Research Korner

Essay instructions on ultra vires

Instructions:   Reading list: -          * Administrative Law, pp 4-20, 474-501, 510-519, 847-855 -          * ‘Is the Ultra vires rule the basis of Judicial review’ [1987] PL 543 -          *. ‘Of Fig Leaves and Fairy Tales: The Ultra Vires Doctrine, the Sovereignty of Parliament and Judicial Review’ (1996) 55 CLJ 122 -          * ‘Competing Models of Judicial Review’ [1999] PL 428 -           ‘Of Vires and Vacuums: The Constitutional Context of Judicial Review’ [1999] PL 448 -          ‘The Demise of Parliamentary Sovereignty? The Implications for Justifying Judicial Review’ (1999) 115 LQR 119 -           ‘The Theoretical Controversy Concerning Judicial Review’ (2001) 64 MLR 500 -          * ‘The Separation of Powers and Judicial Review for Error of Law’ in Forsyth & Hare (eds.) The Golden Metwand and the Crooked Cord -          Anisminic Ltd v Foreign Compensation Commission [1969] 2 AC 147 -          *Leung TC William Roy v Secretary for Justice [2006] HKEC 578 (CA) -          *Hong Kong SAR v Ng Kung Siu [1999] 3 HKLRD 907 (CFA) -          *Hong Kong SAR v Ng Ka Ling [1999] 1 HKLRD 315 (CFA) -          *Cheung Lai Wah & Others v The Director of Immigration [1998] 1 HKLRD 772 (CA) -          *Basic Law Articles 35, 8     Writing guidelines from professor (not necessarily in order. As I am not familiar with this topic, these are all what I have jotted down): -          definition of ultra vires principle -          rationale of ultra vires principle – respect of parliamentary sovereignty concept – all the administrative power derived from the parliament – administrators and inferior tribunals should act within the four corners of the law -          modern practice of judicial review – the ultra vires doctrine fails to explain all the phenomena of judicial review because not all the powers are derived from statutes and thus does not cover all grounds of judicial review application -          examples of power of public body not derived from statutes: Jockey Club, Stock Exchange Ltd. -          the traditional ultra vires theory model is modified: to look into the nature of the power, whether the decision is public in nature – not a statutory body but their decision is reviewable -          re-modified ultra vires theory model: constitutional law vs domestic law (by Craig) -          common law model of illegality - the court in reviewing the decisions of public body, not just look at the legal limit imposed on the body and the power given to the body, but look at wider concepts of natural justice, legitimate expectation, proportionality…seems to treat judicial power above the parliamentary power -          modified common law model - tend to widen and explain the phenomenon of judicial review – -          courts still said to respect legislative intention -          tend to widen and explain the phenomenon of JR -          tension between the judiciary and the parliament n   ouster clause / finality clause n   the decision of the executive is final and conclusive n   if court respect the parliament – the decision is not amenable to JR n   in UK, the executive branch controls the parliament (because majority of seats dominated by supporters of the executive branch) n   courts try to interpret the clause in a way that the court can still intervene even the word is so clear – because the intention of the legislature would not allow decision of executive which is unreasonable / illegal…to be final and conclusive à so the clause is in fact has no effect at all – the decision is final only if it is legal / reasonable…if not, the court can interfere despite of the label -          is it ever possible for Parliament or legislature to oust the jurisdiction of the courts to review errors of law? n   In UK, theoretically it is possible due to the doctrine of parliamentary sovereignty; but in practice, it is hardly be possible (e.g. the way how court interprets the finality clause) n   In HK, may not be possible as we do not have parliamentary sovereignty, but constitutional sovereignty (the Basic Law) n    Is it possible for the legco to enact law which says that court is not capable to review decision of the executive? u  Article 35 of Basic Law – guarantees access to court – by ousting the power of the court to JR = infringing constitutional right – should interpret law in a way which is compatible with the Basic Law u  Legco cannot enact law which infringes constitutional rights guaranteed – the court can declare the law / decision made pursuant to that law as unconstitutional – e.g. Cheung lai wah case; Ng Ka Ling case; Ng Siu Tung case; William Leung’s case; prosecution of homosexual 19-year-old boys for unlawful sexual intercourse (buggary) is unlawful as the law conferring such a power is unconstitutional; long hair’s executive order – to see whether the concrete (the decision)/ abstract (the law) decision is compatible to BL n   Common law principles are preserved by the Basic Law expressly n   Only possible if Basic Law is amended – but it would not be possible -          there are 4 grounds of judicial review available in Hong Kong: n   illegality n   procedural impropriety n   irrationality n   proportionality (possible) -          procedural impropriety n   - failure in following the procedures set out in the legislation – fall within ultra vires n   not in statutes but against natural justice governed by common law – e.g. right to be heard n   ultra vires doctrine can still explain part of procedural impropriety – 4 corners n   partly can be explained by common law doctrine -          irrationality n   a common law creature n   can only be explained by common law doctrine -          there is no single model as suggested above by different academic scholars can explain all the judicial review phenomena in practice   HK and UK – different political backgrounds In UK – acts of parliament are parallel and supreme; the status can be treated as equivalent to Basic Law So should the definition of vires include Basic Law (which also recognizes Common Law principles) as well? BL should be the constitutional basis for judicial review If vires does not include BL, it is a very narrow concept (decision can be illegal even if intra vires) à then argue that ultra vires model alone is not satisfactory; should include also other common law models – to say that the first step is to decide whether it is constitutional then go on the consider other common law principles preserved by the BL (basic law – constitutional violation) – can be a limb of illegality (ultra vires) – or be separated from the traditional models   PLS USE OXFORD STANDARD OF CITATION AS FOOTNOTING   You will find the format, style and footnote standard required in the zipped folder.

