Research Korner

Thesis Statements on Indian Automobile Industry

Indian Automobile Industry     Thesis Statements   1.        In Indian automobile industry, quality improvement is crucial. In aggregate, automobile businesses are there not only to produce quality products but also affordable, safe and environment-sensitive ones. This makes the Indian car brand competitive in both private, industrial and public utilities’ needs. 2.       The automobile sector in India has been growing robustly. The market shares of the different types of vehicles show the increase of the demand pattern in this sector.  Whereas, the Domestic Market Share for 2008-09 of Indian cars are 15.96% for Passenger Vehicles, 3.95% for Commercial Vehicles, 3.6% for Three Wheelers and 76.49% for Two Wheelers. 3.       The automobile industry in India happens to be the 9th largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Thesis Statements on Indian Automobile Industry

Indian Automobile Industry Thesis Statements 1. In Indian automobile industry, quality improvement is crucial. In...

Bronchitis

Breathing is one of the important aspects of life, but if you’re having a hard time to breathe properly, you may need to see a doctor, you may have bronchitis.   Bronchitis is the inflammation of the mucous membranes in the bronchi which carry airflow from the trachea into the lungs. The thin mucous in the airways can be irritated and swollen.  Coughing is the main symptom of bronchitis. Causes Bronchitis can be cause by many different factors. It often occurs in flu and colds seasons. It may be from influenza  A and B popularly known as flu. In addition, it may come from a number of bacteria like mycoplasma pneumoniae which is also called as walking pneumonia.  Bronchitis can also occur when you inhale fumes or dust that could irritate your lungs. Chemical solvents and smoke including those of cigarette have been linked to acute bronchitis. The elderly and those with weakened immune systems, smokers, and anyone with long exposure to respiratory irritants are most likely to have bronchitis. There are many different causes of acute or chronic bronchitis. Acute Bronchitis Acute bronchitis is most often caused by viruses that infect the epithelium of the bronchi, resulting in inflammation and increased secretion of mucus. Acute bronchitis often develops during or after the course of having influenza. About 90% of acute bronchitis is caused by viruses like rhinoviruses and adenoviruses. Bacteria including Mycoplasma pneumoniae, Chlamydia pneumoniae, and Bordetella pertussis are responsible for about 10% of the cases. Chronic Bronchitis Chronic Bronchitis is a type of chronic obstructive pulmonary disease(COPD). Chronic bronchitis is caused by recurring injury or irritation to the respiratory epithelium of the bronchi, resulting to inflammation, swelling and increased production of mucus. Airflow into and out of the lungs is partly blocked because of the swelling and extra mucus in the bronchi or due to reversible bronchospasm. Most cases of chronic bronchitis are caused by cigarette smoking or other forms of tobacco. Chronic inhalation of irritating fumes or dust from occupational exposure or air pollution may also be the cause. About 5% of the population has chronic bronchitis, and it is two times more common in males than females. Symptoms Cough is a common symptom of bronchitis. It is our defense mechanism to expel infectious bacteria inside our bodies. The cough may be dried or with phlegm. If you have severe phlegm production, it may lead to pneumonia if left untreated. The cough may last for two weeks giving you abdominal and muscle pains. Wheezing may also occur because of the inflammation of airways. Other common symptoms include sore throat, runny nose, nasal congestion, low-grade fever and the production of sputum. Chronic Bronchitis is defined as having a productive cough that lasts for 3 months or more per year for at least 2 years. Other symptoms may include wheezing and shortness of breath, especially upon exertion. The cough is often worse soon in the morning, and the sputum produced may have a yellow or green color and may be spots of blood. Diagnosis Acute Bronchitis can be diagnosed with the help of the patient’s medical history and physical examination. The doctor may examine the patient’s upper airways to look for signs of ear, nose, or throat infection including redness of the ear drums, runny nose, and post nasal drip. Redness of the throat or swelling and pus on the tonsils can help distinguish common cold, tonsillitis, and acute bronchitis symptoms. The neck may be palpated or felt to check for swollen lymph nodes. Listening to the lungs may reveal decreased air entry and wheezing. A chest X-ray may be considered if there is a concern that a pneumonia or infection of lung tissue is present. Blood tests are usually not helpful. Treatment Acute bronchitis can be treated with decongestants and expectorants. A cough suppressant may be used if the cough interferes with work and sleep conditions. You must not use antibiotics in treating acute bronchitis because as most cases acute bronchitis are caused by viruses. Using antibiotics to persons without bacterial infections will develop resistant bacteria against antibiotic. Chronic bronchitis is treated based on its symptoms. Inflammation and swelling of the respiratory epithelium may be reduced with inhaled corticosteroids. Wheezing and shortness of breath can be treated by reducing bronchospasm with bronchodilators Hypoxemia or too little oxygen in the blood can be treated with supplemental oxygen. Prevention Bronchitis may be prevented by avoiding smoking and avoiding secondhand smoke. Smoking is the leading cause of chronic bronchitis and emphysema. You also must have your annual flu vaccine to reduce the risk of having bronchitis. You must practice good hygiene to prevent getting viral infections. Wash your hands regularly and use hand sanitizers. If you are working with chemicals which can irritate your lungs, it is practical to wear a mask to reduce the risk of infection. References eMedicine Health, Bronchitis[Online] Available at: http://www.emedicinehealth.com/bronchitis/page3_em.htm [Accessed 22 Feb 2010] Mayo Clinic Prevention of Bronchitis[Online] Available at: http://www.mayoclinic.com/health/bronchitis/DS00031/DSECTION=prevention [Accessed 22 Feb 2010] Medicine.net, Bronchitis[Online] Available at: http://www.medicinenet.com/bronchitis/page5.htm [Accessed 22 Feb 2010]

