Motives of and challenges for the corporate expansion and emergence Essay

Motives of and challenges for the corporate expansion and emergence - Essay Example For example, Starbucks is one of the big business tycoons in America which have thousands of outlets across the country. They have coffee shops in each and every corner of America and the competition from the competitors is increasing day by day. It is difficult for them to expand their business in America because of the saturation they have already attained and internationalization of the business seems to be the only option left for them. On the other hand the intrusion of the corporate companies has made the things worst for the small scale and medium scale business groups. Big business tycoons with their immense financial capabilities and innovative business strategies have conquered the markets of the small and medium business groups. It is difficult for the small and medium business entities to fight or compete with the multinational corporate companies and acquiring strength through mergers or acquisition is the only way ahead of them to stay in the market. welcoming Foreign Direct Investment (FDI) to their country by liberalizing the rules for the foreign Corporate Company’s entry into their country. Moreover the cultural adaptation of the business in a foreign country seems to be difficult one for the international companies. Thus expansion and emergence is a difficult task both in domestic circuit and international circuit. This paper briefly explains the expansion and emergence of companies through mergers and acquisition and strategies and challenges for merger and acquisition process. Mergers and Acquisition is a common phenomenon in international business circuit at present because of the steep global economic recess. Even survival seems to be difficult irrespective of big or small companies. Financial institutions like Lehman Brothers and automobile manufacturers like GM have suffered severe setbacks and they have no other way, but to think in

Validating Hesss law Essay Example for Free

Validating Hesss law Essay Is the enthalpy change for a given chemical change the same whether the reaction takes place in a single stage or via several stages, provided the initial and final conditions are the same. Introduction: Hesss Law (1840) states that for a given chemical change the enthalpy change is the same whether the reaction takes place in a single stage or via several stages, provided the initial and final conditions are the same. We will test the validity of this law using the reaction between sodium hydroxide and hydrochloric acid. The reaction between solid sodium hydroxide and dilute hydrochloric acid can be carried out in two ways. Method 1 NaOH(s) + HCl(aq) NaCl(aq) + H2O(l) ?H?1 Method 2 NaOH(s) NaOH(aq) ?H?2 then NaOH(aq) + HCl(aq) NaCl(aq) + H2O(l) ?H?3 According to Hesss Law ?H?1 = ?H?2 + ?H?3 In calculating the enthalpy of reaction values in each of the above and following cases, it is assumed that: a. The density of the solutions is 1 gcm-3 b. The specific heat capacity of the solutions is 4.2Jg-1K-1 c. The specific heat capacity of the polystyrene cup is negligible and may be ignored. Apparatus: * Polystyrene cup * Thermometer * HCl * NaOH pellets * H2O * Digital weight reader * Measuring cylinder Method: Measurement of ?H?1 Pour 50cm3 of 1M hydrochloric acid into the polystyrene cup and record its temperature as accurately as you possibly can. Weigh out 2g of sodium hydroxide pellets and quickly add these to the acid in your polystyrene cup. Stir and record the maximum temperature reached. Calculate the enthalpy change of this reaction in kJmol-1. Measurement of ?H?2 Pour 50cm3 of water into an empty polystyrene cup and record its temperature as accurately as you possibly can. Weigh out 2g of sodium hydroxide pellets and quickly add these to the water in your polystyrene cup. Stir and record the maximum temperature reached. Calculate the enthalpy change of this process in kJmol-1. Measurement of ?H?3 Pour 50cm3 of 1M sodium hydroxide into an empty polystyrene cup and record its temperature as accurately as you possibly can. Measure out 50cm3 of 1M hydrochloric acid into a measuring cylinder and record its temperature. Calculate the average initial temperature of the acid and the alkali. Add the acid to the alkali in your polystyrene cup and record the maximum temperature reached. Calculate the enthalpy change of this reaction inkJmol-1. Data Collection: Measurement of ?H?1 Measurement of ?H?2 Measurement of ?H?3 Initial Temperature/à ¯Ã‚ ¿Ã‚ ½C ? 0.1à ¯Ã‚ ¿Ã‚ ½C The enthalpy change ?H?1 is given by multiplying the mass of HCl (m) by its specific heat capacity (Cp) and the change in temperature (?T). Since this reaction takes place in solution, which we assume to be mostly water. Hence the mass of the solution will be 50g and the specific heat capacity is given as 4.2J/g/à ¯Ã‚ ¿Ã‚ ½C. The calculation for the mass of the solution is as follows: % Error in ?T = The enthalpy change ?H?2 is given by multiplying the mass of NaOH (m) by its specific heat capacity (Cp) and the change in temperature (?T). Since this reaction takes place in solution, which we assume to be mostly water. Hence the mass of the solution will be 50g and the specific heat capacity is given as 4.2J/g/à ¯Ã‚ ¿Ã‚ ½C. The calculation for the mass of the solution is as follows: % Error in ?T = The enthalpy change ?H?3 is given by multiplying the mass of HCl (m) by its specific heat capacity (Cp) and the change in temperature (?T). Since this reaction takes place in solution, which we assume to be mostly water. Hence the mass of the solution will be 100g and the specific heat capacity is given as 4.2J/g/à ¯Ã‚ ¿Ã‚ ½C. The calculation for the mass of the solution is as follows: So using the results found above we see that: It can be seen that ?H?1 is almost equal to ?H?2 + ?H?3 but due to experimental errors such as heat being lost to the surroundings and not having exact readings they are not equal. Hesss law has therefore been validated but the results would have been much more accurate if there was an insulating capsule around the polystyrene cup so as to prevent any heat from being lost to the environment and by having more accurate apparatus in terms of measuring cylinders and thermometers.

