Kelly’s Personal Construct Theory Essay

Psychology is now considered to be a branch of science that focused on the study of the human mind, making them men and women of science. As such, it would be assumed that the manner on how psychologists would conduct their therapy sessions would be following the scientific method that is commonly seen among scientists. However, George Kelly discovered that this was not the case. Because of this, he developed his Personal Construct Theory to be a method for psychologists to study and assist patients during their consultation and therapy sessions. This paper will discuss the circumstances surrounding the formulation of Kelly’s Personal Construct Theory as well as the key points regarding this theory. Kelly’s Personal Construct Theory Throughout his career, George Kelly (2007) had focused his studies on the issues of diagnostic testing and the training and provision of clinical psychological services. Based on his studies, he concluded that the use of dogmatic interpretations to address a patient’s psychological concern did more harm than good because he likened all individuals as scientists. He defined dogmatic approaches used by psychologists as the belief held by psychologists that only they held the truth regarding an individual’s behavior and personality based on their interpretations of the information provided to them by a patient. As such, dogmatic interpretations and approaches used by psychologists during consultation and therapy sessions would place the patient in a tight conclusion that is purely based on the interpretations of the psychologist. Kelly (2007) determined that the most effective approach that psychologists need to do in order to more effectively treat their patients was to allow the patient to channel the experiences of the patient and how the patient anticipates events that come into his or her life. This became the main premise of the development of his Personal Construct Theory, which became the foundation and establishment of cognitive psychology as a field of study within psychology and other social learning theories that have been developed by other psychologists. According to the Personal Construct Theory, an individual lives his or her life through the process of reaching out on upcoming events in his or her life through personal interactions based on the actual events. This means that an individual has a hold on the direction where his or her own life would go (Kelly 2007). With the development of the Personal Construct Theory, Kelly (2007) stated that in order for a patient to receive optimum therapy from consultation sessions with a psychologist, the consultation session should have an interactive communication between the patient and the psychologist in order for them to understand various issues that the patient was going through. From here, both the psychologist and the patient should develop hypotheses in order to address the issues. In the next session, the psychologist would then inquire from the patient as to whether when the patient experimented that the hypotheses developed met his or her expectations. Conclusion The Personal Construct Theory developed by George Kelly had provided psychologists a more effective method in psychotherapy given to patients. Up to this point in time, psychologists have developed theories regarding the human mind and human psyche based on definite factors such as society, the environment, the unconscious part of the human mind and childhood experiences. The development of these theories had caused both psychologists and patients to accept that certain anxieties felt and experienced by patients were brought about by events that the individual had no control of. This would lead psychologists and the patients to believe that the most logical approach that the patient would do in order to improve his or her psychological well-being was to accept these anxieties and that these are irreversible parts of their own behavior and personality. With the introduction of the Personal Construct Theory, Kelly had changed the role of the individual from a passive product of experiences and the unconscious into one who is able to actively have a control on how his or her personality develops. As such, the individual has the ability to change his or her personality for the better based on the suggestions presented by the psychologist, changing the role of the psychologist from a profession who enlightens the patient by analyzing and pinpointing the cause into one who would pinpoint the causes of one’s anxieties and fears and a mediator to assist the individual into reaching a possible solution to modify the behavior of the individual. The approach developed and presented by Kelly is now commonly seen during consultation and therapy sessions between psychologists and their patients. Nowadays, a psychologist would ask questions to the patient in order for them to come to terms with their issues. From here, the patient would be guided by the psychologist in order to reach a possible method in order to address the issues of the patient. The would explain as to why through consultation and therapy sessions, individuals are now able to alter their behavior for the better in spite of the individual having been known to possess deviant behaviors in the past.

