten and so is classical love. Romeo and Juliet with Leonardo de caprio was a fabulous attempt at bringing literature and drama back to life and into the hearts of the youth today. The first aspect of modernization is to portray the families as rich business tycoons of today’s world: Montagues and Capulets. The styling of the men especially, the chic haircuts and clothes are not only modern but in fact futuristic. This is most apparent in the guns, the shining metal and flash of silver cannot be forgotten. The fights between the two gangs take place at common place venues of today, that is gas stations. The cars are also futuristic. The letter that Romeo does not respond to is a by a well known courier service. â€Å"There are times when the rapid cuts and raging soundtrack might cause understandable confusion between the movie and a rock video. Indeed, with all the camera tricks, special effects (such as a roiling storm), and riotous splashes of color, its easy to lose the story in the style† (Berardinelli, 1996). The flush-cut editing and fast-moving scenes and actions contribute further to giving the movie a futuristic feel removing it far from the classic ballad it is. Much of the decor, for example, the aquarium wall, through which Romeo and Juliet first eye each other, is very modern in its architecture and idea. Such interiors never existed in the days of Shakespeare and neither is there any mention in the script. What makes the movie striking is the juxtaposition of old English style, rendered flawlessly and emotionally by the actors, with this modern, futuristic treatment, This juxtaposition is what makes Shakespeare’s work speak to the modern teenager, which was the main objectivce of the movie. References Berardinelli, J. Fil Review, Retrieved on 2nd June 2010 from http://www. reelviews. net/movies/r/romeo_juliet. html

Costa Coffee Marketing Plan China Marketing Essay

Costa Coffee Marketing Plan China Marketing Essay This paper aims at outlining the strategic marketing approach of Costa Coffee for entering a new market . Costa Coffee is the British part or retail sales of Whitbread Family. Whitbread is a British Multinational Company and it has franchises worldwide. Whitbread includes Hotels, Restaurants [Household names like TGI Friday], Health and Fitness plus Other Businesses. The contents of this paper include the marketing strategy of Costa Coffee and its expansion plans in China. Introduction The Story The history of Costa Coffee began in a mountain town outside the region of Parma, where there was the house of Costa family. In the late 60s, the Italian brothers Bruno and Sergio Costa, hungry for success, traveled to England, seeking an opportunity for professional advancement. By arriving there, they found how simple the English coffee market was. Motivated by their Italian background and Sergios skills in the roasting of coffee beans, they decided to return to Milan to enrich their knowledge and technique in Italian coffee shops. In 1971, upon their return to London, they bought a three-story building in Lambeth, where they set up their own coffee shop. In the beginning, the Costa brothers worked as producers and wholesalers and were supplying high-class restaurants and specialty stores. Soon, they built their reputation for their dedication to excellent quality of their product. However, in 1978 they had to find some employment for their wives in order not to interfere in their business. Therefore, they decided to create their first coffee boutique in Vauxhall Bridge Road, London, and assigned its management to their wives. This idea experienced tremendous success, and led the brothers to the expansion of Costa coffee boutiques and award their management to relatives and friends. Since the opening day of the first store to date, the same traditional method of slow roasting (18-22 minutes) of coffee beans is used, offering the delicious and fragrant blend Mocha Italia, from 6 Arabica beans and 1 Robusta. Listen Read phonetically Dictionary View detailed dictionary Today, Costa Coffee owns 500 shops worldwide. Costa Coffee believes in its employees skills therefore, it provides intensive employee training at the Cost Coffee Academy. VISION: Costa Coffee vision is to provide the best hospitality to its customers since its range of hospitality products range includes restaurants, hotels and leisure clubs. MISSION: To serve the best coffee in the true Italian style. BUSINESS PORTFOLIO: Costa Coffee has built an unrivaled reputation for coffee excellence, and this is achieved by fully controlling the process, from harvest and selection of coffee beans, from the roasting of the Italian maestros, the choice of engines and compliance with the procedures of manufacture of beverages, ensuring this way that customers can enjoy the same excellent quality coffee at any of Costa Coffee in the world. The drinks are served in 3 different sizes Primo, Medio and Massimo, and the customer can choose between the unique blend of Mocha Italia, or decaf, whole or skim milk and add an extra dose of espresso, flavored syrup, cream, candy or chocolate. There are 15 factors that are combined and help to create the perfect Costa coffee. In addition, in every store worldwide regular controls take place, which ensure consistency and maintenance of quality. Every Costa Coffee has a Barista Maestro (coffee expert) responsible for maintaining the excellence of the drinks served. COSTA COFFEE AND STARBUCKS: Starbucks is the largest competitor of Costa Coffee. Starbucks is the leader in the coffee shop market. Its international presence is in 50 countries. On the other hand, Costa Coffee, is the third biggest coffee specialist in the market with shops in 25 countries. Both companies have an excellent financial performance up to 2005 but in 2008 there was a decrease in revenue and operating profit as a result of the global economic recession. However, in 2009. Starbucks has an improving in cost structure and therefore its liquidity is better than Costa Coffee since it has managed to pay its short term debts. A key factor for both companies is globalization since most leading players in the foodservice market expand their operations in other countries. So the future success of Costa Coffee will be based on its operations outside the UK. The same applies for Starbucks. . THE CHOICE OF CHINA: China is one of the biggest economic forces in the world. Its domestic market is larger so there is a lot of potential for multinational businesses. Its average GDP growth rate is more than 10% despite the global economic crisis (10.9% last quarter 2009) (BBC China economy 2009). International financial analysts believe that the growth of the Chinese economy will continue. Regarding the coffee industry in China, it should be noticed that competition is quite intense but sales in cafes has grown by 8% to RMB36billion (over  £3,487million). It should also be noticed that in 2009 coffee shops chains had a growth of 22% (Euromonitor International August 2009,Cafà ©s/bars China). However, the Chinese market for many international companies is considered a tough market since it is difficult to understand local culture and customeCNY. Therefore, many companies pursue joint ventures and strategic alliances in order to do business in China. In 1998, Starbucks entered China and it