European Business Environment Essay

Introduction This paper focuses on the enlargement of the European Union (EU) and its effects on external and internal relations. Taking into account the analysis and forecast presented before enlargement, it shows the real consequences of the development. The most essential consequences, as well as problems in part of decision-making and administration in the EU, social consequences of the enlargement, as well as the result of the possible economic enlargement of the on both existing member countries and new entrant countries. In taking into account the future of the European Union and the perception of regional European, the study specify that for the first time in many decades the EU has the opportunity to strengthen the global role of the society and reunify the continent supported by a common democratic standards and rules, a collapse in the process of European integration would mainly perhaps mean the gradual marginalization of Europe as a foremost actor of international associations. The collapse of the Soviet Union and the fall of the bipolar order greatly affected the development of European integration. One of the main basic challenges was the disappearance of the Eastern Bloc, as the threat of the Soviet hostility served for many years as a amalgamate aspect for the Western community (Baun, 2004). The next challenge was the unification of Germany, as it was obvious for most of European countries that the prospect role and position of the united German state would be stronger and further important than that of Cold War-era Western Germany. At the same illustration, the European Union, formally established by the Treaty of Maastricht on 1 November 1993, had to respond to broader problems about its international target and the future shape. It was apparent that the European Union possibly could not have opened its door to nation that was unwary or unable to prove the good organization of their democratic governance. Additionally, the setback for the EU was that planed to outlook for the relationship served as encouragement for the new democratic organization in East-Central Europe to carry on their complex and socially troublesome reforms, the flourishing results of which became significant for the strength of the whole continent. The solution was the Copenhagen condition, explained at the summit of the European Council in Copenhagen in 1993. The rules placed general necessities for starting effective democratic organizations, respect for individual and minority human rights, and suitable instruments for promised market economy (Lindner, 2003).Upon meeting the requirement, the first candidates was capable of open the accession talks in 1998. Ten new members that united the European Union on 1 May 2004 completed these consultations in 2002. Jointly with the growth in 2004, the EU-15 developed into EU-25; after Bulgarian and Romanian accession on 1 January 2007, the coming together became the EU-27. The growth from 15 to 27 member states was the biggest in the history of European incorporation process growing the number of the EU population from about 380 to 485 million. The new states members were medium-sized and small countries, though; each of the new associate has achieved the same rights as existing members of the EU. The enlargement of Eastern has been the major difficulties in the history of European integration, not simply because of the number of new states member joining the European Union at the same time, but mainly because of differences in the level of the gross national product (GNP) involving the old and the new members states of the EU. An evaluation of GNP per capita confirms that the richest new members state have not go beyond 40% of the standard EU-15 level and much bigger asymmetry is opened by the evaluation with the wealthiest states members of the old union (Miles, 2004). In reality, earlier enlargement rounds, like the one in 1973, to comprise the Ireland, Denmark and United Kingdom the one in 1995, to include Austria, Finland, and Sweden, was accessions of states similar in economic improvement and wealth. Merely the membership of Spain and Greece in 1981 and Portugal in 1986 caught up the enlargements of countries, which were much not as good as at the moment of their accession than the standard member of the society. This led to a question of harmony between the poorer members and the rich, and needed additional financial contribution of the wealthiest member states to sustain political and economic transformation in the new member countries. Although the old member countries reacted with hesitation, they finally agreed to such assistance, being aware that it would support democratic transformation on the Continent and support to eliminate intimidation of instability for the whole society, while contributing to formation of the common European marketplace. Nevertheless the Eastern enlargement twenty years later on was incomparable in its unevenness of economic potentials and the interns of GNP per capita involving the old and the new members still with the Southern growth of the European Community (EC) in the mid-1980s (Nugent, 2004). This irregularity of enlargement collectively with fears in Western Europe about social cost, problems of intra-union administration as well as the continuing crises of EU characteristics have compounded the face of the Eastern enlargement years after the enlargement, these concern continue to distress the integration development, consequently it is worth focusing on a few of them. Even ahead of agreement, it was obvious that the Eastern enlargement from 15 to 28 members would force management and decision-making processes in the European Union, as well as the possible to paralyze or at least make difficult the mechanisms formed in the EU-15. Predicting the enlargement, the old members attempted to organize the internal decision-making systems to incorporate the new members. The Amsterdam and Nice Treaties broaden the scope of verdict to be taken supported on Qualified Majority Voting (QMV), as an alternative of harmony, and the Nice Treaty formed a specific majority system (Schmitter, 2004). It established each of the 27 members an exact number of votes gleaming its demographical potential. The major members of the EU France, Germany, Italy and the UK, were awarded 29 votes each, and the smallest states: Luxembourg 3 and Malta 4 votes, correspondingly. Poland, as the largest new member, was given 27 votes, the equivalent to the number as Spain. However, the rule of the accord has remained at as the foundation of all decision-making in the EU, particularly when it comes to critical political decisions. Even so, the caution of Taylor remained applicable as the effectiveness of decision-making in the distended European Union needed further internal amendment. The response was Treaty making a Constitution for Europe signed in Rome on 29 October 2004. The new agreement went comparatively far in its application, yet Netherlands and the France rejected the European Constitution in referendums and the last effort to improve the internal utility of the EU was the Lisbon Treaty signed on 13 December 2007. The Lisbon Treaty is in actual fact a series of provisions originally presented in the European Constitution. It has make things easier for the   EU’s legal procedures and has established the European Union a legal personality, as well as helping harmonization of the EU’s policies establishing the posts of the EU President and Foreign Minister. It reflects the objections of some members who strained the principal independence of the member states, resultant in the cut of most references that could advocate for the character of the European Union as a (super-) state, counting the initial names of the new EU council. As an effect, the new EU Foreign Minister has lastly become the High Representative of the Union for Foreign Affairs and Security Policy. However, the prospect of the treaty had been vague for almost two years, as its implementation required confirmation in all member states. After the optimistic result of the second Irish referendum on 2 October 2009, the president of the Czech Republic, the Polish president, Vaclav Klaus and Lech Kaczynski, finally decided to sign the Treaty. This permitted the Lisbon Treaty to come in into force on 1 December 2009 (Nugent, 2004a). The approach of the citizens in the new member states towards European incorporation has generally been optimistic. For instance, the effects of the agreement referendum in Poland demonstrated support for the association at 77%. After enlargement, assistance in Poland is still at a high level of about 70% (Preston, 1997). The Office of the Committee for European Integration, Warsaw 2009 all together, still, enlargement provoked serious worries among Western EU member countries. The forecast of the enlargement were a basis of anxiety among the populace in the old, wealthier counties members of the EU, as well as the fears of joblessness and huge immigration of employees from the much poorer states of East-Central Europe. Piotr M. Kaczynski specified that the new states were better organized for enlargement as they projected changes and were required to plan for membership. The older members and their societies only experienced the test of the Eastern enlargement on the day of new members’ agreement (Nugent, 2004b). This resulted in the distribution of fears and slogans about the â€Å"Polish nurse† or â€Å"Polish plumber† frightening for employment chances for local Western Europeans. Few in Western Europe left devoid of the benefits of the Eastern enlargement for stabilization, democratization, and union of the continent. Yet the Westerners worried that Eastern enlargement would establish   the questions of decision-making, management, asymmetry in economic potentials and as well as raise the requirement for a broader process of structuring mutual consideration between the two share equally of Europe divided for almost 50 years by the â€Å"Iron Curtain.† (Hagemann, Sara/De, Julia 2007) Still, there were numerous forecasts concerning the migration prospective. Some of them projected that the immigration from the new states would differ from 6% to even 30% of their total populace (105 million), but those more practical showed that the migration would be approximately 3-5% or yet only 2% in the longer time, taking return migration into consideration (Nugent, 2004b). In actuality, the Eastern enlargement has only in part established the fears of Western European civilization and its social effects have been less serious than projected. At the same time, it has established most of the scholars’ forecasts. In agreement with the data obtainable by Euro stat for the end of 2008, the total digit of the immigrants from the new states members has been approximately 1.7 million (Guà ©rot, 2005).This does not comprise session seasonal personnel, the number of which could be expected as an additional few hundred thousand with a propensity to sluggish down for the reason that of the current world economic disaster. The most frequent immigrants were Poles (Poland being the most crowded new member state) and Romanians operating mostly in the Ireland, Spain, and United Kingdom. Polish specialist have projected that the actual number of Poles operating in the old member countries of the EU has been at the level of 1–1.12 million (out of entirety 38 million of populace) with a possible of additional 0.6 million of seasonal recruits (Stacey, and Berthold 2003). These numbers may seem considerable, but it would be difficult to treat them as a massive influx of workers from the East. All in all, the trouble of migration from the new state member cannot be overlooked and will go on to play an important role in the opinion of euro-skeptics, but it emerge to be much less grave than originally estimated. This is accurate mainly in the situation of the current world economic catastrophe and increasing social protests adjacent to the foreign employment force in the UK and other principal states of the European Union. It may perhaps also persuade the old members to formulate informal efforts at protectionism, although the regulations of the free movement of industry and capital within the European particular market. One of the areas of debate before enlargement was the cost of the process. Yet it seems that the Eastern enlargement of the European Union has not been overly expensive, especially in comparison to the benefits. Several authors have concluded that in the longer term the enlargement would have small but positive growth effects on the whole EU, although lower in the case of the old members and higher with regard to new member states, with forecasts of an additional overall EU growth by 0.5 to 0.7%. However, it is clear that the main benefits of the enlargement are political ones, namely the opportunity to reunify the Continent and in this context, the costs of the enlargement were indeed low (estimated for the financial framework 2004-2006 at 40.16 billion euro, or 1.08% of EU GNP) (Faber, 2009). Though, looking at the differences in economic prospective and wealth-level involving the old states and new states members, it seems not possible to expect that their convergence would be attained in the short or even medium time. This implies a tough need for aiding funds from the richest states of the European Union for the improvement of the new state members. Therefore, the dilemma of financial unity between the poorest and the richest in the EU will turn into much more grave for the future of the Union than whichever time before, still after the Southern enlargement in the 1980s (Falkner, 1996). The narrow financial wealth at the Union’s disposal has led to discussion in the EU about its financial point of view. The member states take up two differing positions. France and Germany, as the leading donors, have grown hesitant to increase their assistance to the common EU budget. The financial discussions for the period 2007-2013 incorporated the demand of the major net-contributors to edge the EU resources to 1% of the Community’s GNP. The ultimate resolution accepted a maximum of 1.045%, but the indecision of the richest members to wrap the additional expenditure of the enlarged EU was understandable. The new state members, conversely, joined the EU with the hope of financial support and harmony. Knowing that their active growth depend on the kindness of the richest states of the EU, the new state fear that, the imposing idea of harmony might crash with the exaction economic interests of the main EU members. Such a distribution of the EU members into the center of the most urbanized and wealthiest nations and East-Central Europe as an edge could intimidate European integration. Yet even though the limited economic resources exist in the EU budget, the supporting of the new members states has been reasonable so far. Poland, for instance, as the largest recipient, is getting a net-assistance of â‚ ¬60 billion in the episode of 2007-2013, mostly in the form of structural and solidity funds. However, the most important concern is to keep this level of the help in the next financial agenda (2014-2020). This will be the main issue of the future discussion. The wealthiest and strongest states of the EU have well thought-out reducing some forms of support to new member’s states and support spending that would center more on new technologies, competitiveness, and innovation of the EU in the global economy. Even if it is apparent that the EU requires being more successful on the global prospect, it is evident that the financial capital available in the upcoming EU budget for innovation and new technologies would most possibly help the wealthiest state of the Union. The new states with their much poorer economies and less innovative will not be capable to struggle for this money. The new East-Central European members projected full-fledged contribution in the decision-making method of the EU, as well as value for their opinion, despite their imperfect economic potentials. But the political discussion just after the Eastern extension, which led into the new suggestion of the European Constitution and the Lisbon Treaty, were challenging for the new members states and tackle them with the perception of the new form of the European Union only a few months following their agreement. These circumstances were most difficult for Poland the largest country in the group of new states, however a medium-size state members in the EU with its ambition of playing an active political task in the European Union. In the case of Poland, which was to lower some of its recognized position in the EU exacted in the number of votes in a number of Union institutions, it was hard to clarify to people why the regulations of the membership must be altered so quickly after the agreement. Examining the first epoch after the Eastern extension, Piotr M. Kaczynski sustains that the economic outcome of the growth have been clearly constructive. The new state members improved quickly and much earlier than expected. Though, he finds that the political aspect of the enlargement is harder to review. After a first period of compliance, the new state members, particularly Czech Republic and the Poland, became more self-confident in the EU, which resulted to some quarrel between the administration of these nations and EU system. Equally Czech Republic and the Poland mainly reacted to the thoughts coming from the Western part of the EU. Their political program, if any, were typically poorly set and cast off (Steunenberg, 2002a). Later, after the enlargement, Poland and all new members comprehend more visibly that it is not only the amount of votes that make a decision their place and ability to pressure decision-making procedures in the EU. They have attained convenient experience and become more familiar with the actual political device, including the regulations of effective alliance building and cooperation. Dirk Leuffen has explained it as a progression of â€Å"socialization† in which the new state members learn how to deal with the informal and formal rules and standards in the EU. From his perspective point of view, this socialization should be well thought-out as a medium-term development ( Dirk 2010). The skill gained; during the five years following the enlargement appear to back up that the time of socialization will be shorter relatively than longer. The current Polish-Swedish suggestion of Eastern Partnership (Steunenberg, 2002b), to reinforce collaboration with several Eastern neighbors of the inflamed European Union, helped by the other members of the EU, demonstrate that new states can efficiently take part to flourishing program, or at slightly be significant partners of doing well initiatives offered together with some old states members. As consequence, the succession of the new states from East-Central Europe has not been as â€Å"detrimental† to the EU administration as it was at times recommended in Western Europe earlier than the enlargement. In conclusions, the effects of the Eastern enlargement on external and internal relations of the European Union have not been as â€Å"tragic† as it was occasionally feared prior to enlargement. The addition from 15 to 28 member nations, as well as the significant economic unevenness between old state and new state member have shaped some administration problems for the EU, but they have not busted it. The European Union ought to now focus on amplification of its present instruments and institutions. The new states have rapidly learned the Union’s regulations and procedures and to place political conciliation before majority of votes. Thus, the agreement code has retained its center value in the EU. The significance of the incorporation process is the vision of a new regional individuality based on resolution among the European countries. The Eastern enlargement has opened the way to a real unification of the continent. After the occurrence of two World Wars on its region, it behooves Europe not to lose this opportunity. Thus, harmony between the old states and new members remains the subject to a flourishing future of the society. References Baun, Michael 2004: â€Å"Intergovernmental Politics†. In: Nugent, Neill (ed.) European Union Enlargement. Palgrave Macmillan, pp. 132-145. Blockmans, Steven/Prechal, Sacha (eds.) 2008: Reconciling the Deepening and Widening of the European Union. The Hague: T.M.C Asser Press Dehousse, Renaud/Deloche-Gaudez, Florence/Duhamel, Olivier (eds.) 2006: Élargissement. Common l’Europes’adapte. Paris: Centre d’à ©tudes europà ©ennes, Presses Sciences Po. Dirk Leuffen 2010. â€Å"Breaking the Camel’s Back? Eastern Enlargement and EU Governance.† ECPR Paper Number 853, Center for Comparative and International Studies, ETH Zurich, p. 6 Faber, Anne 2009: â€Å"Eastern Enlargement in Perspective: A Comparative View on EC/EU Enlargements†. In: Loth, Wilfried (ed.): Experiencing Europe. 50 Years of European Construction 1957-2007. Baden-Baden: Nomos, pp. 305-325. Falkner, Gerda 1996: â€Å"Enlarging the European Union†. In: Richardson, Jeremy J. (ed.) European Union. Power and policy-making. London/New York: Routledge, pp. 233-246 Guà ©rot, Ulrike 2005: †Consequences and Strategic Impact of Enlargement on the (Old) EU†. In: Brimmer, Esther/ Frà ¶hlich, Stefan (eds.): The Strategic Implications of European Union Enlargement. Johns Hopkins University: Centre for Transatlantic Relations, pp. 53-72. Hagemann, Sara/De Clerck-Sachsse, Julia 2007: Decision-Making in the Council of Ministers: Evaluating the Facts. CEPS Policy brief No. 119, January 2007, available at http://www.ceps.be. Lindner, Johannes 2003: â€Å"Institutional stability and change: two sides of the same coin†. Journal of European Public Policy 10:6, December 2003, pp. 912-935. Miles, Lee 2004: â€Å"Theoretical Considerations†. In: Nugent, Neill (ed.) European Union Enlargement. Palgrave Macmillan, pp. 253-265. Nugent, Neill (ed.) 2004: European Union Enlargement. Palgrave Macmillan. Nugent, Neill 2004a: â€Å"Previous Enlargement Rounds.† In: Nugent, Neill (ed.): European Union Enlargement. PalgraveMacmillan, pp. 22-33. Nugent, Neill 2004b: â€Å"Distinctive and Recurrent Features of Enlargement Rounds.† In: Nugent, Neill (ed.): European Union Enlargement. Palgrave Macmillan, pp. 56-69. Preston, Christopher 1997: Enlargement and Integration in the European Union. London/New York: Routledg Schmitter 2004: â€Å"Neo-Neofunctionalism†. In: Wiener, Antje/Diez, Thomas (eds.): European Integration Theory. Oxford: Oxford University Press, pp. 45-74. Stacey, Jeffrey/Rittberger, Berthold 2003: â€Å"Dynamics of formal and informal institutional change in the EU†. Journal of European Public Policy 10:6, December 2003, pp. 858-883. Steunenberg, Bernard (ed.) 2002: Widening the European Union. The politics of institutional change and reform. London/New York: Routledge. Steunenberg, Bernard 2002a: â€Å"Enlargement and reform in the European Union†. In: Steunenberg, Bernard (ed.): Widening the European Union. The politics of institutional change and reform. London/New York: Routledge, pp. 3-20. Steunenberg, Bernard 2002b: â€Å"An even wider Union. The effects of enlargement on EU decision-making†. In: Steunenberg, Bernard (ed.): Widening the European Union. The politics of institutional change and reform. London/ New York: Routledge, pp. 97-118.