Easy Jet

The  marketing audit  is a fundamental part of the marketing planning process. It is conducted not only at the beginning of the process, but also at a series of points during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself 1. Environmental Audict on Easy jet(the factors that can influnce the company) A)Five porter’s forces: *Threats from new entrants : When new airlines enter the market ,how they affect easy jet *Threats from subsititue products: more options to go to a destination such as buses,train.. ow these things affect easy jet *Bargaining power of suppliers: if plane manufacturer factories sell planes with a high price ,how this affect the easy jet’s finance *Bargaining power of buyers: for instance easy jet makes a contract with plane factories for 10 years with the fixed charge so the factory can’t increase the price during this time. Ba rgaining lets you buy products at a cheaper rate *Internal Rivalry: Internal competation ,easy jet fight against other airlines Threat of substitutes-this can be anything that can be a substitute to EasyJet or airline industry in general.For instance, another airline with even lower prices, consumers opting to use other modes of transport (trains for instance). When Heatrow was hit by that huge fog just before Christmas and no planes were flying, Eurostar trains were suddenly all booked. I would think, however, that for Easy Jet, there would be no big threat of substitutes. There is a threat of ever growing competition but this isn't the case of substitutes. Substitues are in other words ‘me too' products which are less likely to occur in airline industry or service industry then in FMCG. I think. Buyers-here you can list down any possible threats from buyers.This is where you look at the relationship between Easy Jet and its targeted consumers. How strong is Easy Jet brand? D o consumers believe in, and to, Easy Jet? Are they loyal to Easy Jet or do they switch to other airlines with no real or perceived risks? If yes, why? If not, why not? Do consumers have alternative to Easy Jet? If yes, and I would say they do, how does the relationship between Easy Jet and its consumers change? Who has greater leverage in this relationship, consumers or Easy Jet? Who is more dependable on whom, why and to what extent? Etc†¦ Ask as many questions as you can and you will get your answer.Talk to someone who has used Easy Jet services, ask them what they liked and disliked about it, would they use it again and why, how do they feel about Easy Jet, how did they decide to fly with Easy Jet, will they choose Easy Jet again B)Swot analysis: 4 main strenghts and the opposite ones are for weaknesses *Finance *Technology *HR Department *Reputation and image EasyJet Airline Company Limited: Strengths: * EasyJet is a leading provider of  low budget, no frills air travel  servicing many of the leading city destinations in the UK and across Europe, including Berlin, Amsterdam, Barcelona, and Prague. They offer a high quality service at competitive prices and offer a number of features including ticketless travel, internet booking and assisted travel services. * They have a  highly distinctive livery  on their fleet of aircraft making them easily recognisable and distinguishing them from their competitors. * They have a  user friendly website  which fully discloses the price breakdown of the passengers planned travel. Offering a full breakdown of the price plan prevents any hidden charges when the customer confirms there booking. EasyJet offers an online promotion alert which is e-mailed to existing customers and contact on the company’s database. * Recognised as a leading brand name in the UK travel industry. * As a market leader in an industry widely seen as a leading contributor to the green house effect and global warming, EasyJet actively embrace there environmental responsibilities and continue to keep these factors as a keep priority when developing their future strategies. * EasyJet operate a fast and efficient service with an average turnaround time of 30 minutes or below.This enables them to maintain a reliable and hassle free service to their passengers. * For the case study,planes and turnaround times means to take short time on departure,use of internet,financial position The easy brand is a well known brand across the UK and  some areas of Europe. It is knownfor ‘low cost for the masses’ which is implied by their orange culture. They want to paint the worldorange, implying that they want to provide goods and services at the lowest possible price. easyJeteasyJet only offers a single fare class. Its pricing strategy is to offer ‘value for money’ and this is  doneby keeping costs to a  minimum.Unit costs are kept  low by eliminating travel agents, maintaining highaircr aft utilisation, focusing on internet sales, eliminating unnecessary service frills, operating a fleet of  similar aircraft and establishing long-term agreements with suppliers. One of the key strengths of easyJet has been the utilisation of the internet. easyJet bookings over theinternet relate to  over 92% of total sales and  is expected to increase. They see themselves as  becomingthe first internet only airline. Strengths: †¢ Cheap tickets. †¢ A simple fare structure. †¢ Image, differentiation on price andbrand. †¢Commitment to customer service. †¢ Multi-base network. †¢ Strong corporate culture. †¢ Flexibility to change bookings on theinternet. †¢ Lower costs than the  established airlines Weaknesses: * Domestic air travel is an extremely competitive industry with  EasyJet’s main competitors being Jet2, BMI Baby, Ryan Air plus a host of smaller independent competitors. These external competitive forces can restrict and shape pricing policy on some of  EasyJet’s less profitable routes as they seek to compete with their competitors. * They do not offer a free food service on longer flights of 2 hours plus. asyJet has many weaknesses but the main include the lack of service,flexibility and  business focus making  the low-cost model  unappealing to  business travellers. Businesstravellers are not included within easyJet’s business model. Since September 11 business  travellersaccount for 50% of passengers and therefore should be a target for marketing and should be included inthe business model. This can be seen as a weakness for not targeting this segment. easyJet’s business model also relies on people flying more often. However, there is a limit as to howoften people fly.The growth is not infinitive, it is possible that the low-cost market will be saturated. Itwill come to a point when the low-cost airlines will not be able to stimulate any more demand fromlow prices . (CPRE: The Future Development of Air Transport in the UK, July 2003 Weaknesses: †¢ Pilots over 65 are not allowed to fly over  France, Italy and Portugal. †¢ No guaranteed departure. †¢ No unaccompanied children under age of 16. †¢ No autopilot. †¢ Lack of service, flexibility and business focusmake the low-cost model unappealing tobusiness travellers. †¢ Focus on price and convenience is reaching itslimit.Differentiation will be difficult. †¢ Due to quick success it is difficult to recruitand train new staff. †¢ No customer retention scheme Opportunities: * Possible opening of alternative routes to major cities in Europe. A key route could be from Dublin to the UK, as this has a large potential for travellers going to soccer matches in the UK plus new links into corporate flyers to and from the UK. * Offering of free refreshments on flights with a travel time of over two and a half hours. This would offer an extra perk and comfort to pass engers making their experience with EasyJet all the more comfortable and enjoyable. Updated versions of the fly on the wall documentaries would provide the brand with more coverage and publicity. The opportunities in the industry mainly come from the Eexpansion. On the 1st of  May 2004, 10 countries will be joining the  EU. Thus, the EU’s membership will be  expanded from 15to 25 countries. The new states include former members of the Eastern Block and smaller â€Å"island†states. (bized. ac. uk) These are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta,Poland and the Slovak Republic.Further EU expansion is expected in 2007 when Bulgaria andRomania are hoping to join the EU, while Turkey is now currently negotiating its membership. (europa. eu. int)The addition of more than 100 million people to the EU’s market of 370 million will present anopportunity for further growth  for the low-cost airline industry. easyJet has already annou nced its newroutes from Luton, Berlin and Dortmund airports to Budapest (Hungary) and from Stansted airport toLjubljana (Slovenia). (easyJet. com) Threats: * Competitors flying the same routes compete very competitively on price forcing pressure on margin on more popular flights and time slots. External market forces can have a significant impact on  EasyJet’s business, e. g. the rising cost of oil can have a significant impact on running costs putting significant pressure on the profitability of less popular routes and time slots. * Pressure from unions and employee relations committees can signifigantly impact on the day to day operations with strikes proving to be very costly to the company’s image. * Economic downturn may lead to a decrease in casual flyers and corporate travel as companies seek to curtail what they see as unnecessary expenditure and in turn make less business trips.   Financial Analysis Within the  low-cost/no-frills  airline industry in  the UK,Ryanair  is easyJet’s main  competitor. Inevaluating the  financial performance of  easyJet, it  is therefore useful to  compare its performance withthat  of Ryanair. For the purpose of  this  comparison, we will be making use of a  number of ratioswhose formulae follow that of FAME. The data used for this financial analysis are easyJet’s unauditedpreliminary results for their financial year ended 30 September 2003, which provided results for boththe year ending  30 September 2002 and  2003.Ryanair’s financial year-end however is 31  March 2004. Therefore in  order to obtain data that  would be directly comparable, it  was necessary to use data fromtheir half-year which ends 30 September 2002 and 2003, and to use figures taken from their financialyear end 31 March 2002 and 2003. This enabled us to obtain figures for a full 12 months ending 30September 2002 and 2003. For a quick overview of all ratios refer to Appendix 3 a nd details of allcalculations  are contained in  Appendix  4. All financial  reports were obtained from downloadsavailable onwww. easyjet. com  and  www. ryanair. com.The first numerical set of data to  be analysed is the Profit and Loss Account. This deals with therunning of the business, i. e. the amount of turnover, the cost of what has been sold, the expensesgenerated during the year and of course the profit that has been made, perhaps the figure that theshareholders are  most interested  in, but there  are other criteria that  could affect the profitability of thecompany PEST analysis for easyJet The following factors are likely to have an influence on the airline industry and should therefore be taken into account when formulating a Marketing Plan for easyJet.Politico-legal factors †¢ Threat of war in the Middle East †¢ The Air Miles scheme is not considered as a taxable perk by the government in the way that company cars are taxed which may cha nge to allow easyJet to compete on more equal grounds with the likes of BA. †¢ A EU east-enlargement may provide access to viable, new markets. Economic factors †¢ Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism. As the recession is likely to last for some more time, business travellers will keep an eye on their travel expenses. †¢ Globalisation should continue to boost traffic in the long-term. †¢ The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated. Socio-cultural factors †¢ To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet . †¢ The public are general quite friendly to the prospect of cheap flights.However they may feel begrudged where t hey see promotions found in newspapers where flight are for ? 10 only to find that the actual cost is much higher for the particular time or day they wish to fly on. Technological factors †¢ A key issue will be the extent to which technological advancements – such as the use of the Internet on distribution and cost synergies from industry consolidation – can offset upward pressures on prices and costs. †¢ easyJet has to keep track of technological developments in the field of e-commerce and aircraft manufacture in order to gain a competitive advantage. CONTINUE..The business environment is a set of political, economic, social, technological, environmental and legal factors otherwise know as PESTLE analysis. These factors are not controlled by the business. Which means that businesses must adapt quickly as the environment changes. These macro factors have a positive or negative impact on the business. The political factor can be affected through tax policies a s Easyjet are charged with landing in different countries, employment laws, environment regulations, trade restrictions, tariffs and the government. The economic factor is forever changing with prices constantly fluctuating.For example oil prices increasing affects overall profits for the company which in return affects how much money Easyjet can invest on improving the airline or giving back to the communities. Baines, Phil and Page (2008a) explain firms are effected by environmental issues such as wage inflation, price inflation, gross domestic product and income sales and corporation taxes. From the social aspect this looks highly on safety of the airline and its staff and passengers. Which then attracts passengers to fly again after being ensured of safe and secure flights.To keep up in technology Easyjet must be internet dependant as flights are booked and checked via the internet. Therefore customers need to be satisfied with a quick and simple service. Easyjet also have a gre at career attitude which commits staff to be up to a excellent standard of service. Technology plays a huge factor within Easyjet as it has to rely hugely on the reliance of technology. Also as things improve technology becomes cheaper which means barriers to entry could be lower for competitors to join which could affect the profit of Easyjet. â€Å"Barriers to entry are designed to block potential entrants from entering a market profitably.They seek to protect the monopoly power of existing firms in an industry and therefore maintain supernormal profits in the long run. Barriers to entry have the effect of making a market less contestableâ€Å". (Tutor2u n. d) To prevent this research and development expenditure can act as an obstruction to potential entrants to industry PEST analysis PEST analysis is chosen, to look at the possible business environmental impacts that may affect theindustry and easyJet. It can be used to infer a variety of trends, patterns and projections which willinfluence easyJet’s future strategic decisions (ACCA 2004).PEST analysis was chosen over SLEPTanalysis as we found it difficult to differentiate between legal and political factors. The legal issubsumed into political. Consideration will be made to the political, economic, social and technologicalenvironments that may affect the industry and easyJet in the future. Political Environment The industry and easyJet must react to any regulations that are imposed by the political party and thecorporate governance code. The EU compensation ruling that will take affect in 2005 is currently beingchallenged by easyJet as well as other airlines.If this challenge is unsuccessful then it would meanincreases, in  legal battles, compensation payouts and  overall increases in costs. As  a result, fare  prices easyJetwill increase and demand will fall. This would make  it very difficult to see  the future for the  low-costindustry. Expansion of the UK airport system will play a major role in the future of the airlines growth model. Stansted is expected to have one additional runway and terminal, increasing UK air traffic growth to402 million by 2020, 501 million passengers by 2030 (Mintel report 2003).The government are seeingthe benefits that the aviation industry can bring to the country. The question that remains to beanswered is, for how long are the government willing to help the growth of the industry before theystart to intervene? Any intervention from the government is likely to be costly in the future to theindustry. Economic Environment The government may decide to impose taxes on  the industry. A possible introduction of  a ‘Green tax’,a tax on fuel to try and reduce the pollution that it causes, would increase the costs and as a result couldraise easyJet’s fares by more than 20% (Financial Times, 1 stNovember 2003). Also the ? 