has 180 coffee shops. In 2006, Costa Coffee entered China in a different way i.e. through a joint venture with Yueda Group which is based in Jiangsu Province. This was done because a local partner knows the market better so market penetration for the new entrant is easier. However, this also means that Costa Coffee is heavily dependent on Yueda. Costa Coffee has a strong Italian aura that aims at attracting the Chinese market. Affluent Chinese customers want to taste a coffee that is represented by a global brand name. So far, Starbucks has been quite successful in this area. The risk is that by being a partner with Yueda, the brand will be customized too much therefore, Costa will lose its competitive advantage which is the Italian aura. Starbucks has very aggressive expansion plan in China. The crucial point is if Costa Coffee will maintain its brand essence and will not be customized. In this case, Costa Coffee will be a strong competitor to Starbucks. Future trends Strategy The main issue for chained coffee shops is to create a unique experience that cannot be easily copied. The consumers want to enjoy their coffee in a nice environment. The coffee shop space should be comfortable with an ambiente that will be inviting so the consumers will return to the shop again. People will want to live the espresso experience at home so the sales of equipment and coffee will increase as well as the demand for better and higher quality of coffee and beverages in coffee shops. Corporate social responsibility is another issue that chained coffee shops should take care on. They have to prove that they implement ethical practices. Regarding marketing, researchers predict that chained coffee shops will use mobile apps and have social networking tools in the very near future. COSTA COFFEE Financial Data Turnover:  £263.8m (2008:  £216.3m) Operating profit before exceptional items:  £22.7m (2008:  £20.8m) Number of outlets: 881 in the UK, 407 overseas Total Revenue  £ (m) Strategy Our target for Premier Inn during 2009/10 is to deliver around 2,000 new rooms in the UK and overseas. We have a strong pipeline of secured sites and will continue to develop a land bank. Internationally, our first hotel opened in Dubai during 2008 and we will build on this position, intending to open a further two hotels in the Emirates plus one in India. We plan to open around 100 new Costa outlets in the UK in 2009/10. We will capitalise on our strong Costa brand by focusing on new locations, as well as areas where we can replace existing operators, such as in supermarkets, hospitals and leisure facilities. Costa will also continue to strengthen its position across international markets, adding 100 net new stores in the year ahead. MARKETING OBJECTIVES: Enter Greek market and develop a significant market share; Increase product portfolio by new high caliber products; Bring more value to shareholders; Be a leader in its field for customer service; Develop alliances with commercial partners and the communities in which Costa Coffee shops operate. TARGET MARKET Costa Coffee offers a wide range of products suitable for all consumeCNY. So far, coffee in China is consumed in big cities (Beijing, Shanghai, Guangzhou). Coffee producers have targeted young professionals since they are the most westernized, affluent and open-minded. However, they see it as something that is in fashion rather than a regular habit. Another target group for coffee consumption are returnees i.e. Chinese that studied in Western countries and come back to China. They are also affluent and they are accustomed to visiting coffee shops. Ex- pats are another target group. Chinas economic growth has attracted a lot of investments from foreign companies. Ex-pats are used to drink coffee and their number increases every year. It has been estimated that businessmen from Hong Kong and Taiwan as well as Westerners amount to 30% of customers at multinational chained coffee shops as Starbucks. The above customer base has been quite saturated so there is a need to increase customer base. However, coffee is considered a luxury good and the average Chinese cannot pay for a cup of coffee. The average Chinese annual income is RMB 8000 yuan whereas a small cup of Starbucks coffee costs RMS 12 yuan ($1.5 which is the same price as in USA). In the big cities the average annual income is higher however it is still difficult for someone to consume a cup of coffee. If coffee still goes on being considered as a luxury good, it will happen the same thing as in Japan i.e. it will take China more than 90 years to make coffee popular. Market Segmentation: Based on the above the following market segments were defined: Young / Mature professionals Returnees Ex-pats Students Middle Class Upper Middle Class Single Married Bus section and train/airplane passengers Marketing Strategy: Costa Coffee will follow Market Development strategy and the reason for choosing this strategy will be explained below: CURRENT NEW PRODUCTS PRODUCTS 1. Market Penetration Strategy 3. Product Development Strategy 2. Market Development Strategy 4. Diversification Strategy CURRENT MARKETS NEW MARKETS   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Coffee is considered a luxury good. This misperception hinders businesses in identifying customer groups and implement marketing strategies. This misperception also hinders the majority of the population to get acquainted with coffee. The same happened in Japan, where coffee was also considered as a luxury beverage with unreasonably high prices. It has taken almost 90 years for Japan to get acquainted with coffee and still per capita coffee consumption is quite low. This makes things worse since Japan sets the trend for Taiwan and South Korea.   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬In China coffee shops open every day in cities like Beijing and Shanghai. However, the average Chinese cannot afford a cup of coffee everyday. Multinational coffee companies have faced difficulties in developing the Chinese coffee market. Although they know how to penetrate mature markets but they see that they have difficulty in immature coffee markets. These companies need to understand better China and its people. Without understanding them all marketing campaigns will be in vain. A characteristic example is the marketing campaign of Nestle which was targeting at the young middle class Chinese although in reality this class does not exist or even if it existed they would not be heavy coffee drinkeCNY. Starbucks has increased awareness but it needs a different strategy for the Chinese market. Only KFC has been quiet successful. Starbucks success cannot be considered as sustainable since it was based on management, financial power and brand name whereas the Chinese market needs entrepreneurship to advance it and this is what Costa Coffee is planning to do. Coffee has been promoted by the Chinese government through festivals and fashion awards however these strengthened the misperception of coffee being a luxury good. Local coffee shops add too many side things such as food, spirits etc. Therefore, they dilute the idea of coffee. Coffee is a product that does not hurt health, stimulates the brain and it is addictive. Based on researches someone who has drunk coffee three times a week for two months in the row is addicted