Essay instructions on ultra vires

Instructions: Reading list: - * Administrative Law, pp 4-20, 474-501, 510-519, 847-855 - * ‘Is the Ultra vires ...

a linguistic analysis of the language of SMS messages Research Proposal

a linguistic analysis of the language of SMS messages Research Proposal

a linguistic analysis of the language of SMS messages Research Proposal essay should look deeper into the syntax ,graphology,discourse mark...

Attributes of Hong Kong Health Care System

Attributes of Hong Kong Health Care System   Introduction             Hong Kong is considered to be one of the most advanced and successful cities in Asia today. Almost in all attributes, Hong Kong serves to be one of the most regarded cities having the best services, information, and the latest technologies, being termed as “Asia Pacific’s Information Gateway and Hub”. This has prompted Hong Kong to be one of the Asian cities having the latest advancements, not only in products and services, but in fashion, latest gadgets, and technologies as well. In this regard, with the use of the latest technologies in Hong Kong, it can be perceived that the latest technologies and health care can also be observed and rendered by the medical and healthcare systems of Hong Kong. As such, this essay discusses and evaluates the different attributes or characteristics of Hong Kong’s healthcare system in relation to its costs, services, efficiency and effectiveness. In addition, the different problems of Hong Kong’s healthcare system would also be mentioned and discussed to further provide a comprehensive analysis.   Healthcare System of Hong Kong             Hong Kong’s healthcare system is divided into the public and the private sectors. Differentiating both healthcare systems would be essential in determining the different attributes of the healthcare system of Hong Kong in general. Based on the report of Wong et al (2005), Hong Kong’s health care system is comprised of the public and private health sectors, where the public healthcare system is composed of the health, welfare and food bureau. The funding sources of the public healthcare system come from the general revenue of the government, with increasing personal revenues from fees. The public healthcare system is being supported and provided for by the hospital authorities in Hong Kong, and the Department of Health and Center for Health Protection in Hong Kong. It then serves and provides services to the general population, and to consumers covered under the authority of the hospitals. Among the population, the total market share of the public healthcare system in terms of inpatient consumers is 90 to 95%, while 30% only on outpatient consumers. On the other hand, the funding sources of the private sector come from both its employers and from the individual consumers. The private sector is provided for by private insurers or HMOs and by some private providers or stockholders of hospitals and private medical societies and groups. Being more expensive, the private sector serves and provides services to consumers belonging to the middle and upper classes of the society, with the exception for Chinese medicine use. As such, the market share of the private sector in terms of inpatient consumers is only 5 to 10%, while it serves 70% of the outpatient consumers of the total population. In this regard, it can be observed that significant differences in the private and public healthcare systems of Hong Kong can be seen, in terms of funding or finances, providers, consumers, and market share. As such, it can be assumed that unequal costs, differences in healthcare services due to medical and healthcare expertise of medical professionals, and socio-economic status of consumers are made basis for rendering service and seeking medical help. In addition, the problems and negative impacts of this form of healthcare structure have been emphasized during the past decades, as many Hong Kong citizens have become increasingly displeased and unhappy with the differences in services rendered by both its public and private health sectors. The lack of medical training on the part of physicians on both private and public sectors can be observed, selling drugs and medicines directly to patients, causing additional costs, and limitations in providing medical information on certain issues were observed to be the problems included in the process. However, due to the increasing dissatisfaction of many Hong Kong citizens, the government of Hong Kong decided to review, assess and improve its healthcare financing and delivery system in the public sector, to equalize the costs and services in both healthcare systems. In addition to such reforms, the government also commissioned the improvement of the medical and healthcare training and knowledge of many medical professionals in the city. Such endeavors resulted to a number of benefits and improvements in Hong Kong’s healthcare system, including equal access to healthcare services regardless of financial status, easy access to healthcare providers through short travel times, improvement of technical and personal quality of healthcare services, implementations of regulations and policies for licensing on both sectors, continuous education for medical professionals, certification of traditional Chinese medical practitioners, and founding of customer service and complaint systems. Such results and attributes can be observed and proven in the current healthcare system of Hong Kong. Aside from the highly recommended medical services of hospitals and healthcare institutions in the United States and Europe, the medical and healthcare services in Hong Kong would not be set apart. Treatment and curative services in the city have three divisions, namely, the primary, secondary, and tertiary healthcare, with the support of traditional Chinese medicines and treatment. Public and private hospitals provide such healthcare services, having good reputations both in the city and in other countries. Among the highly recommended hospitals in Hong Kong, include St. John’s and Ruttonjee in Hong Kong Island, Caritas and Tai Po Hospital in the New Territories, and Queen Mary and Hong Kong Buddhist Hospital in Kowloon. In addition, 600 Western and Chinese medical centers and institutions can be seen, 44 dental and physiotherapy centers, and 9 elderly-care homes can be found. Such hospitals and healthcare service providers offer the latest technology in medicine and healthcare. The use of latest technology in Hong Kong offers treatment a number of medical fields, such as endoscopy and echocardiography, pathology, orthopaedic, and minimal invasive surgery in the heart and gut. Among the latest gadgets used in Hong Kong hospitals, include the Fingertip Pulse Oximeter, which is used to test the client’s blood-oxygen saturation levels and pulse rate, and the Endoscopic Ultrasonography (EUS) gadget, which can detect cancer at an early age in order to avail of earlier treatment. Along with the advanced and latest technologies utilized in Hong Kong is the high quality and standard of healthcare service provided by the city’s medical and healthcare practitioners and professionals. Most of the medical and healthcare practitioners and professionals are educated in the top universities in Hong Kong, United States, Australia, and Europe, thus, finding the best and quality healthcare service a client can find in other Western countries. A number of specialized services are being offered in the different hospitals in Hong Kong, which are not offered in other hospitals in Asia, thus, catering to the sensitive needs of clients in the region. However, the only setback in this attribute is that Western-trained doctors and medical practitioners cost double, and may be a primary problem for many clients. Such quality and standard of services are being accompanied by the prescription of strong and the latest medicines, such as antibiotics and other drugs, being distributed in the region, directly from Western drug and medicine manufacturers. However, another problem can be determined in this case, as antibiotics and high dosages of medicines are already prescribed to minor colds and ailments to achieve quick remedies. This must not be the case, as administering strong medicines right away may result to complications and side effects on the part of the client. The quality and standard of healthcare services of medical practitioners in Hong Kong are being strengthened through continuous improvement, and Research & Development in laboratories and research institutions. Another characteristic of the healthcare system of Hong Kong is the increase in the number of health insurance providers. One of the largest private healthcare service providers in Hong Kong is the Quality Healthcare Asia, with the support of other healthcare service providers, such as Raffles Medical Group, American International Assurance, Manulife of Canada, BUPA of the UK, and HSBC. The last attribute of the healthcare system of Hong Kong that serves to be its edge in other healthcare systems is the complete and definite support of its government on the prevention, dissipation of knowledge and promotion of healthcare in the general population through research funds and institutions. Hong Kong’s Department of Health (DH) and Hospital Authority (HA) lead this endeavor, with the support of Health and Health Services Research Fund (HHSRF), Research Fund for the Control of Infectious Diseases (RFCID), and Health Care and Promotion Fund (HCPF).   Conclusion             The healthcare system of Hong Kong serves to be of high standard and quality, and nearly comparable with the healthcare systems of other Western countries. The different attributes determined and described in this paper prove that although Asian countries are regarded by Western countries to be delayed in terms of improvement and development, the improvements in the healthcare system of Hong Kong are considered living proofs that Asians can also excel and match the standards of Western hospitals and medical practitioners. In this regard, such attributes of the healthcare system of Hong Kong may be considered Asia’s edge and pride, and thus the commencement of continuous improvement and development not only in the medical field, but also in other aspects, such as the economy, politics and society.