The Monetary And Fiscal Policies Of Portugal Economics Essay

The Monetary And Fiscal Policies Of Portugal Economics Essay I. Introduction: Portugal macroeconomic situation before the crisis. Despite economic and financial crises seem to be regarded as unusual and rare, in reality they are common events. Particularly, Portugal has already seen its worst financial crisis in 1891. This crisis led Portugal to abandon the gold standard and the country was banned from borrowing in international financial markets during 20 years (Lains, 2007, p. 485). Since then, Portugal has radically changed, however, its weakness in facing the crises has remained. During the last economic and financial crisis that started in August 2008, the Portuguese economy was caught in the middle of a period of adjustment during which was already facing up to the need to correct its fiscal and external imbalances within a phase of low growth with pro-cyclical policies (Torres, 2009, p.55). This period started in the second half of 1990s with the accession to the Economic and Monetary Union (EMU) and was characterized by an economic boom which was followed by a slump. As a matter of fact, Blanchard (2007, p.1), two years before the crisis, stated that the Portuguese economy is in serious trouble: Productivity growth is anemic. Growth is very low. The budget deficit is large. The current account deficit is very large. Although, from 1995 to 2001, Portugal was in a catching-up phase benefiting from positive wealth effects of EMU (lower interest rates which supported the increase of the domestic demand), the current account deficit rose drastically and the unemployment rate fell to about 4% (figure 1). The reason behind the increase in the current account deficit was, indeed, the low level of unemployment which boosted the nominal wages to increase more than the labour productivity provoking a huge raise in unit labour cost and a decline in competitiveness. Moreover, the indebtedness of households and non-financial enterprises was increasing because of the elimination of the exchange rate risk, the access to the euro bond market, and the lower interest rates, both nominal and real, set by the European Central Bank (Blanchard, 2007). As result, from 2000 to 2003, savings dropped and investments increased, therefore the current account deficit slightly decreased. The Portuguese economy slowed down and then contracted in 2003. The subsequent slump was the result of the large imbalances built up during the phase of boom. For instance, the high levels of consumption were not counterbalanced by the supply which had to deal with low productivity growth and increasing unit labour costs. As a matter of fact, figure 1 shows a combined upward trend of unemployment and current account deficit between 2003 and 2005, and the attempt to reverse it through the budgetary consolidation process re-assumed by the socialist majority government elected in 2005 (Blanchard, 2007) (Torres, 2009). To sum up, table 1 and table 2 offer an overview of the macroeconomic imbalances during the phase of the boom 1995-2000 and the one of the slump 2001-2007. Table 1. Macroeconomic evolutions, 1995-2001. Source: Blanchard (2007) Table 2. Actual and projected Macroeconomic evolutions, 2001-2007. Source: Blanchard (2007) The growth rate was rather high in the timeframe 1995-2000, then, since 2001 it started falling in the subsequent years. The current account and the budget surplus were in deficit over the whole observed period and the productivity growth started to be very low since the year 2000 causing the raise of the unit labour cost. It was important to describe the macroeconomic situation of Portugal prior to the crisis in order to explain, in the next sections, how those problems have been aggravated since 2008. In fact, the phase of slump was prolonged by the financial crisis occurred in 2008. II. Policy Responses Prior to analyze the European and Portuguese policy responses to the major financial crisis that the whole world is facing since 1929, it is essential to point out what kind of crisis our society is dealing with. The main cause of the crisis may be ascribed to the crisis of derivative market in the United States. In particularly, it started from the so-called subprime mortgage crisis which was the result of a speculative bubble in the housing market in the United States. Starting from the United Stated, it has spread by causing ruptures across many other countries in the form of financial failures and a global credit crunch. The main (systemic) Portuguese banks seem not to be particularly exposed to the so-called financial toxic assets and, unlike in Ireland or Spain, there was no speculative bubble in the housing market in Portugal nor is there a subprime segment in the credit to the housing sector. (Banco do Portugal, 2008 as cited in Torres 2009) However, according to Torres (2009, p.56): Portugal, a small economy fully integrated in economic and financial terms, is particularly affected by the global financial crisis and economic recession. This is not so much due to the international exposure of the Portuguese banking sector (the Iceland syndrome) but primarily to the countrys long protracted correction of its fiscal and external imbalances, which worsen its creditworthiness and aggravate the costs of servicing the debt and the countrys perceived risk of insolvency (an Argentinean type of problem, without the risk of a currency crisis as long as the eurozone remains in place). One of the main consequences of the financial crisis was, indeed, the credit crunch. During the last decades, the European banking system has changed from a system where the bank was the intermediary for investments between families and factories, into a new system where there are large money-centre banks which play the role of the intermediary amongst regional banks, in other words, they distribute funds among regional banks. The banking crisis has occurred in Europe because of two related reasons. The large money-centre banks that provide the backbone of the inter-bank lending market are undercapitalised. With their low capitalisation, they are vulnerable to even small swings in market conditions. Any liquidity problem, thus, turns almost immediately into a solvency problem. Because of this vulnerability they did not trust each other, thus paralysing the inter-bank market. 2.1 European Policy Responses For the Euro-area countries, the monetary policy is unique and conducted by the European Central bank (ECB). Since the atmosphere of mistrust, caused by the crisis, was no longer confined to the interbank market, but it was also spreading among ordinary citizens and consumers, the European policy-makers figured out that one possible solution was to put into effect measures which contain two elements in order to restart the interbank lending: support for the liquidity management of banks and bank re-capitalisation. The first element concerns the extraordinary measures taken at European level and the second one the bank rescue measures adopted at national level. As a matter of fact, firstly, the ECB has been reducing the rate for its main refinancing operations from 4,25% to 1,5%, in the timeframe October 2008 March 2009, in order to prevent contagion by providing short-term liquidity support on the interbank markets. Such interest rate cuts have provided significant relief to the highly indebted Portuguese economy (Torres, 2009). However, if Portugal could have managed the monetary policy on its own, probably it would have set a lower interest rate which combined with the initiative for strengthening financial stability (discussed in detail in the next section) could have led to the reestablishment of bank lending standards at pre-crisis level. In other words, the upward trend of the credit diffusion index, starting in the last quarter of 2008, could have continued to increase instead of contracting in 2009 (figure 3). Moreover, a dramatic reduction in real interest rates is the main channel through which fiscal consolidation can increase demand in the short run. Since this is not the case for Portugal, as the nominal interest rate is determined for the eurozone as a whole, while a deficit reduction is needed, it would be unwise to expect it to lead, by itself, to higher demand and lower unemployment à ¢Ã¢â€š ¬Ã‚ ¦ or à ¢Ã¢â€š ¬Ã‚ ¦ to a boom in investment, and through capital accumulation, to a substantial improvement in competitiveness (Blanchard, 2007, p.8-9). Secondly, the ECB has promoted coordination and cooperation between national supervisors through the European System of Central Banks Banking Supervision Committee. As result, the promoted cooperation engaged both the Euro-area and the European Union (EU) in an expansionary coordinated anti-cyclical fiscal stance (Torres, 2009, pp. 56-59). To further improve the EU coordinated approach, the European Commissions response was to launch the European Economic Recovery Plan (EERP) whose strategic aims is to avoid a deep recession by promoting a counter-cyclical macro-economic response to the crisis in the form of an ambitious set of actions to support the real economy. The plan consisted of an immediate budgetary stimulus amounting to 1.5% of EU GDP, a number of priority actions, grounded in the Lisbon Strategy, and designed at the same time to adapt our economies to long-term challenges, continuing to implement structural reforms aimed at raising potential growth and a set of EU guidelines to be followed by the member States (European Commission, 2008). According to Bà ©nassy-Quà ©rà © et al. (2009, p.39), out-of-ordinary methods are used in a financial crisis because: the traditional transmission of policy rates to lending rates is hampered by the dysfunctional state of money markets. This happens at two levels: first, the interbank rate (the rate at which banks lend liquidity to each other) diverges from the central banks policy rate because banks fearing counterparty default price risk accordingly; second, the spread between the commercial banks lending rate and the interbank rate increases both because of higher risk premiums and because banks seek to increase their profits. According to Meier (2009, p. 6), a switch to unconventional policy may be motivated by the severe turmoil in credit markets. With the financial sector in crisis, policy rate cuts are not only constrained by the zero bound, but may also be less effective than during normal times. The reason is the sharp tightening of credit conditions, as lenders have curtailed loan supply and certain sources of capital market funding have all but disappeared. Indeed, such dislocations can provide a rationale for launching unconventional policies even before interest rates hit the lower bound. In sum, unconventional monetary policies serve both as a complement and as an extension of standard operations centered around the setting of short-term interest rates. One of the unconventional actions is the so-called outright asset purchase, a technique to decrease the discrepancy between interbank and lending rates. Furthermore, Meier (2009) provides a categorization of such operations, distinguishing between qualitative easing, as sterilized interventions that do not involve an increase in the central banks balance sheet, and quantitative easing, as unsterilized interventions implying an increase in base money. Unlike the US and the UK, in the Eurozone the direct purchase of government debt instruments is forbidden by art. 101 of the EC Treaty, therefore quantitative easing is not contemplated. Figure 2 shows how liquidity provisions and out-of-the-ordinary policies, adopted by ECB, Federal Reserve (FED) and Bank of England (BOE), increased the size of the central banks balance sheets. Assets hold by the ECB are about 50% lower than FED and BOE because they executes quantitative ease operations (Bà ©nassy-Quà ©rà © et al. 2009, pp. 42-44). 2.2 Portuguese Policy Responses With the financial crisis Portugal has re-focused its economic policy from budgetary consolidation to an anti-cyclical budgetary policy effort to support households, investment, employment and, last but not least, to strengthen financial stability (MFAP 2009 as cited in Torres 2009). At the end of 2008, to guarantee stability of the financial system and to safeguard the households deposits held by credit institutions, the Portuguese government, following the trend of the other member states, decided to save two banks: the Banco Portuguà ªs de Negà ²cios (BPN) and the Banco Privado Portuguà ªs (BPP). In particular, BPN was nationalized and BPP was granted a guarantee for a bank loan provided by a group of banks. Although the dimension of those banks was small, the government feared that the potential loss incurred by many small depositors could generate a run of bank depositors in general, putting at risk the stability of the financial system (Torres, 2009, p.61). The second measure to strengthen financial stability was taken in October 2008 when the Portuguese Ministry of finance and public administration announced the endorsement of the Initiative for strengthening financial stability (ISFS) in order to respond to the substantial external shock, to which it was being subject, due to severe liquidity restrictions in international financial and money markets. The ISFS was aim to enhance conditions for credit institutions access to liquidity in financial markets and was based on granting State guarantees for the financing of credit institutions. According to MFAP(2008), this Initiative: (i) Enhances the confidence in the domestic financial system; (ii) Permits timely intervention adapted to market conditions; (iii) Is temporary, remaining effective only while market conditions have not returned to normal; (iv) Safeguards the interest of depositors and taxpayers; (v) Allows the shareholders and managers of banks to be held accountable whenever necessary and fosters the adoption of good corporate governance principles, in accordance with best international practices; (vi) Safeguards the interests of the market in general and a level playing field among competitors, in particular. According to Torres (2009, p. 60), the aim of the coordinated guarantees on new issuance of bank debt was to address funding problems of liquidity-constrained but solvent banks. Thus, this initiative was a viable and less costly source of funding to allow banks to issue new debts. A third measure was to take advantage of the increased flexibility of the Stability and Growth Pact (SGP) to pay outstanding state debts under the form of a program for the extraordinary settlement of the states debts to suppliers (Council of Ministers Resolution no. 191-A/2008 of 27 November as cited in Torres 2009). However, in my opinion the results of those initiatives were rather limited. I can, indeed, argue that, in Portugal, bank lending standards are tightening. In support to my opinion, figure 3 provides an evidence: the largest observed swing occurred from the last quarter of 2007 to the last one of 2008 when the diffusion index dropped sharply to the minimum observed value, representing the credit crunch. To evaluate the effects of the ISFS it is sufficient to look at the trend starting from the last quarter of 2008, the upswing lasts for only a quarter to stabilize at the level of about minus 45% compared to the pre-crisis conditions. The 19th of January 2009, the Portuguese government updated the Stability and growth Program for 2008-11. Following the EU guidelines concerning EERP, the government incorporated in the SGP program the Investment and Employment Initiative Program (IEIP), as fully consistent with the National Reform Plan for 2008-2010 (within the framework of the Lisbon Strategy), as it also aimed at contributing to addressing the countrys structural weaknesses. The draft law creating the IEIP was composed of five structural measures including several projects or actions to support households and businesses next to those aimed at combating the rise in interest rates and in the price of raw materials and food products and credit restrictions, which had already been envisaged in the state budget for 2009.. The IEIP was expected to have a budgetary impact of about 0.8 per cent of GDP in 2009 (about 0.5 increase in expenditure and 0.3 reduction in revenue in percentage of GDP). The five measures were: modernization of schools; fostering renewable energies, energy efficiency and energy transmission infrastructure; modernization of technological infrastructure and new generation broadband networks; special support to economic activity, exports and SME; protecting employment and strengthening social protection (Torres, 2009). 1). Higher investment in human capital help to avoid the risk of depression of productivity performance. In Portugal the educational attainment of the working-age population is low and the intergenerational educational mobility has been sluggish. Furthermore, the international student performance survey (PISA) shows that Portuguese students are below the OECD average (figure 4). To increase efficiency, the smallest schools have been closed and changes to the teachers timetable are allowing a more efficient allocation of human resources. Moreover, upper-secondary education has been diversified to incorporate technical and vocational courses (OECD 2009). and 3). Portugal might take advantage of the temporary increase in spending under the recovery plan to promote a leap forward to new competitive green goods and technologies. There is a clear case for the world, and for the EU to maintain its leadership in the process, and even more so for a small country like Portugal, to address climate change and the financial crisis at the same time by building up a competitive basis for sustainable development (Torres, 2009, p.66). Activity collapsed at the end of 2008 under the weight of the global economic crisis. The huge decline in external demand was caused by the falling activity in a number of Portugals major export markets, particularly Spain which accounts for about 25% of portuguese total exports. Moreover, insufficient harmonization of regulations with major trading partners seem to have impeded trade, particularly in services. Despite the governments announcement of additional revenue measures the deterioration in economic activity without further reductions in government outlays, or a more rapid economic upturn, means that the budget deficit could rise above 4.5% in 2010 and to increase further in 2011. The deterioration in economic activity was partly caused by the administrative burdens on business. Starting, running, and closing a business have been hampered by onerous regulation, including a cumbersome licensing regime that has weakened competition and, thus, productivity growth throughout the economy (OECD, 2008, 2009a, 2009c; European Commission 2009). Figure 5 provides evidence that Portuguese burden on business in the form of regulation are higher than EU average. Productivity growth has been sluggish during the last decade, lagging behind the OECD average with a decreasing trend since 1990 (figure 6), partly on account of labour market rigidities such as high employment protection and insufficient human capital accumulation. Those weaknesses have led to a further widening of the large productivity gap with respect to the Eurozone. The protection of workers against individual dismissal has been the most restrictive in the OECD, with very cumbersome procedures, as clearly highlighted in figure 7. The new legislation put forward by the Portuguese government is aimed to significantly simplify dismissal procedures. However, protection of regular workers against dismissals will remain more restrictive than in the average OECD country. Therefore, it is essential to enforce the reform measures because tighter credit conditions, weak exports, and subdued internal demand depressed business investment in 2009 and led to a labour shedding and an increase in the unemployment rate which is projected to reach a double-digit rate in 2010 (OECD , 2008, 2009c; European Commission 2009). According to Blanchard (2007), Portugal is today in a scenario of Competitive disinflation, defined as a period of sustained high unemployment, leading to lower nominal wage growth until relative unit labor cost have decreased, competitiveness has improved, the current account deficit has decreased, and demand and output have recovered. If we look at the Real Effective Exchange Rate (REER) of a country, an instrument which can be used to assess price or cost competitiveness relative to the position of the countrys principal competitors, it is easy to notice that Portugal has substantially lost competitiveness against Germany since 1995 (figure 8). A rise in the index means a loss of competitiveness taking into account productivity changes via the movement in comparative unit costs (Hugh, 2009). Therefore, as this trend is going on since 15 years it is hard to invert it without huge efforts and structural reforms. In the context of the budgetary policy, in 2008, Portugal has also taken action to reduce taxes through the cut of one percentage point of the VAT rate, the creation of a general corporate income tax rate of 12,5% and the reduction of advance income tax payments for SME (State Budget, 2009). Nevertheless, the fiscal position has deteriorated significantly in 2009 reflecting weaker economic conditions, lower revenues and spending rises to support the economy. Fiscal stimulus measures focusing on public investment, support to companies and exports and social assistance will directly increase the budget deficit (OECD, 2009a, 2009b). Torres (2009, p. 65) argued that: In a small open economy like Portugal, fiscal policy has limited effectiveness with regard to influencing aggregate demand. This applies even more to the current environment of financial distress and uncertainty, where banks will try to de-leverage and households to save. Moreover, the Portuguese economy is already particularly exposed due to its fragile financial position, as reflected in its accumulated external imbalances, which puts at stake the markets confidence in the sustainability of public finances. Given the risks involved for the costs of servicing the debt and ultimately for its solvency and permanence in EMU, it seems essential for the government to credibly pre-commit to medium-term budgetary objectives. It thereby signals its determination to pursue fiscal consolidation in spite of the temporary stimulating measures adopted within the EERP and to ensure that those exceptional measures do not mark a departure from budgetary sustainability. Moreover, external debt has been high and rising (figure 9) and, thus, leading Portugal to become the third eurozone economy to undergo a long-term credit rating reduction, to AA minus, by Standard Poors because of its failure to tackle deteriorating public finances (Torres, 2009, p.64). Finally, last but not least, Portugal is undergoing a strong disinflation process which is highlighted by the fall of the Consumer Price Index to its minimum levels (figure 10). European Central Bank council member and Bank of Portugal Governor Vitor Constancio is aware of the danger and has indicated that the ECB is prepared to reduce borrowing costs further to prevent inflation slowing significantly below its 2 percent ceiling, even going so far, if necessary, as to introduce some variant of quantitative easing. He still thinks it wont happen, but he is well aware of the possibility, as indeed we all should be (Hugh, 2009, p. 21). To conclude, it is important to point out that the inflation is expected to be under the OECD average during the whole 2010 to catch-up with the OECD countries after 2011 (figure 11). Furthermore, the danger of the risk of disinflation is real as shown in figure 12, where the harmonized index of consumer prices is expected to remain below the ceiling of 2% during the whole projected period. Conclusions: What should be done? The policy responses analysis has highlighted serious structural problems for Portugal and, as a matter of fact, Portuguese growth is expected to lag behind the OECD average during the whole 2010 and 2011 (figure 13). SUM UP PROBLEMS In fact, despite Portugal has made significant progress in fiscal consolidation and has launched important structural reforms to modernize the economy and enhance growth, in my opinion, additional structural reforms, in order to find a way out from the crisis, are still necessary, notably, in the following areas: Education The secondary education attainment should be improved since human capital represents one of the main durable determinants of growth in the long run. Moreover, reforming the educational system might enhance productivity performance. According to OECD (2009c), the reform should increase the proportion of education spending on non-wage items, continue to strengthen teachers on the job-training and to develop vocational and technical education and, finally, Portugal should fully implement a performance-based evaluation and career-progression system for teachers. Employment One of the clearest examples of the problems highlighted by the crisis is to be found in the stagnation of the labour market. It is essential to reform employment protection legislation with proposals aimed at enhancing the adaptability of the labour force, to address rigidities in labour market regulations and improve the efficiency of active labour market programs; otherwise the strictness of the Portuguese employment protection will continue to have negative effects on growth and productivity (OECD 2009c). Moreover, the unemployment rate is expected to be higher than the OECD average during the next two years (figure 14). Concerning the slow productivity growth problem, Blanchard (2007, p.8-20) suggests a decrease in nominal wages. Even if it sounds exotic, it can substantially reduce the employment cost of the adjustment. However, in Portugal today, the labor law forbids unjustified wage decreases and in practice rules out decreases in nominal wages for economic reasons. Business A deepening of the reform process is required to create a dynamic business environment by reducing the administrative burdens on business. Despite the importance of the recent reforms, a full implementation of them is essential. Competition in the whole economy should also be strengthened through investment in key infrastructure sectors, such as telecommunications, electricity and transportation, to enhance the quality, efficiency and quantity of the services they provide. This would have a direct effect on the cost-competitiveness of firms in Portugal, facilitate trade flows, domestically and internationally and make Portugal a more attractive destination for FDI, which has the potential to boost productivity (). Finally, OECD (2009c) recommends to harmonize regulations with major trading partners, including service sector standards and qualification requirements. Tax system A reform is necessary to simplify the tax system, broaden the corporate tax base and decrease tax expenditures in order to reduce fiscal imbalances. Designing and implementing fiscal consolidation remains a priority for Portugal because the deficit needs to be reduced. Silva (2008) provides empirical evidence that, in Portugal, taxes negatively affect productivity because an increase in the taxes decreases consumption, capital, output and welfare. Moreover, he states that for Portugal taxes are able to predict the pattern of the labour supply over the years. Therefore, the government should take into consideration how a tax system reform might serve a double objective: raise the productivity and reduce fiscal imbalances. Nevertheless, à ¢Ã¢â€š ¬Ã‚ ¦ Table 3. Actual and projected Macroeconomic evolutions, 2001-2007. Source: OECD