to coffee. Brain stimulation is important for personal wealth and intelligence. Coffee became popular because coffee shops were focused at making the customer accustomed with coffee. When people get accustomed then the market develops at an extremely fact pace. The coffee shop is important for this development and a coffee shop can be a seated place or coffee stands and carts. It is important to make people drink coffee and then offer them ground coffee. Many companies have found as an excuse the fact that tea is dominant in China and there is no place for coffee in a tea dominant country. However, there are no major tea companies that can compete international coffee giants nor is there a specific promotion to protect tea. On the contrary local society support the development of coffee houses and it is not negative to coffee. Costa Coffee will focus on making people drink more coffee. Its new coffee shops will be around areas where people gather such as Universities, stations and office buildings etc. This can be the best promotion since if one group of people becomes loyal to coffee then it will influence other consumer groups. Costa Coffee will focus specifically on these people and its promotions will be measurable and specific. Coffee has an unbeatable image in China and it is known to everyone. Costa Coffee will be based on the quick service restaurant (QSR) concept. QSR is based on the idea of offering cheap, clean and good food and its purpose is to sell to a wider range of population. Costa Coffee plans to adopt this concept. Coffee has a high profit margin but food is what attracts people to the coffee shop. Costa Coffee already offers more products than coffee; however it should plan to add more snacks that are better suited to local customers and a cheaper but good quality filter coffee for taking away. Many local Chinese coffee shops offer food however, they have not formulated a strategy so they cannot be considered as potential competitoCNY. So far in these shops the restaurant is separated form the coffee house something that it is not the case of Costa Coffee. In the next two years the aim is to introduce new product lines that will be offered at affordable prices for the average Chinese consume r. It should be noticed that this does not mean price cutting since this will hurt Costa Coffees brand name. The location of the new coffee shops is also an important part of Costa Coffee strategy. Up today, the coffee shops were opened at locations where population is dense and the income is high. As a result, the rental prices are quite high. Therefore, Costa Coffee is planning to open new shops at bus stations and other busy intersections where rents are lower and the traffic is big. The marketing strategy that will be followed to China is important since it influences neighboring states such as South Korea which is also a new coffee consuming country. If the model of highly expensive coffee will be followed then the consequences will be similar to Taiwan and Hong Kong where there is a negative trend in coffee growth. à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ã‚  Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚   à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬ SWOT ANALYSIS: Strengths Weaknesses Established brand name worldwide Expensive prices for the average Chinese consumer Wide range of products Starbucks dominant position in the market Third ranked coffee shop chain in the world Coffee is considered a luxury good Know how of Yuda (local partner) Tea is the daily beverage of the average Chinese Opportunities Threats Big market potential a lot of Chinese Consumers that do not drink coffee Stagnant coffee growth due to high prices Unbeatable image of coffee Possible marketing enforcement of tea companies No competitors are located at bus intersections PESTEL ANALYSIS: Political China has a stable political environment that welcomes foreign direct investments. Economic The Chinese economic growth is impressive (10% per annum). Social Although the income of the average Chinese consumer is low, there is a growing middle class -190 million urban households, or 29%. According to McKinsey, middle class is expected to expand to 75% (372 million), by 2025 (DAltorio 2011). Technological New coffee machines are produced so making coffee at home is easier. Environmental There is a trend in producing organic coffee. Legal There are no legal issues involved. MARKET POSITIONING: The positioning strategy of Costa Coffee will be in line with its international strategy i.e. THE ITALIAN COFFEE MASTERS. The competitive advantage of Costa Coffee is the quality of their coffee. The image of the company is that is has a UNIQUE coffee. Another positioning of Costa Coffee is that this excellent coffee quality can be offered with affordable prices (launch of the new take away filter coffee). THE ITALIAN COFFEE MASTERS This is the tag line that will communicate the Italian aura of Costa Coffee to the mass audience. Since Chinese consumers perceive well the Italian atmosphere it is expected that it will attract more people to Costa Coffee. MARKETING MIX: Product: Brand Name: Costa Coffee is a well established brand that signifies luxury, perfection and excellence. Chinese consumers prefer established brand names. Image/Theme: Luxury Costa Coffee is related to luxury. The coffee shops ambiance is trendy and comfortable. Customers will have a nice time in a flashy environment. However, this luxury image should be cleverly related with the new, affordable, take away filter coffee. The message that will be transmitted is luxury can be affordable and can be taken with you. Color Scheme Costa Coffees shops are in warm tones having brown as the main color. Other colors that are used are green, black and white. The purpose of this color selection is the creation of a comfortable and trendy atmosphere. Service: Apart from coffee, Costa has a reputation of excellent service. Hiring and retaining talented employees and train them accordingly is a strategic goal of the company. Product variety: ESPRESSO A short, strong and black coffee, with no milk. ESPRESSO DOPPIO A double espresso shot. For those who like it strong. RISTRETTO An extra short coffee, even shorter than an espresso, with an even stronger flavour. MACCHIATO Espresso topped with just a dash of milk. Yum. AMERICANO Coffee, mixing shots of espresso with hot water. Add milk if you like. FLAT WHITE A rich, full-flavoured coffee with a velvety, smooth texture. Each Flat White is hand-finished with a distinctive pattern. CAPPUCCINO Coffee combining espresso with steamed, frothy milk. Chocolate on top if you have a sweet tooth. CAFFE LATTE Coffee made with steamed milk. Not as strong as a cappuccino, but just as good. MOCHA Espresso with hot chocolate, topped with steamed, frothed milk. (Source: Costa Coffee 2010) Costa Coffee products variety includes iced tea and coffees as well as cakes, pastries, Panini and sandwiches. Prices: Costa Coffee prices are generally higher than other coffee shops. High prices are related to the outstanding quality and taste of Costa Coffee. Therefore, the traditional customer groups of Costa Coffee are high and middle classes. Costa Coffee believes that a reduction in its prices will harm its brand name. However, it wants to increase its Chinese customer