Attributes of Hong Kong Health Care System

Attributes of Hong Kong Health Care System Introduction Hong Kong is considered to be one of the most advanced and su...

The Definition of Standard English in Modern British Society

Introduction             English is one of the widely spoken, written and read languages in the world. The language’s attainment of a global stature becomes evident as people watch their daily doses of news. When world events are being report, they are being delivered in English. Interviews are being conducted using the English Language. It is also being used in more than ninety countries as an official or semi-official language. Research physicists and chemists uses English as a working language. Currently, it has been estimated that more than one billion are learning the English language.                In the case of Europe, many European nations are beginning to take action to make English their lingua franca. The language is spreading across Europe. From the north to the southern parts, English is now well-established as a second language in countries like Denmark, Sweden and Netherlands. Even though, English is only considered as a second language in these countries, it is still most likely that many of their people are adept at conversing using the English Language.   For example, in Sweden greater than 89 percent of the population claims that they can speak English. This figure is part of the 2001 survey as part of the European Year of Languages. The repost also yielded that English is the widely known language in Europe.               As the English Language continues to evolve to meet the needs of its users, it tends to veer away from its original form, while retaining characteristics that will allow people to associate it back to the original. This means that the language changes yet people are still able to recognize as part of the English Language.   Given that people we use the language are separated both geographically and culturally, it is inevitable that as the language is being taught and learned by one nation certain local flavors will be added to it to make it fit within the cultural context of the new users. This means that non-native English learners tend to make the language their own and thus create varieties that make it distinguishable form other varieties of the language.               This means that the users of the English language have performed the task of formulating their own versions of the language based on their culture. This can prove to be problematic since the proliferation of the use of the language aims to promote a kind of language that can be understood by its users regardless of their cultural background. In order for this to be achieved, a language should have a standardized form that will be taught and learned by the speakers.               As such, there is a need to understand the underlying perceptions regarding Standardized English since it is being pushed that Standardized English should be promoted to ensure the universality of the language. The process of standardizing the English language has been in progress for many centuries.   The process of standardization can be traced to the steady development in the direction of uniformity in written English. Another premise for standardizing a language or a variety of the language for that matter is to determine its correct and incorrect usage as well as the superiority or inferiority of the language, may it be conscious or otherwise.  For example, double negatives are considered to be incorrect yet it is very common. If people think of them as mistakes, is it accidental that many people share the same mistakes about the use of the language?               This paper will be investigating the definition of Standard English in the context of the Modern Britain. However, the paper realizes that the task at hand is not simple. This is the case since language is a complex phenomenon. For if it was not, then linguists themselves should not be facing complications regarding the definition of Standard English. Given the nature of the paper, the works of Peter Trugill will be used as the basis for the definition of Standard English. AS such, the formula used by Trugill in Standard English will also be used in this paper.               This means that this paper will also be identifying what Stand English is not in order to determine what it is. Characteristics of Standard English will be presented in order to complete a picture of what comprises Standard English. The characterization of Standard English will also be able to determine it nature in order to understand the underlying perceptions about the topic.   Standard English               Based on the tem itself it can be stipulated that Standard English is the type of English, speech or written, that can be comprehended by most users. Trugill define  standardization as a process that involves determination, codification and stabilization, where determination is the selection of a language or variety for a specific use within a society or nation, codification is the acquisition of a publicly known as well as fixed form and stabilization is the focusing of a diffused variety on a fixed along with stable form. In other words, standardization can be understood as the formulation of a publicly known and fixed form of language or variety that has a specific use within a given context.               In this case English can be considered as a standard if it has a publicly recognized and stable form that is of use for a specific purpose within a specific context. If this holds true then why is there confusion among English-speaking countries regarding Standard English?               This maybe brought about by the presence of numerous English varieties as stated earlier. In order, to complete the process of standardization, it is important to determine what variety of English will be used, for what purpose and what context. This is were the work of Trugill will come into play. To be able to supply the needed information regarding the definition of Standard English, it is important that the information be sorted out to know what goes were and what does and does not belong.   Standard English is [not]…               There are a number of misconceptions about Standard English. One of which is the notion that Standard English is the standard language. It ahs been stated earlier that the process of standardization involves the selection of the languages or variety of the language that will be used. Since the English language has many varieties, it is not safe to assume readily that Standard English pertains to the language itself.   If the notion that Standard English is a misconception, it is only logical to assume that it is a variety of the English language. Standard English the variety of the language widely used in writing most especially printing. Standard English is also wide used in education and thus it has been referred to as the variety spoken by the educated people. Standard English is being taught to non-native English speakers since is has been mentioned that the question of standardization deals with the correct and incorrect usage of the language or variety.               