Bronchitis

Breathing is one of the important aspects of life, but if you’re having a hard time to breathe properly, you may need to see a doctor, yo...

Fair Value Accounting

Fair Value Accounting     Introduction In accounting, fair value is usually used for assets that are meant to be accounted for at market prices, but a 'market' might not be available, and therefore an estimate of the 'fair value' is made. Usually this is not used where an asset or liability has a historical cost and is being depreciated or amortised. And is normally not used for assets where an established market price can be identified (Scott, 2009). As indicated in the book of Scott (2009), most of the current accounting system is meant to control two distinct types of information asymmetry: adverse selection and moral hazard. Controlling adverse selection requires a decision usefulness approach that emphasises fair value accounting numbers that often fluctuate. Unfortunately, controlling moral hazard requires that income figures be highly correlated with management effort, which argues for the use of "hard numbers."  With this, this paper discusses and analyses the factors in accounting procedures and issues in fair value with respect to Australian Accounting Standard Board (AASB). The main purpose of this paper is to discuss the factors involved in accounting procedures and issues in fair value accounting. Aside form this analysis, determination of fair values of assets in a business combination will be discussed since there are accusations in which Fair Value Accounting (FVA) deepening the current financial distress whilst proponents argue FVA is providing investors with information about the value of firm’s assets. In addition lobbyists from the banking industry have effectively had politicians use “pressure” on Accounting Standards Boards to redefine FVA.   Decision Usefulness With respect to the current stance of global finance and usefulness of accounting in making decisions, the report of Russell Berman last April 2009 in AccountancyAge.com stated that US Treasury Secretary Tim Geithner’s recently announced proposals for US recovery have attracted extreme criticism in many quarters for failing to address the issue of Fair Value Accounting. As reported, Alex Pollock of the Washington-based American Enterprise Institute and a long-standing critic of mark-to-market accounting rules sees a missed opportunity for a more radical overhaul.[1]  Experts argued that the failure of US to pay attention on Fair Value Accounting created problems and deepening the global finance crisis.  According to the report of Berman, Alex Pollock stated that “a comprehensive plan would have to fix fair value accounting”. Similar to other accounting procedures, fair value accounting was used for making appropriate decisions (Scott, 2009). Businesses in Australia are fast evolving. They are developing with respect to the changes of global market and issues in valuing. The focus on valuation has changed from nonfinancial items to financial assets and liabilities reflecting differing concerns over time. The use of market values for nonfinancial assets and, in some cases, inflation adjustment for monetary items was discussed intensively across the commercially developed world. A number of standard-setting bodies promulgated disclosure requirements or allowed the use of alternative accounting standards in this area under the title “current cost” accounting, which generally required the use of entry prices or their surrogates for nonfinancial assets but maintained historical cost for financial assets and liabilities with the possibility of some adjustment for general price changes. In accordance to this development, extensive accounting and auditing procedures must be practiced for making effective decisions. This includes everything from external audits of accounting management policies and procedures to internal reviews of quantitative exposure measurement models. In essence, this process involves the evaluation whether or not its management process is working properly and efficiently. This must be done to assess if the company addresses the problems and risks being identified in the first process. Without this step, Australian businesses would not be able to come up with policies and regulations regarding Australian Accounting Standard Board (AASB), and would not be able to know if their measuring, monitoring and controlling processes are effective enough to suggest improvement of their operation and profit.               Positive Accounting and Agency Basically, accounting processes like Fair Value Accounting generates summary measures of transactions and events that occurred during a period and of net assets at the balance sheet date. This process involves a great deal of aggregation, which is done via the recognition and measurement of assets and liabilities. Different valuation concepts are used. For example, some assets are measured at historical cost, others at fair value or market value, discounting is considered for measuring certain items and not for others. With this, we may say that financial accounting and reporting like Fair Asset Accounting should be governed by standards or rules that are developed by standard-setters or legal bodies on a national or international level. The objective is to provide decision-useful information to the stakeholders of the firm, often by focusing on information that investors in capital markets demand, but also on stewardship. Financial reports are audited by independent public accountants. They are subject to scrutiny by the board of directors and supervisory boards, respectively, or by audit committees. In many countries there is some form of public oversight by private boards or by government institutions, and enforcement is carried out by such institutions or the courts. All these institutions are supposed to assure the quality of financial reports.          