base so it will offer a filter coffee for takeaway at affordable prices. Chinese middle class growth rate is significant, it will reach 372 million by 2025, it is a social class that cannot be neglected. Therefore, Costa Coffee is planning in the next three years to offer its products at affordable prices for the Chinese middle class without harming its brand name. Locale / Setting: The next Costa Coffee shops will be at busy intersections e.g. bus, train stations and at areas where office buildings and Universities are located. It will focus again on the big cities like Shanghai and Beijing. The aim for the next three year is to have 30 new coffee shops at both cities. Promotion: Costa Coffee will not do a lot of advertising since its brand name is recognized. However, there will be special sales promotions at its new shops for the new filter coffee that can be taken away. Costa Coffee is based on word of mouth advertising since reputation is very important. MARKET DEMAND It is important to measure the market before launching new products and shops. It is also important to measure the market after the launch of the new products / shops so as to see their effects and gain a larger market share. Growth Share Matrix There are two factors that are important for the expansion to new markets and these are : market attractiveness and the Business Strength. Market Attractiveness Business Strength Factors Rate Factors Rate Overall Market Size 70% increase (2004-2012) Market Share 5.0 Annual Market Growth Rate 7.8 Product Quality 5 Competitive Intensity 4 Brand Reputation 4.5 Technological Requirements 2.5 Distribution Channel 3.5 Inflationary Vulnerability 4.9 Promotional Effectiveness 4.5 Productive Efficiency 4 Managerial Personnel 3.5 Market Attractiveness As it is seen above, the attractiveness of the Chinese market is very high. The annual growth rate of the coffee market is high. There are no significant technological requirements since Costa Coffee already possesses advanced technology. Inflation is quite high and it seems that it will increase in the near future, however the targeted market groups remain unaffected (growing Chinese middle class). Partnership with Yuda will protect Costa Coffee from any possible dangers. Therefore, the Chinese market is very attractive and suitable for coffee shops expansion. Business Strength Costa Coffee is part of the well-known Whitbread Family. The quality of Costa Coffee is unquestionable. Costa Coffee owns more than 500 stores worldwide. Its outlets are in Europe, UK, Middle East, India, Pakistan and China. In order to maintain its excellent reputation, Costa Coffee will continue its policy of recruiting, training and retaining the best available employees in China. Business Strength High Medium Low High Medium Low Costa Coffees Business Strength is high and the overall position is ideal for further expansion into the Chinese market. Projected Sales in CHINA Costa Coffee projected sales are expected to rise to almost 97% in 2012 and this is due to the launch of the new takeaway filter coffee and the new shops at the busy intersections. This rate is expected to slow down (87%) in 2013 and this is because the one time visitors are expected to cease to visit the coffee shops and the existing customer base is expected to remain. An extensive marketing promotion through emails, customer clubs, social media etc. is expected to increase market share. The above numbers are very impressive and expansion seems ideals. Sales forecasts per customer groups are also very promising.: Market 2012 2013 2014 Total Students Youngsters CNY. 20,000,000 CNY. 23,00,000 CNY.6,300,000 CNY 49,300,000 Ex pats and returnees CNY 7,555,000 CNY 7,000,000 CNY. 12,800,000 CNY. 27,355,000 Families CNY. 9,700,000 CNY. 9,850,000 CNY. 17,200,000 CNY. 36,750,000 Professionals CNY. 17,750,000 CNY. 32,750,000 CNY. 92,000,000 CNY. 142,500,000 Totals CNY. 55,005,000 CNY. 72,600,000 CNY. 128,300,000 CNY. 255,905,000 According to the above table it can be seen that professionals is a group that has a lot of potential. This is because the Chinese middle class is rising and the coffee culture is mounting too. Another reason for the increase in sales in professionals is due to the location of the new coffee shops. There will be located in busy intersections where there are many office buildings. Newspapers and other electronic media have approached Costa Coffee and various interviews and programs have been made which boost Costa Coffees reputation even more. BUDGET FORECASTS: The forecasted budget for the upcoming three years is as follows; TYPE 2012 2013 2014 Total Accommodation CNY. 2,000,000 CNY. 5,000,000 CNY. 7,000,000 Training CNY. 1,500,000 CNY. 500,000 CNY. 4,000,000 CNY. 6,000,000 Transportation CNY. 250,000 CNY. 350,000 CNY. 1,000,000 CNY. 1,600,000 Fixtures CNY. 2,000,000 CNY. 7,000,000 CNY. 9,000,000 Total CNY. 5,750,000 CNY. 850,000 CNY. 17,000,000 CNY. 23,600,000 Future promotion and expansion plans: Costa Coffee will be launching more coffee shops in the major cities of China (Beijing and Shangkai) but the plans are to expand all over China after having created a considerable market share in the above cities. The expansion has been planned for the next year that is 2012. In the next two years the next cities where new coffee shops will be located will include Guangzhou and Shenzhen. Costa Coffee is not in favor of extravagant launching campaigns. It supports the use of electronic and social media as well as corporate social responsibility programmes and actions. It also believes in the right location of its shops. So, the marketing activity will be low except the posters that will be in the shops, as sales promotion, advertising the new takeaway filter coffee. ANALYSIS: Costa Coffee has a lot of potential for further intensifying its expansion efforts in China. It already possesses a significant market share in the Chinese market. The reason behind it is the unbeatable image of Costa Coffee and the advertisement (word of mouth) done by people who have visited its outlets. Sales are expected to rise in the following years and they are expected to rise even more in the forthcoming years since Costa Coffee is focusing on the rising Chinese middle class. Students and youngsters in general set the new trends so their influence in increasing coffee consumption and visiting coffee shops is of outmost importance. By further using social media, Costa Coffee is expected to increase its market share in this group. Professionals always seek quiet place to do their official or unofficial meetings. Costa Coffee is an ideal place to do these meetings. Apart from that, Costa Coffees activation in social media will certainly increase its future revenue. In conclusion, it can be said that Costa Coffee has so far implemented an excellent marketing strategy and the new campaign that it will launch for the takeaway filter coffee as well as the location of its new shops will help it increase its sales and gain sustainable competitive advantage. RECOMMENDATIONS: Sales numbers are very promising however the local partner should follow all the below the line activities mentioned. Costa Coffee should continue with low promotional strategies. Apart from posters inside the outlets, Costa Coffee should consider the use of bill boards at the busy intersections.