6 billionworth of subsidies that is currently received from the government may be reduced ov er time to limit thegrowth of the industry. The growth of the industry may need to be controlled to keep pollution to aminimum. As subsidies decrease there will be  an adverse affect on  fare prices causing demand to fall. This will also affect the business model as it would need to be revisited. The recent rises in the UK interest rate, which currently stand at 4%, has increased the public’sliabilities.People have less disposable income and as a result are less likely to travel abroad. Theincreases will also affect easyJets’s loan repayments on its new order of aircrafts. At present, paymentsrelating to  the purchase are not  included in the hedging  policy and therefore will affect the liabilities of  easyJet. Social and Cultural  environment The UK population as a whole are aging, people are living longer. The number of people between theage of 25 and 34 has been decreasing but the age group between 55 and 64 are expected to increasefrom 2005 (Mintel r eport 2003).The older age group tends to have more disposable income (SAGAholidays target this group) and therefore should be targeted more by easyJet. Saying this, younger  people who have less disposable income are now starting to go abroad for their holidays. This meansthat the airline industry is attracting more potential passengers because of their low fares. Technological  environment easyJeteasyJet’s use of the internet needs to be enhanced, they are aiming to become the first ‘web-only’airline.Currently 92% of their tickets are sold online and improving this figure will bring cost savingwhich in turn could  be passed on  to the consumers. This will make easyJet more competitive on price. easyJet will need to  keep track of  technical developments in e-commerce and  aircraft manufacturing inorder to compete against its rivals 2. 7ps Marketing Mix of Easyjet Product  Ã¢â‚¬â€œ Easy Jet is a flight booking company located at London. The  ben efits  of Easy Jet being online and on teletext means that they are providing better margins; this is where they are dedicated to customers digitally.Place  Ã¢â‚¬â€œ Not solely online but majority of sales are online so Easy Jet will concentrate on this target market. Today, technology allows us to sell more goods to fewer people, which is far more efficient than selling fewer goods to more people. This is confirmed by Peppers and Rodgers in their Marketing concept. Peppers an advertising executive and Rogers a marketing scholar, their concepts addressed â€Å"one to one marketing†and how it concentrates on providing services or products to one customer at a time. This is by identifying and then meeting their individual needs.It then aims to repeat this many times with each customer, this is so consumers feel relationships are in place when perhaps they are forged. Price  Ã¢â‚¬â€œ With Easy Jet being on the internet for such a long period it means it has cut out aspects such as â€Å"the post†, this is because tickets and boarding passes are now emailed to customers or printable online, therefore â€Å"cutting out the middle man†. Promotion  Ã¢â‚¬â€œ Easy jet’s website is offered through search engines and travel/flight comparison websites, this is both advertising and selling their service.They also send members emails with promotional offers. Physical Evidence  Ã¢â‚¬â€œ Although Easy Jet is based mainly online now, Easy Jet are still booked through travel agents or in the airport itself. Physically offline Easy Jet have recently in the previous few months been advertising in Sainsbury’s stores by staff (uniformed Easy Jet T-shirts), advertising there new partnership. Physical evidence online differs, they have aspects such as â€Å"security icon† and policies in place which gives consumers a sense of security when booking online.People  Ã¢â‚¬â€œ On Easy Jet’s website they have sections, such as blo gs, FAQ’s and a whole section dedicated to customer service to try and give consumers a sense that even though they are online they still have some form of contact to Easy Jet. Process  Ã¢â‚¬â€œ As mentioned above Easy Jet integrates online and offline by having customer service in the airport and online. CASE STUDY Product: Easy jet is an low cost budget airline as well as no frill. The easy brand has been extended to other products. There are now easyinternet cafes,easycar,easymoney and new easycruise products.Price: There 3 types of pricing which are Premium Pricing this is for specific segment of people for example apple targets for certain people. Low cost pricing which is for easyjet,targeting low cost price and low income people. Psycological pricing,99p instead of 1pound They use a low cost price to be competitive Place: It means Distrubition . Distrubition has manufacturer,agents,wholesalers,retailers,consumers. The more distrubition you have ,the more expensive yo ur products will be. easy jet has manufacturers and directly deals with consumers so they save money. lmost 90 percent of tickets are sold through the internet for the 10 percent agents sell so they sometimes deals with agents too. Promotion : internet People : Paperless opeartions since its launch easyjet have simplified its working practices by embracing the concept of the paperless office. they do everything online rather than people going to branches and taling face to face ,everthing can be done online so easyjet saves money for hiring less people Process : Ticketless travel passengers,instead receive an email containing their travel details and confirmation number when they book online. his helps reduce significantly the costs of issuing,distrubuting,processing and reconciling millions of tickets each year Physical Evidence: it means beauty,new planes ,comfort flights†¦ Each boeing is new 737 aircraft and has a list price in the region of 35million gbp. Therefore maximisi ng utilisation of each aircraft reduces the unit cost NOTES FROM THE CASE STUDIES MARKETING:The mutual satisfactions of both suppliers and customers. The method is the process of shaping and managing the marketing mix in a way which takes into considerition the needs of the customer and the goals of the organisation at one and the same time.Marketing is the performance of business activities that direct the flow of goods and services from organisation to their customers. Chartered Institute of Marketing defines marketing as; The management process which identifies ,anticipates and satisfies customer requirements effciently and profitably Professor Philip Kotler 1999 states;Marketing is a social and managerial process by which individuals and groups get what they need and want through creating,offering and exchanging products of value with others. People don’t only buy what they want to ,they buy them because of the value of products they require.Marketing is concerned with cu stomers ,they are the main element in marketing not quality or products. If customers are demanding for new products features,marketing department will have to communicate these requirements to the production department to make provision for new processes and new machinery. On the other hand if the customer change their pattern of shopping or seek more information regarding the safe us of product ,the company may have to recruit new marketing executives to match up to the demand. )Using technology on easyjet One of the most important developments in the UK travel industry in the last 15 years is the growth of the ‘budget’ or ‘no frills’ airlines, easyJet and Ryanair. Both of these airlines were launched when new regulations made it easier to operate between countries within Europe and both used new technology and other methods to sell seats, rather than through traditional high street travel agents.The growth of both companies has been exceptional and the a irlines have used similar approaches in their ‘business models’ * Use of the Internet to reduce distribution costs – easyJet was one of the first airlines to see the opportunity of the Internet when it sold its first seat online in April 1998. Now approximately 95 % of all seats are sold over the internet. * Maximise the time the aircraft is being used – For both Ryanair and easyJet maximising the use of each aircraft reduces the overall cost of running the aircraft. Ticketless travel – Passengers receive an email containing their travel details and booking reference when they book online, rather than a traditional ticket. This helps to reduce significantly the cost of issuing and processing millions of tickets each year. * ‘No free lunch’ – Not offering free catering on-board reduces cost. Passengers can purchase food on-board if they choose to. * Free seating – Unlike traditional airlines, Ryanair and easyJet passengers are not assigned a seat, unless they pay extra to board first.This helps passengers to take their seats more quickly and saves time. * Efficient use of airports – By reducing turnarounds (the time between landing and take-off) to 30 minutes and below, easyJet and Ryanair maximise the use of their aircraft. Not having pre-assigned seating, like traditional airlines, helps reduce turnaround times. * Reduced fares – generally Ryanair and easyJet offer cheaper fares than traditional airlines, especilally for passengers who can book early and take advantage of the deals available. Easy Jet MANAGEMENT 100 800 WORD SUMMARY 836 WORDS EXCLUDING REFERENCES EasyJet EasyJet Airline Company Limited headquartered at London Luton Airport is the UK’s largest budget airline measured by number of passengers carried, operating domestic and international scheduled services. Easy Jet has grown through a combination of acquisitions and base openings fuelled by consumer demand for low-cost air travel. Ryanair another budget airline is currently Easyjet’s biggest competition. EasyJet has adapted cost-cutting measures such as not selling connecting flights or providing complimentary snacks on board.The key points of this business model are high aircraft utilisation, quick turnaround times, charging for extras and keeping operating costs low however EasyJet flies mainly to primary airports. EasyJet also focuses on attracting business passengers by offering convenient services such as the â€Å"Flexi fare† which allows free of charge changes to the flight within a windo w, speedy boarding and a checked in bag. General environment – International dimension According to Samson and Daft (2009), general environment is ‘layer of environment that affects the organization indirectly’. It includes external factors that are not within an organization.One of the dimensions, international dimension is referring to factors that arise from foreign countries that will affect an organization. Factor that will either be an opportunity or threat to an organization will include having to encounter competition globally. An organization will have to face international competitors where it trade on its own even though not involve in exports and operates domestically. Besides, it would be essential to learn to adapt to the changes and trend circulating around the world as technology advances as time passes and political events such as Iraq war.Apart from that, rise of economic power of China has a significant impact on the international economy due t o the massive workforce, brainpower, population dynamics and abundant natural resources that many countries rely on. The always changing worldwide environment has very large impact on organization compared to domestic environment, demanding for great control of the organization. What is a competitive advantage A competitive advantage could be defined as a unique position a firm develops in comparison with its competitors (Hyvonen 1995, 334).It is imperative for firms to understand what it’s competitive advantage is and take advantage of them as it can change rapidly (Anthony, Perrewe, Kacmar, 1996, p. 468). One of the ways to create a competitive advantage could be, through lower prices or differentiation (Woodruff 1997, 139). Lower prices is a competitive advantage when a firm is able to sell their product cheaply to consumers. Lower prices may be dependent on lower costs, however lower cost itself is not a competitive advantage as it should come along with lower prices for the advantage to be formed (Kotha, Vadlamani 1995, 76).Differentiation can be achieved through, providing superior goods and services, through the firm’s image, flexibility, total supplies and speed (Kotha, Vadlamani, 1995, p. 76; Sashi, Stern, 1995, p. 126; Helms, Ettkin, 2000, p. 1) Easy jet as a buget airlines has set its competitive advantage through lower prices. How The International Dimension Impacts Easy Jet’s Competitive Advantage There are many ways in which the International Dimension has affected Easy Jet’s Competitive Advantage. After the 9/11 attacks the airline industry suffered extensively. Passengers opted to use less of the big airlines.This allowed Easy Jet to be more successful as passengers were choosing their services over the big Airlines in Europe. When the number of people who used Easy Jet’s services increased it would have allowed the airlines to spread their fixed costs, which in turn reduces overall expenses and meant that the y were in a position to lower their prices thus impacting their competitive advantage in a positively contributing to the overall success of Easy Jet. (Easy Jets Market Structure 2012) Another factor in the International dimension that affects Easy Jet’s competitive advantage as that EU had ruled an ‘Open Skies’ agreement which meant that Easy Jet was given the choice to serve flight paths that may have been normally associated with some specific airlines. This allowed them to choose the routes that they preferred allowing them to choose routes that gave them the most benefits. (Easy Jets Market Structure 2012) Easy jet is also influenced by rising fuel prices. Increased fuel prices meant that the entire airline industry around the globe and Europe had raised their prices.However, increasing fuel prices meant that even Easy Jet had to raise the price, and this does not work well with their low cost, low price strategy. Therefore there is a negative and positive e ffect by the rise of fuel prices (Topham 2012) Conclusion In conclusion, the international dimension of the general environment represents event originating in foreign countries as well as opportunities for Easy Jet in other countries. International dimension affects competitive advantage in various way. Easy Jet has proved to be robust and competitive in a tough general environment.This is due to its large competitive advantages, which is its low cost prices. However, it is the report on the overall international dimensions which affects the competitive advantages of Easy Jet shows that Easy Jet is a highly successful company, which is expanding rapidly. Besides, by engaging with the international dimension, Easy Jet not only get more benefit from its competitive advantages but also increase it’s cash flow from operating activities throughout United Kingdom. References Anthony, William P. , Perrewe, Pamela L. nd Kacmar, Michele K. (1996): Strategic Human Resource Management, Fort Worth: Dryden Press Bamberger, Ingolf (1989): Developing Competitive Advantage in Small and Medium-Size Firms, Long Range Planning, 22 (5): 80-88. Easy Jets Market Structure. 2012. Competitive Advantage and Developing a Competitive Advantage Over Rivals. Accessed September 18, http://www. 123helpme. com/view. asp? id=122608 Helms, Marilyn M. and Ettkin, Lawrence P. (2000): Time-Based Competitiveness: A Strategic Perspective, Competitiveness Review, 10 (2): 1-14.Hyvonen, Saara (1995): Competitive Advantage, Bargaining Power, and Organizational Performance: The Case of Finnish Food Manufacturing Firms, Agribusiness, 11 (4): 333-348. Samson, Danny, and Richard L. Daft. 2009. Fundamentals of Management. Australia: South Melbourne, Vic: Cengage Learning Australia, 2009. Kotha, Suresh and Vadlamani, Bhatt L. (1995): Assessing Generic Strategies: An Empirical Investigation of Two Competing Typologies in Discrete Manufacturing Industries, Strategic Management Journal, 16 (1): 75-83.Sa shi, C. M. and Stern, Louis W. (1995): Product Differentiation and Market Performance in Producer Goods Industries, Journal of Business Research, 33 (2): 115-127. Topham, Gwyn. 2012. EasyJet losses narrow despite fuel cost rise. http://www. guardian. co. uk. /business/2012/may/09/easyjet-losses-narrow Woodruff, Robert B. (1997): Customer Value: The Next Source for Competitive Advantage, Journal of the Academy of Marketing Science, 25 (2): 139-153.