Standard English is also not an accent. This is an important aspect to be discussed especially in the case of Britain where widely described and high status is connected with accent called Received Pronunciation. In the British society, accents do not have a geographical reference. Instead, accent is associated with class. It is the case that all RP speakers are Standard English Speakers. However, not all Standard English Speakers are RP speakers. RP is considered as standardized. However, it is only a standardized accent of English and does not necessarily Standard English in itself.               This means that a speaker of Standard English is still considered as such even though his /her pronunciation is different form that of other Stand English speakers. This is verified by the presence of Stand English speakers in various countries around the world. Even though, they speak Standard English, their accents are still distinct more often based on their country or region of origin.               So far, the paper was able to identify that Standard English is neither a language nor an accent. It is also the case that Standard English is not a style or a register. Standard English as a style is also another common misconception. This means that there is also the notion that Standard English has everything to do with the choice of word or the formality of the style. Indeed, styles are varieties of languages that can be divided in formal or informal. Formal styles are employed during formal social situation, while informal styles are being used during informal social situations.               Nevertheless, speakers do not respond to the social situation based on its formality or lack of. Speakers are somehow able to change the degree of formality of a given social situation. They are able to do this by with the use of stylistic choices. Different languages also exhibit varying degrees of formality that represents different social situations and relations. This means that languages offer various degreed of formality to their speakers.               In the case of the English language is endowed with a full possible range of styles that can reflect the most or the least formal. However, not all speakers of the language have access to this range of styles. This can be due to their educational background or even cultural background. Based on the statements made above, Standard English should not be connoted as a style.               If Standard English is not a language, accent or style, then what is Standard English? Most British linguists agree that Standard English is a dialect. This has been evident in the discussions made above where it has been mentioned a number of times that Standard English is a variety of the English Language that is commonly understood by the majority of its speakers. In some ways Standard English is like other dialects like Cockney and Yorkshire and thus spelling it with capital letters.               However, Standard English as a dialect is unusual compared to other dialects. For one, Standard English do not have an associated accent that most dialects have. Therefore, Standard English is not readily distinguishable just by listening to its phonology and phonetics. Second, Standard English is considered important culturally, intellectually and socially. This means that the distinction between Standard English and other dialects it nor arbitrary, which is brought about by the process of standardization. In addition, there is no continuum that links Standard English with the other dialects due to codification that resulted in a feature or either being standard or not.               Due to these reasons, Standard English in the field of education is important since it allows the learners to become familiar with the variety of English that will allow them to go beyond the limitations of other English varieties such as accent. This also suggests that learners who are taught Standard English have greater chances of understanding a wide range of English speakers regardless of their origin. A Standard English speaker from India can understand a Standard English Speaker from Russia.   Uses of Standard English in Modern Britain               It has been stated that Standard English is widely used in spoken and written forms. This is the case since Standard English is the variety of the English language that allows its speaker to understand the majority of other English Speakers. This characteristic of Standard English allowed it to find its place in a number of social, intellectual and cultural activities.               For example, Standard English is commonly used in delivering news may it be in printed or spoken form. Many newspapers and television programs are using Standard English. This may very well be the effect of the characteristic of the variety that allows the majority of English speakers to comprehend it.  After all, printed materials as well as information conveyed through other forms of media aims to rely their messages and as such, they aim to be understood. Since Standard English do not have any associated accent, its use can also convey that the news, for example, is not biased.               Since Standard Education plays a big role in intellectual activities, it should not come as a surprise that it is being used in schools. For the same reason that Standard English is being used in television and radio, it is being used in the educational system to ensure that the students will be able to understand their lessons and learn more from the experience.   Role of Local Dialect               Despite the benefits being offered by the use of Standard English, the importance of local dialects should not be cast into darkness. It is also important to note that local dialects were formed and are being used for a reason. Most of these reasons are aligned with the cultural importance of keeping the dialect alive. Otherwise, people would just do away with their respective dialects altogether.               Local Dialects reflects the cultural heritage of a specific group of people that uses them. Within the vocabulary of the local dialect signifiers can be found that tells the story of they became the way they are. Most important of all is the fact that their dialects express the way they view the world and everything in it, which when done using other dialects can result in a feeling of lack. Through the course of history of the people and the dialect itself, they were able to form words that are sometimes uniquely theirs, in terms of meaning and lexicography itself. These words are based on their experiences. As such, only these words will be able to express how they truly feel for a certain event or person.               Local dialects may not be as linguistically important as the formation or use of a standard one. However, it is important that existing local dialects be preserved and even promoted along side standardized language or varieties in order to ensure the all gaps of communication will and can be bridged.

The Definition of Standard English in Modern British Society

Introduction English is one of the widely spoken, written and read languages in the world. The language’s attainment of a g...