china intentions :: essays research papers

Osama bin Laden has done Communist China a favor. Because the minds of President Bush and congressional leaders are so concentrated on the war on terrorism, they have all but ignored Beijing's aggressive military buildup. A strong possibility exists that by focusing so closely on Iraq, a focus that is understandable considering how unsettled the situation is, the United States could miss developments that could affect its standing in the rest of the world. Among the many uncertainties of the Asian security environment, none is more compelling than that surrounding the modernization program of the Chinese People's Liberation Army. For some observers, the combination of economic growth and force improvement signals Beijing's intention to establish regional supremacy. Others acknowledge that the PLA can spoil the United States' interests; however, Beijing's interest in regional stability, and the growing conventional capabilities of other regional powers, they tend to discount a PLA military threat. Chinese secrecy compounds the difficulty.   Ã‚  Ã‚  Ã‚  Ã‚  China's armed forces may not be a direct threat to the United States, but are good enough to cause plenty of trouble in their region and will be better in the future. China is one of the few nations to increase its defense spending in the post cold-war world, and is engaged in a major effort to upgrade its weapons capability for a possible quick strike on Taiwan. Taiwan would face an enormous challenge in repelling a determined Chinese attack. The island is too close to the mainland and too inferior in forces to hold out indefinitely. Its technological advantages would enable it to prolong the struggle, but not defeat China. If the United States were to get involved, it would face a nuclear-armed adversary capable of striking its American shores. That is not likely to happen, but it has to be kept in mind. China has greater military power today than it did a decade ago. If Beijing were willing to pay the price, the PLA could wreak great damage. In assessing China's future threat potential, it is essential to consider the economic, political, and strategic constraints on PLA modernization. Such considerations suggest that the PLA is years away from achieving the capability to project military force in a sustained manner. China’s likely future strategic intentions can be difficult to predict and there are many theories put forth by many different experts. Defense budgets can be a useful, even a critical, indicator of national defense priorities, policies, strategies, and capabilities.

Celtic Lifestyle :: European Europe History

Celtic Lifestyle During the period when the Celts existed, which is approximately 800 BC - 400 AD, they were just a little tribe compared to other large civilizations such as the Romans and Greeks. They still managed to conquer many regions and prove victorious in most of their battles. Who were these Celts that survived numerous struggles? Where did they originate? What kind of social structure did they have? What kinds of beliefs did they have? What sort of weapons and armor did they use in battle? What were some of their military tactics? These are some of the questions that will be evaluated in the following paragraphs. The Celts were tall, fair-skinned warriors who were well built, had blond hair and blue eyes. Some of them washed their hair in lime water to increase the hue of it. Some of them shaved their beards, but others let them grow long. Some also shaved their cheeks and let their moustaches grow so long that they would cover their mouth. While eating, they sat on wolves or dog skins. They ate at low tables, like the Chinese, and were served by young boys and girls. They cooked big quarters, usually from a pig or calf over a fire on a spit and the hero was served the biggest portion. Seeing as how the they were so aggressive and easy to anger, they often fought during meals or challenged each other to fights. The Celts lived in the Western region of Europe called the Normandy region. Normandy is a small region in the north of France, but they spread out from that region through all of France and Belgium. They also conquered areas in the western part of Germany, through the Black Forest region, along the Jura Mountains of Switzerland, along the Alps and to the upper part of Spain in the Pyrenees Mountains. They expanded their region to Spain and Portugal in 600 BC and through Italy, beyond the Alps in 386 BC. In 325 BC - 279 BC, they conquered areas throughout Greece, and in 278 BC they expanded into Asia Minor. But around 250 BC, the Romans regained their power in Italy and pushed the Celts back towards Gaul (modern day France) until 52 BC when the Romans, under command of Julius Caesar finally pushed them out of main land Europe and into England and then into Ireland, where the Celts fended themselves from any further attack from their southern and eastern neighbors.

The Industrial Revolutions: The effects on Europe and the World :: European Europe History

The Industrial Revolutions: The effects on Europe and the World The Industrial Revolution affected life in Europe during the 19th century very greatly. Cities in Great Britain were growing rapidly, this was known as urbanization. Many cities such as Glasgow and Berlin more than doubled in size. The Industrial Revolution was having a positive affect on Great Britain. From the outpour of people into cities looking for work, things were so rapidly paced that there was no order in these cities. Unsanitary and unsafe buildings were being built all over to home all of the workers. There was less than adequate education and police protection for the ever-growing population. Many people had to live in shelters due to the lack of housing; many families lived in a single room. Many people died of cholera from the poor living and working conditions. The main goal that factory owners wanted was to keep their production a constant, working for the better part of a day. Since the owners wanted to save as much money as possible, the factories were rarely cleaned or well lit. Coalmines posed the biggest danger from the constant inhalation of coal dust and the collapse of the mines. Workers had a life expectancy 10 years less than of another worker. Even though the Industrial revolution brought problems to life quickly, through the long run a number of positive effects arose. It provided jobs for workers and it aided in technological progress and invention. It raised the standard of living from increased production of good and it in the improvement in people's lives. Better housing and cheaper mass-produced clothing helped people become healthier. From the strong demand of engineer's and professional workers, education became very profuse. For the lower class workers of the Industrial Revolution, their life slowly but surely improved during the 19th century, through earning higher wages, shorter hours, and improved working conditions.