Uses of Genetic Recombination

Genetic Recombination Genetic recombination is the method in which a molecule of nucleic acid, usually a strand of DNA (deoxyribonucleic acid) but can possibly be RNA (ribonucleic acid) is broken and then combined with another different strand of nucleic acid. Overview Genetic recombination has occurred naturally since the very first bacteria and by our ancient ancestors although they didn’t know at the time. It’s only in the last few decades that we have begun to understand and develop our skill to use it to our advantages.Originally thousands of years ago our ancestors abandoned the hunter-gather lifestyle and started to pursue agriculture. By doing so they took the flora and fauna that showed the most desirable characteristics and cultivated them while at the same time killing those with less desirable characteristics. This method gave rise to various species such as the common dog. Such products like yogurt and wines were then produced although the reasons why they were produced remained unknown. This is a very basic example of Genetic Recombination/ Genetic Engineering.As our understanding of DNA and Genetics advanced especially in the 20th century this has led to advances into new fields of research and benefits. With better understanding it has allowed us to combat diverse and assorted problems that we face. Benefits Medical The benefits of genetic recombination are massive in relevance to medical Biotechnology and the Medical sector as a whole. It has allowed cures to be created for what was in previous centuries a death sentence. a) Genetic testing – Genetic testing allows doctor to determine if an unborn baby is at risk of a genetic abnormality or defect.This allows precautions to be taken to ensure the babies survival and possibly to form a treatment to minimise the impact of the defect. It can also be used to identify the causes of conditions in adults that are suffering from a genetic disorder. b) Gene Therapy – Gene The rapy has allowed physicians to treat several hereditary genetic and non-hereditary disorders such as HIV, Asthma, Neurodegenerative diseases, many forms of cancer, etc. Cancer: There has been much progress in combating cancer and oncogenes (tumour producing genes), several genetic therapies’ that have been discovered to actively combat cancerous cells. Replace mutated or missing genes with their normal healthy equivalents. * Improve immune system response to cancerous cells by inserting T-cell receptor (TCR) gene into white blood cells which attach to cancerous cells causing the immune system to target the cancer. HIV: Although there is no cure for HIV at the moment, research with genetically engineered viruses on knockout mice have prevented infection and the mice have shown to retain the protection after a full year, indicating that genetic manipulation could soon provide a vaccination to HIV. ) Prevention of Muller’s Ratchet – If genetic recombination did not occur it would lead to the build up of harmful genetic mutations which if allowed to go unchecked would eventually cause a species to go extinct. Genetic recombination allows the genetic material to be varied and diversified which prevents Muller’s ratchet from occurring in species who practise sexual reproduction and not asexual reproduction. (Kreuzer and Massey, 2008, 6, 19-24, 89-96) AgricultureGenetic manipulation of many sectors of agriculture has been the focus of attention from the public for some time over the production of genetically modified organisms (GMO’s). However genetically modified organisms have many proven benefits which have been an advantage to the world. It has been used to increase yields, improve the nutritional value of the food, boost pest resistance and many others (Kreuzer and Massey, 2008, 6). * Certain GMO’s have been grown in areas previously hostile to certain species, increased cold/heat/water resistant have allowed these crops to be harvested instead of failing. Virus resistant GMO’s have prevented whole crops failing to common and lethal viruses in the countries they are grown. Soybeans which there is large demand for are easily susceptible to Pseudomonas amygdali pv Glycinea a common bacteria in United States which is the main producer of soybeans at 33% of the world production. However with the use of genetic recombined soybeans at 85% in the United States, the average loss has considerably dropped contributing to the prevention of starvation in certain countries. (GMO Compass, Soybeans, December 3rd 2008) In December of 2005 Zambia accepted GM maize to prevent a famine from occurring in the country, if the GM foodstuff had not been available at the time there would have been insufficient non-genetically modified food to prevent a famine. ( Industrial The industrial applications of Genetic recombination have been used for thousands of years but in recent years the applications have increased co untlessly. 1) Food – a. Genetically recombined bacteria have been used to produce cheese in vast quantities cheaply. b.Several different Vegetables and Fruits have been genetically altered to increase their size, shape and colour. Bananas have been changed so they stay green for longer until they reach their destination, while at the same time tobacco has been engineered so that it has little to no nicotine content. 2) Medical – Production of artificial insulin, vaccines and growth hormones have been used to treat some of the most common ailments in existence. Ethics of genetic Recombination The ethics of genetic recombination vary as there are many ethics viewed depending on a large number of factors all of which contradict each other.The potential of genetic recombination on humans has been debated and many arguments for and against have been formulated. They are based on somatic therapy and enhancement which only affects only one generation, the other is germ-line t herapy and enhancement which affect every generation after the one it is manipulated in. Manipulating human genetic make-up by somatic recombination allows repairs to be made to a human with damaged genes, a human with damaged genes could be theoretically cured, which has been achieved already in a limited scale.Manipulating human genetic make-up by germ-line recombination however will cause the modified genes to be passed on to any and all offspring which could have unpredictable critical or fatal consequences in the future. While therapy will only cure diseases, the possibilities of enhancement have many benefits but many more ethical issues. It would cause inequality as only the rich could afford it and religious persecution of it as â€Å"Playing God† and the changes could have unintended consequences later in life.These various effects have made it a hotly debated issue in which there is little middle ground for any party involved making the future of genetic recombinati on impossible to deduce. References Molecular Biology and Biotechnology, Helen Kreuzer and Adrianne Massey, 3rd Edition, 2008, ASM Press, Washington DC GMO Compass, Soybeans, December 3rd 2008, Online, http://www. gmo-compass. org/eng/grocery_shopping/crops/19. genetically_modified_soybean. html THE ETHICS OF GENETIC ENGINEERING, David Koepsell, August 2007, Centre of Inquiry, Washington DC, http://www. centerforinquiry. net/uploads/attachments/genetic-engineering-ethics_2. pdf

Criminology 3001 Assesment 3 Research Proposal Example | Topics and Well Written Essays - 1500 words

Criminology 3001 Assesment 3 - Research Proposal Example The fundamental benefits of community policing is that it provides mobility to the law enforcement agencies to respond to criminal complaints, increase positive attitudes towards police, and reduce fears of crime (Anderson 2005). What interests this researcher is the fact that in a country where 60 police officers are entrusted with 1000 serious reported crimes (Billante 2003), community policing seems to be an ideal solution to increase police vigilance and strength at a minimal cost to the government. Experts are of the view (Grabosky 2009; Hodgson 1998; Mukherjee and Graycar 1997) that community policing is an effective method for responding to the community’s needs for security, crime deterrence and peace keeping. It involves programmes which encourage members of the community to participate actively on behalf of the police in crime detection and prevention as well as maintenance of public order. Yet, there has been little research carried out to evaluate the effectiveness and cost-efficiency of community policing. The purpose of the following proposal is to evaluate whether there is a need for investigating it in terms of value of community contribution, impact on police efficiency, cost of implementing community policing systems, and most importantly reduction in crime rates. How effective are the different types of community policing programmes, especially in addressing modern crime and disorder situations like terrorism and delinquent behaviours in the marginalised communities? 2.2. A combination of theoretical exploration, interviews and evaluation shall enable the researcher to study the efficacy and effectiveness of community policing, the gaps therein in its implementation, and hopefully present radical solutions to the justice system, crime prevention departments, citizens community, and criminology academia. The key objective to policing is

Mean Girls - Film Review Essay Example | Topics and Well Written Essays - 750 words

Mean Girls - Film Review - Essay Example This is a very accurate representation of life in high school and the various status among students: Cady Heron, the new girl, who has always home schooled and does not have a clue about labels, who lacks malice, and her struggle for acceptance, going to the extreme of loosing her own essence because she is in "no position to pass on friends," The "In" girl; Regina George who also happens to be the meanest girl in school, and yet her approval means everything, to the point of one thrilled girl saying "She once punched me in the face, it was awesome!" Gretchen Wieners and Karen Smith, the Barbie doll duo who follow and mimic the Queen bee blindly in spite of her rudeness because it would be social suicide not belonging to this group, and so, old camaraderie turns to foot-kissing worship, Aaron Samuels, the hot athlete who unaware of it, triggers a psychological warfare that escalates to the whole female alumnae, Damian and Janis, the "out crowd" with their own revenge agenda, but over all good kids, in spite of their gay and punk stereotype, the unfriendly black "hotties," the Asian nerds, the "girls who eat their feelings," the bulimics who don't eat at all, the varsity jocks, the foreign student math wiz, the disgusting kid and the cool smart teacher, Ms. Norbury, who brings everything back to perspective. Adolescence is the most shocking moment in human development; physical, cognitive and psychosocial changes happen in such fast pace and insufficient time that only years after we are able to digest them and adapt.

Medical workers involved in CIA interrogations Essay

Medical workers involved in CIA interrogations - Essay Example The fact remains that harm was caused to the prisoners. The intentions are not a factor when determining a breach of medical, moral ethics. Belmont report identifies three principles that must be adhered to when conducting researchers with the human being as study sample. They include the protection of human rights, ensuring justice so that those who bear the burden should also reap the benefits and the beneficence principle which requires the express consent of the people involved. In this research, none of the principles were upheld. Human rights were abused, and the prisoners were not done any justice as they were not the beneficiary. Further, the prisoners did not consent to the research and hence the beneficence principle was disregarded. The actions by the doctors were evil when looked at in different dimensions: religion, secular or even to Kant’s ethics. There is no religion or secular civilization that supports human right abuse. Even Kant’s ethics prioritizes the respect for human right. I do not agree with the policy of treating such reports as confidential. Utility principle has it that the report would only be important if intended to create happiness and pleasure. As such, if the report cannot be used to prevent such human abuse from re-occurring, then it was an effort in futility. I think doctors in such cases should be personally held responsible for causing harm to persons. I think the principle of human right should come to play to ensure that its abuse is punished according to the law.

Care Plan for Dual Diagnosis to Mental Health Patients Essay

Care Plan for Dual Diagnosis to Mental Health Patients - Essay Example It gives pressure to the life and health of the individual that leads to stress. Stress then causes imbalance in the body and weakens it eventually leaving him vulnerable to diseases. In response to the diseases and negative health conditions, healthcare is provided by the medical professionals like doctors, nurses, laboratory technicians and hospital staffs (Buchhols and Henke 2008, p. 364). They ensure that the health condition of the patient is treated and monitored. Probably various tests are required to identify the infection or imbalances in the body so the doctors can prescribe medicines and administer some treatments to the patient. Doctors are then assisted by nurses especially in carrying out some tasks like blood pressure check, injection, breathing of patient and many more (Zaman, 2005, p. 143). In making the rendered healthcare services easier, care plans are created for the healthcare professionals like nurses. It allows an organized and easy-to-follow procedure for a f aster and more effective healthcare assistance given by nurses to their patients (Kongstvedt 2007, p. 19). Care plan is then part of the so-called nursing process. Nursing process is known to be the foundation of the nursing practice as it is the systematic way of making personalized care that considers the individual needs of the patients (Sam 2007, p. 1). It compensates for the downside of healthcare standards as standards only consider the general characteristics of diseases and the conditions of patients. With the nursing process, care for the patients is faster and organized as solutions to the health problems are administered. The nursing process then started in the 1950s as Lydia Hall coined the term as she related it to the standard procedure in providing health assistance by nurses (Bomar 2004, p. 257). The process then serves as the foundation to cater the specific health needs through efficient ways of deciding, solving and administering the care. The process then starts when a patient seeks the care of the nurse until the patient receives the desired care and result (Sam 2007, p. 1). NANDA or the North American Nursing Diagnosis Association determines the communication needs of the nurses among them (Herdman 2008, p. 228). The same group also clarifies the difference between the medical diagnosis and nursing diagnosis. The former focuses on the changes in disease while the later centers on the patient. Since the nursing process provides the foundation for the healthcare rendered by nurses, it contains six main stages summarized as ADOPIE which means Assess, Diagnose, Outcome, Plan, Implement, and Evaluate (Ralph and Taylor 2005, p. 2). Assess or assessment is the primary stage wherein the nurse check the patient holistically as the overall condition of the patient must be identified (Timby 2008, p. 17). A way of assessing the patient is done using a nursing model. The value of the first stage is to know the health problems or diseases of the patien t which may be an existing or a probable occurrence of a disease (Hatfield 2007, p. 18). It is then done to create a startup for the other stages in the nursing process to occur. Standardized and widely-recognized tools for assessment must be used to properly identify the specific needs of the patient. The data is then collected using the health background and history, interview and physical check-up (Ralph and Taylor 2005, p. 2). The second stage is the diagnostic stage wherein the data gathered from assessment are