Strategic Management of Zara

Company Background         In 1963, Amancio Ortega started a small company in Spain that manufactured women’s pajamas and lingerie products for garment wholesalers. In 1975, after a German customer cancelled a sizable order, the firm opened its forts Zara retail shop. The original intent was simply to have an outlet for cancelled orders but the experience taught the firm the importance of a marriage between manufacturing and retailing – a lesson that guided the evolution of the company ever since. From a starting point of 6 stores in 1979, the company established retail operations in all the major Spanish cities during the 1980’s. In 1988 the first overseas Zara store opened in Porto, Portugal, followed shortly by New York City in 1989 and Paris in 1990. But the real ‘step-up’ in foreign expansion took place during the 1990s when Inditex entered 29 countries in Europe, the Americas and Asia (particularly during 1998 to 2001 when it entered 21 of these 29 countries). In parallel with its overseas expansion, Inditex diversified its retail offering by adding and acquiring new brands in order to target different customer segments. Each brand operates independently, with its own stores, ordering system, warehousing and distribution system, subcontractors, and organizational structure (Inditex 2006). Zara is the largest Inditex division – accounting for more than 75 percent of total Inditex sales. The first Zara clothing store opened in 1975 in Spain as a small retailer selling men’s and women’s clothing. Since then Zara chains have grown into retailing giants with almost 1000 stores worldwide and an impressive sales record. The success of Zara is partly to do with the appeal of its men’s and women’s and children’s fashions and accessories that display unique style but at real world prices.   Task1 Industry Analysis             Strategic management starts with strategic planning an important part of the strategic planning process is External Environment Analysis. It is important that the company conduct a futuristic view of its environment as the environmental conditions may change from the date of the conception of the strategic Plan. Forecasts are needed in strategic planning and all environmental factors must be forecasted. This section will present an in-depth analysis of the industry where Zara competes. The analysis will include customer analysis, competitor analysis, PEST analysis, Porter’s Five Forces Analysis and to have a complete view of the company’s business environment a SWOT analysis will be conducted.             External environmental analysis reveals the health of an organization, its values, political climate, its use of technology and resources, its competitive rank within the industry, its overall image, and the areas requiring improvement (Gilley and Maycunich 2000). An organization’s environment is composed of those institutions or forces that are outside the organization and potentially affect the organization’s performance. These typically include suppliers, customers, competitors, government regulatory agencies, public pressure groups, and the like (Sims 2002). Because of uncertainty, these environmental factors play an important role in determining the success of the organization. Organizations are now faced with very dynamic environments where government regulations rapidly changes, new competitors arise, raw material are difficult to acquire, and consumer preference continues to change and so on. Now let us look at these external factors that shape the organization’s strategies and objectives and affect the organization’s success.             The global textile and clothing industry also experienced changes. One of the biggest changes is the removal of import quotas that has opened opportunities for large exporters such as China and India. The textile and clothing industry, particularly in Europe is characterized by fragmented production with a large number of small and medium-sized companies mainly located in Italy, Greece, France, Germany and Spain (Nordas 2004). The textile and clothing industry in Europe is also becoming more international and international competitors are posing greater threats. Sub-contracting or delocalization of textile and clothing production to countries with lower labor and transportation costs is also becoming popular among European retailers as it reduce lead-time and costs (Berkeley and Steuer 2000). European retailers and manufacturers are also changing their business models to keep up with the changing customer demands and tastes (Lopez and Fan 2007).   The Fashion Industry             The fashion industry is composed of different products and markets where there is an element of style, which is short-lived. The fashion industry is characterized by the following characteristics: 1. Short Life-Cycles – the product is often short-lived, designed to capture the mood of the moment. Consequently, the period in which it will be saleable is likely to be very short and seasonal, measured in months or even weeks. 2. High Volatility – demand for these products is rarely stable or linear. It may be influenced by the inconsistencies in weather, media, celebrities and icons. 3. Low Predictability – because of the volatility of demand it is extremely difficult to forecast with any accuracy even total demand within a period, let alone week by week or item by item demand. 4. High Impulse Purchasing – many buying decisions by consumers for these products are made at the point of purchase. Meaning, the shopper when confronted with the product is stimulated to buy it, hence the critical need for ‘availability’.               The clothing industry has been changed by globalization. Now national brands such as Zara and Mango from Spain, Topshop from the United Kingdom, Hennes & Mauritz from Sweden, Gap from the United States, United Colors of Benetton from Italy, Uniqlo from Japan and Esprit from Hong Kong are crossing borders to become national brands. These clothes retailers are following the internationalization process of US retailers predominantly targeting the youth market (Stone and McCall 2004). Today’s fashion industry is highly competitive and the constant need to refresh product arranges means that there is an inevitable move by many retailers to extend the number of ‘seasons’ (Christopher et al 2004).   Consumer Analysis             Zara positions itself as the designer-boutique alternative for the price-conscious but trendy consumer (Cohen and Roussel 2004). Today’s consumers are spending less on clothing – choosing to spend their disposable income on healthcare, electronics, education, and travel and leisure. Moreover they can now choose from a wide assortment of inexpensive products.   Competitor Analysis             Three main competitors of Zara pose the biggest threats. These are Mango, the Gap and H&M. Almost any retailer can be a threat to Zara due to its wide range of merchandise categories. The Gap is one of Zara’s main competitors as it also sell the same merchandise as Zara does at a more affordable prices and less trendy styles. The company also has a world-wide presence. H&M (Hennes and Mauritz) is one of Zara’s most threatening competitors. H&M also has been quick to internationalize which allows it to gain sales in countries outside its native Sweden. H&M also is more attentive when entering new markets and tends to enter one country at a time, as opposed to Zara who multitasks globally. H&M builds distribution centers in their international locations in order to cut down lead times and potential logistics costs. Another threat to Zara is that H&M carries trendy clothing choices that they have designed based on the melding of international apparel tastes (Craig et al 2004). Mango, also a Spanish fashion retailer is also known for its excellent business model and supply chain management. Mango has a history comparable to Zara’s being a Spanish company with approximately the same number of stores in the same number of countries worldwide, and a recent history of great success. Like Zara, all the Mango stores are located in prime positions, whether in the main shopping centers or premises located in city centers. Stores are of sufficient size to display its collections. The products of Mango are also similar to Zara’s in style, pricing and quality. However, Mango is very different from Zara in organizational strategy as Mango is based on a franchising system, and in marketing strategy, relying heavily on advertising campaigns.   