Bolster Electronics: Dealing With Dealer Demands

Northern Alberta, the oil sands development area surrounding Fort McMurray, is the fastest growing economic area in Canada for several years. Obviously Bolster’s total market share in this area was the highest with one third of the total market share it held national wide. Vickers based in Edmonton, Alberta covered 50% of the local market share and 75% of servicing in that area in spite having a national distributor, National Electronics (National). Also local firms preferred to do business with Vickers than National which has their nearest warehouse in Calgary, Sothern Alberta around 750 Km from Fort McMurray. (Exhibit 1) Neither Bolster nor National had a video system design team in northern Alberta.Since one third of the total market share is concentrated in northern Alberta, it is imperative to have a system design team there. If not it leads to a huge potential loss because there are competitions among the top 4 players who have 15% of the market share each. The managemen t tried to convince National to work in northern Alberta in 2007 but it went vain. At the same time Vickers was well established in northern Alberta, its main office, warehouse and engineering team are in Edmonton with a warehouse and sales team in the proposed oil sands area of Fort McMurray which is a six hours drive from Edmonton.Vickers is in the business for the past 20 years and their salespersons were highly trained and serviced the northern Alberta more effectively than national distributors. This is what the customer exactly wants in terms of good track record and service support in addition to lowest price. They also proved as an effective dealer by taking responsibility of warehouse, inventory storage, engineering expertise and services, relationship with local dealers and end-users, and increasing the Bolster’s business in their area. Hence they requested Bolster a better pricing discount and wanted to be named as distributor.However the major concern for the mana gement is that if a local dealer was given a distributorship it may deteriorate relationship with their national distributors as it does in 2004 when Albright Industries was given a distributorship in order to make up theshortfall of 7% drop in market share and to provide growth in Quebec. Fortunately, last time National’s dissatisfaction disappeared in a long run since they are not competing for the same market.National doesn’t take any leap in past 5 years in doing business in northern Alberta though it was informed about the huge potential of increasing market share. It seems National is not interested in increasing his presence in northern Alberta. Because of technological advancement and increased competition from three other major players it was difficult for Bolster to maintain an overall gross margin of 40% of factory price. In the current scenario if Bolster gives a distributorship to Vickers, it will further affect the financial stability of the company.Thoug h it has a potential to increasing the market share over 90%, if they got distributor’s discount. It will also change the entire distribution channel (a network through which goods moves from the manufacturer to end-users). The distribution cost of each channel plays a major role in selecting the options (Financial Analysis if possible) Customer service is a major issue since industrial video equipment are normally used in harsh environments.So the distributors or dealers should work faster if there was a production stoppage because of the failure of the video equipment for end-users. Since Bolster is more focused on technological development the responsibility lies with the distributors and the dealers. Though Vickers doubled its trained sales team to four, it is not enough to manage the vast area if it was given a distributorship. Even hiring a sales team seems difficult since compensation for the sales team was competitive in the industry.THE PROBLEM STATEMENTHow to handle the Vickers’ request of distributorship such that it has minimum negative consequences?OPTIONS1. Giving Territorial Distributorship to Vickers 2. Giving National Distributorship to Vickers 3. Leave it as a Territorial Dealership 4. Giving only Distributor’s Discount but not DistributorshipCRITERIA FOR EVALUATION1. Relationship with Distributors and Dealers 2. Financial Implications 3. Market Share 4. Customer Satisfaction (Services)EVALUATION OF OPTIONSOption 1: Giving Territorial Distributorship to Vickers If Vickers and National didn’t compete for the same market, then it will not create much dissatisfaction among the management, Vickers and National as it was in 2004, when Albright was given distributorship. If Vickers was given distributorship, Bolster has to give a price discount of 10% it will further deteriorate the financial positioning of Bolster.It is imperative to increase the market share in northern Alberta, since it has a potential of one third of the total market share. Since neither Bolster nor National have the presence in northern Alberta, it is wise to give a distributorship to Victors such that they can capture the 90% of the market share in there. It also helps to improve the customer services extended to the end users, since they have a presence.Option 2: Giving National Distributorship to Vickers If Vickers was given a National Distributorship, it will obviously deteriorate relationship with National because in a long run they are going to compete for the same market.