Not sure, make one for me Essay Example | Topics and Well Written Essays - 1500 words

Not sure, make one for me - Essay Example Even in the contemporary era and after various legal reforms, there are just a handful of solicitors enjoying the same position as that of barristers. A barrister defends their client in a court of law, whereas the profession of a solicitor is confined predominantly to drafting of relevant legal papers, of course barring exceptional cases. Mostly, the barrister carries out his profession independently, and the solicitor is employed by firms subsequent to partnership agreements. (2) Under the legal structure of the UK, solicitors provide advice to their clients, which are comprised mainly of various firms, in legal matters. In the event of the legal matters involving too many intricacies, they seek the guidance of barristers. In certain exceptional instances, as stipulated by the law, solicitors do have the right to defend their clients in the court. Barring these cases that can more or less be considered as rare ones, otherwise, the right of audience in a court is the exclusive privilege of the barrister. (1) When comparison is drawn between the legal profession and the medical one, the role of a solicitor can conveniently be equated to that of a doctor providing services in the realm of general medicine. Likewise, the barrister’s role is on par with that of a doctor specializing in their chosen discipline of medicine. (1) At this juncture, it would be highly relevant to be shifting the focus on to certain sections of the UK’s society strongly arguing in favor of combining the profiles of a barrister and a solicitor in a manner so as to enable the existence of just a single profile. In the event of the manifestation of such a scenario, the disadvantages would be way outweighing any advantages, much against the claims of the proponents of this fusion. At this point, it would be worthwhile to elaborate on the disadvantages resulting from the aforesaid scenario, as well as highlight the

Starbucks Essay Example | Topics and Well Written Essays - 750 words

Starbucks - Essay Example Back in the US, situations were totally different. The option to drink a cup of coffee that was prepared according to the customers’ preference was not available. The available options were fast-food restaurants or gourmet cafes which were not open in the early morning hours of the day. Schultz was influenced by these three factors; absence of coffee shops in the early morning hours or extended hours of the day, the inability of the shops to prepare coffee according to the choice of customers, and people’s interest in using cafes as places of public interaction. Thus, Schultz started his own Coffee bar that allowed customers to decide the nature of the coffee to be made. Thus, in 1986, Schultz opened his coffee bar in Seattle in the name ‘Il Giornale’ and on the first day, they served 300 customers and precisely according to his observation, most of the customers came in the morning hours. Soon, he acquired the Starbucks’ name and operation. Thus, it is evident that the success of Starbucks was largely dependent on its success in identifying the opportunity and bringing into practice what they have envisioned. 2. The five forces according to Porter’s Five-force model are: a) potential entry of new competitors, b) potential development of substitute products, c) bargaining power of suppliers, d) rivalry among competing firms, and e) bargaining power of consumers. When the first force is considered, the biggest threat comes from McDonalds’ McCafe as it is easy for McDonald to add coffee services to their existing retail services. As per reports, the income from McCafe is 15% higher than the income from a regular McDonald and presently, it is the largest in Australia and New Zealand. In addition, Starbucks has something to worry as it has not started providing canned or bottled coffee; and it is clear that one who wants to save time and money will certainly go for canned or bottled coffee instead of the Starbucks mug (Strategic Management PMS 3393). When the third point is considered, one has to accept that Starbucks is victimized to this situation very often. In 2001, Starbucks was forced to buy coffee bean at a higher price as the suppliers raised the price. However, prior agreements on price will help the company overcome this problem. In machines and technology, the company will have to go for the total ownership of supplies. However, rivalry among competing firms is the most important one. Currently, there are about 14,000 coffee outlets in the US and there are many restaurants and supermarkets where coffee is cheaper than that of Starbucks. Some other important competitors are Dunkin Donuts and Krispy Kreme followed by coffee brands like Tully’s and Pete’s Coffee. In addition, their non-coffee products are threatened by brands like Orange Julius and Jamba Juice (Starbucks: â€Å"The Non-Coffee Treat†). However, as far as Starbucks retains perfection and quality, these competitors will not raise any serious threat. The last point is the bargaining power of customers. It seems that customers bargain only when alternatives are available and hence, this will not create a threat to Starbucks. In addition, its huge popularity reduces the bargaining power of the public. In fact, the situation was totally different in the

Business Crime - Christies Ltd Essay Example | Topics and Well Written Essays - 2000 words

Business Crime - Christies Ltd - Essay Example Before proceeding to the topic of Christies Ltd. and business crime, it is important to understand how and why the Theft Act 1968 came into existence. This Act was original for it was the first British legislation, which the dealings of criminal law accessible to all citizens and not just limited to attorneys. An article from bbc.co.uk (2001) tells this history: Before 1968, theft and other, similar, offences were governed by a mass of conflicting legislation and common law and was over-complex. Before 1968, if 'ownership' passed by means of deception, the offence was 'obtaining by false pretences'. If 'possession' was passed, the offence was 'larcency by a trick'. Other offences existed, including 'larcency by a servant', 'fraudulent conversion' and 'embezzlement'. It had reached the point where it was harder to discover which crime the accused may have committed rather than whether or not the accused was guilty. The 1968 Theft Act, as well as the 1971 Criminal Damage Act, did much to overcome this problem. All previous theft legislation and common law were overruled, resulting in the creation of the first codified definition of law in England and Wales.

Poverty In Canada Essay Example | Topics and Well Written Essays - 1500 words

Poverty In Canada - Essay Example UNISEF has found out that child poverty rate in Canada, which is one among the wealthiest nations of the world, was 14.9% in 1990s (Raphael, p.11 of preface). Canada’s treatment of its â€Å"poor, single mothers and natives† had come even under the UN criticism and the UN Committee on Economic, Social and Cultural Rights had remarked that the â€Å"country has not ensured Canadians enjoy economic and social rights guaranteed by a UN covenant to which Ottawa is a signatory† (Raphael, 9). The CCSD National Task Force had given a comprehensive diagrammatic representation for measuring poverty and had listed â€Å"three important dimensions of well-being† as, â€Å"economic, psycho-social and political participation† (9). The review done by the task force has shown that Canadian society lacks in all these three dimensions to various degrees (CCSD National Task Force, 9-11). ... The gravity of the situation is so that â€Å"more than 3m Canadians (or one in ten) are poor; and 610,000 of them are children† (The Economist). Causes The major cause of poverty in Canada is found to be lower wages that people are getting. It is a social reality that, â€Å"market incomes have stagnated for all earners, except the most wealthy† (Global Economic Justice Report, 2). In 2005, it was observed that â€Å"one in six Canadian workers earns less than $10 an hour† (Global Economic Justice Report, 2). A contributing factor to the low-wage situation has been the â€Å"increases in non-standard work (contracts, part-time work, temporary agency work) and an increased number of so-called â€Å"involuntary part-time workers†-workers who would prefer to work full-time but are unable to find such work† (Global Economic Justice Report, 2). As compared to the other rich nations of the world, Canada spends very less money on minimum wages, health and social service investments, education, employment, training, and social infrastructure (Raphael, p.12 of preface). In Canada, it is noted that the people remain poor because, â€Å"the political and economic system does not provide employment wages or social assistance benefits at a level†¦that allow for a life outside of poverty† (Raphael, p.11 of preface). Also the public policy does not ensure, â€Å"affordable housing, childcare, and health and social services, thereby straining the resources available to†¦vulnerable groups† (Raphael, p.11-12 of preface). The housing problem was so grave for low-income earners that the UN Committee on Economic, Social and Cultural Rights had asked Canadian government to consider low-income housing as a

Pros of British Imperialism in Africa Essay Example for Free

Pros of British Imperialism in Africa Essay The British colonized Africa from Egypt in the north to South Africa. Extension of a nation’s power through conquering overseas territory, know as imperialism had several motivations. Nationalism urged the nations of Europe to conquer land overseas. Having colonies was seen as a matter on national prestige, it was a symbol of the nation’s greatness. Lands in Africa, rich in raw materials and markets, were seen as economic opportunities for the European nations. Along with the rest of Europe Britain participated in the Scramble for Africa. The biggest urge to colonize was brought on by the economic benefits that the colonies would bring. Africa was seen as a major source of possible income, with its’ raw materials and markets for European manufactured goods. Around the 19th century, as the interest in slave trade declined other forms of trade became increasingly interesting, European powers continued to seek income. The Westerners had a keen interest in Africas natural resources such as animal hides, palm oil, peanuts, rubber, timber, and tin. The growing European presence led to increasing tensions in the region. British colonization of Africa began in 1874. British imperialism started with the annexing of the west costal states (which became the Gold Coast colony) and establishing a protectorate in Nigeria. Around 1914, the Scramble for Africa had ended; Britain was in charge of a huge part of the continent. Britain controlled Anglo-Egyptian Sudan, Bechuanaland, British East Africa, British Somalia, Egypt, Gambia, Gold Coast, Nigeria, Northern Rhodesia, Nyasaland, Pemba, Seychelles, Sierra Leone, Southern Rhodesia, Uganda, Union of South Africa, Walvis Bay, and Zanzibar. The size of the British reign over Africa was greater than that of any other nations. An aspiration of the British was to stretch a telegraph line from their northern colonies to their southernmost ones. Cecil Rhodes, a successful British businessman, can be credited for the vastness of the British control in Africa. One of his ambitions was to create a series of British colonies from Cape Town to Cairo, all connected by a railroad. In fact, Cecil Rhodes was partially responsible for sparking the Boer War which lasted from 1899 to 1902. Soon after, the British government made Rhodes to resign from his post as head of Cape Colony. Ultimately, his goal was to gain as much territory in Africa as possible for the British. Not only did imperialism provide the colonizing country with profit, the colonized lands and people also benefited from it. Western nations brought useful innovations and improvements to the people’s lives. Some of the technological advances were telegraphs, railroads, and telephones. More importantly, stable government systems, Western education, hospitals, were introduced to the colonized lands to improve the overall living standards. The British were able to bring these innovations to the continent of Africa and help the nations under their imperialistic rule. Imperialism is the extension of a nation’s power over other lands. A nation with colonies was viewed as superior to those without; it was able to sustain its’ place amongst the leading powers. Imperialism allowed a country to control faraway lands, rich in natural resources and local markets, and profit economically. Imperialism was beneficial not only to the imperialistic nation, but the colony as well.