George Washington Carver :: essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  George Washington Carver, most referred to the â€Å"Peanut Man† was born into slavery around 1864 in Diamond, Missouri. His birth date is not known for sure because birth records were not properly kept by the slave owners. As a child, he was very sick and no one ever thought that he would grow to be one of the most distinguished agriculturists in America.   Ã‚  Ã‚  Ã‚  Ã‚  Unfortunately, George never got to know his parents. His father was killed in an accident and his mother was kidnapped by night raiders. So, George was raised by his owners; Moses and Susan Carver. They treated George and his brother Jim as their own sons. As a child, George had exceptional observational skills and a keen curiosity. His love for nature and animals was beyond his age. Moses and Susan tried very hard to satisfy his needs. But, they realized that he needed to go to a regular school. Since colored children were not allowed in the schools for white children, George had to leave the town and go to Neosho, Missouri to attend school. Later he moved to Fort Scott, Kansas to attend High school.   Ã‚  Ã‚  Ã‚  Ã‚  School was full of hardships and struggle for George. Since he never had enough money to pay his fees, he often had to drop out temporarily to earn and then enroll again. During this period he worked many odd jobs as a housekeeper, cook, gardener, and launder. He did every job with devotion and tried to achieve perfection. Thus he gained recognition everywhere he went. After finishing high school, he applied to Highland University and was accepted until the college later learned that he was black and therefore refused his entrance. Finally, at the age of thirty, Carver was finally accepted to Simpson College in Iowa. After a year there, he left to attend the Iowa Agricultural College where he received his Bachelor of Science degree in 1894, and his Masters Degree in 1896. George was the first black American to graduate from this college.   Ã‚  Ã‚  Ã‚  Ã‚  Carver was offered a number of jobs because of his wonderful work ethic, but he accepted the invitation of Booker T. Washington to teach at the Tuskegee Institute, where he accepted a position as an instructor at the Tuskegee Institute of Technology.   Ã‚  Ã‚  Ã‚  Ã‚  At Tuskegee, Carver developed his famous crop rotation method. Nitrate producing legumes like peanuts and sweet potatoes were planted during alternate years. The peanuts and potatoes put nutrients back in the soil that had been taken away when