Negotiation with chinese Essay

We wish to express sincere appreciation to Professor Shia Yun Chiang for his assistance in the preparation of this manuscript. In addition, special thanks to Yama (Yuehai shoe material Ltd) who’s familiarity with the needs and ideas of these team and was helpful during the early programming phase of this research. INTRODUCTION Continental Design is a company where excellence and customer satisfactory are priority. After ten years of being in business, continental now seeks to enter the Chinese market. On Thursday, June 13th 2013, some members were selected to visit the potential customers of our new shoe-soles designs to introduce and negotiate our terms. These members include Mr. Emmanuel Mlay (Financial Officer), Mr. Robin Sharma(Managing Director), Mr. Cliff Osoo (Contracting Officer), Ms. Bella Chan (General Overseer), Ms. Sandra O. K (Sales Manager). Upon arrival, we were taken in and around the factory to experience their works and then to the meeting room. In this report, we explain further our observation and findings in negotiating with the typical Chinese. This report emphasizes mainly on the observations which includes specifications, mode of conduct, styles and techniques also elaborating on how they work together as individualist or collectivism. Again the language used, what they felt at ease to say, their communication skills, relationships with clients, were also under study. However their reasoning and way of thinking was somehow fascinating and very interesting which this report enlightens ideally and strategically. A brief but very informative research was done to know our potential customers before reaching out to them. The one talked about in this report is â€Å"Yuehai shoes material†, a very renowned shoesole company in China. In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two. 1 1 By: Lee Iacocca 1 Chapter 1 THE CONTINENTAL DESIGN Continental design provides differentiated products that accelerate innovations in the global design market. With ten years of experience and commitment, Continental design has grown to be one of the strongest competitors in the field of designing. This company has also spent those ten years in developing its communication and negotiation skills. Its management capabilities have enabled it to technically handle the challenges and efficiently provide products that are best in the market. As Victor Papanek once said â€Å"Design is the conscious effort to impose a meaningful order. † Continental design was founded by a team of five engineers with one primary goal of working hard helping all small and big shoes companies to succeed through professionally enhanced designs. Today, Continental design is a full-service independent company with about 10 percent of the world market share. Our services cover the whole of Africa, South and North America, Middle East and few countries in Asia. Recently we have initiated our first staple toward China market. 2 BUYERS COMPANY PROFILE Yuehai Shoes Materials Yuehai shoe material has more than 20 years of manufacturing experience and large number of qualified senior employees who are devoted to settling problems and confronting challenges. It has adopted advanced equipment from Taiwan and main land China. The production technology is matured and reliable; at the same time it uses the original material that makes its products to be famous by their high qualities. Its domestic market ranges from Guangzhou and Dongguan where there is a stiff competition that helps them to develop new and up-to date designs that meet the market demands. It then covered the whole of China before capturing Europe and America as the first target in external market. Most recently, it has expanded its external market to Middle East and Africa as a whole, where it has entered into more than 10 different countries. Shoes are human daily life necessities. Shoes industries will never perish as long as human being still exists. With the use of imagination this company is committed to continue to develop shoe industries as part of making the life of entire society in the world better off. Address: No. 39 beicun road, huangqi, nanhai district, foshan city, Guangdong province, China. Tel: 8675785938525 Fax: 867578592981 Email: tailon@21cn. net Yuehaixe. com. cn 3 Chapter 2 NEGOTIATION PREPARATION In negotiation there are few things that have to be put in place before the negotiating team or person set off for the negotiation. The factors that are mostly considered before negotiation are: ? Length of contract This is the period that the contract will take before it’s renewed again. The seller always concentrate in this factor because it affect the profit the company will make and for how long. Mostly its 1 to 3 years. This factor is important because it also influence the price to be offered to the buyer. ? Volume to be ordered After a seller has agreed on the length of contract then the next thing to talk about is the Volume that will be bought. When few goods are bought, there is a high possibility that the price will be higher unlike when a large quantity is bought; therefore these first two factors influence the price of the item. ? Price The third factor to talk about after length of contract and volume is price at which the good will be sold. In every company, there is a price offered depending on the quantity to be bought, quality and other things needed for production. The larger the quantity, the lower the price will be and vice versa. 4 ? Payment Terms and Services. The most important thing for a company going for a negotiation is; length of contract, volume and price and other things like payment terms and services comes up later. The last two remaining factors are considered to make sure that the items agreed before is taken into account in a proper manner. Payment terms are important because even if you have a long contract with large volume but payment is not done in time, you will have to lose something. Services are offered to the buyer to make sure he/she is satisfied with the goods bought. 5 SELLER’S WISH LIST. Here we made our wish list before we went to the meeting. We had decided our lowest price and the contract length. Below you can see the result of our company board meeting before going to negotiate with Chinese company ITEM2 Length of contract Volume Price Payment terms Services WEIGHT 40% 25% 20% 10% 5% RANGE 2-1 Years 500-100units/month $200-$150 10-15days 5/5-8/5 In the following table you can see that we agreed to have at least 1 year contract with Chinese company. As they are old and experience company, we believe that it won’t be any problem even if we have 2 years long contract. In terms of volume we were ready to deliver any amount till up to 500 per months. Price was the main concern of our meeting. We know that they will try to spend more time on the price negotiating and knowing we have many competitors in the market, we needed to come up with a very good price range. We also had an agreement on payment terms which should meet within the short period. Lastly, we agreed to offer them a good customer service. 2 Professor Shia Yun Chiang Power point presentation-Estimating wish list ,Power point presentation slide no. 9 & 10 6 THE AGREEMENT ZONE In every negotiation, there are two possible outcomes. The parties can either reach an agreement or not. The first situation is where the seller and the buyer don’t reach an agreement at all, either, due to the buyer or seller not agreeing with the offer given. The second situation is where the two parties (Buyer and Seller) reach an agreement and signs a contract for the business to take place immediately. For the two parties to reach an agreement, they will have to consider their Consequence of No Agreement (CNA). CNA will either make the two parties to agree or disagree. BUYER’S WISH LIST ITEM3 Price Services Payment terms Length of contract Volume WEIGHT 45% 25% 20% 5% 5% RANGE $100-$150 8/5-5/5 Cash transfer 3-1Years 50-100units/month After a lengthy discussion with the buyer, following were the outcomes of negotiation; OUTCOME ITEM Price Length of Contract Volume Payment Terms Services DETAILS $150/Design 1 Year 100 Units/month Cash Transfer in 2 days 10 Days training Professor Shia Yun Chiang Power point presentation-Estimating wish list ,Power point presentation slide no. 9 & 10 7 Chapter 3 OBSERVATION VALUES AND THINKING IN NEGOTIATION. When going for a negotiation one has to learn the buyer’s values in thinking. These values differ from one country or one region to the other and it can cause a misunderstanding between the two parties. According to the research we did about Chinese negotiation, we found out that Chinese are more relationship oriented than Africans and even other nations. As soon as we entered into the Chinese office for the negotiation, they offered us Water. This proves that they are more relationship oriented; they use this to build a rapport between their clients even before negotiation. Another thing that the company we were negotiating with did is that, they invited us for supper. In these acts we can see how Chinese people are mostly towards relationship with their clients unlike other European countries or America and even Africa. Before us reaching a conclusion, the Chinese people asked a lot of personal questions even in the middle of our negotiation. Some of the questions they asked were; When will you go back to your country? Do you like china? Is your country very hot than china? These personal questions that are not related to business are a clear picture of Chinese values and thinking in a negotiation. â€Å"As a general rule, it’s always safer to adopt a formal posture and move to an informal stance, if the situation warrants it, than to assume an informal style too quickly†4 4 As Jeswald W. Salacuse- (Ivey Business journal) 8 . During our research, we were also able to notice some of the things that are not common in African countries and even other continents. The first thing that they did is to welcome us in a very encouraging manner that made us feel at home, and with such hospitality, we were able to do the negotiation having been convinced that Chinese are good business people. This kind of hospitality that Chinese people give to their clients make them win in the businesses they negotiate in because the other party will feel so cared for that they can trust the offers given. Another thing we noticed in the research is the way they asked us whether someone has introduced us to the company or we looked it up in the internet. At the beginning I didn’t see the reason why they should be concerned with how we got to know about the company, but after we finished the meeting I had to ask and what they told us is, in Chinese (Intermediary/ middleman). This is one of the things that make us to realize how important Chinese value relationship in the business arena. The other behavior that we observed in the process of visiting and doing the negotiation is that, immediately we arrived at the factory, we were received and taken around the factory to see how they do their production and even explaining every step of production line. This really made us feel honored and we started to see them as transparent and responsible people, something that needed in business so much. â€Å"Chinese negotiating style is people oriented and permeated with such Confucians notion as guanxi, renqing, face, family age, harmony, hierarchy, li (etiquette)†5. 5 As said by Tong Fang –Chinese Business Negotiating Styles 9 CIRCULAR REASONING & TALKING In our haste to market our designs for shoe soles. We came across various ways in which Chinese carry out their business negotiation. While most of the companies we approached exhibited the sequential kind of talking, the Chinese demonstrated the circular type. Interestingly, as we tried to obtain information and answer their questions regarding our products, we realized that Chinese, when not interested in your product would rather beat about the bush than going straight to the point. This is mostly demonstrated in the time of negotiating prices. This makes it hard to determine their stance in terms of buying the product. It is almost impossible at that moment to determine the level of consequence of no agreement on the buyer’s side. As much as you try explaining and convincing Chinese buyers who are less interested in a product, you will end up just like before. It is hard for them to say â€Å"no† point blank. This I believe is because of the long courting and relationship they build up with their business partners before negotiating. For instance, in one of our interviews, the interviewee mentioned after our refusal to take lunch with him that it is the culture of Chinese people to dine with their potential business partners irrespective of their interests. He explained that not only does this emphasize politeness; it also creates room for next or future cooperation. That is why in almost every meeting with a Chinese business man, you are served tea or water even before the talking starts. As pleasing as this might sound, it is also the reason behind the average Chinese would want to beat about the bush when not interested in the product for sale. Relationship and friendship are commonly used to obtain a better price and more concessions. 