In finance, accounting and in accordance to the context of Australia, there are many variables that we have to consider such cash flow and profits, the Profits and Loss Account and Balance Sheet, and financial ratios. Aside from these factors, the “fair value” concept in businesses is also very vital to their development. Actually, it is all about the policy in which a certain business is obliged to submit financial reports in accordance to financial standards set by the country (Atril & Mclaney, 2004). So let say in Australia, financial reporting should comply with Australian Accounting Standard Board (AASB). Basically, financial reporting is very vital to the development of a certain organisation since it is the distinction whether the certain organisation are growing or not (Atril & Mclaney, 2004).  And with regards to the issues and criticisms of Fair Value Accounting: 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Fair-value measurement aims to 	provide information about (potential) market prices of assets and 	liabilities. However, only in a world of perfect and complete markets can 	the fair value be precisely defined (van Deventer 	DR 2008). But in such a world there would be no need for financial 	reporting,  (Riahi-Belkaoui, A 1998) which contains market prices. The 	information on quantities would be sufficient, since all users could find 	the relevant prices. In the real world, markets are imperfect and 	incomplete, and the standard-setter has to decide which market is relevant 	(Pike, R & Neale, B 1999).  Even if he can make this decision, there are 	differences between a market price and a value in use. Assuming a rational 	investor, he or she will only invest in an asset if the value in use exceeds 	the market price. This investment creates a positive net present value. 	Therefore, the information on market prices can only be a conservative 	estimate of the value in use at the time of investment.</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Selling prices are 	informative, but only if the enterprise really wants to sell the asset. 	Selling prices make sense for trading securities, but not for noncurrent 	assets like property, plant, and equipment, especially for special 	machinery, or for financial investments.</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	For many assets and 	liabilities, we cannot find market prices by looking closely at the markets. 	Instead, we must deduce the market prices by using valuation models (van 	Deventer DR 2008). For example, think about financial derivatives or 	some rental properties. The important questions are, what models are 	admissible and what are the realistic parameters?</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Selling and buying prices of 	individual assets and liabilities are not good proxies for the contribution 	that such assets and liabilities make to the value of the firm. This value 	cannot be identified by individual valuation, item by item, and then adding 	the values. This addition would only be sufficient if the firm had no 	synergies and self-produced goodwill.</li>   Given the threats and the management in fair value accounting procedures it must pass through, it is essential to discuss some possible strategies its implementation. From the policies given by Australian Accounting Standard Board (AASB), Australian businesses may manage them by using existing assets or existing resources as a counter troubles, and involves improvements to existing methods and systems, changes in responsibilities, improvements to accountability and internal controls.             Regulatory Stringent approach to accounting policies and standards is a tool for the government to measure the legitimacy of an entity with regards to its relationship with the public and environment (Deegan & Rankin 1996 p. 60).  Financial reporting is one of the factors that need consideration not only by the Australian business organisations but also by the global community especially to those who are responsible in setting up the international financial reporting standard (IFRS) and AASB (Australian Accounting Standards Board 2009) to regulate accounting practices.  In line with this, the values reported by a certain company should conform to the standards given by AASB, IFRS or GAAP.  Fair values given to companies should also comply with their status in the market (van Deventer DR 2008).  Meaning, fair values should reflect to the factors in business like its earnings, growth and market.  