Introduction To Mnc And The Company Nestle Marketing Essay

Introduction To Mnc And The Company Nestle Marketing Essay Foreign Direct Investment (FDI) is any forms that investor earns interest in corporation which functions outside of the domestic territory of investor. Besides that, foreign direct investment needs a relationship between a parent company and it foreign subsidiary. It is also gives rise for multinational corporate based on their report Economy Watch (2010). Recent research on globalization (Global Education, 2009) has shown there are many different definitions of globalization, but most acknowledge the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. It is like moving towards living in a borderless world. There has always been a sharing of goods, services, knowledge and cultures between people and countries, but in recent years improved technologies and a reduction of barriers means the speed of exchange is much faster. Globalization provides opportunities and challenges (Global Education, 2009). Nestle is a multinational corporate since it headquarter was located in Switzerland but it operate its business in the other countries over the world such as Europe, United State, China, Malaysia, Hong Kong etc. As we known, Nestle is an infants product. Besides produced infants, Nestle have yet produces some others products such as chocolate, yogurt drink, cornflakes, ice-cream etc that we can easily founded in supermarkets over the world. Introduction to Nestle In 1860s, a pharmacist named Henri Nestle had success developed a food for babies which are unable to breastfeed. And his first success was a premature infant who could not tolerate his mothers milk or any of the usual substitutes. (Nestle, 2010) In 1867, he adopted his own coat of arms as a trademark in 1867. In German Nestle means little nest. And the now-famous symbol is universally understood to represent nurturing and caring, security, nourishment and family bonding. These attributes are still the guiding legacy for the company Henri Nestlà © founded as it fulfills its commitment to Good Food, Good Life. The Nestlà © Coat-of-Arms Sources: Nestle Sdn Bhd 2010 In 1905 Nestlà © merged with the Anglo-Swiss Condensed Milk Company. The year after Nestlà © added chocolate to its line of foods. The newly formed Nestlà © and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay. Most production still took place in Europe. (English Tea Store, 2004-2009) While the original business was based on milk and dietetic foods for children, the new Nestlà © grew and diversified its range of products, through acquisitions and mergers with the better known brands of the time. For example: The manufacturing of LACTOGEN began in 1921, and in the same year, a beverage containing wheat flour was marketed under the brand name MILO. In 1938, NESCAFÉ, the worlds first instant coffee was introduced. Then, in 1947, the MAGGI Company merged with Nestlà ©. Today, Nestle company still adhere their principles that is provides the best products throughout the world. Beside that as the leading Food, Nutrition, Health and Wellness Company, Nestlà © is the provider of the best food for whatever time of day and for whatever time of your life. Nestlà © has grown to become the worlds largest food company offering more than 8,500 brands and 10,000 products. With its headquarters in Vevey, Switzerland, Nestlà © has more than 456 factories spread over 80 countries, and employs more than 283,000 people. (Nestle Products Sdn Bhd , 2010) Actual impact of globalization on Nestle PESTLE analysis which contains of political, economic, social, technology, legal and environment analysis which consist of external environmental. It is a useful analysis to understanding the situation of a company in an industry. Political analysis The stability of political in a country will be under the consideration by NESTLE to build a plant that can operates NESTLEs factories that considering the countrys political stability, good tax incentives as well as its skilled workforce, NESTLE chose Malaysia to be the site of another regional manufacturing centre for NESCAFE (Mr. Josà © Lopez, Executive Vice President, Nestle S.A. responsible for global operations and GLOBE (Nestlà ©s Global Business Excellence Programmer)). Economic Analysis The important of economic factors will leads to the strength of consumer spending. For example, in recession economy, people might cut of their budget to consume household stuff rather than unnecessary stuff such as chocolate. Americans likes luxury chocolates, a new premium line of cacao which is called Nestle Treasures God had launched in order to cash in on the recession. Social Analysis Even though Nestle as a multinational corporate which operates their business in the other country, but do respect to peoples culture and traditional which is a corporate that think global, act local by working hard to integrate itself into the cultures and traditions of the country. For example, Kit-Kats formula is almost different everywhere. A Russian Kit-Kat is smaller than a Bulgarian, but less sweet than Germanys Kit-Kat. While in Japan, the strawberry Kit-Kat is all the rage. Technology Analysis As the technology of recently changed rapidly in global, Nestle have attracted people to purchasing their products by using advertising. For example, Kit-Kat have been advertised by attracting youngster or child because it is a sweeten tid-bits. Infants foods advertisement is to attracted housewife to purchase it to given their child a healthy life. Recent research on technology analysis (Nestle Policy and Environmental sustainable) (2008) reports shown that during the manufacturing process, Nestle had using efficient technologies to ensure that there is no wasted energy while producing products. In addition, to control the eliminate emission including the greenhouse gases. Legal Analysis In 1996, Nestle was the first multinational corporate that voluntary for Halal certification for its own food products. Those food products that exported to the other countries were certified as Halal products. As a global food company like Nestle, hygiene is a must. Since Nestle has the Halal certification and hygiene was the procedure which contain in that certificate. Besides that, health and safety were the principle that keeps by Nestle. While provided employees to minimize risks in their personal lives, Nestle had always emphasize each of their employees about to change the employees attitudes towards personal safety. Environmental Analysis Nestle always committed to people to produce the best quality to their consumers. Besides that, Nestle also prevented the wasted food by reduced the materials weight and volume, yet supported initiatives of recycle from used packaging. Nestle have also use recycled materials to produce its products. But, Nestle had done a fact that will cause of the lost of the home for orangutan. According to Heidi Marshall (2010), Nestles product-Kit Kat is a product of environmental destruction. This is because of the material that used in the candy bars and for the other Nestle products as well was comes from a palm oil that get from by destroying Indonesia rainforests. SWOT Analysis of Nestle As Dr. Jill Novak, (2009) commented that: Strength Nestle is a global food producer since it located in over 100 countries. It is consistently one of the worlds largest producers which with global sales in 2008 topped $101 billion. In addition, Nestle was named one of Americas Most Admired Food Companies in Fortune magazine. Furthermore, Nestle provides quality brands and products and line extensions that are well-known, top-selling brands including: Maggi, Haagen Dazs, Kit Kat, Nescafe, CoffeeMate, prepared baby foods, yogurt, foods for infants and many more. Weakness Most of the products have their own weaknesses. For Nestle, it was not as successful as the other country in France. Nestle could not compete against a strong and established brand which is Dannon that entered into France earlier than Nestle which is top selling of health yogurt. Besides that, since 2004, Nestle has been forced to reduce the amount of sugar in their products that may cause of diabetes among American children. In addition, Nestle has been removed the packaging and advertising that false claims of heart healthy and lower cholesterol which is an order from FDA(Food and Drug Administration) and American Medical Association which is the under fire of the breakfast cereal industry. Opportunities In today, everyone hope and needs to have a healthy life, as a producer like Nestle, it has an opportunities to raise their selling profits with producing health-based products. Since Nestle was a well-known branded, for sure, it will be easy to attract people to purchase their products. Further, they launched a new premium line of cacao called Nestle Treasures Gold, in order to cash in on the recession economy in which consumers cut back on luxury goods, but regularly indulge in candy and chocolate. Americans want luxury chocolates, and high-end chocolate is immune to the recession (so far), because it is an inexpensive indulgence. Threats Even though Nestle was a big producer in the world, but it still has its competitor, such as Hersheys, Cadbury-Schweppes (owned by Pepsi), Kelloggs, Starbucks, , Quaker, Kraft Foods, Danone, , Heinz, Unilevel and many more. In addition, any contamination foods supply especially e.coli which causes the recalled of their brand-Toll House cookie dough. Outbreaks were linked to 28 states and the product had to be recalled globally. Nestlà © has yet to find out how this happened, and is still investigating (Dr. Jill Novak, (2009). Potential impacts of globalization on Nestle Nestle corporate have its own potential in globalization since it is a big foods producer in global. Technology In the world of today, technology will be changing rapidly in global. And this will leads a good improvement in all type of products that will be produce around the world. A research and development department will be a part of Nestle from today towards future achievement by gaining profits without wasting the raw material in manufacturing process. Besides that, by using a developed technology may reduce the effects that will occurs greenhouse effect. For example, use of plastics packaging in every single of Nestle products improve to recycled paper packaging, used of plastic bottle in filling the Nestle beverage into tin that can recycle use. On the others side, a case that occurs in India, which is Nestle chocolate, will be melted before its eyes. This is because there are lacks of distribution and the heat temperature in India will make the chocolate melted. By using the technology that can solve this problem that is using the technology to change its chocolate ingredients so that can afford India heat temperature. Environmental As the info below, Nestles Kit Kats was made from a palm oil that came from by destroying the rainforest in Indonesia. This is cause of the pollution in Indonesia. To solve this problem, Nestle corporate should consider using the palm oil from the other countries by not destroying the rainforest of the country. On the other side, there is another solution too. That is, refining the vegetables oil that can out inside the ingredient of making chocolate. Social As a food producer in global, Nestle may do some different in their products. Such as, a new flavor of the chocolate could be launch. This is because different country has a different taste towards foods. For Malaysia, a durian can be a part of the ingredient in the making of Kit-Kat. For Korea, a Kim chi flavor Kit-Kat can also create. This is a try for Nestle to attract people by producing different flavor but same products around the world. Strategies Nestle may consider by using product-market strategies that determine where the organization competes and the direction of growth (Stuart Wall; SonalMinocha and Bronwen Rees, 2010). Products- market strategies are including market penetration strategy, market development strategy, product development strategy, and diversification. Market penetration strategy is which to refer to increase market share of the current products. A firm using this method by raises their sale revenue without any changing of their existing products. Nestle may try to use the promotion which is buy 1 free 1 for its products. For example, buy 2 packs of 1kg Milo free a 10 pack of instant Nescafe. A market penetration will also involve the 4ps which is products, price, promotion and place. According to (Stuart Wall; SonalMinocha and Bronwen Rees, 2010), the product in international marketing is the extent to which a standard and differentiated product should be provided. For example, Nestle is using the differentiated products since it produce its products Kit-Kat in different flavor. A Russian Kit-Kat is smaller than a Bulgarian, but less sweet than Germanys Kit-Kat. While in Japan, the strawberry Kit-Kat is all the rage. The international price is related to the account market different between countries, exchange rates, difficulties of voicing and collecting payment across borders, the effects of tariffs and purchase taxes on competitiveness, governmental regulations of the host country and the long term strategic plan of the company in the different markets in which it operates. For market development strategy, it is mean by taking present products enter into new markets and thus focusing activities on market opportunities and competitor situations.