Porter’s Five Forces Analysis 1. Competition among existing firms (High) – the competition among existing firms in the clothing industry is very fierce. Zara does not only compete with local Spanish brands such as Mango or Springfield, it also competes with other European brands such as H&M, Topshop and United Colors of Benetton. Zara also competes with international brands like Gap. 2. Threat of new entrants (High) – the clothing industry is very fluid and open. Small and medium-sized companies enter the fashion arena frequently. 3. Threat of substitute products or services (High) – consumers are always on the look out for more quality trendy products at more affordable prices. The threat that other companies can offer the same quality or better quality products at lower prices is high. 4. Bargaining power of suppliers (Low) – fashion retailers/merchandisers outsource their production in places where transportation and labor costs are cheap. Zara strictly controls its production and has a very stringent contracts with suppliers. 5. Bargaining power of consumers (Medium) – the consumers is the focal point of Zara’s business model. In spite of this, Zara has conditioned the minds of the consumers by offering limited stocks and by quickly replenishing its products.    Task 2 Strategic Capabilities Innovative Business Model             Inditex, the company that owns Zara has an innovative business model that serves as the foundation of its strategic capability. The business model of Zara gives utmost importance to customer and continuous innovation. The organization considers the customer as the beginning and end of its business. However, Zara has pushed forward by giving the customer an active role from the start of the chain and turned it into the principal drive for its entire business model. The requests, comments and suggestions of the customers are considered by the design team which, based on this, create some proposals that are sent to stores immediately. The start of the company’s business model is the store. The store is important to the company’s business model because this is where informatio0n from the customers are received and collected. These information are sent to design centers and commercial departments in real-time. The response from the customer with new requests sets the process going. Zara stores receive new products twice a week , thereby giving a quick response to the customer.   Excellent Supply Chain Management             For Zara stores to be able to offer cutting edge fashion at affordable prices requires the firm to exert a strong influence over almost the entire garment supply chain: design, purchasing, production, distribution, and retailing. Zara produces clothes that resemble the latest couture creations, but they beat the designers to market. Because they use less expensive fabrics, they can also provide the product at a lower price. To achieve this type of competitive advantage, Zara controls most of its supply chain, by managing all design, warehousing, distribution, and logistics functions. Zara design the organization, operational procedures, performance measures and even office configurations to make information and product transfer easy. Because Zara’s merchandise is produced in small quantities, provided on predictable schedules, and displayed in the stores for only a short amount of time, customers visit Zara stores more frequently. This has an added advantage of helping Zara avoid the cost of advertising.             The scheduling techniques of Zara is also very efficient. <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Centrally Managed Inventory – controlled and timely delivery of clothing to all stores across the world</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Reduced Design Cycle Time – timely response to items that sell well and ability to quickly alter or enter new designs</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Strong IT System – allows almost immediate communication of sales and inventory information across enterprise</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Logistics and Distribution – clothes move within hours to their destination, efficient scheduling of shipments</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> </li> </ul> Fashionable Items at Real World Prices             The particular operation strategy used by Zara helps it respond quickly to shifts in customer demand and build a powerful brand. Zara estimate that it takes only two weeks to convert design ideas into products on the shelf to satisfy its young, hip, clientele with fashion for the masses. Store employees regularly tour urban hot spots looking for new trends and reporting back to designers. Knowing what’s in today may be out next month is the secret of the success of the Spanish retailer as is the ability to apply operations strategy that puts new fashion concepts on the shelf twelve to fifteen days.             Zara’s appeal is in its clothes themselves. Zara has earned a reputation of being able to come up with more affordable interpretations of catwalk styles into its stores with breathtaking speed. A design presented in a fashion show by a luxury design house will not be available to the masses for months, but Zara is able to create something that looks like it in just two weeks. This enables Zara to attract a large number of customers who cannot afford designer clothes or who are looking for a more affordable alternative (Tungate 2008).             Although Zara is known for its ability to provide more affordable interpretations of catwalk clothes, it is also known as a company that can create innovative fashion pieces. This is attributed to its highly effective design strategy that starts in the stores. The customer feedbacks, requests and suggestions that are gathered from the customers in every store is passed to the design team. The design team also consult magazines, trade fairs, and fashion shows to know the latest in the fashion industry. The company ensures product quality by designing its own products. Zara employs around 300 people in its headquarters in Spain. The headquarters staff is composed of designers, specialists and buyers. Together they produce designs for approximately 40,000 items per year from which 10,000 are selected for production. Unlike their industry peers, these teams work both on next season’s designs and, simultaneously and continuously, also update the current season’s designs. Extensive feedback from the store network also forms an integral part of the design process. Women’s, men’s and children’s designers sit in different halls in a modern building attached to the Inditex headquarters.             The store managers play an important role in making sure that each store only offers what customers want and need. Store managers monitor the tastes and demands of the customers, and tailor stock accordingly. That is the reason why even if there are two Zara stores in the same city the products that are being offered are not exactly the same. Zara’s product managers keep in touch with stores, seeking feedback from customers and monitoring the popularity or otherwise of items (Tungate 2008).   Task 3 Strategic Choices Porter’s Generic Strategies             Michael Porter believed that a firm can choose between two options. These are cost advantage and differentiation. There are according to Porter three generic strategies that a company can employ. These are cost leadership, differentiation and focus. Cost Leadership             Overall, cost leadership requires a firm to develop vigorously an optimally efficient scale of operation and to control tightly the firm’s cost in all activities (Reid et al 1993). Focus Strategy         A focus strategy requires a firm to concentrate on a particular market segment which may be dictated by factors such as the buyer, the product, or the location rather than the overall market. The strategy is predicted on the notion that a firm that devotes its entire energies to a niche or target can better achieve competitive advantage than those rivals which broadly compete across the market (Reid et al 1993). Differentiation             Firms that follow the generic differentiation strategy seek to exploit firm-specific assets by producing goods or services, which are almost unique compared to those offered by rivals. Differentiation is not limited to the physical nature of the product. Other significant dimensions of differentiation include distribution channels, marketing efforts, after sales service and so on. Essentially a firm seeks to establish itself as unique within its industry. Effective differentiation is generally resistant to the forces of competition. Potential and existing rivals must overcome the uniqueness of the product and try to erode customer loyalty. Customers are less likely to switch because of a perceived lack of similar alternatives (Reid et al 1993).   