Avoiding Cross-Cultural Miscommunication Essay

In the current era of globalization, national boundaries are losing meaning and more and more companies now have their operations spread across various countries of the globe. Multi national companies now operate across different continents and it is typical of a company to have head quarters in one country but be present in multiple counties at the same time. This means that these multi national companies have to adapt to the culture of the company they are operating in. Also, the work force of such companies is an amalgamation of the local people along with some foreign workers and managers so effective communication and smooth operations are only possible if culture is well understood. However, this is not as simple as it seems and cross cultural miscommunications are harmful. Cross cultural miscommunication is not only detrimental to the working environment of the organization but it can also lead to a failure of the company as a whole in the society. To avoid any miscommunication, we first need to examine what culture is made up of. Artifacts, rituals, Stories, histories, myths, legends, jokes, and ceremonies are cultural symbols. By noticing these things and people’s reactions to them we can figure out the cultural norms and values and can avoid transgressing any boundaries. Ethnocentrism is the belief that one’s own race, culture or ethnic group is superior to the rest and the tendency to think like this is greater in MNCs. Many foreign managers or workers think in this manner and antagonize their co workers. This can be over come by encouraging inter cultural communication so that any misunderstandings or predetermined notions or stereo types may be removed. Also, if a cooperative culture is promoted at work and people taught to appreciate/criticize ideas rather than people, this problem may be solved. We also need to examine the interrelationship between attitudes, values, customs and beliefs and culture. A culture shapes the attitudes, values and beliefs of a person and the actions and preferences of the society (that are directly dependant upon the belief) make up the culture. Hence, this shows that there is a two relationship. For instance, the Japanese have a very serious attitude about work and they believe in hard work so working meticulously is a part of their culture. Similarly, the Muslim culture is conservative so they have a negative attitude towards men and women shaking hands and the believe it to be immoral. Global companies need to adopt a ‘glocal strategy’ meaning that they need to amend their global strategy according to the local culture and norms. Before a company enters a new country, formal market research should be conducted in order to make a customer profile according to which the product and promotion strategies will then be designed. International companies should be flexible to minor changes in the product so as to meet the local demands. Pizza hut has been successful all over the world for they have catered to the local taste in every country. For instance, it is spicier in the subcontinent and in countries such as India where people avoid meat; there is large vegetarian and cheese variety. The promotion strategies should also be according to the native culture. Companies should keep in mind that International brand cannot have the same advertising everywhere due to different cultures. When companies are entering a foreign culture, they should be aware of customs, traditions in general and in particular they should know about the psychology of the people. Companies should be aware of the attitude of the people towards work and the products/service the company has to offer. Understanding the local workforce is important for a company because an effective workforce is integral for success and it is crucial to design jobs, compensation packages and motivators that appeal to them. Attitudes toward work, leisure, time, change, family, social mobility and religion play a vital role in shaping the culture. In a collectivist culture, family is the top priority and the much of the leisure time is spent with family. In a society where family ties are weak, work and friends have a greater importance so the culture is an individualist one. In some cultures, there is greater emphasis on work and such people are hard workers by nature and their work is meticulous. The Chinese culture is a classical example of how hard work is an element of the national culture. The physical environment of a place influences the culture of that place as physical conditions such as the weather affect the life style of the people. The architecture of a place also reflects the culture. Moreover, it is important to understand the verbal and non verbal elements of a culture. For instance, the Arabs like to kiss on the cheeks when they meet even during formal meetings but in a British culture, this would be highly inappropriate. Similarly, maintaining eye contact is a non verbal cue, in some cultures it would be a symbol of courage while in others it will be considered insolent. Moreover education and technology are linked to the culture and this is evident by the fact that some cultures such as the Japanese lay stress on innovating and developing technology where as some have a laid back attitude. Some cultures lay stress on education and that is evident by the high literacy levels there. Lastly, media has a two way relationship with culture: mass media not only depicts the culture but it also leads to cultural change in the society. The success of any company also depends on the political and legal system of that country. In countries where there is political turbulence or the policies do not support foreign investment, survival becomes tough for the company as is the case in third world countries like Bangladesh where there is a frequent change in governments that leads to changes in policies too. References Brown, A. (1995). Organizational Culture. Pitman, London. Charles M. and Yongsun, P. (2006). Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management. M. E . Sharpe Dong, Q. , Day, K. D. (2001). Overcoming Ethnocentrism through Developing Intercultural communication sensitivity and Multi culturism. Retrieved on January 16,2009 from http://www. allacademic. com David Straker. Elements of Culture. Retrieved on January 15, 2009 From www. changingminds. org Kwintessential Cross Cultural Solutions. Cross Cultural Communications. Retrieved on January 15, 2009 from http://www. kwintessential. co. uk

Rabbi Chessir essays

Rabbi Chessir essays Shmini talks about which animals and fish are kosher. It mentions one bird the Chasida which does chessed for its own species. Rambam says that the reason why certain birds are tomay is because their nature is evil and their midot is harmful. It is possible, therefore, that if people eat it, the nature will attach to the neshama of the eater. Here is the problem: The Chasida is not kosher but its nature seems to be good. So the simple answer is that this bird may just do chessed for its own species and not for others. Doing chesed is one aspect of ones nature. It could also steall, and be bad otherwise. It could just have that one trait. Another thing is that man has eaten non-kosher since the beginning of time and it doesnt really seem to affect the soul. In fact, Rambam was a doctor so how did he come to this? The Yerushalmi and Tosphos(?) rule that a young baby is allowd to get nursed by another women jewish or non-Jewish woman. The yerushalmi says (not sure here?) that a young baby can even have the milk of a non-kosher animal. It would seem that if the Rambam were correct we wouldnt allow this. Why shouldnt we worry about corrupting the nefesh of a child? So Rabbi Chesirs answer is this: There are things that disgust us. Things that you cant even look at, talk about, and make you nauseas. When something violates one of your sensitivities, human nature is to stay away from it. It is just as obvious in the other extreme. If a mother loses her son in a war, she might hold and smell his shirt forever. If the torah tells us to stay away from a particular animal, or deed even, then we shouldnt find loopholes to do it. Meaning Bacon bits shouldnt be on the top of the grocery list. Otherwise it just demonstrates that we are not repulsed by something that is forbidden. These are evil birds if you are not going to be repulsed, that develops a sens...

Albery Bandura essays

Albery Bandura essays 1. Who: Albert Bandura was a man that received various awards for his many accomplishments. He is known around the world for many things. He was born in 1925 and attended two universities. The two universities that he attended were British Columbia and the University of Iowa. He there received his bachelors degree and his Ph.D. While attending Iowa, Bandura met Virgina Varns. Virgina was an instructor in the nursing school at Iowa. They later had married and they eventually had two beautiful daughters. After Bandura graduated he took a postdoctoral position at the Wichita guidance center in Kansas. Then in 1953 he then started teaching at Stanford. While he was there he collaborated with his first graduate student and published his first book, Adolescent Aggression. Bandura has received many awards and contributions. He was president of the APA in 1973 and received several awards for scientific contributions. 2. What: Albert Bandura explained many different theories. One theory he focused his study on was Behaviorism. Behaviorism had strong emphasis on experimental methods. It also focused on different variables that we are able to observe measure and manipulate. In an experimental method the first step to be taken is to manipulate the variable and then measure the effect it had on another. This boils down to a theory of personality that says ones environment causes ones behavior. Another theory Bandura focused on was the observational learning or modeling theory. This is sometimes called social learning theory. This theory had four steps. These steps included; 1. Attention If you are going to learn anything you have to be paying attention. 2. Retention You must be able to retain any information you have paid attention to. 3. Reproduction You have to be able to translate the images and descriptions into actual behavior. 4. Motivation You have to get motivated to imit ...

Article Summaries Essays - Abstract Art, Alceo Dossena, Takpr, Above

Article Summaries Essays - Abstract Art, Alceo Dossena, Takpr, Above Article Summaries Article 1- Excavating Egypt (Newsprint) This article tells of a typical working day for an archaeologist in Egypt. It tells of an experienced archaeologist named, Dr. David OConnor. He speaks of his working site, Abydos, and tells of what he has discovered since he started working on the site. In his 30 years of working there, he has uncovered 12 wooden boats, each about 60 feet long encased in 96-foot graves. He has also found the remains of an entire settlement covering about 16 acres. He annually spends up to $150,000 to pay of his fellow archaeologists and his laborers. He does receive funds from private institutions and government agencies to help support his effort in Abydos. In reading this article, I have become puzzled as to how so many people working there can split $150,000. It says that 20-25 scientists and 30-60 laborers are employed. I understand that he does receive funds from institutions, but I would not think that it would be upwards of enough money to support so many people. I have always respected archaeologists for what they do but now I have a deeper respect for Egyptian archaeologists. I do hope to visit Egypt someday though and experience what it is like firsthand. Article 2- Cosmetic Surgery Discovered on Ancient Roman Portrait (Newsprint) This article tells of artists in the modern day performing work on damaged ancient artifacts. It specifies on a head statue that was received as a gift by the Nelson-Atkins Museum. Scientists noticed some unusual features on the statues head and investigated it to discover that somebody had fixed it up before it was given to them. They used gamma-radiographs to find that somebody had fixed the heads broken neck with metal dowels and clamps. I found it pretty remarkable that some people may get away doing this without anybody knowing of it. It makes me wonder if some of the great artifacts that we have on display today have been tampered with and that they may not be 100% ancient. I dont see that there is anything wrong with this. Id rather look at a fixed up display than view one that has been badly damaged and is hard to make out. Article 3- Faking It: A Forgers Biography (Newsprint) This article tells of a modern day man, Alceo Dossena (1878-1937), and his ability to create artificial art pieces of ancient civilizations. He created sculptures in almost every style: Greek, Etruscan, Gothic and Italian Renaissance. He would sculpt them, then age them by giving them acid baths and then would proceed to bury them, allowing them to age. He was able to fool some of the greatest historians and scientists in the world. One of his art pieces was sold to a dealer who then sold it for $225,000, the highest price of any of Dossenas artworks. Dossena claimed that he did not make his art to cheat people out of their money. He then sued his dealer and won. When reading this article, I began to wonder if some of the great artworks today might be fake. Perhaps someone painted or sculpted them earlier in the century, and sold it off as an ancient work of art. I am reluctant to think that it happens more often than not. It probably doesnt work on the level of great museums, but it might work on unsuspecting dealers looking to get rich. Article 4- Joined by a Bridge This article is really interesting for it tells of a man, William Cochran, and is efforts of painting a bridge. When the subject came up of covering a small stone bridge in Frederick, Maryland, Cochran ran this suggestion by and it was approved. Many residents rejected the idea at first and would vandalize the work that had been done up to date. As soon as his efforts came to an end, the bridge was seen as a tourist attraction for the city. Since its completion, there have been many other paintings added onto the bridge by suggestion of the townspeople. Before reading this article, I had no clue that something like this could be done. I am interested in how he went about doing this. I am also interested in whether or not this bridge is allowed to have cars pass over it. Someday if I make it to Frederick, Maryland, Ill head over to the bridge and find out for myself. Article 5- Walking Encyclopedia This article tells a small town, Columbus, in Indiana and its claim to fame through architecture. The town is nationally known

Unforgettable Place Essay Example | Topics and Well Written Essays - 500 words

Unforgettable Place - Essay Example Add to that, the cattle that reside on it are also one of the reasons why I frequent my father’s farm every now and then. Since I am young, being 22 years of age at present, my father has not given me the permission to call the shots as far as managing his farm is concerned. However I am sure that seeing my excitement at reaching his farm and with involvement that comes quite naturally to me, he will ask me one day to take over the reigns of the farm. This farm is unique because it has a number of trees within it. There is also a small house that my father has built so that we can spend the night over and enjoy the cool breeze that sweeps across the farm. I absolutely cherish the idea of spending nights at the farm because it is indeed one of my favorite pastimes. My happiness knows no bounds when my friends are given the permission to spend time with my family on my father’s farm. It is like a nightly picnic that my father allows once every 4 months or so. This unforgettable place however has its limitations as well. There is electricity but it keeps coming back and forth. Then there is the issue of a lot of mosquitoes which attack the individuals who are sleeping at night inside. Often times, with the permission of my father, I have spent a good amount of the night on the roof top of the house built on one side of the farm. But more often than not, we had to call it quits because the mosquitoes had a better army to destroy our fun and enjoyment. This farm is indeed very special and important for me. The biggest reason is that it is ours and no one can claim it to be theirs. Moreover, I have spent some of the best moments of my life at my father’s farm, thus making it an automatic choice to become the favorite place to be at any point in time. I have often dreamt of being at my father’s farm during the night and have told my father about what I saw. He appreciates my love for the farm yet disallows me from visiting it regularly. He believes