10 Herbig and Martin (1998), Stark, Fam, Waller and Tian (2005), and Zhu et al. (2007) all found that the Chinese do not rush into the negotiation, but rather, spend a lot of time in getting to know their counterparts as much as possible, even including personal information in order to build guanxi and trust from the beginning. Another finding is that they would want to end the meeting peacefully and friendly just as it had started without having to ruin the relationship or hurt anyone’s feelings, yet they have to decide whether or not to purchase the product. According to Faure (1999), the Chinese focus more on relationship building during this stage, as they need to know their counterparts for any business deal to occur. This negotiation practice might cause conflict with Westerners, as Westerners prefer to start negotiations straight away after basic greetings and introductions. Rule how to be successful in dealing with Chinese: â€Å"Be fair, reasonable and diplomatic: â€Å"If your Chinese counterpart believes that you are being unreasonable, they may not openly say so, but your negotiations are likely to stall and go nowhere. If you disagree with your counterpart, don’t simply reject their position out of hand, but carefully explain your reasoning†. 6 6 â€Å"Forbes† by Jack Perkowski (Negotiating in China; 10 rules for Success 11 QUESTIONING & INTERRUPTING We’ve had several encounters with many customers throughout the years, but what makes the Chinese customers outstanding is their mode of questioning. Unlike our African customers, they tend to interrupt and chip in their questions whiles you are talking. In some cultures, this might seem rude and impolite but this is not so for Chinese. They are very cooperative, assertive and defensive. This encourages and makes the one talking feel he’s being listened to. This normally generates positive feedback. During one of the interviews conducted, it came to our realization that, the typical or traditional Chinese interrupts more than the Chinese who has been open to Western culture. Customers who deal with Westerners or Africans have adjusted to some of their negotiation skill. This we believe will go a long way to influence most Chinese business partners. Their character or attitude of seeking and asking questions is different from other people in the sense that Chinese exhibits a character of â€Å"Xenophobia which is a distrust of all things foreign to one’s own culture. Xenophile is a lust to obtain all things new and or foreign. The Chinese have become inclined to distrust anything and everyone from foreign lands due to their history of violent revolutions and government seizures and changes. On the other hand, they have also seen the new technologies and high standard of living in the West, and many Chinese struggle with these mixed feelings as they pursue business opportunities with foreigners and seek to acquire western technologies â€Å"(Pye, 1992) 12 COLLECTIVISM Under collectivism, the means of production are owned and controlled by the state or the people as a whole. Also, it describes any outlook or philosophy that stresses the interactivity between people. It is often consider as opposite of individualism. There are two basic types of collectivism: horizontal and vertical. In the horizontal type, members are considered to be as equal as possible, and share resources and responsibilities. The vertical include a social hierarchy that society member work to maintain, and people submit to those above them in the hierarchy. Collectivism in China When Mao Ze Dong came into power; he strengthens the collectivism by eliminating landowners and individualists, sending nearly everyone to work in collectivist communities. Therefore, China has been more collectivist than individualist in both ancient and modern history. Many research states that, there are many leaders in China today who believe that the days of collectivism in China will soon be gone. There are several reasons for this. First is that the â€Å"one-child-policy,† especially in the cities, it gives us many younger citizens who have been raised to believe that they hold a special place in the world. This kind of upbringing leads to individualism over collectivism. In business point, there are still many examples of collectivist thinking. For example, When we(foreigner) and Chinese, began to work together, mainly the Chinese look towards the team as 13 the reason for the company success, but on the other hand, the foreigner(us) were trying to identify individual high performers. That’s one of the different between Chinese and foreign culture. Collectivism between our culture (as a foreigner) and Chinese Collectivism is a cultural pattern found especially in East Asia, Latin America, and Africa. But nowadays societies are not purely individualist or collectivist, but some of them are the mixture of the two. Western and Northern Europe, USA, Canada, Australia, and New Zealand are individualist. Conclusion Although there are few countries fully apply in collectivism, like North Korea, most of the countries are applying the mixture of collectivism and individualism. Those countries practicing collectivism mainly have a low GDP level, because it affects trade with the other countries. 14 THE RELATIONSHIP BETWEEN SPECIFICATION OF TIME AND PRICE. The important aspects when we negotiate with Chinese: Patience is the most important qualification for successful negotiations with the Chinese. Negotiations in China often take time because of different departments within one organization tend to be involved in negotiation processes and decision-making within the Chinese bureaucracy often takes time. By Confucianism, Chinese will not rush into any serious meetings with someone whom they do not know; trust and a certain feeling of closeness. Here is the example of Chinese negotate style we found. It prove that, to negotiate a favourite price with Chinese, obviously we need time. 1. Don’t expose too much of your interest in a product you want to buy even though you’re really drawn to it. It is better to act like that it does not matter to you and you don’t have to have it. Sometimes the sales person would tell you if he or she can judge from your facial expression that you really want that item. 2. In the first time you will never get the exact item for the price. Usually the sales person would try to seduce you by offering an unfavorable price. For example, for a necklace placed at $100, if you ask the sales person for discount, perhaps for the first time she would give you a discount like $90. Don’t take it. Just think that it is too high and walk away. Sometimes the sales person would shout at your back and offer much more favorable discounts. 15 3. The second negotiation is to reach a middle point. Try to get 45-60% discount of the original price. If it is impossible, try to get somewhere around 70-85%. Try to negotiate in a friendly way. If the agreement cannot be reached, walk away again. 4. The final negotiation will be the last attempt. Be firm and try to get 40% off. Some might finally give you 40% off, while some can’t due to different price strategies involved and store renting fees, staff cost, etc. To compare with our culture(as a foreigner), in our country, all the goods had set their fixed selling price, and most of the company usually have their own rule for market selling, therefore the vacuum for price negotiate will be less. 16 LANGUAGE BARRIER Our group members come from Nepal, Ghana, Tanzania, and Hong Kong. We speak different languages. English is our second language. We often face with language barrier within and outside the group. . Language barrier often is a big problem. If this was an outsourcing job or transcription work, language would probably have a major role, as both require clear understanding of the accents, practice of speaking in a fluent way. Cause of language barrier: 1. Emails – written communication we should be able to clearly understand written instructions and reply with clear and also follow rules in a polite way. Sometimes we often wrote a business mail in a friendly tone, instead we should write in a formal way. 2. Phone Calls While working with an outsourcing partner, providing a phone number for emergencies may seem to be a good idea. However if this phone number happens to be attended by a non-English speaking person, it will serve nothing but a source of irritation. So we can think of giving the mobile number of a representative who can speak with clear and patience – even if the resolution is not attained on the call in itself. 17 Useful method between different language. Pictogram and simple image are useful method as icon or sign for almost every place. It means they are efficient to give information to people without any words. They have high possibility to support the communication between two people without spoken language. Conclusion We need to use English to communicate with each other, when we were going to Nanhai to take the video, sometimes we need to use Chinese to communicate with the local Chinese people. When people from different countries speak in different languages, we often face difficulties an understanding each other. We cannot express our meaning in a proper way. During our research, when we took the train, there was problem in translating Chinese characters. So it is quite hard for us to find the way to the shoe factory. In addition, the English level of a local Chinese are mainly still in low level, some of them even cannot understand what we are asking. I think it is what we are called language barriers. 18 Chapter 4 TIPS TO NEGOTIATE WITH CHINESE The intensive research negotiation we conducted at Yuehai Shoes Materials factory widened up our knowledge about Chinese negotiation. We believe through this report you have acquired some usefully tips on how to strategically negotiate with Chinese. Upon what you have learned here are our recommendations for you to conquer any negotiation: ? Be prepared†¦Ã¢â‚¬ ¦ Make sure you are well prepared. ? Understand the cultural differences†¦. Get to know the other culture. ? Don’t be afraid of negotiation†¦ if you can talk you can negotiate. ? Show some emotions (share some burden)†¦remember, people value them. ? Be on time†¦.. time is money. ? Be careful†¦ use appropriate language. ? Be in control†¦ don’t allow other things to distract your focus. ? Give some room for the other party (compromise whenever necessary). ? Show some vivid example†¦ a picture is worth a thousand words. 19 CONCLUSION â€Å"Deal is always better that no deal. †7 As hard as negotiation may seem to be, its outcomes are almost always worth the endurance. In different cultures where there are different goals, different point of views, different interests, different values and beliefs, different needs and different decision making styles; it takes a considerably huge amount of effort for sellers and buyers to reach the agreement zone. Both parties must be willing to give up part of their wish or lower their requirements which do not happen easily. With better understanding of both cultures of the parties involved, the negotiation will yield more significance solutions. One should keep in mind that negotiation is the cornerstone of any successfully business in the world. Despite the difficulties involved in the strategic negotiation, lets us follow the words of one of our great fathers who once said, â€Å"Let’s never negotiate out of fear, but lets us never fear to negotiate. †8 7 Professor Shia Yun Chiang class PowerPoint presentation 8a.