Marketing Case

Management-to get to the profit I believe you have to have some good management behind a business. If you have a business and the management is not solid or unrecognized or nonexistent a business cannot run smoothly, therefore putting profit at risk for that business. Meaning the economic perspective cannot stand alone. 2. Customer Service- a business should always operate with the consumers in mind considering they are the ones who will generate profit for the business. If good customer service Is not involved in business, Just like good management, profit will not exist.Meaning the economic perspective cannot stand alone. 3. Supply and demand- a business has to think are we supplying what the consumers want or is demanded in order to make a profit. If you have a business selling things that are not needed or not wanted then surely u will not have profit. Meaning the economic perspective cannot stand alone. 4. Inventory- a business should offer operate with Inventory In mind If ther e aren't enough Inventories In a market people will go elsewhere to find it. Meaning the economic perspective cannot stand alone. . Marketing (image) – if a business cannot lure people in how is your profit going to be made. A business should also think about marketing has well or has a stepping stone to make a profit. Meaning the economic perspective cannot stand alone. A businesses general goal should be to make a profit but I do not feel that they should only operate with a profit In mind, because there are several factors that can get you to making a profit. A) Was Home Depot's behavior an act of good ethics or simply shrewd business?Imagine how an executive would argue in a meeting for the actions that the company kook. What objections might other executives raise? Believe that although Home Depot increased the price before hand I still see their behavior has an act of good ethics. The executives would argue in a meeting that In a time such as these that It's Just supply and demand. They raised prices knowing that people would come in to purchase these materials to protect their investments. 1 OFF Unlike price gouging Tanat seems to napped rater an Incident or at ten last nor Ana the prices go up extensively.Other executives might argue that they raised prices just at the right time to avoid really being looked at has price gouging. B) Would it make any difference in this case whether a decision maker takes a short -term or long-term view? Which view should the decision maker take? It would make a difference on whether a decision maker takes a long term or short term view. If you look at it from long term Home Depot made a smart business decision to increase their prices, they increased profits therefore in the future will be making more profits. In the short term they lost out on the profits that came from price gouging.I think the decision maker should take the view of short term and that I believe that they kept ethical in their businesses. C) D oes Home Depot (or any other Business) have a responsibility to help the citizens hurt by the hurricane? Whose responsibility is hurricane relief? I feel it's good business to help citizens hurt by the hurricane all it can do is make that business look very good to the public but I feel it is not their responsibility to and in hurricane relief it's the insurance companies and the owners responsibilities and if the situation is bad enough maybe the government

Banking Formalities

BANKING FORMALITIES : SUCH AS NEGOTIATION OF DOCUMENTS Negotiation means the standard procedures that bank performs which includes checking of the documents and giving value to the seller. The issuing bank may issue the LC available by negotiation with a nominated bank or it may allow the LC to be freely negotiated with any bank. In the first case, the beneficiary, that is the seller, has to present the documents only to that bank, which is the nominated bank.Nevertheless, the nominated bank is not bound to negotiate if it has not undertaken a separate payment obligation to the seller. The nominated bank may simply refuse to negotiate the documents drawn under the LC. This is because, by having been nominated by the issuing bank, it does not constitute and undertaking to negotiate. If, however, the nominated bank has added its confirmation to the LC at the request of the issuing bank, thereby undertaking a separate payment obligation to the seller, then it has to honour its undertak ing and pay for the documents drawn under the LC if they are in order (Article 9b).LC which does not nominate any bank is normally available for negotiation with any bank in the country of the seller which is willing to negotiate the documents. For the information of all traders, there are 4 types of negotiation practiced by banks around the world. They are: 1. Negotiation without recourse 2. Negotiation with recourse 3. Negotiation against indemnity 4. Negotiation under reserve Let me explain Negotiation without recourse first and the rest at a later posting.A seller may present his documents drawn under LC directly to either a) The issuing Bank (bank that issues the LC) or b) The confirming bank (bank that adds its confirmation at the request of the issuing bank) or c) To his own bank If the seller chooses to present the documents directly either to the ISSUING BANK or to the CONFIRMING BANK, these banks make payment WITHOUT RECOURSE to him. Meaning, the payment that has been paid to the seller shall not in any way become claimable by these banks in the event the documents are found not in order after making such payment.These banks cannot have recourse to the seller because by issuing or confirming the LC, they have taken upon themselves the risk that the party from whom reimbursement is to be obtained may become insolvent. I hope this would give traders a general idea of how the LC operates and the implications to buyer and seller. BANKING FORMALITIES :OBTAINING PACKING CREDIT AND POST SHIPMENT FINANCE Packing Credit : Overview Packing credit is a loan/ cash credit facility sanctioned to an exporter in the Pre-Shipment stage.This loan facilitates the exporter to purchase raw materials at competitive rates and manufacture or produce goods according to the requirement of the buyer and organize to have it packed for onward export.. The lending institutions seek a Letter of Credit opened in favour of the exporter from the overseas buyer along with the irrevoca ble (cannot be canceled once drawn) Purchase Order favouring the exporter. Packing Credit facility will cover all the working capital needs of the exporter including raw materials, wages, packing costs and all pre-shipment costs.Packing credit is available for generally a period of 90 days and the exporter has to pay lower rate of interest compared to traditional Overdraft or Cash Credit facility. Exporters use this facility so they can bid the most competitive price for export thus gaining more business opportunities for export. Packing Credit : Documents The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Packing credit Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis. Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises. * Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by Government Agencies. * Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt. * Business Profile on Company’s Letterhead. Partnership deed in case of partnership firms. * Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies. * Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable). * Last one years’ Bank statement of the Firm. * If existing loan, then sanctioning letter and repayment schedule of the same. * Firm/Company’s PAN Cards. * Individu al Income Tax Returns of the Individual/Partners/Directors for last three years. Last one years’ Bank statement of Individuals, Partners, Directors . * SEBI formalities in case of listed companies. * Share Holding pattern of Directors duly certified by a Chartered Accountant. * List of the Existing Directors of the company from the Registrar of the Companies. Packing Credit : Process 1. Personal interview /discussions is held with the customers by the bank’s officials. 2. Bank's Field Investigation team visits the business place/work place of the applicant. (All the documents submitted are verified by the bank with the originals so as to ensure the authenticity of the same. 3. Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL). 