Impact of FIIs on Indian Stock Market for a period of 2006 2009

Impact of FIIs on Indian Stock Market for a period of 2006 2009 Indian economy has been witnessing a phenomenal growth since the last decade. The country is still holding its ground in the midst of the current global financial crisis. In fact, global investment firm, Moodys, says that driven by renewed growth in India and China, the world economy is beginning to recover from the one of the worst economic downturns in decades. The growth in real Gross Domestic Product at factor cost stood at 6.7 % in 2008-09. While the sector-wise growth of GDP in agriculture, forestry and fishing was at 1.6 % in 2008-09, industry witnessed growth to 3.9 % of the GDP in 2008-09. The Prime Minister, Dr Manmohan Singh, on August 15, 2009, in his address to the nation on its 63rd Independence Day, said that the Government will take every possible step to restore annual economic growth to 9 %. Further, the World Bank has projected an 8 % growth for India in 2010, which will make it the fastest-growing economy for the first time, overtaking Chinas expected 7.7 % growth. A number of leading indicators, such as increase in hiring, freight movement at major ports and encouraging data from a number of key manufacturing segments, such as steel and cement, indicate that the downturn has bottomed out and highlight the Indian economys resilience. Recent indicators from leading indices, such as Nomuras Composite Leading Index (CLI), UBS Lead Economic Indicator (LEI) and ABN Amro Purchasing Managers Index (PMI), too bear out this optimism in the Indian economy. Industrial output as measured by the index of industrial production (IIP) clocked an annual growth rate of 6.8 % in July 2009, according to the Central Statistical Organisation. Significantly, among the major economies in the Asia-Pacific region, Indias private domestic consumption as share of GDP, at 57 % in 2008, was the highest, according to an analysis by the McKinsey Global Institute. Meanwhile, foreign institutional investors (FIIs) turned net buyers in the Indian market in 2009. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI) into India went up from US$ 25.1 billion in 2007 to US$ 46.5 Indian economy has been witnessing a phenomenal growth since the last decade. The country is still holding its ground in the midst of the current global financial crisis. In fact, global investment firm, Moodys, says that driven by renewed growth in India and China, the world economy is beginning to recover from the one of the worst economic downturns in decades. The growth in real Gross Domestic Product (GDP) at factor cost stood at 6.7 % in 2008-09. While the sector-wise growth of GDP in agriculture, forestry and fishing was at 1.6 % in 2008-09, industry witnessed growth to 3.9 % of the GDP in 2008-09. The Prime Minister, , on August 15, 2009, in his address to the nation on its 63rd Independence Day, said that the Government will take every possible step to restore annual economic growth to 9 %. Further, the World Bank has projected an 8 % growth for India in 2010, which will make it the fastest-growing economy for the first time; overtaking Chinas expected 7.7 % growth. A number of leading indicators, such as increase in hiring, freight movement at major ports and encouraging data from a number of key manufacturing segments, such as steel and cement, indicate that the downturn has bottomed out and highlight the Indian economys resilience. Recent indicators from leading indices, such as Nomuras Composite Leading Index (CLI), UBS Lead Economic Indicator (LEI) and ABN Amro Purchasing Managers Index (PMI), too bear out this optimism in the Indian economy. Industrial output as measured by the index of industrial production (IIP) clocked an annual growth rate of 6.8 % in July 2009, according to the Central Statistical Organization. Significantly, among the major economies in the Asia-Pacific region, Indias private domestic consumption as share of GDP, at 57 % in 2008, was the highest, according to an analysis by the McKinsey Global Institute. Meanwhile, foreign institutional investors (FIIs) turned net buyers in the Indian market in 2009. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI) into India went up from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008, achieving a 85.1 % growth in FDI flows, the highest across countries, according to a recent study by the United Nations Conference on Trade Development (UNCTAD). According to the Asian Development Banks (ADB) Asia Capital Markets Monitor report, the Indian equity market has emerged as the third biggest after China and Hong Kong in the emerging Asian region, with a market capitalization of nearly US$ 600 billion. The Economic scenario Indian investors have emerged as the most optimistic group in Asia, according to the Quarterly Investor Dashboard Sentiment survey by global financial services group, ING. As per the survey, around 84 % of the Indian respondents expect the stock market to rise in the third quarter of 2009. With foreign assets growing by more than 100 per cent annually in recent years, Indian multinational enterprises (MNEs) have become significant investors in global business markets and India is rapidly staking a claim to being a true global business power, according to a survey by the Indian School of Business and the Vale Columbia Center on Sustainable International Investment. In its optimistic report on Macroeconomic and Monetary Development of the economy in 2009, the Reserve Bank of India (RBI) said overall business sentiment was slated for a sharp improvement from that in the April-June 2009 quarter. Further, India and China will soon emerge as the preferred destinations for foreign investors, revealed Economy.com, the research arm of global rating agency Moodys. The countrys foreign exchange reserves rose by US$ 1.28 billion to touch US$ 277.64 billion for the week ended September 4, 2009, according to figures released in the RBIs Weekly Statistical Supplement. Net inflows through various non-resident Indians (NRIs) deposits surged from US$ 179 million in 2007-08 to US$ 3,999 million in 2008-09, according to the RBI. The most recent World Bank update on migration and remittances reveals that the remittances of US$ 52 billion by overseas Indians in 2008 makes it Indias largest source of foreign exchange. India, along with China and Mexico, retained its position as one of the top recipients of migrant remittances among developing countries in 2008. FDI inflows into India in April-May 2009-10 have surged by 13 % at US$ 4.2 billion as against the previous two months driven by recovery in the global financial markets. Cumulative FDI in India from April 2000 to March 2009 stood at about US$ 90 billion. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Venture Capital firms invested US$ 117 million over 27 deals in India during the six months ending June 2009, according to a study by Venture Intelligence in partnership with the Global-India Venture Capital Association. The private equity (PE) investment into the country reached US$ 1.03 billion during April-June 2009-registering an increase of 17 % sequentially-according to data compiled by SMC Capitals, an equity research and analysis firm. The year-on-year (y-o-y) aggregate bank deposits stood at 21.2 per cent as on January 2, 2009. Bank credit touched 24 % (y-o-y) on January 2, 2009, as against 21.4 % on January 4, 2008. Since October 2008, the RBI has cut the cash reserve ratio (CRR) and the repo rate by 400 basis points each. Also, the reverse repo rate has been lowered by 200 basis points. Till April 7, 2009, the CRR had further been lowered by 50 basis points, while the repo and reverse repo rates have been lowered by 150 basis points each. Exports from special economic zones (SEZs) rose 33 per cent during the year to end-March 2009. Exports from such tax-free manufacturing hubs totalled US$ 18.16 billion last year up from US$ 13.60 billion a year before. India Incs order book has more than doubled to an all-time high of US$ 15.32 billion in the second quarter of the current financial year, compared to the first quarter. On a year-on-year basis, the increase is 21 per cent. Advance tax collections for the second quarter of the current financial year (2009-10) have shown robust growth of 35 to 40 per cent across industries. The domestic mutual fund industry registered a moderate growth of 5 per cent in its assets under management (AUM) in August 2009 at US$ 15,702, due to good performance by debt funds. India exported a total of 230,000 cars, vans, sport utility vehicles (SUVs) and trucks between January and July 2009, a growth of 18 per cent owing to its liberal investment policies and high quality manufacturing that stems from its growing prowess in research and development. Indias gems and jewellery exports regained momentum and aggregated to US$ 1.9 billion in July 2009 as compared to US$ 1.7 billion in June 2009. The total Merger and acquisition (MA) deals registered during the first seven months of this year stand at 158 with a value of US$ 5.91 billion, while PE deals stand at 114, totalling a value of US$ 4.89 billion, according to consulting firm, Grant Thornton Investments in the Indian stock market through participatory notes (PNs) crossed US$ 20.65 billion-mark in May 2009. Sustainable energy investment in India went up to US$ 3.7 billion in 2008, up 12 per cent since 2007, according a report titled Global Trends in Sustainable Energy Investment 2009. The rural India growth story The Indian growth story is spreading to the rural and semi-urban areas as well. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50 per cent over the last 10 years, mainly on account of rising commodity prices and improved productivity. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are also bringing prosperity to rural households. Per Capita Income Per capita income of Indian individuals stood at US$ 773.54 in 2008-09, according to Central Statistical Organization data. The per capita income in India stood at US$ 687.03 in 2007-08 and has risen by over one-third from US$ 536.79 in 2005-06 to US$ 773.54 in 2008-09. Advantage India According to the World Fact Book, India is among the worlds youngest nations with a median age of 25 years as compared to 43 in Japan and 36 in USA. Of the BRIC-Brazil, Russia, India and China-countries, India is projected to stay the youngest with its working-age population estimated to rise to 70 % of the total demographic by 2030, the largest in the world. India will see 70 million new entrants to its workforce over the next 5 years. India has the second largest area of arable land in the world, making it one of the worlds largest food producers-over 200 million tonnes of foodgrains are produced annually. India is the worlds largest producer of milk (100 million tonnes per annum), sugarcane (315 million tonnes per annum) and tea (930 million kg per annum) and the second largest producer of rice, fruit and vegetables. With the largest number of listed companies 10,000 across 23 stock exchanges, India has the third largest investor base in the world. Indias healthy banking system with a network of 70,000 branches is among the largest in the world. According to a study by the McKinsey Global Institute (MGI), Indias consumer market will be the worlds fifth largest (from twelfth) in the world by 2025 and Indias middle class will swell by over ten times from its current size of 50 million to 583 million people by 2025. India, which recorded production of 22.14 million tonne of steel during April-August 2009, is likely to emerge as the worlds third largest steel producer in the current year. India continues to be the most preferred destination-among 50 top countries-for companies looking to offshore their information technology (IT) and back-office functions, according to global management consultancy, AT Kearney. The Indian stock markets have risen to be amongst the best performers globally across the emerging and developed markets in 2009 year-to-date, according to an analytical study by MSCI Barra indices. India has reclaimed its position as the most attractive destination for global retailers despite the downturn, according to the Global Retail Development Index (GRDI) brought out by US-based global management consulting firm, A T Kearney. Growth potential According to the Young report titled India 2012: Telecom growth continues, Indias telecom services industry revenues are projected to reach US$ 54 billion in 2012, up from US$ 31 billion in 2008. The Indian telecom industry registered the highest number of subscriber additions at 15.84 million in March 2009, setting a global record. A McKinsey report, The rise of Indian Consumer Market, estimates that the Indian consumer market is likely to grow four times by 2025, which is currently valued at US$ 511 billion. India ranks among the top 12 producers of manufacturing value added (MVA)-witnessing an increase of 12.3 % in its MVA output in 2005-2007 as against 6.9 % in 2000-2005-according to the United