Baroque and Rococo Art Periods Essay

The Baroque Art era is classified by many as Early Baroque, High Baroque, and Late Baroque periods. The Rococo Art era is often said to be part of the Late Baroque period. The time frame of the Rococo era and whether it is one and the same as the Late Baroque period have been in debate through the years. Although the Baroque Art and the Rococo Art periods are sometimes classified as one in the same, they are actually quite distinct and unique. The Baroque Art period was between 1600 and the mid 1700’s, and originated during the Catholic Reformation in Rome, Italy, and quickly spread throughout most of Europe. During the late 1500’s, the Protestant reformation started to attack the Catholic Church on doctrine. In response to these attacks, the Catholic Pope started a movement within the church to reaffirm and spread Catholic beliefs. During this time, most people were uneducated and illiterate so the church had to devise a way to spread the gospel message so everyone wou ld understand. It was decided that the message would be spread through art. â€Å"This art was to be direct, emotionally persuasive, and powerful-designed to fire the spiritual imagination and inspire the viewer to greater piety. The church felt that God of greatness and power should be worshiped with the kinds of rituals, ceremonies, and churches befitting these divine qualities.† (McKay & McKay, 2010) So began the Baroque movement with it’s dramatic use of color in paintings and architecture that was forceful, emotional, and extravagant. The Rococo art period emerged in the mid-17th century as a continuation of the Baroque art period. â€Å"By the end of his seventy two-year reign Louis XIV led his country victoriously through numerous wars and France had long replaced Spain as the continental power. He is known in history as one of greatest French kings but also as a â€Å"micromanaging control freak.† (Zaky. n.d.) The Baroque style during his reign represented the Catholic faith and the monarchy with art that was â€Å"direct, obvious, and dramatic.† (McKay & McKay, 2010) Louis XIV was succeeded by Louis XV who reigned during the height of the â€Å"Age of Enlightenment† era, a time where attitudes and morals loosened. The enlightenment movement was in opposition to the established church, as it promoted thinking for oneself and not following a deity. The art of this time period centered around a carefree lifestyle rather than the symbols and rules of the church. It had â€Å"no place for morality, saints or heroes, painting were neither didactic nor devotional.† (Zaky. n.d.) The  art was meant to please the eye of the viewer with no real meaning behind it. The art also portrayed the everyday life, not just important moments in history. The Baroque art movement was stern and originated from the Catholic church wanting to spread religion. The Rococo art movement came about from the â€Å"Enlightenment† era where people wanted to think for themselves instead of being told what to think by the church or monarchy. The Baroque style â€Å"depicted heroism, martyrs, and biblical stories,† but Rococo painters showed themes of love, youth, and playfulness. (Zaky. n.d.) The Baroque artists used dark, stormy colors, whereas Rococo used light, soft opalescent colors. Baroque art was made to be seen and used as propaganda for the Catholic church, and the artwork and architecture was large and bold. The Rococo art was smaller in scale to be enjoyed by a person or family as a decoration. The change from the Baroque period to the Rococo period was significant in that it shows the transition of the society at that time. The Monarchy and C atholic Church were both under scrutiny for excessive spending and what people viewed as political tyranny. The change in attitude by the people not only affected the political environment but also the arts. Tired of oppression, they revolted politically by beheading King Louis XV and by changing the way they created and viewed art. The painting, â€Å"Descent from the Cross,† by Rembrandt is a classic example of the Baroque style. His use of dark colors and shadowing depicts the death of Christ and creates a dramatic scene. He uses light to reveal Christ’s body, Mary, and the cloth that he will be buried in. The painting depicts the religious scene so that the viewer can understand the significance of the event and contemplate its meaning. In contrast â€Å"The Swing,† by Jean-Honore Fragonard, is of a woman swinging carefree in a garden. Fragonard uses pastel colors and illuminates her from the surrounding trees. He places cherubs in the painting another characteristic of the Rococo style. This painting is interesting in that at first glance it seems that this is nothing more than an innocent day in the garden. Upon further inspection, one can see the way Fragonard was bold enough to mock the Baroque style and time period. The man sits at a place where he is able to see up the woman’s skirt as she swings above him symbolizing the free spirit and sexuality of the time. The servant is almost completely hidden, symbolizing the church no longer being as important in society. One area  of art from the Rococo period that is often overlooked is the furniture form of architecture. During this time period a shift was made from large and grand rooms to small, intimate, and personal spaces. The furniture was redesigned to reflect this change and the desire for comfort. The Bergà ¨re chair was designed with â€Å"cushioning in the seat and arms which made it comfortable and kept out drafts†. (Azzarito. n.d.) The painting, â€Å"A Reading of Moliere† by Jean Franà §ois De Troy, depicts this idea of comfort showing women lounging in the Bergere chairs. (Troy. 1728) The Bergà ¨re was â€Å"a favorite chair of the most fashionable women of the day† and is still one that is used in homes today making it a surprising example of a work of Rococo art that has survived through the years. (Azzarito, n.d.) The artists of the Rococo period experimented with color, light, and illusion, and mastered the technique of layering paints to make a object l ook opalescent in color. They created the sense of texture in their paintings, which was not done during the Baroque period. The artists of the Rococo art period mastered new techniques, giving important significance to the time period. Although the Baroque Art and the Rococo Art periods are sometimes classified as one in the same, they are distinct and unique.