Response to 3 students posting with 2 references each Coursework - 1

Response to 3 students posting with 2 references each - Coursework Example Therefore, through the support of various articles on the subject, I strongly agree that ‘perhaps a major factor that creates hurdles in dealing with these public policy issues is democracy itself’. As emphasized by Liverani (2009) that â€Å"democracies can be notoriously shortsighted when dealing with long term issues† (par. 4). The rationale for this could be that there are enumerable external factors that could influence diverse issues and so policy makers opt to decide on the most pressing issues given the resources and current macro environmental status of the time. The post was also in response to Dinesh Sah’s Post where we both saw the issue of seeing democracies as recommending policies more on a short-term leash (Liverani, 2009). Sandra’s contention, however, focused on the culture of "instant gratification"; which is also a valid point. According to Rivenburg (2004), â€Å"part of the problem is that technology and pop culture have trained people to expect instant gratification of their desires. So when a temptation comes along, theyre inclined to indulge it† (par. 12). There is so much focus on immediate outcome and results with little foresight being accorded to long term vision of the effects of one’s course of action. Therefore, to see policy-makers in a democratic society to manifest behaviors which exhibit the culture of instant gratification would also explain the lack of forbearance and foresight to resolve climate action on a more lasting and effective manner. De Yudice’s post was interesting in terms of illuminating the power of democracy at its best. Despite the apparent support from various policymakers and different stakeholders of the DREAM Act, the Senate reportedly made the firm decision of seeing it as a threat to being a precursor to invite more illegal aliens and encourage illegal immigration. As policymakers, democratic forces encourage making

Eassy Essay Example | Topics and Well Written Essays - 500 words - 4

Eassy - Essay Example The best way through which a manager can be able to know the areas that they are strong in is through feedback analysis. Within a short period of about three years, this simple method can always show a manageable areas in which they are strong and those in which they are weak. With knowledge of one’s strength a manager should seek to improve their strength in order to maximize their productivity. A manager should also be aware of the ways through which their intellectual arrogance can lead to ignorance something that can be very costly to the business they run. People usually have different ways of doing things. It is important for a manager to know exactly how they usually work. The way in which people work is usually highly influenced by their personalities. However, the good thing is that a person can always change the way they work (Drucker, 1999). People might not be able to completely change the way they work, but they can be able to slightly modify the manner in which they work. A manager should be able to be aware of their own values. For instance, there are people who easily gain knowledge through listening while the other would easily gain knowledge through reading. People are rarely able to be good in getting knowledge through both means. This implies that a manager who does not know where their values are might end up opting for the wrong methods. With the lack of understanding of one’s values it is clearly evident that the manager will never be able to reach their full potential. However, a manager with the full knowledge of their values can always know those things that complement their values and bring out the best from them (Mintzberg, 1975). With full knowledge of oneself a manager can be able to know exactly where they belong. Some managers usually find themselves not being able to perform as expected of them. This is not always because they are incapable of performing, but because

Federal Contract, Actives and Contract Types Research Paper

Federal Contract, Actives and Contract Types - Research Paper Example Dell was selling PCs as a fresh man from his room in the university. At that time, the company was doing business in the name PCs limited although Michael had it incorporated as Dell Computer Corporation (Business Day, 2011). After getting 3000,000 dollars from his family to expand the business, Michael drooped out of school with the intention of concentrating more on his business. Turbo PC was the first computer design to be produced by Dell Company after about one year of its foundation and the PC sold for US$795. The company went public in 1988 with company stock of 3.5 million shares. In the year 1988, PC limited was rebranded to Dell Computer Corporation and at this time it had started going global (Catherine, 1999).The company continued growing well and it was listed in the 500 fortune companies in the year 1992 and that’s when the founder, Michael Dell was named as the youngest CEO. Michael Dell handed over the CEO title to Kevin Rolling in 2004 but he retained the titl e of chairman even though this did not last since Kevin Rolling resigned after four years due to poor performance of the company and Michael Dell assumed the position of the CEO again. Major contract that was awarded to Dell Incorporation Early in 2012, Dell Incorporation was awarded a three years $120M DHS immigration contract where its role was to carry out application processing across the country in over 60 sites. The company had invested so much time and other resources to win this $120 million contract which was carried out under the umbrella of Dell Perot Systems. At the time the company was awarded the contract, Dell Perot had been assisting the bureau responsible for Citizenship and Immigration Services in records management for the past six years (Business Day, 2011). So as much as this was a new contract, it had some elements of follow up. This contract entails record distribution management, FBI finger prints and name checks, scheduling of oath ceremony, file operation a nd working on the requirements of the awaiting application and appeal inventory. The contract is headed by George Wallace who is the project senior manager. One of the major aspects that led to the contract award is due to the fact that Dell Perot is a leader who is very dynamic, creative and possesses highly polished technical and project management skills. Description of the contract Although the company was able to convince the immigration department that it was capable of reducing the level of their risks and assist in gaining efficiencies throughout this contract, there were some protests from CMI. CMI based its protest on the argument that the agency responsible did an inadequate realism analysis of the proposal presented by Dell Perot’s proposal. This, according to CMI, led to Dell Perot being rated way above what it is warranted. However, this argument never persuaded the accountability office of the government and therefore CMI was denied the protest. The government accountability was justified in denying the CMI protest since in the months of February and March there was a reduction by 10 percent in the number of USCIS' offices through the help of Perot Systems (Mahoney, 1996). In mid March, the company also engaged in its main role that is to help the agency in processing immigration and citizenship applications. Another justification why this contract was awarded to D

Bushs Ideas of New World Order Essay Example | Topics and Well Written Essays - 2000 words

Bushs Ideas of New World Order - Essay Example While the Gulf War is a manifestation of the development of new World Order, it is clear that the idea is still at conception stage and that the rationale for its application is still debatable. Gorbachev's idea of New World order seems much similar to the ideas that Bush advanced at this point in time and converges to the development of peaceful world void of imperialistic aggression. To a large extent, the Gulf war signified the role of international bodies and powerful nations in safeguarding weak nations from ill political aggression towards a peaceful new world era. The Gulf war in 1991 refers to the historic war that emerged shortly after Saddam Hussein of Iraq invaded Kuwait. Over the world, history, Iraq is a country that has always ignited numerous wars against different nations. The Iraq war against Kuwait started shortly after Iraq was given up on its war with Iran. In July 1990, Saddam Hussein gave up on the conflict he had held for a long time with Iran. At this time, Iraq had greatly invested in its military and the country was in an economic crisis. As a matter of fact, Iraq owed Kuwait 30 billion dollars and was unwilling to pay. To counter the demand of Kuwait that Iraq pays this debt, Saddam Hussein launched a counter claim that Kuwait had cost Iran a great fortune by reducing the price of Oil, hurting the business operations in Iraq (Finlan, 2003, P. 30). Consequently, Saddam Hussein demanded compensation and refused to pay the debt they owed this country. To make matters worse, Saddam Hussein launched claims that he had held earli er that Kuwait is a country that belongs to Iraq. In an effort to control Kuwait, Saddam Hussein ordered his troops to monitor the borders of Kuwait and counter any resistance from the government of this country. The feeling of this letter was that Kuwait being a small country, he could easily capture it to his economic advantage as this country was rich in Oil wells. From this perspective, the Gulf war was an expansionism strategy in which a powerful state abused its power to its own political and economic advantage.

Coursework Ecotourism Example | Topics and Well Written Essays - 1500 words

Ecotourism - Coursework Example Similarly, another objective of ecotourism is to improve the ecological state of the visited sites, i.e. improving life in marine and life in seas and oceans (Fennell & Dowling, 2003). This report is assessing the ecotourism activity associated to dolphins, which are one of the species that are most challenged due to natural resources’ depletion. Concerning to dolphins’ ecology, the argument stands out that due to human-derived impact such as the environmental pollution, eutrophication, and exploitation of the seas and oceans, dolphin’s life is under threat. The objective of this report is to find out that how ecotourism is facilitating the ecological conservation of dolphins. What challenges ecologists face while they tour areas populated with dolphins will be answered in this report. The subject of ecotourism will be further be studied and comprehended in this report. What are Dolphins? In order to understand ecotourism with respect to dolphins, it is primarily important to understand dolphins in their nature. Therefore, this section is describing dolphins, their behavior, their ecology and their living patterns in changing water conditions (Viddi & Ribeiro, 2004). Dolphins are marine mammals mostly categorized in the families of porpoises and whales. Dolphins fall in 17 genera and are discovered in almost 40 different species (Garrod & Wilson, 2003). Dolphins are warm-blooded and precisely keep the companionship and friendly behavior with humans. Almost 34 dolphins are considered as marine dolphins while the remaining 6 species are popularly known as river dolphins (Viddi & Ribeiro, 2004). Dolphins are sharp. They are smart and considered as the most intelligent mammals. Their intelligence makes them distinctive among all the mammals (Garrod & Wilson, 2003). Moreover, their response and action carry the great remark by researchers and ecologists (The Dolphin Institute, 2002). The contemporary studies assert that dolphins are mostly found in oceans and seas. They live in blue waters and also found in sea aquatic regions. Dolphins are mostly in groups (Garrod & Wilson, 2003). The ecological researchers describe that dolphins are familiar with group patterns and group environments. In this way, dolphins live in a team format. They catch food collaboratively and interact with the environment and humans in the synergetic way. All these characteristics describe dolphins as unique and distinctive mammals (Gale, 2001). Dolphins and Ecotourism The Reynolds-Braithwaite Model In order to identify effects which dolphins have in their environments, the Reynolds-Braithwaite Model can be brought into significant application. This model is effectively applied in ecotourism practices, especially when tours are arranged to study dolphins and their natural instinct (Fennell, 2007). The model consists of two sections in which one section asserts the effects on wildlife (dolphins) and the other displays the intensity of experience on w ildlife. Below is how the model demonstrates two different sections: (Fennell, 2007) This model asserts intensity of experience on dolphins. The model assists eco-tourists on surveying a particular destination of dolphins. It comes out as a supportive demonstrating tool for researchers investigating wildlife (Fennell, 2007). Risks on Dolphins’ Conservation Applying the Reynolds-Brai