4. In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the Technical feasibility/financial viability of the project based on various parameters and also th e existing market conditions. 5. Depending on the size of the project the file is put up for sanction to the appropriate level of authority. SANCTION AND DISBURSEMENT : 1. On approval/sanction, the sanction letter ,is issued specifying the terms and conditions for the disbursement of the loan.The acceptance to the terms of sanction is taken From the Applicant. 2. The processing charges as specified by the bank have to be paid to proceed further with the disbursement procedure. 3. The documentation procedure takes place viz. Legal opinion of various property documents and also the valuation reports. (Original Documents to title of the immovable assets are to be submitted) 4. All the necessary documents as specified by the legal dept. , according to the terms of sanction of the loan of the bank are executed.Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution document Post shipment finance Pre-shipment is also referred as â€Å"packing cre dit†. It is working capital finance provided by commercial banks to the exporter prior to shipment of goods. The finance required to meet various expenses before shipment of goods is called pre-shipment finance or packing credit DEFINITION: Financial assistance extended to the exporter from the date of receipt of the export order till the date of shipment is known as pre-shipment credit.Such finance is extended to an exporter for the purpose of procuring raw materials, processing, packing, transporting, warehousing of goods meant for exports. IMPORTANCE OF FINANCE AT PRE-SHIPMENT STAGE: * To purchase raw material, and other inputs to manufacture goods. * To assemble the goods in the case of merchant exporters. * To store the goods in suitable warehouses till the goods are shipped. * To pay for packing, marking and labelling of goods. * To pay for pre-shipment inspection charges. * To import or purchase from the domestic market heavy machinery and other capital goods to produce export goods. To pay for consultancy services. * To pay for export documentation expenses. FORMS OR METHODS OF PRE-SHIPMENT FINANCE: 1. Cash Packing Credit Loan: In this type of credit, the bank normally grants packing credit advantage initially on unsecured basis. Subsequently, the bank may ask for security. 2. Advance Against Hypothecation: Packing credit is given to process the goods for export. The advance is given against security and the security remains in the possession of the exporter. The exporter is required to execute the hypothecation deed in favour of the bank. . Advance Against Pledge: The bank provides packing credit against security. The security remains in the possession of the bank. On collection of export proceeds, the bank makes necessary entries in the packing credit account of the exporter. 4. Advance Against Red L/C: The Red L/C received from the importer authorizes the local bank to grant advances to exporter to meet working capital requirements relating to processing of goods for exports. The issuing bank stands as a guarantor for packing credit. 5. Advance Against Back-To-Back L/C:The merchant exporter who is in possession of the original L/C may request his bankers to issue Back-To-Back L/C against the security of original L/C in favour of the sub-supplier. The sub-supplier thus gets the Back-To-Bank L/C on the basis of which he can obtain packing credit. 6. Advance Against Exports Through Export Houses: Manufacturer, who exports through export houses or other agencies can obtain packing credit, provided such manufacturer submits an undertaking from the export houses that they have not or will not avail of packing credit against the same transaction. . Advance Against Duty Draw Back (DBK): DBK means refund of customs duties paid on the import of raw materials, components, parts and packing materials used in the export production. It also includes a refund of central excise duties paid on indigenous materials. Banks offer pre-shipme nt as well as post-shipment advance against claims for DBK. 8. Special Pre-Shipment Finance Schemes: * Exim-Bank’s scheme for grant for Foreign Currency Pre-Shipment Credit (FCPC) to exporters. * Packing credit for Deemed exports. SOME SCHEMES IN PRE-SHIPMENT STAGE OF FINANCE . PACKING CREDIT SANCTION OF PACKING CREDIT ADVANCES: There are certain factors, which should be considered while sanctioning the packing credit advances viz. 1. Banks may relax norms for debt-equity ratio, margins etc but no compromise in respect of viability of the proposal and integrity of the borrower. 2. Satisfaction about the capacity of the execution of the orders within the stipulated time and the management of the export business. 3. Quantum of finance. 4. Standing of credit opening bank if the exports are covered under letters of credit. 5.Regulations, political and financial conditions of the buyer’s country. DISBURSEMENT OF PACKING CREDIT: After proper sanctioning of credit limits, the disbursing branch should ensure: To inform ECGC the details of limit sanctioned in the prescribed format within 30 days from the date of sanction. a)  Ã‚  Ã‚  Ã‚  Ã‚   To complete proper documentation and compliance of the terms of sanction i. e. creation of mortgage etc. b)  Ã‚  Ã‚  Ã‚  Ã‚   There should be an export order or a letter of credit produced by the exporter on the basis of which disbursements are normally allowed.In both the cases following particulars are to be verified: 1. Name of the Buyer. 2. Commodity to be exported. 3. Quantity. 4. Value. 5. Date of Shipment / Negotiation. 6. Any other terms to be complied with. 2. FOREIGN CURRENCY PRE-SHIPMENT CREDIT (FCPC) * The FCPC is available to exporting companies as well as commercial banks for lending to the former. * It is an additional window to rupee packing credit scheme ; available to cover both the domestic i. e. indigenous ; imported inputs. The exporter has two options to avail him of export finance. To avail him of pre-shipment credit in rupees ; then the post shipment credit either in rupees or in foreign currency denominated credit or discounting /rediscounting of export bills. * To avail of pre-shipment credit in foreign currency ; discounting/rediscounting of the export bills in foreign currency. * FCPC will also be available both to the supplier EOU/EPZ unit and the receiver EOU/EPZ unit. Pre-shipment credit in foreign currency shall also be available on exports to ACU (Asian Clearing Union) countries with effect from 1. 1. 1996.Eligibility: PCFC is extended only on the basis of confirmed /firms export orders or confirmed L/C’s. The â€Å"Running account facility will not be available under the scheme. However, the facility of the liquidation of packing credit under the first in first out method will be allowed. Order or L/C : Banks   should not   insist  Ã‚   on   submission   of   export  Ã‚   order   or   L/C   for   every disbursement  Ã‚  Ã‚   of   pre-shipment  Ã‚   credit , from exporters  Ã‚   with consistently  Ã‚   good   track   record. Instead, a system of periodical submission of a statement of L/C’s or export orders in hand, should be introduced.Sharing of FCPC: Banks may extend FCPC to the manufacturer also on the basis of the disclaimer from the export order. Export Finance HSBC is a market leader in Export Finance, recognised through annual Dealogic surveys. Through a team of professionals in strategic locations globally, Export Finance arranges medium- and long-term financing for HSBC clients in the public and private sector across the globe buying capital goods and services. Finance can cover marine assets, aircraft, power generation equipment, infrastructure development, manufacturing equipment, oilfield services and a host of other goods and services.Export Finance also features regularly in the financing of limited recourse projects, as a project financing tool. Export Finance uses gove rnment guarantee programmes, Export Credit Agencies (ECAs), in an exporting country to credit enhance the financing to the buyer, thereby achieving highly competitive pricing for the buyer. It also allows borrowers to access a new pool of risk capital, often with appetite for extended tenors relative to traditional bank financing. Export Finance provides structuring, arranging, documentation and distribution services for clients in relation to almost all ECAs.