Critique of an article Essay Example | Topics and Well Written Essays - 750 words

Critique of an article - Essay Example The article covers various aspects of astrocyte functioning in association with experimental basis on hippocampus cultures, cell cultures and imaging techniques. Interesting observations have been elaborated with regard to the calcium waves phenomenon and consequences of release of glutamate. Back in 1894, Rudolf Virchow referred to astrocytes as "glia", meaning "glue", as they were believed to be holding the neuronal elements together. Astrocytes: neuron ratio is approximately 10:1 and despite the larger number of astrocytes, it was neurons that were considered to perform the primary function of the nervous system. The increase in intracellular Ca[2+] level led to release of glutamate which in turn helped in modulating synapses to allow the conduction of the nerve impulse. The article, which spans over 14 pages, indeed provides a thorough, detailed insight in the working of astrocytes. It commences with a short description of the previously built information regarding astrocytes, and gradually gravitates towards the new findings regarding the functioning of astrocytes ... rding the functioning of astrocytes due to elevated intracellular calcium level as a result of various neurotransmitters like GABA, ATP, and glutamate. It has been brought forward that a calcium elevation in astrocytes is both necessary and sufficient to modulate synaptic transmission and to activate ionotropic glutamate receptors on hippocampal neurons. It is also supplemented by pictures, which are extremely useful for the comprehension of this thesis. The authors have no doubt done a good job in writing up this article. Not only has the information been provided with a systematic and methodical approach, it has been made sure that each conclusion that has been concurred has a factual experimental basis, which is mandatory and extremely impressive, especially as figurative data has been imparted. Though the material has been extrapolated and unnecessarily lengthened a few times due to repetition of certain clauses that could have been avoided, overall it provides all the essential information that a student would require. What has been most intriguing is the function of astrocytes as vasomodulators, ie, as intermediary regulators of blood flow and experimental basis showing that application of neurotransmitters like norepinephrine, acetylecholine can mobilize astrocytic calcium, suggesting extrinsic axon pathways can also act on astrocytes to regulate the calcium. The basis for bi-directional glutamate-mediated signalling between astrocytes and neurons is unclear and the concept of neuroligands is enlightening. The various experiments employed to support the notion that glutamate is the neurotransmitter mediating astrocyte-neuron signaling are satisfactory, however the fact that the researchers have gone one step further to explore the action of other

Why is Ethics and Leadership in Criminal Justice class so inportant Essay

Why is Ethics and Leadership in Criminal Justice class so inportant - Essay Example systems need to know that they will receive a fair decision from a judge that is not biased against their case and that they will receive the best possible defense. Leadership is important in criminal justice because leadership sets standards of conduct. Leadership in any organization is how a culture of integrity is established. True leadership requires individuals to model correct behavior if they are operating in a leadership capacity. It also requires leaders to establish the sort of culture that allows individuals working in non-leadership roles to feel comfortable reporting breaches in integrity by their peers. Leadership is much more than being the person that tells others what to do in the criminal justice system. Individuals in the system are vulnerable in many ways. It is important that leaders protect these individuals, some of which have committed terrible crimes. The only real way fair treatment can be guaranteed to all individuals in the criminal justice system is if leaders establish, model and maintain a culture of integrity throughout the

A Study of the Factors that Influcence Customer Decision-making in Essay

A Study of the Factors that Influcence Customer Decision-making in Choosing Local Thai Hotel - Essay Example The work, of which this is a record, has been carried out by myself unless otherwise stated and where the work is mine, it reflects personal views and values. All quotations have been distinguished by quotation marks and all sources of information have been acknowledged by means of references including those of the internet. Lodging has long been a necessity practice and maintained by people around the world whenever they visit new places. The basic idea of lodging is to provide comfort through the means of providing space for people would recuperate after long hours of journey. Basic provision includes single space bed, a bathroom and small furniture such as chairs and tables. However, as time passes and competition growing between owners who operate lodging houses or hotels in these days, there have been rapid changes that could now be seen in present day hotels. According to American Hotel & Lodging Association (2002), in order to provide better services and to increase the profits of these hotels, modern facilities have been included. These include climate control materials such as air conditioning and heater. Fancy materials have also been included such as television, internet connectivity, and expensive necessities such as soaps, shampoos and perfumes. In bigger hotels that aim for international r ecognition and greater number of customers, they have provided additional facilities such as seminar rooms, restaurant, swimming pools and gyms. All of these are to win the favor of the customer in choosing their hotel over the others. According to Anthony, Anthony and Ghosh (2004), in the modern hotel industry, such functions or additional facilities have played an important role for customers or tourists in choosing their hotels. Knowing the attributes that determine accommodation choice, features which consumers perceive as important or vital, and characteristics that influences higher rates of retention allows hotel

Memorandum Research Paper Example | Topics and Well Written Essays - 1250 words

Memorandum - Research Paper Example The procedure for the discovery process entails presentation of a complaint to a court of law by the plaintiff, opening of a case file by the court clerk, issuance of court orders or summons together with a copy of complaint to the plaintiff to deliver to the defendant, and filing of responses by the defendant, after which the actual trial follows. However, the components of each of the step in the discovery and proceeding process may vary and thus the time taken to realize the whole discovery process may extend. 2. Criminal cases reach trial so rapidly because of the short discovery and pleading process. After the accused is arrested, he/she is presented to the police, who in turn arraign the suspect in a court of law, following the provisions of the laws regarding speedy trial rules and continuances. Yes, such a dichotomy should always be there because it is only through the dichotomy (stages of the discovery and pleading process) that the fine but very crucial details of civil cas es are addressed. 3. The lawyers play a great role in prolonging this period since they are the ones who advise the parties involved, while also filing disputes, motions to dismiss the complaint, and answers required by the court. The more issues raised by the lawyers in disputing, requesting for dismissal or involving other parties to the case, the longer it will take before the trial commences. Statement of Facts Civil cases and criminal cases are very different owing to the nature of accusations contained in either of the cases and the procedures by which both civil and criminal cases are brought to courts. Civil cases, also known as civil suits, refer to a type of case where an individual, a group of individuals, or an organization is accused of damages (Carper, McKinsey, and West 132). On the other hand, criminal cases refer to the type of cases where the state or any authorized regional body prosecutes an individual or group of individuals for breaking the law that has been es tablished. Additionally, while the verdict for a criminal case may end up committing an individual to imprisonment, a civil case gives a verdict regarding the payment of damages in the event that the accused is found liable for the accusations leveled against them (Resnik 165). Owing to these differences, it therefore follows that there are chances that the two cases can run for different durations. This is because the procedure for a civil case is fundamentally different from that of a criminal case. There are certain aspects of the two cases that account for the differences in the duration applicable for the two cases. Discussion of the Issues The civil case basically applies four procedures, starting with pleading, then pre-trial, trial and finally judgment. It is these procedures that explain why a civil case is likely to take long before it gets to trial, compared to a criminal case. Pleading entails the process by which the plaintiff raises accusations against the defendant in a court of law, seeking to be compensated in form of damages for a wrong committed by the defendant. After the presentation of a claim, the claim is filed by the court clerk, after which the plaintiff is then issued an order and a copy of the complaint to deliver to the defendant (Hall 385). This procedure is different from that of a criminal case where the accused is directly arrested and taken to the police custody, awaiting to be arraigned in court to begin the trial. This makes the civil case procedure more time consuming since

Recent new york history with short essay format questions Assignment

Recent new york history with short essay format questions - Assignment Example the inefficiencies within the governments, as well as introduced reform coalitions and invented â€Å"methods of mobilizing public opinion† through â€Å"muck racking, celebrity picket line, forcing of an official witness-calling investigation, launching of a referendum campaign,† and poring over the city planner or commission government’s outputs (Rodgers, â€Å"Atlantic Crossings† 52; Thelen 1885 qtd. in Rodgers, â€Å"In Search of Progressivism† 117). Progressivism caused a lot of civil-focused reforms via the amendment of the Constitution; these reforms covered or created the personal income tax, Federal Reserve, antitrust laws, immigration-restrictions and food regulation (Leonard 207). A significant highlight of progressivism in New York City is its participation in the reformation of prostitution in the Tammany Hall. A published report, which linked â€Å"Tammany Hall with police-protected brothels,† paved the way to â€Å"redefine† policies that caused the proliferation of prostitution (Engs 76). In an incumbent party’s view, the Progressives took its opportunity to strike whenever government inefficiencies are spotted. Exploiting government flaws through reform proposals is a foolproof idea to firmly root the Progressive Party in New York. The only drawback of this movement is the simultaneous reforms’ sustainable capacity; with all the reformation occurring, there may be not enough people to watch its effectivity. Consequently, feedback is not captured to be incorporated to reform-improvements. The fiscal crisis in New York consisted of the primary and secondary cause. While the primary cause is considered the root cause, the secondary causes were government responses to the primary cause. The primary cause was the â€Å"city’s exaggerated forecast of real estate revenue collections† (Fuchs 56). This forecast left the city with significant deficits. However, instead of cutting spending, the government resorted to short-term borrowing (Fuchs 56).

JPMorgan Chase & Co Essay Example | Topics and Well Written Essays - 1250 words

JPMorgan Chase & Co - Essay Example This study shows that a growing number of consumers are depending on their local banks to meet their insurance needs. (Dewett and Chand, 449). The analysis includes a ranking of the top 50 bank holding companies on the basis of the absolute dollar amount of total insurance revenue (earnings from sales and underwriting) and on the basis of total insurance revenue as a percentage of the institutions total noninterest income. (Dewett and Chand, 449). The interest in this market continues to increase, and JP Morgan and Chase continues to reep the benefits. Furthermore, JP Morgan and Chase is growing its customer base through Internet banking. Internet banking is done quickly. Internet technology has changed the social, financial and economic structure of the world by and helped the banking industry improve upon efficiency. The use of microprocessing chips enables a computer to perform several million operations per second. Internet banking is quick and personal. The Internet and electronic commerce are totally transforming the banking and financial services industry by offering convenient services that take very little time to buy. At a single website on the Internet, a customer may be able to access information and manage his finance (Perin). He may not have to visit the brick and mortar bank. With a few clicks of a mouse, the customer may handle his finances on the Internet with speed that is incomparable to the cumbersome process of visiting the bank, meeting people, telling them what he needs, and getting his work done. He may not have to leave his office to go to a bank and especially for a private business, he may even access his Internet bank late at night without waiting for the morning to do his work. Banking on the Internet saves customers time and money (Perin). Internet banking sites offer critical advantages over brick and mortar branches. The convenience of around-the-clock access of the Internet bank from

Privacy and Business Obligations in the Age of Global Terrorism Assignment

Privacy and Business Obligations in the Age of Global Terrorism - Assignment Example Privacy and Business Obligations in the Age of Global Terrorism They [businesses] deal with an enlightened population who understand the dangers posed by a surveillance-state on their privacy. The fact that businesses are now manufacturing products with enhanced security features only echoes the consumers’ unwillingness to accept unwarranted access to their electronic communications, to which they [businesses] are obliged to follow in accordance to the laws in place or risk losing their businesses altogether. While it is easy to understand the government’s unquenchable desire to collect and store as much information as possible about every individual, more so of suspicious characters the world over with minimal obstacles, the desire does not make such approaches Constitutional, legal, or wise; and the pervasive surveillance and collection of data around the world, including those in power such as Angela Markel, over the past few years demonstrates drifts off-course from reasonable lines by the intelligence community. The claim of public good does not make the total disregard of the rule of law any lesser offence, and such demands must be accompanied with lawful search warrants which respects constitutional imperatives if access is to be granted. Q. 2 When considering that technology enables terrorists to formulate complex plots to kill innocents, do private corporations have any legitimate ground on which to make it more difficult for government agencies like the NSA to gather information pertinent to thwarting those attacks?