Nations Industrial Development Organization (UNIDO). In textiles, the country is ranked 4th, while in electrical machinery apparatus it is ranked fifth. It holds 6th position in the basic metals category; seventh in chemicals and chemical products; 10th in leather, leather products, refined petroleum products nuclear fuel; twelfth in machinery and equipment motor vehicles. In a development slated to enhance Indias macroeconomic health as well as energy security, Reliance Industries has commenced natural gas production from its D-6 block in the Krishna-Godavari (KG) basin. India has a market value of US$ 270.98 billion in low-carbon and environmental goods services (LCEGS). With a 6 % share of the US$ 4.32 trillion global market, the country is tied with Japan at the third position. PE players are planning to raise funds for the infrastructure sector. Presently, around US$ 1.42 billion is being raised by India-dedicated infrastructure funds, according to data released by Preqin, a global firm that tracks PE and alternative assets. Infrastructure, including roads, power, highways, airports, ports and railways, has emerged as an asset class with long-term growth that can provide relatively stable returns. NASSCOM has estimated that the IT-BPO industry will witness an export growth of 4-7 % and domestic market growth of 15-18 % in 2009-10. Further, it has projected that around 40,000 students will be absorbed by IT companies this fiscal. With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-enabled services, and the number of 3G-enabled handsets will reach close to 395 million by 2013-end. Exchange rate used: 1 USD = 48.21 INR (as on July) 1 USD = 47.81 INR (as on September) FIIS Foreign Institutional Investors is used to denote an investor; it is mostly of the form of an institution or entity which invests money in the financial markets of a country. The term FII is most commonly used in India to refer to companies that are established or incorporated outside India, and is investing in the financial markets of India. These investors must register with the Securities Exchange Board of India to take part in the market. Foreign investment refers to investments made by residents of a country in another countrys financial assets and production processes. After the opening up of the borders for capital movement, foreign investments in India have grown enormously. It affects the productivity factors of the receiver country and has the potential to create a ripple effect on the bop of the country. In developing countries like india, foreign capital helps in increasing the productivity of labor and to build up foreign exchange reserves to meet the current account deficit. It provides a channel through which these countries can have access to foreign capital. Foreign investments can be of two forms: foreign direct investment and foreign portfolio investment. FDI involves direct production activity and has a medium to long term investment plans. In contrast the FPI has a short term investment horizon. They mostly investment in the financial markets which consist of FIIs. They invest in domestic financial markets like money market, stock market, foreign exchange market etc. FIIs investments are volatile in nature, and they mostly invest in the emerging markets. They usually keep in mind the potential of a particular market to grow. FII has lead a significant improvement in India relating to the flow of foreign capital during the period of post economic reforms. The inflow of FII investments has helped the stock market to raise at a greater height according to financial analysts. Sensex touched a new height. It crossed 10000-mark in Jan 2006 which was 9323 in 2005. FII participation in the Indian stock market triggers its upward movement, but at the same time increased liquidity through FII investment inflow increases volatility. HISTORY OF FII India opened its stock market to foreign investors in September 1992, and in 1993, received portfolio investment from foreigners in the form of foreign institutional investment in equities. This has become one of the main channels of FII in India for foreigners. Initially, there were many terms and conditions which restricted many FIIs to invest in India. But in the course of time, in order to attract more investors, SEBI has simplified many terms such as: The ceiling for overall investments of FIIs was increased 24% of the paid up capital of Indian company. Allowed foreign individuals and hedge funds to directly register as FIIs. Investment in government securities was increased to US $ 5 Billion. Simplified registration norms. P-NOTES (Participatory Notes) are instruments used by foreign investors that are not registered with the Securities Exchange Board of India to invest in Indian stock markets. For example, Indian-based brokerages buy India-based securities and then issue Participatory Notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors. That is why they are also called Offshore Derivative Instruments. Trading through Participatory Notes is easy because participatory notes are like contract notes transferable by endorsement and delivery. Secondly, some of the entities route their investment through Participatory Notes to take advantage of the tax laws of certain preferred countries. Thirdly, Participatory Notes are popular because they provide a high degree of anonymity, which enables large hedge funds to carry out their operations without disclosing their identity. The first question that we need to ask is the necessity of FIIs as an instrument for investment into India. This is not a common place of markets; if, for example, a non-resident of the US or of England chooses to invest in an American or an English or a German stock, he does not have to hold his investment indirectly through an FII, but can hold it directly in his own name. An FII in India is a superfluous addition created simply to suit the regulatory requirements of SEBI. FIIs serve no economic purpose but they exist in order to provide SEBI with a bureaucratic layer between a foreign investor and the regulator. It enables SEBI to pretend that it controls foreign investors when in fact SEBI has no control on the ultimate investor. It is a good example of obscuring the true character of foreign investment in India through a non-transparent and expensive set-up. The P-Note is an additional twist in this indirect investment as it enables those who wish to invest in the Indian market to do so without disclosing their identity. FIIs impact on the Indian economy: The Indian stock markets are both shallow and narrow and the movement of stock depends on limited number of stocks. As FIIs purchases and sells these stocks there is a high degree of volatility in the stock market. If any set of development encourages outflow of capital that will increase the vulnerability of the situation. The high degree of volatility can be attributed to the following reasons: The increase in investments by FIIs increases stock indices in turn increases the stock prices and encourages further investments. In this event, if any correction takes place the stock prices declines and there will be full out by the FIIs in large number as earning per share declines. The FIIs manipulate the situation of boom in such a manner that they wait till the index raises up to a certain height an exit at an appropriate time. This tendency increases the volatility further. So even though the portfolio investment by FIIs increases the flow of money in the economic system, it may create problems of inflation. FIIs Influence in Indian Stock Market Institutional Investor is any investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. The growing Indian market had attracted the foreign investors, which are called Foreign Institutional Investors to Indian equity market, and in this paper, we are trying a simple attempt to explain the impact and extent of foreign institutional investors in Indian stock market. What does the name FII means? It is the abbreviation of Foreign Institutional Investors. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. They actually evaluate the shares and deposits in a portfolio. The major source (almost 50%) of money the FIIs invest is from the issue of Participatory Notes (P-Notes) or what are sometimes called Offshore Derivatives. There are over 1484 FIIs and 38 foreign brokers registered to Securities Exchange Board of India. We are also examining whether market movement can be explained by these investors. We often hear that whenever there is a rise in market, it is explained that it is due to foreign investors money and a decline in market is termed as withdrawal of money from FIIs. After 1991, due to our liberalization process, there was large flow of foreign funds from abroad. Investments by FII are Rs. 2,55,464.40 Crores as compared to Rs. 2,83,468.40 Crores by the end of 31 December 2007. That implies that they had withdrawn almost 9% of money they had deposited till December 2007. The amount was much in the months of 2008 as compared to corresponding months of 2007, and that is a reason for the volatility of the stock market. In 2008, the net buying is only Rs. 5,603 Crores compared to Rs. 36,869 Crores in 2007. A more investments by FIIs indicate that they are confident in Indian market. Usually, the mode of operations of FIIs was taking loans from countries where interest is low (like Japan) and invests in booming markets like India. But the sub-prime crisis and other economic conditions had caused a liquidity crunch for these institutions. So they are forced to withdraw money from Indian market so as to repay loans they had taken. These withdrawals had caused panic in market, and even domestic investors are making them sell their shares. But one aspect we should agree on is that the FIIs increased role had changed the face of Indian stock market. It had brought both quantitative and qualitative change. It had also increased the market depth and breadth. Emphasize is on fundamentals had caused efficient pricing of shares. Since there is no condition on FIIs that they should disclose in which company they are investing, those figures are not available. Many qualitative tests like regression tests had proved that there is direct relation between market movements and fund flows of FIIs. In this, we will analyze the investments in different months and years, and tries to find the impact of FIIs in stock market. Investments of FIIs on Indian Stock Market The current investments of FIIs is Rs. 2,55,464.40 Crores. This is almost 9% of the total market capitalization. If we explain the things in simple terms, market pundits often attribute the rally of stock market and fall of stock market to the flow of funds by FIIs. We often hear the terms FIIs Fuel the Market Run. If we analyze the impacts, then the major impacts are: They increased depth and breadth of the market. They played major role in expanding securities business. Their policy on focusing on fundamentals of the shares had caused efficient pricing of shares. These impacts made the Indian stock market more attractive to FIIs and also domestic investors, which involve the other major player Mutual Funds. The impact of FIIs is so high that whenever FIIs tend to withdraw the money from market, the domestic investors become fearful and they also withdraw from market. Just to show the impact, we analyze below the 10 biggest falls of stock market: Day (Point loss in India) Gross Purchase (Rs. Crores) Gross Sales (Rs. Crores) Net Investments (Rs. Crores) 21/01/2008 (1408) 3062.00 1060.30 2001.80 22/01/2008 (875) 2813.30 1618.20 1195.10 18/01/2008 (687) 1077.20 1348.40 -271.20 17/12/2007 (826) 670.00 869.00 -199.00 21/11/2007 (678) 640.70 791.80 -151.10 18/10/2007 (717) 1107.00 1372.50 -265.50 16/08/2007 (643) 989.50 750.30 239.20 02/08/2007 (617) 534.50 542.00 -7.50 01/08/2007 (615) 809.40 956.90 -147.50 18/05/2006 (856) 761.80 527.40 234.40 Major Intra Day Collapses in BSE Sensex From this table, we can see that the major falls are accompanied by the withdrawal of investments by FIIs. Take the case on January 18, 2008, the Sensex lost almost 687 points. Here, the net sales by FIIs were Rs. 1348.40 Crores. This is a major contributor to the fall on that day. But contrary to that day, take the case on January 21, 2008, the Sensex lost 1408 points and the gross sales was Rs. 1060.30 Crores and the purchases were Rs. 3062.00 Crores. So this can be concluded that after the fall of market, FIIs had invested again into the market. From this, we can see the effect of FIIs. Net Investments of FII from 2006-09 Year Net Investment 2006 36539.7 2007 71486.5 2008 -29169 2009 15281.8 Now we analyze the net investments graph from 2006 to 2008. From this, we can see that there was small decrease in investments in the year 2006. But there was a steep increase in the year 2007-08. This was the best period in Indian stock market where stock prices were increased and the market was in good mood. When we take the investments in 2008, the net investments is negative.