Imperative Strategic Choices             Zara employs different strategies to gain competitive advantage over its competitors. In order to become the leading fashion retailer in the world, Zara employs a combination of both differentiation and cost leadership strategies. This imperative strategic choice is achieved through:   1. Distribution Channels             One of the possible threats to the company and a potential source of failure is its Spain-centric production and distribution. Majority of the company’s processes are being done in Spain and the company’s two distribution channels are in Spain. If the external environment is subjected to drastic changes such as political unrest, economic flux, weather changes, calamities, and terror attacks the company will be vulnerable. In order to avoid this and to strengthen the company’s presence in other locations, the company can develop distributions channels in strategic locations in Asia and in America.   2. Complimentary Sales Channels             In order to reach the consumers and to fully utilize technology, Zara can make use of the internet as an alternative sales channel where customers can shop online. Catalogues can also be used as an alternative sales channel. Zara can choose to grow in three sales channels – stores, internet and catalogue. Although the stores are Zara’s primary sales channel, internet and catalogue sales can strengthen Zara’s profile and increase the level of service to customers, thereby making Zara even more accessible.   3. Expansion in Europe, South America and Asia             One strategic choice that is pertinent to the strategic positioning of Zara is expansion.             Zara continues to expand to new markets. In 2006, Zara entered markets such as Croatia, Slovakia, Colombia, Guatemala and Oman (Annual Report 2007). The chain continued its expansion process with openings in the main commercial areas of large cities. In line with the company’s strategy of growth, in 2007 Zara opened up in Peking with the first store of the Chain in the Chinese capital, and continued growth in the Russian market with openings in Moscow, Kazan, Rostov and Novosibirsk. In Europe, stores opened in such places as Bologna and Naples (Italy), Frankfurt (Germany), Gotenborg (Sweden) and Oslo (Norway). What is more, the chain began to operate in five new markets: Croatia, Slovakia, Guatemala, Colombia and Oman (Annual Report 2007).   Task 4 Recommendation and Justification             The recommended growth strategies for Zara is Market Expansion through Market Development. The focus of market development is entrance to new markets where Zara is not yet present.   Market Expansion through Market Development             Finding new markets may not guarantee success for the firm. A firm can also achieve growth in developing markets. Market development strategy involves developing new markets by duplicating the business operation, with minor adaptive changes. The firm can undertake a market expansion strategy. In market expansion, the same expertise and technology and sometimes even the same plant and operations facility can be used. There is therefore potential synergy and resulting reductions in investments and operating costs. Geographic expansion may involve changing from regional operation to a national operation, moving into another region, or expanding to another country (Proctor 2000).               The expansion of Zara in Europe, South America and Asia requires a more developed and well-managed supply chain. In order to make the expansion strategy effective the company must further develop its supply chain management process. In order to strengthen the company’s supply chain management, Zara can make use of different strategies where necessary. These strategies include Total Quality Management and Quick Response. These strategies do not aim to replace Zara’s supply chain processes but to enhance and support the company’s already effective supply chain. 1. Total Quality Management             The idea of total quality management (TQM) emphasizes planning for quality, including designing the product in such a way that consistent quality is more easily obtained and more easily measured. The impetus for a company to devote significantly more resources to quality through a TQM program comes from a trend that most companies are now experiencing – an increased competitive pressure that leads to higher costs associated with poor quality. The product must be designed in such a way that it can be produced consistently without losing sight of the design aspects demanded by the customer. The production process must be designed with quality in mind (Summers 1998). 2. Quick Response             Quick Response (QR), a program developed by textile and apparel manufacturers and retailers around 1985 as a way to cope with problems challenging the apparel industry, uses a combination of strategies to reduce inventory levels, improve merchandise quality, increase worker productivity, increase stock turnover, and reduce merchandise markdowns and inventory costs. Fundamentally, QR is a way to gather information about consumer preferences and to reflect them in production decisions in a timely manner. To comply with consumers’ needs, QR relies on sales data. Through computerized information systems, sales data are transmitted and transformed as useful information that reveals consumers’ preferences and reactions, and decisions are then made promptly to respond to what consumers want (Kang and Sullivan, 1999).             The QR strategy links all activity to real time demand. It is customized by the individual retailer or manufacturer and is particularly suited to small and medium-sized firms. It is designed to be context specific and to be contingent upon the setting. Quick Response as an operations strategy is designed to overcome the impact of seasonality in operations.       References Annual Report 2006, Inditex, viewed 09 December, 2008,             <http://www.inditex.com/en/shareholders_and_investors/investor_relations/annual_reports>   Annual Report 2007, Inditex, viewed 09 December, 2008,             <http://www.inditex.com/en/shareholders_and_investors/investor_relations/annual_reports>   Berkeley, N and Steuer, N 2000, Comparative Analysis of EU and National Trends in the Textile and Clothing Industry, viewed 09 December, 2008, <http://www.stile.coventry.ac.uk/adapt>   Christopher, M, Lowson, R and Peck, H 2004, ‘Creating Agile Supply Chains in the Fashion Industry’, International Journal of Retail and Distribution Management, vol. 32, no. 8, pp. 367-376.   Cohen, S and Roussel, J 2004, Strategic Supply Chain Management: The Five Disciplines for Top Performance, McGraw-Hill Professional.   Craig, A, Jones, C and Nieto, M 2004, Zara: Fashion Follower, Industry Leader, Philadelphia University, viewed 09 December, 2008             <http://www.philau.edu/sba/news/zarareport.pdf>   Jones, S J 2005, Fashion Design, Laurence King Publishing.   Kang, J K and Sullivan, P 1999, ‘Quick Response Adoption in the Apparel Manufacturing Industry: Competitive Advantage of Innovation’, Journal of Small Business Management, vol. 37, no. 1, p. 1. Lopez, C and Fan, Y 2006, Internationalization of Spanish Fashion Brand Zara, Brunel University, viewed 09 December, 2008,             <http://bura.brunel.ac.uk/bitstream/2438/2003/4/Zara.pdf>     Nordas, H K 2004, The Global Textile and Clothing Industry Post the Agreement on Textiles and Clothing, World Trade Organization, viewed 09 December, 2008, <http://www.wto.org/english/res_e/booksp_e/discussion_papers5_e.pdf>   Proctor, T 2000, Strategic Marketing: An Introduction, Routledge, London.   Reid, G C, Jacobsen, L R, and Anderson, M E 1993, Profiles in Small Business: A Competitive Strategy Approach, Routledge, New York.   Stone, M A 2004, International Strategic Marketing: A[N] European Perspective, Routledge, New York.   Summers, M 1998, Analyzing Operations in Business: Issues, Tools, and Techniques, Quorum Books, Westport CT.   Tungate, M 2008, Fashion Brands: Branding Style from Armani to Zara, Kogan Publishers.