Marketing trend (Importance of brand identity) Assignment

Marketing trend (Importance of brand identity) - Assignment Example These brands tend to fill the market, and consumers become aware of their presence (Higham, 2009). They, therefore, tend to become loyal to familiar brands. This paper will examine the effect marketing trends have on external factors of consumer decision making, and the impact of such trends on a consumer’s buying process. Marketing is happening all around the world. It affects the daily decision-making processes of consumers. Some of the external factors are affected by marketing since it is the marketer’s job to try and influence purchasing decisions among consumers. These factors rely solely on the external environment, and what other people perceive of products and their brands. One such factor that affects decision-making is the culture that surrounds every individual (Higham, 2009). One cannot ignore the fact that where people spend most of their time can largely affect purchasing decisions. Despite the marketing trends, people can choose to remain indifferent to some of the products in the market. This may be due to the perception created by their peers. Reference groups, as one might call them, can influence purchasing decisions made on a daily basis (Higham, 2009). Marketing trends are usually out to loosen the cultural hold these perceptions have on consumers. In doing so, consumers are likely to adopt new and different thoughts about the products sold. After realising the market opportunities, marketers are often keen to tell consumers what they want to hear. They traverse the market and give consumers the attention they need. Some of the buying processes are affected by the presence of internal factors. These include the purchase situations that exist among products, and the attitude towards a product. These are often changed and manipulated to suit the immediate environment by marketers when trying to market their products (Higham, 2009). The steps affected most by the trends include perception. Consumers

Funds for the arts Essay Example for Free

Funds for the arts Essay In a world that thrives on science, the neglect of the arts is somewhat uncommon. What is baffling though is that the arts could have societal contributions as well. Some would find it hard to agree especially when some of the people had been driven to think that the scientific breakthroughs would be sufficient enough for their existence. Governments would readily shed some funds for the scientific pursuits but were reluctant to shell out some for the arts. It is in my belief then that the artistic pursuit should be recognized as important. But if the government were to just shell out some funds for the arts that would reflect the majority of the people then this should be thought twice. The diversity in people would be reason enough for the government to rethink their position. This diversity would not help in pinpointing what the majority really wants. Besides, it was said that the government funding could lead the arts to become passive (Radbourn). If people were to focus more on the majority then the artistic input would not be an artistic input at all but an input for the government’s satisfaction. The government should fund the arts but they should not give out rigid demands that only the voice of the majority would be reflected. Funding the arts could have considerable outcomes. Arts could affect the educational system since it would help learning become more interesting, it could also preserve the culture, it could have economic benefits (arts plus industry), and many more (Arts Funding). The rigid demand for the majority then could not help portray other ideas that may become essential and/or helpful in the near future. It would seem that funding the arts with such rigid demand for reflecting only the majority of the people would mean that the hidden motives are for the profit that the art would bring. Most artists frown upon those who would use their creativity and label it art for the benefit of the fame and money that they will receive. In fact, it will only be an exhaustive task where its sincerity is highly questionable. Works Cited Arts Funding. 2002. August 22 2007. http://www. michiganinbrief. org/edition07/Chapter5/ArtsFunding. htm. Radbourn, Jennifer. How Government Funding of the Arts Kills Leadership and Creativity. August 22 2007. http://prodos. com/archive014fundingkillscreativity. html.

The benefits of paid parental leave

The benefits of paid parental leave In 2007, around 280 000 mothers gave birth in Australia and around 175 000 of these were working mothers who intend to work again. Consequently, there is a significant number of working mothers who require taking leave from work. There have been debates in Australia over a proposal of a statutory scheme that would offer paid parental leave to parents. The concern of paid parental leave has been significant because of the increasing womens part on jobs, family income sources and children carers. Womens participation in work has increased compared to the past. Female aged 25 to 34 years had increased from 45 to 70 per cent from 1978 to 2008 whereas mens participation in the same age range fell by 4 per cent (Commonwealth of Australia, p. 5.6). There are three proposed objectives for a paid parental leave, such as the wellbeing improvement of families, especially child and mothers health, associated with leave from work around the baby birth and secured financial during that period; enc ouragement of women to return to the workforce by the social welfare and tax system; and by the norms of community, having family time is the basic human rights for many people including fathers and the importance of caring and valuing children. This paper will discuss the major issues and models with regard to paid leave and the methods to assess these models. Paid parental leave provides benefits for parents, especially for mothers. From the mothers point of view, paid parental leave allows her to take a longer leave from job than she could otherwise have afforded and to enjoy extra financial assistance. However, problems arise with the paid parental leave. The first major issue is that the mothers attachment to the job might be deteriorated along with extended period a home; her skills will decline and as a result will create obstacles to her return (Commonwealth of Australia, p. 5.17). Moreover, the impacts of paid leave on labour market also broaden beyond parents too. For instance, paid leave affects employees wage rates and may discriminate against women because employers alert that female employees might have children in the future. There are incentives for discrimination on women if paid parental leave actually increases the costs to the employers. The absence of employee inflicts costs on employers, this may include leave administ ration costs, hiring and training replacement costs which will reduce the productivity level (Commonwealth of Australia, p. 24). However, on the employee side, the incentives to stay inside labour force and to choose occupation and employer are determined by the costs and benefits of these choices, which unnecessarily a monetary value. People outside the labour force get welfare transfers and benefits from untaxed work that they do, but they might be marginalized socially and economically. However, people inside the labour force get wages and benefits from parental leave and childcare rebates, but it might be difficult to balance between the importance of caring and working. The second issue of paid parental leave is concerned with the impact of paid generosity and leave duration. More generous payments increase the financial support for women and encourage them to return to work. On the other hand, greater generosity increases the length of leave from work. At some circumstances, the employment benefits are eroded by excessive absence from work which would reduce work skills and productivity. Moreover, female labour wages would increase slowly if female labour supply increases while demand is not following due to the paid parental leave (Commonwealth of Australia, p. 5.2). Employers might also reduce wage when excessive absence from work increases costs for employers. Therefore, the productivity, wages and female labour skills rises as long as the duration of leave is not excessively long. Third issue is the paid parental leave concerns with the equitably issue. In principle, paid leave should pay attention to the fairness in both horizontal and vertical dimensions (Commonwealth of Australia, p. 1.19). Horizontal equity refers to individuals and families in similar economic situations and being treated similarly whereas vertical equity refers to individuals and families in different economic situations and being treated in a different manner. However, equity is difficult to achieve in practice. People will be treated differently for different situations and it is inevitable. For instance, paying paid parental leave to working mothers may be seem as equitable but not equitable for women not working in the legal labour force. Replacement wages paid by employer seems to be more equitable for low income earners than a government-funded scheme that pays the minimum wage. Fourth major issue of paid leave in Australia is that only one-third of women labour force is eligible for the paid leave because women in Australia is highly segmented and in part-time employment, all of which are reducing females eligibility to paid leave (Baird, M., 2002). Fifth issue is the payment of parental leave. A payment equivalent to their minimum weekly income is justified if the objective is to assure their demand. However, full income payment is justified if the objective is to assure their social and economic independence (Frank, M., p.317). The final issue is regarding the funding source. There is an argument over which parties responsible to fund the leave as small employers cannot afford and thus women will be discriminated in work force. Australia has the lowest level of women labour force participation in the OECD (AEU Federal, p.2). If women labour force is declining, this will raise the inflation and reduce productivity and there will be a shortage of labour supply. Thus, women with paid leave tend to return to work than those without and will push-up the labour supply. To illustrate the paid parental leave, it is important to compare the different parental leave models in different countries. The Swedish parental leave system is seen to be a good model because of its commitment to developing equality between men and women and because of its generosity of payment. The Swedish allows parents a twelve-month of absence from work in regard to birth and parents either father or mother receive 90 per cent untaxed of their salary for their first nine months of leave (Allen, J.P., p.248). Whereas in Germany, parents are allowed to take leave for a shorter time of period only compared to Sweden because women in West Germ any have not entered the labour force as many as other industrialized countries. Only women are eligible to receive the leave payment and that also depends on their incomes. However, the United States is among the few industrialized countries that do not provide employment benefits, including sickness benefit, health insurance benefits, and paternal benefits. Therefore, to compare the equality issue between these three countries, the paid parental leave provided in Sweden and Germany helps female labour force to enter and remain at work, whereas female labour force tend to exit the labour force in the United States. Sweden is the most generous in paid parental leave and should be considered as a model in Australia whereas the U.S. fails to provide equality and support for parents and children. There are several models with regard to paid leave. First, 52 weeks paid parental leave starts with 26 weeks paid leave now, 39 by 2012 and 52 by 2016. Second, 26 weeks basic paid maternity and supporting parent leave as follows: (i) Basic Paid Maternity Leave (BPML) provision in which Australia should provide paid basic maternity leave of 24 weeks for all working women, and (ii) Basic Paid supporting Parent Leave (BPPL) provision in which Australia should provide basic paid partner leave of 2 weeks for all supporting partners. Third, the paid partner leave: use it or lose it in which partners who do not use their paid leave will not be able to reallocate it to mothers. This system induces fathers to take leave efficiently. Fourth, the existing paid maternity leave. Fifth, the basic payments through employers in which government provide payment similar to employers for employee and taxable. Payment through employers is desirable because all factors of employment will not be missed ou t. Sixth, the simultaneous leave in which parents can take leave simultaneously. Finally, the provision of rights to be protected from discrimination and the rights to return to work after their leave (Hill and Pocock, p.11). There are two methods to evaluate financial of paid leave and they have to be implemented simultaneously to provide the most effective paid leave policy. First, the income of financial contributor should not be affected. Second, the method should not create negative economic incentives. For example, an employer pays for his employees leave and financial method encourage the employer not to hire a female worker who would likely to take the leave (Frank, M., p.319). To summarize, paid parental leave is a system that provides benefits for mothers who give birth to achieve specific social and economic outcomes. There are three proposed objectives for a paid parental leave, such as the wellbeing improvement of families, especially child and mothers health, associated with leave from work around the baby birth and secured financial during that period; encouragement of women to return to the workforce by the social welfare and tax system; and by the norms of community, having family time is the basic human rights for many people including fathers and the importance of caring and valuing children. To help inducing the benefits of paid parental leave, it is necessary for financial assistance for mothers in order for them to spend time with their newborn babies, rather than just taking financial assistance, limit their leave and exit the labour force. The paid leave system has particular objectives that are valued differently to individual. In order to deliver those objectives efficiently, the system should provide incentives for mothers to increase the absence time from work to be with their child and to return and remain to the workforce. Parental leave would be a crucial system to encourage labour market efficiency and would represent the equality between men and women in the workforce.