Federal Contract, Actives and Contract Types Research Paper

Federal Contract, Actives and Contract Types - Research Paper Example Dell was selling PCs as a fresh man from his room in the university. At that time, the company was doing business in the name PCs limited although Michael had it incorporated as Dell Computer Corporation (Business Day, 2011). After getting 3000,000 dollars from his family to expand the business, Michael drooped out of school with the intention of concentrating more on his business. Turbo PC was the first computer design to be produced by Dell Company after about one year of its foundation and the PC sold for US$795. The company went public in 1988 with company stock of 3.5 million shares. In the year 1988, PC limited was rebranded to Dell Computer Corporation and at this time it had started going global (Catherine, 1999).The company continued growing well and it was listed in the 500 fortune companies in the year 1992 and that’s when the founder, Michael Dell was named as the youngest CEO. Michael Dell handed over the CEO title to Kevin Rolling in 2004 but he retained the titl e of chairman even though this did not last since Kevin Rolling resigned after four years due to poor performance of the company and Michael Dell assumed the position of the CEO again. Major contract that was awarded to Dell Incorporation Early in 2012, Dell Incorporation was awarded a three years $120M DHS immigration contract where its role was to carry out application processing across the country in over 60 sites. The company had invested so much time and other resources to win this $120 million contract which was carried out under the umbrella of Dell Perot Systems. At the time the company was awarded the contract, Dell Perot had been assisting the bureau responsible for Citizenship and Immigration Services in records management for the past six years (Business Day, 2011). So as much as this was a new contract, it had some elements of follow up. This contract entails record distribution management, FBI finger prints and name checks, scheduling of oath ceremony, file operation a nd working on the requirements of the awaiting application and appeal inventory. The contract is headed by George Wallace who is the project senior manager. One of the major aspects that led to the contract award is due to the fact that Dell Perot is a leader who is very dynamic, creative and possesses highly polished technical and project management skills. Description of the contract Although the company was able to convince the immigration department that it was capable of reducing the level of their risks and assist in gaining efficiencies throughout this contract, there were some protests from CMI. CMI based its protest on the argument that the agency responsible did an inadequate realism analysis of the proposal presented by Dell Perot’s proposal. This, according to CMI, led to Dell Perot being rated way above what it is warranted. However, this argument never persuaded the accountability office of the government and therefore CMI was denied the protest. The government accountability was justified in denying the CMI protest since in the months of February and March there was a reduction by 10 percent in the number of USCIS' offices through the help of Perot Systems (Mahoney, 1996). In mid March, the company also engaged in its main role that is to help the agency in processing immigration and citizenship applications. Another justification why this contract was awarded to D

Coursework Ecotourism Example | Topics and Well Written Essays - 1500 words

Ecotourism - Coursework Example Similarly, another objective of ecotourism is to improve the ecological state of the visited sites, i.e. improving life in marine and life in seas and oceans (Fennell & Dowling, 2003). This report is assessing the ecotourism activity associated to dolphins, which are one of the species that are most challenged due to natural resources’ depletion. Concerning to dolphins’ ecology, the argument stands out that due to human-derived impact such as the environmental pollution, eutrophication, and exploitation of the seas and oceans, dolphin’s life is under threat. The objective of this report is to find out that how ecotourism is facilitating the ecological conservation of dolphins. What challenges ecologists face while they tour areas populated with dolphins will be answered in this report. The subject of ecotourism will be further be studied and comprehended in this report. What are Dolphins? In order to understand ecotourism with respect to dolphins, it is primarily important to understand dolphins in their nature. Therefore, this section is describing dolphins, their behavior, their ecology and their living patterns in changing water conditions (Viddi & Ribeiro, 2004). Dolphins are marine mammals mostly categorized in the families of porpoises and whales. Dolphins fall in 17 genera and are discovered in almost 40 different species (Garrod & Wilson, 2003). Dolphins are warm-blooded and precisely keep the companionship and friendly behavior with humans. Almost 34 dolphins are considered as marine dolphins while the remaining 6 species are popularly known as river dolphins (Viddi & Ribeiro, 2004). Dolphins are sharp. They are smart and considered as the most intelligent mammals. Their intelligence makes them distinctive among all the mammals (Garrod & Wilson, 2003). Moreover, their response and action carry the great remark by researchers and ecologists (The Dolphin Institute, 2002). The contemporary studies assert that dolphins are mostly found in oceans and seas. They live in blue waters and also found in sea aquatic regions. Dolphins are mostly in groups (Garrod & Wilson, 2003). The ecological researchers describe that dolphins are familiar with group patterns and group environments. In this way, dolphins live in a team format. They catch food collaboratively and interact with the environment and humans in the synergetic way. All these characteristics describe dolphins as unique and distinctive mammals (Gale, 2001). Dolphins and Ecotourism The Reynolds-Braithwaite Model In order to identify effects which dolphins have in their environments, the Reynolds-Braithwaite Model can be brought into significant application. This model is effectively applied in ecotourism practices, especially when tours are arranged to study dolphins and their natural instinct (Fennell, 2007). The model consists of two sections in which one section asserts the effects on wildlife (dolphins) and the other displays the intensity of experience on w ildlife. Below is how the model demonstrates two different sections: (Fennell, 2007) This model asserts intensity of experience on dolphins. The model assists eco-tourists on surveying a particular destination of dolphins. It comes out as a supportive demonstrating tool for researchers investigating wildlife (Fennell, 2007). Risks on Dolphins’ Conservation Applying the Reynolds-Brai

Nursing and American Nurses Association Essay Example for Free

Nursing and American Nurses Association Essay Describe the definition of nursing as put forward by the American Nurses Association. How does it address the metaparadigm theories of nursing? According to the American Nurses Association (ANA), the definition of nursing is â€Å"the protection, promotion, and optimization of health and abilities, prevention of illness and injury, alleviation of suffering through the diagnosis and treatment of human response, and advocacy in the care of individuals, families, communities, and populations.† Metaparadigm theories of nursing consists of theories that describe the four interrelated concepts, which are persons, environment, health and illness, and nursing. Persons are the recipients of nursing care and include individuals, families, and communities. Environment refers to the surroundings of the client, internal factors affecting the client, and the setting where nursing care is delivered. Health and illness describe the clients state of well-being. Nursing refers to the actions taken when providing care to a patient. ANA’s definition of nursing has included three of the four concepts that make up the metaparadigm theories of nursing. Its definition strongly emphasizes the concept of nursing. It listed many functions that nurses perform such as: protecting, promoting, optimization of health and physical abilities, preventing illness and injury, alleviating suffering, and advocating for patients (ANA website, n.d.). All these nursing actions are related to the care of health and illness, which is the second concept of the metapardigm theories of nursing. The ANA’s definition of nursing describes in more detail the concept of health and illness in terms of health, abilities, illness, and injury. These physical conditions affect the state of well-being and may lead to one’s own suffering and negative responses (ANA website n.d.). Persons is the third concept. According to the ANA definition of nursing, persons include: individuals, families, communities, and populations that receive nursing care. The fourth concept is environment. It is directly related to the other three concepts mentioned above. The environment is the surroundings or the settings in which nursing care is delivered and includes the in the hospital, home, theater, etc†¦