Strategic Management of Zara

Company Background In 1963, Amancio Ortega started a small company in Spain that manufactured women’s pajamas and lingerie produ...

Chapter 7 & 8 Questions on Economic and Management

QUESTIONS   1.  Define and compare the following types of cost:  a.  Sunk Cost versus incremental cost b.  Fixed cost versus variable cost c.  Incremental cost versus marginal cost d.  Opportunity cost versus out-of-pocket cost   13.  Overheard at the water cooler:  "I think our company should take advantage of economics of scale by increasing our output, thereby spreading out our overhead costs."  Would you agree with this statement ( assuming this person is not your boss)?  Explain.   PROBLEM 2   Mr. Lee operates a green grocery in a building he owns in one of the outer boroughs of New York City.  Recently, a large chemical firm offered him a position as a senior engineer designing plants for its Asian operations.  (Mr. Lee has a master's degree in chemical engineering.)  His salary plus benefits would be $95,000 per year.  A recent annual financial statement of his store's operations indicates the following:   __________________________________________________________________________   Revenue                    $625,000 Cost of goods sold       325,000 Wages of workers          75,000 Taxes, insurance, maintenance, and depreciation on building                        30,000 Interest on business loan (10%)                     5,000 Other miscellaneous expenses                     15,000   Profit before taxes     $175,000 ______________________________________________________________________________   If Mr. Lee decides to take the job, he knows that he can sell the store for $350,000 because of the goodwill built with a steady clientele of neighborhood customers and the excellent location of the building.  He would still hold on to the building, however, and he knows he could earn a rent of $50,000 on this asset.  If he did sell the business, assume he would use some of the proceeds from the sale to pay off his business loan of $50,000.  He could then invest the differenc e of $300,000 (i.e., $350,000 -$50,000) and expect to receive an annual return of 9 percent.  Should Mr. Lee sell his business and go t work for the  chemical company? In answering this quesiton, also consider the following information. a.  In his own business, Mr. Lee works between 16 and 18 hours a day, 6 days a week.  He can expect to work between 10 and 12 hours a day, 5 days a week, in the chemical company.  b.  Currently, Mr. Lee is assisted by his wife and his brother, both of whom receive no salary but share in the profits of the business. c.  Mr. Lee expects his salary and the profits of his business to increase at roughly the same rate over the next 5 years.   CHAPTER 8 QUESTIONS   2.  Explain the importance of free entry and exit in the perfectly competitive market.  That is, if free entry and exit did not exist, what impact would this have on the allocation of resources and on the ability of firms to earn above-normal profits over time?   9.  "Economic profit" is a theoretical concept used to help explain the behavior of firms in competitive markets.  Suggest ways in which this concept can actually be measured.   11.  Explain why a price-setting firm will always set its revenue-maximizing price below the price that would maximize its profit.   PROBLEM 2   Indicate whether each of the following statements is true or false and explain why. a.  A competitive firm that is incurring a loss should immediately cease operations. b.  A pure monopoly does noot have to worry about suffering losses because it has the power to set its prices at any level it desires. c.  In the long run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits. d.  Assuming a linear demand curve, a firm that want to maximize its revenue will charge a lower price than a firm that wants to maximize it profits. e.  If P>AVC, a firm's total fixed cost will be greater than its loss. f.  When a firm is able to set its price, its price will always be less than its MR. g.  A monopoly will always earn economic profit because it is able to set any price that it wants to.

Chapter 7 & 8 Questions on Economic and Management

QUESTIONS 1. Define and compare the following types of cost: a. Sunk Cost versus incremental cost b. Fixed cost versus var...

What could be certain useful recommendations can you share and or contribute so that the HK travel industry will totally integrate into the internet function base?

What could be certain useful recommendations can you share and or contribute so that the HK travel industry will totally integrate into the internet function base?

HK travel agencies have to keep standards and guidelines of operations through online sites and databases. The need for HK travel agency to ...