Telecommunications Industry Overview

Telecommunications Industry Overview Telecom Sector Global Perspective Components and factors responsible behind the growth of telecommunications industry Two major factors responsible for the growth of telecommunications industry are use of modern technology and market competition. One of the products of modern technologies is optical fibers, which are being used as a medium of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Use of communication satellites makes this telecommunications industry a booming industry. The use of mobile network has a crucial role behind the growth of an improved telecommunications industry. Leading companies are showing their interest to invest in this telecommunications industry. Telecommunications industry is going to be a digitized one. Use of ISDN (Inter Services Digital Network) makes this telecommunication industry a total digitalized system and eventually enhanced the speed and quality of digital communication. Economical aspect of telecommunication industry World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet. Present market scenario of world telecom industry Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest. Market potentiality of world telecommunication industry The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like ATT, Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc. Top Global Telecom Players NAME ABOUT THE COMPANY SUBSCRIBERS in millions (09) REVENUE (in US billion$) China Mobile State owned Company, one of the 2 mobile phone monopolies in China Over 508 16.115 Vodafone Group Britains largest Telecom operator Over 427 68.32 Telefà ³nica, S.A. Multinational Company with stakes in Spain, Latin America Europa. Owns the O2 Brand Over 210 72.13 Amà ©rica Mà ³vil Mexican Operator. Controlled by the worlds richest man Carlos Slim Over 201 30.2 Telenor Group The company has a strong footprint in Central and Eastern Europe and Asia with over 40,000 employees. Over 172 15.73 Deutsche Telekom AG German telecom Company. Also owns t-mobile. Over 150 82.13 China Unicom China Unicom (BVI) Limited effectively holds 40.92% of the company and China Netcom Group (BVI) Limited holds 29.49%, while the remainder is traded on the Shanghai, Hong Kong and the New York stock exchanges. Both majority shareholders are state controlled enterprises. Over 186 14.62 TeliaSonera AB Offer services in 20 markets in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. Over 150 15.04 France Tà ©là ©com S.A. It is the main telecommunication company in France, the third largest in Europe. It currently employs about 180,000 people worldwide. Over 193 68.08 Bharti Airtel One of Asias leading integrated telecom services providers with operations in 19 countries across Asia and Africa. Zain is the new acquisition. Over 124 7.254 Mergers Acquisition Mergers and acquisitions (MA) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange MA transactions, which bring separate companies together to form larger ones. When theyre not creating big companies from smaller ones, corporate finance deals do the reverse and break up companies through spinoffs, carve-outs or tracking stocks. Not surprisingly, these actions often make the news. Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an MA can represent the highlight of a whole career. And it is no wonder we hear about so many of these transactions; they happen all the time. Next time you flip open the newspapers business section, odds are good that at least one headline will announce some kind of MA transaction. Sure, MA deals grab headlines, but what does this all mean to investors? To answer this quest ion, this tutorial discusses the forces that drive companies to buy or merge with others, or to split-off or sell parts of their own businesses. Once you know the different ways in which these deals are executed, youll have a better idea of whether you should cheer or weep when a company you own buys another company or is bought by one. You will also be aware of the tax consequences for companies and for investors. Defining MA One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies at least, thats the reasoning behind MA. This rationale is particularly alluring to companies when times are tough. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone. Distinction between Mergers and Acquisitions Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer swallows the business and the buyers stock continues to be traded. In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a merger of equals. Both companies stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created. In practice, however, actual mergers of equals dont happen very often. Usually, one company wil l buy another and, as part of the deals terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if its technically an acquisition. Being bought out often carries negative connotations, therefore, by describing the deal as a merger, deal makers and top managers try to make the takeover more palatable. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly that is, when the target company does not want to be purchased it is always regarded as an acquisition. Whether a purchase is considered a merger or an acquisition really depends on whether the purchase is friendly or hostile and how it is announced. In other words, the real difference lies in how the purchase is communicated to and received by the target companys board of directors, employees and shareholders. The Deal Start with an Offer When the CEO and top managers of a company decide that they want to do a merger or acquisition, they start with a tender offer. The process typically begins with the acquiring company carefully and discreetly buying up shares in the target company, or building a position. Once the acquiring company starts to purchase shares in the open market, it is restricted to buying 5% of the total outstanding shares before it must file with the SEC. In the filing, the company must formally declare how many shares it owns and whether it intends to buy the company or keep the shares purely as an investment. Working with financial advisors and investment bankers, the acquiring company will arrive at an overall price that its willing to pay for its target in cash, shares or both. The tender offer is then frequently advertised in the business press, stating the offer price and the deadline by which the shareholders in the target company must accept (or reject) it. The Targets Response Once the tender offer has been made, the target company can do one of several things: Accept the Terms of the Offer If the target firms top managers and shareholders are happy with the terms of the transaction, they will go ahead with the deal. Attempt to Negotiate The tender offer price may not be high enough for the target companys shareholders to accept, or the specific terms of the deal may not be attractive. In a merger, there may be much at stake for the management of the target their jobs, in particular. If theyre not satisfied with the terms laid out in the tender offer, the targets management may try to work out more agreeable terms that let them keep their jobs or, even better, send them off with a nice, big compensation package. Not surprisingly, highly sought-after target companies that are the object of several bidders will have greater latitude for negotiation. Furthermore, managers have more negotiating power if they can show that they are crucial to the mergers future success. Execute a Poison Pill or Some Other Hostile Takeover Defense- A poison pill scheme can be triggered by a target company when a hostile suitor acquires a predetermined percentage of company stock. To execute its defense, the target company grants all shareholders except the acquiring company options to buy additional stock at a dramatic discount. This dilutes the acquiring companys share and intercepts its control of the company. Find a White Knight As an alternative, the target companys management may seek out a friendlier potential acquiring company, or white knight. If a white knight is found, it will offer an equal or higher price for the shares than the hostile bidder. Mergers and acquisitions can face scrutiny from regulatory bodies. For example, if the two biggest long-distance companies in the U.S., ATT and Sprint, wanted to merge, the deal would require approval from the Federal Communications Commission (FCC). The FCC would probably regard a merger of the two giants as the creation of a monopoly or, at the very least, a threat to competition in the industry. Closing the Deal Finally, once the target company agrees to the tender offer and regulatory requirements are met, the merger deal will be executed by means of some transaction. In a merger in which one company buys another, the acquiring company will pay for the target companys shares with cash, stock or both. A cash-for-stock transaction is fairly straightforward: target company shareholders receive a cash payment for each share purchased. This transaction is treated as a taxable sale of the shares of the target company. If the transaction is made with stock instead of cash, then its not taxable. There is simply an exchange of share certificates. The desire to steer clear of the tax man explains why so many MA deals are carried out as stock-for-stock transactions. When a company is purchased with stock, new shares from the acquiring companys stock are issued directly to the target companys shareholders, or the new shares are sent to a broker who manages them for target company shareholders. The shar eholders of the target company are only taxed when they sell their new shares. When the deal is closed, investors usually receive a new stock in their portfolios the acquiring companys expanded stock. Sometimes investors will get new stock identifying a new corporate entity that is created by the MA deal. Why They Can Fail Its no secret that plenty of mergers dont work. Those who advocate mergers will argue that the merger will cut costs or boost revenues by more than enough to justify the price premium. It can sound so simple: just combine computer systems, merge a few departments, use sheer size to force down the price of supplies and the merged giant should be more profitable than its parts. In theory, 1+1 = 3 sounds great, but in practice, things can go awry. Historical trends show that roughly two thirds of big mergers will disappoint on their own terms, which means they will lose value on the stock market. The motivations that drive mergers can be flawed and efficiencies from economies of scale may prove elusive. In many cases, the problems associated with trying to make merged companies work are all too concrete. Flawed Intentions For starters, a booming stock market encourages mergers, which can spell trouble. Deals done with highly rated stock as currency are easy and cheap, but the strategic thinking behind them may be easy and cheap too. Also, mergers are often attempt to imitate: somebody else has done a big merger, which prompts other top executives to follow suit. A merger may often have more to do with glory-seeking than business strategy. The executive ego, which is boosted by buying the competition, is a major force in MA, especially when combined with the influences from the bankers, lawyers and other assorted advisers who can earn big fees from clients engaged in mergers. Most CEOs get to where they are because they want to be the biggest and the best, and many top executives get a big bonus for merger deals, no matter what happens to the share price later. On the other side of the coin, mergers can be driven by generalized fear. Globalization, the arrival of new technological developments or a fas t-changing economic landscape that makes the outlook uncertain are all factors that can create a strong incentive for defensive mergers. Sometimes the management team feels they have no choice and must acquire a rival before being acquired. The idea is that only big players will survive a more competitive world. The Obstacles to making it Work Coping with a merger can make top managers spread their time too thinly and neglect their core business, spelling doom. Too often, potential difficulties seem trivial to managers caught up in the thrill of the big deal. The chances for success are further hampered if the corporate cultures of the companies are very different. When a company is acquired, the decision is typically based on product or market synergies, but cultural differences are often ignored. Its a mistake to assume that personnel issues are easily overcome. For example, employees at a target company might be accustomed to easy access to top management, flexible work schedules or even a relaxed dress code. These aspects of a working environment may not seem significant, but if new management removes them, the result can be resentment and shrinking productivity. More insight into the failure of mergers is found in the highly acclaimed study from McKinsey, a global consultancy. The study concludes that companies often focus too intently on cutting costs following mergers, while revenues, and ultimately, profits, suffer. Merging companies can focus on integration and cost-cutting so much that they neglect day-to-day business, thereby prompting nervous customers to flee. This loss of revenue momentum is one reason so many mergers fail to create value for shareholders. But remember, not all mergers fail. Size and global reach can be advantageous, and strong managers can often squeeze greater efficiency out of badly run rivals. Nevertheless, the promises made by deal makers demand the careful scrutiny of investors. The success of mergers depends on how realistic the deal makers are and how well they can integrate two companies while maintaining day-to-day operations. Conclusion One size doesnt fit all. Many companies find that the best way to get ahead is to expand ownership boundaries through mergers and acquisitions. For others, separating the public ownership of a subsidiary