History Of The Millat Tractors Limited

History Of The Millat Tractors Limited This whole report starts with the brief introduction of the Millat Tractors Limited. The introduction consists of company background, products, objectives, mission and vision statement and dealer network. After this the report contain a complete financial analysis of the firm and its comparison with its main competitor i.e. Al-ghazi tractors, these ratios cover all the ratios which include the liquidity, leverage, profitability ratio, activity and other ratios. After this in the end the report contain the literature and article review from different authors and websites. Contents Company Review Introduction The millat tractors limited was established in 1964. At that time the main goal of this company was to introduce and market Massey Ferguson Tractors in Pakistan. In 1967, an assembly plant was set up to assemble tractors in semi-knocked down condition. In 1972 the company was nationalized and started assembling and marketing tractors on the behalf of Pakistan tractor Corporation (PTC), formed by the government of Pakistan to import the tractors in semi-knocked down condition. Later in 1980 the government decided to manufacture the tractor in Pakistan, so they put this responsibility on Pakistan Tractor Corporation (PTC). PTC transferred this role to Millat tractors in 1981. It took only one year for millat tractors limited (MTL) to manufacture their own tractors, by setting up the first engine assembly plant in Pakistan. In 1984, the MTL set up a manufacturing facilities for the machining of intricate components, which were not available in Pakistan. In 1992, MTL was privatized throu gh management buyout (wikipedia). Mission Statement Millat to be market leader in agricultural tractors and machinery, building Companys image through innovation and competitiveness, grow by expanding market and investing into group companies, ensuring satisfaction to customers and stakeholders and to fulfil social obligations (Millat Tractors). Vision Statement Millat to be a global group of companies, recognized for a range of quality products with innovative design capabilities (Millat Tractors). Business Core Values Our customers are our first priority Prosperity of our stakeholders Corporate social responsibilities to enrich the lives of the community where we operate Recognition and reward for the talented and high performing employees Excellence Integrity in dealing (Millat Tractors). Objectives and Strategic Planning Objectives The main objective of the millat tractors in to be a market leader as far as market share and technology is concerned, in the areas of operations. The objective is also to continuously improve the efficiency and competitive strength and to offer the customer the quality products and support services at competitive prices and to their satisfaction. To generate sufficient earnings to ensure a secure future for the company and to protect and increase the shareholders return through continuously improving the performance. Moreover the objective is also to enhance the creativity and job satisfaction of the employees by providing opportunities for the personal development. To play a vital role for the society and environment (Millat Tractors). Strategic planning To make optimum use of ancillary industry in Pakistan to maximize indigenization of tract parts and farm equipment. To create in-house plant facilities for manufacture of components for tractors and other agricultural machinery which cannot be fabricated by the ancillary industry, where investments required are heavy or where technology involved is intricate. MTL will maintain a strong RD Department to provide technical assistance to local manufactures and for product development. Ensure customer satisfaction by providing quality products at competitive prices with warranty coverage and ensuring after sales service (Millat Tractors). Products MTL has a huge variety of products which includes tractors for the farmers that range from 50 HP to 85 HP, to fulfil the needs of the farmers for agriculture purpose. These tractors can be purchased not only against cash but also through bank financing. Besides Tractors MTL also offer industrial products like generators, that range from 15 KVA to 40 KVA, forklift trucks and prime movers, that range from 50 HP to 85 HP. MTL also deals in range of generating sets from 27 kVA to 2000 KVA (Millat Tractors). Other than above mentioned products MTL also offers a wide range of agricultural implements like chisel, Disc and mould board plough, tine tillers, offset disc harrow, ridger, front blade, multi-purpose rear blade, agriculture loader, farm trailer, hydraulic tipping trailer, jib crane, post hole digger, lawn mover, and pneumatic pruning sets. MTL also provide a wide range of spare parts throughout the country (Millat Tractors). Dealers MTL has dealers throughout the country to make sure the availability of the tractors. MTL divided the whole country into six regions that are KPK, Northern Punjab, South Punjab, Upper Punjab, Lower Punjab and Balochistan (Millat Tractors). Competitor Analysis The main competitor of Millat Tractor is Al-ghazi tractors, besides Al-ghazi there are few private tractor manufacturers and Chinese tractors that multiply the competition. Below is the financial analysis of both millat tractors limited and Al-ghazi tractors. On the basis of these financial ratios we can compare the performance of both the firms. For Financial statements see the appendix. As far as the production and sales of MTL units are concerned a graph from their websites are given below. http://millat.com.pk/wp-content/uploads/image/chart3.JPG Source: http://millat.com.pk/?page_id=408 Financial Ratios Liquidity Ratios Current Ratio Although the current ratio of both the firms are greater than 1, but the current ratio of Al-ghazi tractors is higher than 3 which shows that the company is inefficient to utilize its current assets to pay off the current liabilities. On the other hand the current ratio of MTL is greater than 1 but less than 3 which shows that company is efficiently utilizing its current assets to settle the current liabilities. So on the basis of the current ratio we can say that Millat tractor limited is working more efficiently with their assets as compare to Al-ghazi, which has huge current ratio thats shows the inefficiency in case of utilizing the assets. Quick Ratio Quick Ratio shows the companys ability to use the cash and cash equivalents to settle the current liabilities, this excludes the inventory. The ratio of both the companies shows that millat tractor is more efficient as compare to Al-ghazi. Moreover the ratio is also close to the current ratio which shows that inventory is well managed by the millat tractors. Although the ratio of Al-Ghazi is much higher than the millat tractors, but the ratio higher than 3 is not a good sign. This shows that Al-Ghazi tractors are unable to utilize the cash and cash equivalents to settle the current liabilities due which their ratio is higher than that of Millat tractors. Inventory to net working capital This ratio tells us the extent to which the working capital is tied up in the inventory, although it is less than 1 for both the firms. But in case of millat tractors it is higher than al-Ghazi which is not a good sign as it shows that lots of working capital is tied up in inventory as compare to that of Al-Ghazi Tractors. During the last year however the ratio has decreased in case of MTL and increased in case of Al-ghazi tractors but Al-Ghazi Ratio is still lower as compared to MTL. One of the main reason is the higher inventory since last three years of Millat tractors. One thing to be kept in mind is that these inventories mostly consist of spare parts and agriculture implements. Profitability Ratios Gross profit Margin Although the gross profit margin of millat tractors are lower as compare to Al-ghazi tractors yet they are earning much on sale as compare to Al-Ghazi. In the year of 2011 Millat tractors report the sale revenue of 24863264 as compare to 14936034 but the reason is the high cost of goods sold. The main reason for the increase in the COGS is the components consumed, which is continuously increasing since last four years. According the millat tractors dealers and the website information the millat tractors is continuously increasing its production and achieved the target of 40000 tractors in the year of 2011, which obviously resulted in the increase in the components consumed. Besides components repair and maintenances and spare parts consumed also resulted in the increase of COGS, most of them were covered under the warranty claims. On the other hand in case of Al-ghazi tractors, Components consumed were highest in the year of 2010 and in 2011 the components consumed has decreased beca use of decrease in production, which also resulted in the decrease of other things like salaries, spare parts consumed and supplies. Due to this reason Millat tractors, that produced 40000 units as compare to Al-ghazi tractors that produces 19936 units in the year 2011, has to face lower gross profit margin as compare to the alghazi tractors. Otherwise as far as sales revenue is concerned, it is much much higher in case of MTL as compare to Al-Ghazi Tractors. Operating Profit Margin From the year 2008 till 2010, alghazi tractors has higher operating profit margin because of high sales as compare to COGS and low expenses but in the year 2011 Millat tractors beat the Al-ghazi tractors because of increase in production and sales and lower expenses with respect to the sales. Secondly the revenue from the sales against all the expenses are higher for MTL in the year 2011 as compare to the previous year. In the year 2011, alghazi tractors lower their production due to which their revenues also decreased. So the operating profit margin which indicates firms profitability from the current operations excluding interest and tax, is higher for MTL as compare to Al-ghazi tractors. Net Profit Margin Although the sales revenue of Millat Tractors are much higher than the alghazi tractors but they have to face high financing cost and taxation. In the year 2011 MTL also has to face a huge deferred taxation from the previous years along with the increase in the finance cost which is the result of increase in loans, accumulating compensated absences and trade and other payables. Trade and other payables were highest in the year of 2010 but decrease in 2011 due to which finance cost also showed some decreasing growth rate. On the other hand Alghazi tractors that produces much smaller number of tractors as compare to the millat tractors has to face low finance cost and taxation due to which the ratio is higher. Return on Total Assets This ratio calculates the companys earning or profit against the total net assets, the higher the ratio the better it is as it shows that the company is earning more profits as compare to their assets. Initially MTL has to face lower ratio when compare to Al-ghazi because of high growth in net assets and lower growth of profit but in the 2011, when MTL achieved the record production of more than 40000 tractors the ratio increased much higher than Alghazi, which faced an increase in total assets with the decrease in net profits. In 2011, MTL has to face a decrease in total assets with the increase in net profit, which shows that the company efficiently used its assets to generate the profits. So it is not wrong to say that the MTL is much more profitable as compare to Al-Ghazi. Earnings Per Share This ratio shows the earnings available to the owners of the common stock and if you see the ratios then it is clear that MTL has a high earning per share which shows that the investors of MTL enjoying the higher profit against their investments as compare to that of Al-ghazi Tractors. So this also shows that MTL is highly profitable as compare to Al-ghazi Tractors. Return on Stock Holders Equity This shows the rate of return on the stock holders investment. The ratio clearly shows a huge difference between the two companies. In case of millat tractors, the after tax profits are increasing against the decreasing profits of Al-ghazi. This shows that investors are enjoying high profits against their investment in case of MTL as compare to that of Al-ghazi profit, which is facing decreasing after sales profits. Leverage Ratios Debt to Assets Ratio High Debt to assets ratio shows that the company depends more on the debt financing, which ultimately increase the risk. Millat tractors shows increasing debt ratio until 2010 but it decreases in 2011. This shows that the company is more dependent on the debt financing rather than its own assets which made this company risky. Increasing EPS and stockholders equity also shows this as they are enjoying higher return which is the proof that the company is risky as higher the risk, higher will be the return. On the other hand Al-ghazis debt ratio is lower than the MTL, though they are also taking debt to finance their operation but the ratio against the total assets is low which shows that the company is less risk and depending mostly on its own assets as compare to that of MTL, this also results in the lower return. In the year 2011, MTL has dropped in liabilities significantly from the last two year but it also followed by the decrease in the total assets from the last two years. In th is case we can say that Al-ghazi is better than the MTL. Debt to Equity Ratio Just like the Debt to asset ratio, Debt to equity ratio of MTL is also high which shows that MTL also depending on Debt financing more than the equity. This ratio suggest that MTL is depending more on the debt financing as compare to equity financing, this makes MTL more risky. On the other hand Al-ghazi tractors has the lower debt to equity ratio, which makes this company less riskier as they depend on the equity financing more than their debt financing as compare to the MTL. In 2011, the debt to asset ratio as well as debt to equity ratio both shows downward trend in case of MTL, which is because of the huge decrease in the total debt of the company which is almost equal to more that 40 million rupees, due to this there is the decrease in the ratio in the year 2011. Long-term Debt to Equity Ratio This ratio also show the financing condition of the firm. Higher ratio means that the company is more depending on the long term debt as compare to the equity. High ratio shows the high risk for the firm. In this case Al-ghazi has the higher ratio which shows that Al-ghazi is more dependent on the long term debt as compare to the equity. MTL dependent on the short term financing but in case of al-ghazi they are more dependent on the long term financing due to which their ratio is higher than MTL. This shows that as far as long term debt to equity ratio is concerned Al-ghazi is much riskier than the MTL. Time interest Earned This ratio is lower for the MTL as compare to al-ghazi. This shows that Al-ghazi is better in this case. Activity Ratio Inventory Turnover Inventory turnover of MTL is much greater than Al-ghazi Tractors which shows that the company is efficient with the inventory and could be able to convert its inventory into sales. Though in the previous year that is from 2008 to 2010 MTL is behind Al-ghazi but in the year 2011, MTL is able to convert its inventory into sales more efficiently and effectively Fixed Assets Turnover Fixed assets turnover of Al-ghazi is decreasing since the last two year but on the other hand it is