or business segment offers more advantages. At least in theory, mergers create synergies and economies of scale, expanding operations and cutting costs. Investors can take comfort in the idea that a merger will deliver enhanced market power. By contrast, de-merged companies often enjoy improved operating performance thanks to redesigned management incentives. Additional capital can fund growth organically or through acquisition. Meanwhile, investors benefit from the improved information flow from de-merged companies. MA comes in all shapes and sizes, and investors need to consider the complex issues involved in MA. The most beneficial form of equity structure involves a complete analysis of the costs and benefits associated with the deals. Telecom Sector Overview INDIA Sub Base: 635.51 mn second largest market Wireless Penetration: 53.77% lowest in the world HHI Index: very high one of the most competitive market Prepaid Base: 96% one of the highest in the world Usage per sub per month: Minutes: 480 one of the highest ARPU: US$ 4.6 one of the lowest Rate per minute: US$ 0.01 one of the lowest in the world VAS:-11.6% One of the lowest Wireless Market Structure Subscriber Trends Customer Market Share (CMS) About Bharti Airtel BhartiAirtel, a leading mobile service provider in India is Bharti Enterprises flagship company. According to Forbes Global 2000 list, BhartiAirtel, Indias pioneering private telecommunication service provider is ranked no. 826. This integrated telecom service provider operates three strategic business units covering 23 telecommunication circles. These 3 strategic businesses are mobile business, enterprise business, and Airteltelemedia business. Their mobile business comprising fixed wireless and mobile services is spread over 23 telecom circles, whereas their Airteltelemedia business provides telephone and broadband services to clients in 94 cities. International and domestic long distance services and end to end telecommunication solution for companies are included in Airtel enterprise business. Brief history BhartiAirtel was established as Bharti Tele-Ventures Limited in 1985. This telecommunication company is a joint stock holding enterprise headquartered in New Delhi. BhartiAirtel, commonly called Airtel is among largest mobile service operator with a subscriber base of nearly 75 million. Airtel has a submarine cable landing station in Chennai connecting this South Indian city to Singapore. Products and services Services offered by BhartiAirtel can be classified into the following: Mobile services Based on number of customers BhartiAirtel is largest mobile service operator in India. This company offers mobile services based on GSM technology. For convenience of its customers BhartiAirtel has both pre- paid and post-paid facilities. Enterprise business BhartiAirtel provides integrated services comprising mobile, telephone, broadband, data and connectivity services internationally as well as nationally for small, medium and large scale enterprises. Its carrier service provides network connectivity through optic fiber over a distance of more than 35,000 km. BhartiAirtel is a member of South East Asia Middle East Western Europe 4 consortiums which include 15 global telecommunication service providers. AirtelTelemedia Services This Company offers high speed broadband services through landlines in 94 cities. Financials BhartiAirtel till March 2008 had assets worth US $6.61 billion. During period between April 2007 March 2008, it achieved sales amounting to US $6.61 billion and profits of US $0.94 billion. Awards and recognition BhartiAirtel was adjudged Best Carrier India at 2008 Telecom Asia. It was recognized as Best Cellular Service Provider and Best Broadband Service Provider at VD 100 awards for 2008. In 2007, BhartiAirtel won Business Leadership Award from NDTV Profit. BHARTI AIRTELS ROADMAP The management of BhartiAirtel Ltd is led by ManojKohli who planned to introduce affordability and high usage in its African portfolio which is currently a high price environment (with tariffs in some markets as high as Europe/US according to Bharti). Some of the key points about replicating Indian Wireless business model in Africa that are in favor of Airtel are, Bhartis 15-country portfolio has a population is 459m as of June 2010. Share of population living in urban areas in Africa is ~40% according to Bharti and expected to grow to 40%. This compares to 30% of Indias population living in urban areas. The youth population in Africa accounts for a fourth of the global youth and had a median age of 17-18 years. The working population is estimated to be higher than that in China and the middle class is 400m people, expected to growth to 500m. GDP growth in 27 economies in Africa is 5%+. BhartiAirtel stressed that governments had received Bharti well in Africa and that some officials stated that Bhartis plans are in-line with their own. Current Wireless penetration adjusting for Multiple SIMs is around 24%. Operators have 20MHz of 2G spectrum and 10MHz of 3G (those who do) which Bharti stated implies little room for more competitors. COMPANIES OF BHARTI ENTERPRISES BhartiAirtel: BhartiAirtel is Indias leading provider of telecommunications services. The company provides GSM mobile services across India in 23 telecom circles and broadband telephone services in 90 cities. Bharti Teletech Ltd.: Bharti TeleTech manufactures and exports world-class telecom equipment under the brand Beetel. It is the only Indian telephone company to be present in 30 countries mapping 5 continents. The companys product range include Basic Telephones, Caller ID Phones, Caller ID Boxes, Cordless Phones, 2.4 GHz Digital Cordless Phones, DECT 1.8 GHz Phones, and Set Top Boxes. Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming, connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling, in Seychelles, under the brand Airtel. BhartiTelesoft Ltd: BhartiTelesoft Ltd provides value added services and solutions to wireless and wireline carriers worldwide. BhartiTelesoft Ltd ha deployed products and solutions in 25 countries to over 100 network, and has a customer base of 150 million across 5 continents. TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between TeleTech Holdings, Inc., worlds leading full-service provider of business process outsourcing and Bharti TeleTech Ltd. The company offers offer the entire spectrum of front-to-back-office business processes ranging from voice and non-voice customer support, back office administration (including credit and collections, account maintenance, application processing, claims processing, asset management, document management etc.), sales and marketing (including database marketing, marketing support, web sales and marketing etc.) to global customers. FieldFresh Foods Pvt Ltd: FieldFresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises and ELRo Holdings India Ltd, an investment company of the Rothschild family. The company provides premium quality fresh produce to the markets worldwide and promotes world class standards for agricultural practices, progressive farming techniques identification and adoption of appropriate technologies. Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. is a 100% subsidiary of Bharti Enterprises. Bharti Retail is planning to launch its retail outlets in multiple consumer friendly formats in several cities across India African Telecom Sector It is one of the best penetrating opportunities for the global telecom players is the telecom market in Africa. In Asia, Europe, North America, the telecom sector is approaching a saturation point. The growth in these areas will be comparatively slower. The companies always look for the maximization of profit, whether it may be through cutting down of cost or increasing the sales. If the market reaches a saturation point then there is no opportunity to increase the sale. And if the company cannot decrease the cost then it will try either to diversify or to expand its grip in the global market. If the areas like North America, Asia and Europe are already in a saturation point then the next growing market for the global player will be Africa continent. Some of the major players in the telecom sectors of Africa are MTN, Zain, Vodacom, STC etc. Since the processes of liberalization and privatization have been taken into consideration by African countries such as Uganda, Tanzania, Nigeria, The Sudan, South Africa and Kenya, their telecommunication infrastructures have improved drastically. Many African governments have developed their telecommunication infrastructure by privatizing their former state-owned enterprises. So these open up the stage for global players to perform in it. Africa has become the fastest growing mobile-network market during last five years. The mobile user base has increased to more than 82 million in Africa. A survey by Ernst Young shows that between 2002-07, the industry grew by 49.3 percent as opposed to Asia which recorded a 27.4 percent growth. This reports estimate growth of the industry almost doubles that of Brazil which stood at 28 percent in the same period and is almost seven times the growth of France which grew at 7.5 percent over the same time. Even there was a report by The World Bank in which it mentioned that Afro-nations like Kenya have 95% of mobile network penetration and coverage gap of only 5%. Thus making it an attractive market to lure some of the major player from the world. Lets think a bit over this scenario. Why the Afro mobile market is developing so late and faster than any area that used to be at the same period of time. In 2004, only 6% of the African citizen owned mobile. The supply side was much higher than the demand side. And the prices dropped, but made the African mobile network market a huge potential market for the global players. They produced low cost and user-friendly phones and network plans to attract more and more customer so that the company can increase its customer base. But there some other criteria or which we also call as external environment of a company which affects a company to operate in that area. The Law of Land also affects the company to design its operation in a country. They may be the tax-policy, the FDI policy of the government, the policy regarding and regulating the telecom sectors etc. Because of these regulations, there are many Afro-nations like South Africa which hold a huge potential market. In South Africa, there are only three players in telecom network market. The heavy tax burden on both the operator and consumer is the major challenge for the industry, with an average taxation on the operators profits standing at 30%. For example, in Kenya, people pay tax of 26% on mobile communication and the operator pay the remaining 4%. The total tax paid is 30%. But still the government of these nations opines that the industry is highly profitable, despite of the fact that return on investment could be delayed due to poor infrastructure. The Afro-nation doesnt have the apt infrastructure or the geographical hindrances as well as the population is scattered. The main problem lies with the electric infrastructure. The company has to keep more than 2000 standby generators because of frequent power failure. On of the company operating in Kenya, Safaricom spends over KShs 171 million on diesels due to lack of power supply. This makes the cost of investment much high in comparison to the other area. The operating cost of the company is high in this area because of frequent power cut and even the tax rate is also high, thus bringing down the profit of the company. But it may be the future scenario of these countries which lures the global players. The company may sustain the loss in the short-run but it may earn profit in the long-run. Because the economy of Afro-nations are growing at a remarkable rate and the infrastructure are also gradually increasing. So it may in the long-run be aptly developed so as to favor the network industry. Moreover this is the entry level of the network sector in Africa as it is developing but once it get saturated the threat to entrants decreases because if they enter in to the segment, they will not find any extras to lure the customers. African Wireless Market Customer base: 36.36 Mn Perfomance Indicators: Revenue: 9,583 Mn EBITDA: 2,635 Mn Prepaid Base: 99.3% à ¯Ã†â€™Ã‚  one of the highest in the world Usage per sub per month: 103 Minutes à ¯Ã†â€™Ã‚  one of the lowest ARPU: ~US$ 7.4 à ¯Ã†â€™Ã‚  one of the competitive market Rate per minute: ~US ¢ 7.2 à ¯Ã†â€™Ã‚  one of the highest in the world VAS: ~7.9% à ¯Ã†â€™Ã‚  one of the lowest Emerging Market Characteristics in India Africa: Source: Airtel Investor Presentation Aug 2010 About Zain Zain is a Kuwait based company started under the name of Mobile Telecommunication Company (MTC) in 1983 and was later rebranded to ZAIN in 2007. Zain has present operation in 25 countries covering 17 countries in Africa and 8 countries in Middle-East, with a estimated workforce of 15000. As on February 2010, about 60% of the Zain customers are in Africa contributing only 15% to the net profit of Zain. Zain has a total of 65 million customers. Out of which 39 million customers are from Africa. The eight countries in Middle-East where Zain has it Operation are Bahrain, Iraq, Jordan, Kuwait, Saudi Arab, Lebanon, Palestine and Sudan, It has its operation in Lebanon under the brand name of MTC TOUCH. The seventeen countries which comprises of the members of the Zains Operative family in Africa are Burkina Faso, Chad, Democratic Republic of Congo, Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leona, Tanzania, Uganda, Zambia and Morocco. Mr. Nabeel Bin S alamah is the CEO of the Zain Groups and Mr. Barak Al-Sabeeh is the chairman of the board of Director of the company. FINANCIAL FIGURES OF ZAIN Revenue : US$ 7.441 Billion Net Income :US$ 1.196 Billion Overview 4th largest mobile operator in the world in terms of geographic footprint, with a commercial presence in 23 countries 580 Million+ people under l