continuously increasing in case of MTL which shows that the company is more efficiently utilizes its fixed assets to make the sales. Other reason is that MTL non-current assets shows little or negative growth rate with the increasing sales but in case of Al-ghazi sales revenues are decreasing with the increasing fixed or non-current assets. Total Asset turnover Just like the fixed assets turnover ratio, total assets turnover ratio of MTL is also increasing which shows that the company is efficiently utilizing its assets to generate the sales as compare to that of Al-ghazi Tractors. Other Ratios Dividend Yield Except the year 2011, in which MTL retained most of the earnings, in all the previous years MTL pays higher dividends as compare to the al-ghazi tractors whose dividend fluctuate through out the year. This shows that the investors of MTL received higher dividend as compare to Al-ghazi tractors. Price Earnings Ratio MTL PE ratio is increasing which shows that it is faster growing and less risky in the sense that they fulfil all the risky through the return. On the other hand Al-ghazi shows decreasing trend which shows that they are risky, except it is proved above that MTL is highly risky as compare to Al-ghazi but MTL cover the risk through the return as compare to Al-ghazi so it could not be wrong to say that MTL is faster growing and more profitable as compare to Alghazi tractors. Dividend Payout Ratio MTL Dividend payout ratio is increasing which shows that they are not retaining earning and paying more dividends in cash rather than retaining them. Other the other hand Al-ghazi is retaining more than MTL and not paying much dividend as cash. Other Competitors Other than these two public listed companies there is a private company with the name of Fecto Belarus Tractors which is basically a private Russian company and has been working since 1962. This company has also participated in many government schemes like Green tractor and Awami Tractor schemes. But this company is very small and not so much appreciated by the farmers. According to the information given on their website they have produced only 4000 tractors in the year 2010 and 2011 (Fecto Belarus). Other than this there are few Chinese imported tractors but as per government rules there are very high barrier to the international tractors to support the local market. But if the Government could not able to address the problems the company is facing right now then these low price and low quality Chinese tractors will find their way into Pakistan, which will result in the major threat to the local industry. Literature Review Article Two main tractor manufacturing units Al-Ghazi Tractors and Millat Tractors have suspended their production after plummeting of their sales as levy of 16 percent GST has made the farm machinery costlier and Zarai Taraqiati Bank Limited has stopped tractor loans to the cash starved farmers for the past two years. Millat Tractors Limited and Al-Ghazi Tractors Limited account for virtually all of industrys yearly output of more than 72,000 tractors. A senior executive of Millat Tractors told Business Recorder here on Friday that tractor sales nosed down to 12,000 from July to December 2011 as against 30,000 tractors during corresponding period of last year. The industry sold 70,770 tractors from July 2010 to June 2011, he added. He said tractor manufacturers have suspended procurement of parts from their vendors as there are already several thousand unsold tractors dumped at their plants and countrywide dealership network. Tractor prices surged by Rs100,000 to Rs. 200,000 a piece depending on engine horse power after imposition of 16 per cent GST in March last year plunging the industry in turmoil and endangering investment of billions of rupees, he added. He said since ZTBL had suspended credit to farmers for purchase of tractors for two years and high interest rate of commercial banks loans, tractors are being purchased only by those limited number of affluent growers who pay net cash. He lamented that prices of cotton have suddenly fallen to a new low, farmers are not getting payment of sugarcane produce in cash, on the contrary, prices of fertilisers and other agri-outputs have skyrocketed, therefore the cash deficit small farmers have no money to purchase tractors. The executive suggested that the Punjab government should provide tractors to the unemployed people instead of taxis as a tractor is economically more useful and employment generator than a car/taxi Pakistan Association of Automotive Parts and Accessories Manufacturers Manufacturing held an emergent meeting here on Friday to review the socio-economic impact of tractor manufacturing units closure in the short and long run as they have stopped buying parts of tractors from the vendors spread all over the country. Talking to this scribe PAAPAM chairman Nabeel Hashmi said that thousands of auto parts manufacturing units which provide 92 percent parts to the tractor industry are laying off their 0.5 million workers after closure of tractor manufacturing units. He said imposition of 16 percent General Sales Tax has not only ruined the tractor manufacturing industry but has also had fatal repercussions on the agri economy and engineering and vending industry. Hashmi pointed out that due to decline in tractor sales, the government is not getting any additional revenue, therefore it should immediately withdraw this tax to make cost of tractors affordable for overwhelming majority of small farmers who own less then 12 acres land.PAAPAM chairman warned that as tractors are of prime importance to the agricultural sector itself, the agriculture and rural economy would grossly suffer with dangerous consequences if the government did not take immediate remedial measures (Goraya, 2011). Explanation In this article Mr. Goraya told about the effects of general sales tax on the sales of the tractors. According to him the increase sales tax reduces the sales of the tractors in the country. Moreover the Zarai Tarakiyati bank was is responsible to give the loans to the farmers for the purchase of the tractors along with the other agricultural tools also stopped giving loans to the farmers due to which only those farmers who could afford the purchase of the tractors on the full cash basis could buy the tractors. This had the very adverse effects on the tractors industries as because of this the inventories which are unsold increased and many units goes unsold. Due to the increase in the taxes and the non availability of the loans the amount of the unsold tractors increased from 12000 units to 30000 units. Moreover because of the GST the prices of the tractors increases by 200000 rupees because of which farmers who were dependent on the loans, are now unable to purchase the tractors du e to which the sales goes down, with the decrease in production. According to the sales person of millat tractors limited the production of millat tractors decreased from 40000 to 32000 units because of the last year unsold inventory. Moreover in the article it is suggested that except giving the yellow cabs schemes, government should provide tractors to increase the employment and to save the industry the government should reduce the taxes so that this automobile industry could move forward with any threat. Article The last few years have been great if you were a tractor manufacturer. The industry has grown by a CAGR of more than nine per cent annually over the last five years with the exception of FY08 when it registered negative growth. This is on the back of a supply deficit whereby the demand for tractors and agricultural implements (taken on a cumulative basis when we talk about tractors) has been racing despite the hullabaloo of structural weaknesses in economy. This is because the local tractor industry is a derivative of the agricultural sector which forms the backbone of our economy and is the leading source of employment for our labor force. Therefore, as the population grows, which it will regardless of the era in question; demand for agricultural produce will grow, resulting in continuous demand for tractors in Pakistan. The linkage between tractors and the agriculture sector is therefore clear for all to see. Previously, industry growth was thought to be relatively immune from decelerating trends in agriculture; a view which was given life by observing FY09 and FY10 when the industry grew 13 per cent and 14 per cent respectively despite downturn in the agronomy with in-turn depressed growth rates (four per cent and two per cent respectively). Any good analyst would surely decipher that this is not a concrete relationship as sooner or later any business/industry will be affected by the economic environment it operates within. And it now has. The imposition of 17 per cent sales tax in March 2011, coupled with declining agro product prices which dented farmer income, will start taking its toll on the industry and its participants. The recent notice sent to the KSE by one tractor manufacturer (Al-Ghazi tractors) substantiates this view: Following the imposition of 17 per cent sales tax in March 2011 tractor bookings started fallingà ¢Ã¢â€š ¬Ã‚ ¦ Impact of 16 per cent sales tax on tractors, announced in the Financial Bill of the year 2011-2012, continues to jeopardise the companys sales. This has been spoiled further by the fall in cotton prices There are two main players in the tractor manufacturing industry, namely Millat Tractors Limited (MTL) and Al-Ghazi Tractors Limited (AGTL), which account for virtually all of industry output. Of these, MTL, with its popular brand Massey Ferguson, holds 61 per cent market share in terms of total tractor sales and has experienced significant growth in the turnover since FY07. The company has developed a track of breaking records by achieving an off-take of 30,244 in FY09 and then surpassing it in the subsequent year to 40,836 tractors. As per the official statistics released by the Pakistan Automobile Manufacturers Association (PAMA) the company has achieved sales of over 42,000 tractors in FY11 while the total tractor industry stood at 70,000 tractors sold during the year. Advanced bookings a measure often used to gauge demand increased by 81 per cent during FY10: 40,836 tractors pre-booked in FY09 to 74,000 tractors pre-booked during FY10. This figure is expected to drop as substa ntiated by the press release given above. Talking about the tractor industry as a whole, forming a holistic view of the key demand drivers of the tractor industry is imperative: KEY INDUSTRY DEMAND DRIVERS Government Incentives The Benazir Tractor Scheme aims to incentivise the purchase of 20,000 tractors by subsidising the tractor up to 50 per cent. The program aims to provide a subsidy up to Rs200,000 per farmer leading to more affordable tractors. Given the tight fiscal position of the GoP further extension/incentivisation in this program is unlikely. Therefore, we view this program lacking in its true essence on account of an absence of both ability and willingness on behalf of the government to encourage farmer development. Affordability A 17 per cent tax levied on tractor production in the Finance Bill announced in March was initially projected to raise tractor prices by 10-15 per cent. However, after accounting for the cumulative impact of the imposition in tractor inputs as well, final tractor prices have gone up by 20 per cent. This is a serious jolt to farmers for whom tractors have gone beyond the reach of affordability. Farmer Income Agricultural prices had shot up in the recent past. However, they have witnessed a sharp decline inline with fall in commodity prices globally. Pakistans agricultural produce has been the same; as an example, cotton prices have fallen to the 5,500 mark after seeing highs of over 13,000 per maund. This has impacted farmer income and therefore, they are less willing to spend upon tractors as they simply cannot afford to. Farmer Credit Squeezing of loans by the Zarai Taraqiati Bank Limited (ZTBL), especially to farmers who own less than 12 acres of land, tractors are being purchased only by those who pay net cash. Given the fall in farmer income, the lack of credit in the market does not make a cash purchase viable for farmers. Indeed investment in such times is hardly the priority for farmers whose lifestyle limits him to focusing on only the necessities of life. Tractor Life According to FAO, ideal horsepower available per hectare should be 1.4, versus the current 0.9 in Pakistan. Increasing horse power utilisation would imply increasing the total number of tractors by more than 250,000 (55 per cent) highlighting the growth potential of the sector. Given the dearth in farmer awareness, a change in this trend seems unlikely. Competition High barriers to entry due to heavy capital outlay in establishing a distribution network reduce the threat of competition arising. Further, due to the high deletion levels (percentage of cost from locally manufactured inputs) soaring upto 90 per cent, Pakistani tractors trade at a significant discount to international counterparts, thereby making the import of tractors unfeasible and impractical. Given the above demand outlooks, future prospects of tractor manufacturers surely seem weak. But why should this be as alarming as it sounds? Tractor manufacturers have had it good over the past few years operating at near 100 per cent utilisation levels. They have built their asset bases and have enjoyed periods of strong profitability. Given that the two manufacturers have not been forced to engage in a price war and that both operate at nearly zero leveraging, the reserves built-up should be substantial in sustaining them through a down period. However, tractors are of prime importance to the agricultural sector itself, and while some rationalisation can be expected, a total fall from grace would have a far reaching impact on the agronomy in the longer run in terms of efficiency and growth (Khan). Explanation This article tells us that the tractor industry is the back bone for our economy. This industry was seeing the growth rate in the past but recently has to face many problems like GST, Inflation, expensive vendors. This articles also tell us that the MTL is the market leader with the 61 percent of market share as compare to its major competitor Al-ghazi, so it is in a strong position. This article also discussed different demand drivers. First of all the government support, although government is claiming to help the farmers by subsidizing the tractors through different schemes but still there is a lack of commitment and care of the government towards this industry. Secondly the affordability, with the increase in the GST, farmers are unable to afford such a expensive tractor, which was available for 15 lac two years back and now it is available for 20 lac rupees. Thirdly the farmer income, with the increase in population along with inflation it would be hard for the farmers to suppor t their families and with the increase in the price of the tractors farmers could not buy the tractors as they also have to afford my other lives. Forth the loans, with the increase in bad debts and non performing loans the only bank for the farmers i.e. Zarai Tarakiyati bank stopped giving loans and increased their interest rates so farmers are unable to get the loans for the purchase of the tractors, this also multiply the difficulties for the farmers. Lastly the competition, as there are high barriers of entry to international firm to enter into the Pakistan market no intern