Actually, the Financial Accounting Standards Board (FASB) in 2004 proposed guidance on how entities should decide fair value assessments for financial reporting purposes. The guideline would concern generally to financial and non-financial liabilities and assets considered at fair value beneath other authoritative accounting assertions. Lack of one single reliable outline for giving fair value measurements and developing a consistent estimate of a fair value in the deficiency of quoted prices may create incomparability and inconsistencies. The point of this guide is to eliminate the inconsistencies by constructing a solid support to be used in any fair value assessments (Australian Accounting Standards Board 2009).             Those who hold on to the fair value measurement system uphold that it has many advantages, pointing out two major arguments. The first is significance. Fair value measurement of an entity’s assets and liabilities results in escalating significance of financial statement information (Thomas, W 2002), so that readers of the financial statement will now adjust tremendously in interpreting entity reports. Financial strength, liquidity and cash flow become effortlessly assessed.             The second major issue is consistency. A situation case where some financial statement items are accessible at fair value, while others are offered at cost may confuse financial statement readers (Thomas, W 2002). In addition, fair value measurement may cause early detection of unrealised profits as a result of an augment in market value. Moreover, a measurement of fair value for unquoted items imposes the use of authorities, placing an important cost burden on companies in order to acquire a consistent valuation.   Conclusion The intention of standard-setters with regard to financial items is to illustrate the economic value of each class of assets and liabilities as if they were independent from each other and other entity resources; these values were linearly additive and as far as potential purged of super profits and managerial purpose. This outlook relies on neither a strong theory nor on empirical evidence. It is really based on an economy with all relevant markets being well organised and in perfect equilibrium, which results in markets consistent with the standard-setters' scenario and in market prices that reflect economic values.  As shown, this paper has examined the issues pertaining to Fair Value Accounting.  Ideally, fair values embody the market's expectations concerning assets and liabilities. Thus, AASB, IFRS or GAAP wishes to substitute the views of the market for those of the management. They see present value measures as providing an estimate of fair value only where market prices are unavailable. Only when a market price for an asset or liability or for similar assets and liabilities is absent is a present value valuation necessary, as otherwise the marketplace's view of present values of such items is embodied in market prices that are held to capture all elements relevant to asset value. The standard setter's such as AASB, IFRS and GAAP major argument for fair value is that the accounting valuations should, ideally, recognise the amount of asset cash flows and their timing and expectations of changes therein, the time value of money, the price of the risk inherent in assets, and other factors. It is argued that it is only fair values that capture just these factors. Using managerial estimates includes additional items to those listed above that reflect differing managerial information and different preferences to the market. Allowing for these in accounting would mean that identical items would be valued differently. The underlying wish is for accounting like Fair Value accounting to state things “as they are”, free of any managerial manipulation.   References: Australian Accounting Standards Board 2009, viewed 3 June 2009, <http://www.aasb.com.au>   Atrill, P & McLaney, E 2004, Financial Accounting for Decision Makers, 4th edn., Prentice-Hall, New Jersey.   Deegan, C & Rankin, M 1996, "Do Australian companies report environmental news objectively? An analysis of environmental disclosures by firms prosecuted successfully by the Environmental Protection Authority”, Accounting, Auditing and Accountability Journal, vol. 9. no. 2. pp. 50-67   Pike, R & Neale, B 1999, Corporate Finance and Investment Decision and Strategies, 3rd edn., Pearson Education Limited, England.   Riahi-Belkaoui, A 1998, Financial Analysis and the Predictability of Important Economic Events, Quorum Books, Westport, Connecticut.   Scott, W 2009, Financial Accounting Theory. Prentice Hall. ISBN:9780132072861   Thomas, W 2002, ‘The rise and fall of Enron; when a company looks too good to be true, it usually is’, Journal of Accountancy, 1 April.   van Deventer DR 2008, Fair-Value Accounting, CDOs and the Credit Crisis of 2007–2008, viewed 3 June 2009,  Bank Accounting & Finance. <http://www.kamakuraco.com/Portals/0/doclibrary/BAF_21-06_08_Deventer.pdf>   	 	 		 		 		 		[1] 		From 		http://www.accountancyage.com/accountancyage/analysis/2239867/reforms-slammed-ducking-fair

Fair Value Accounting

Fair Value Accounting Introduction In accounting, fair value is usually used for assets that are meant to be accounted for at ...

SOCIAL CARE PROVISION IN UK

Social Care Provisions in UK   Poverty is one of the major causes of the uprising of health problems especially in poor nations and countries worldwide. Government and other people are burdened by the fact that the promotion of health is one of the most important responsibilities of every individual. However, the effect of poverty in the population cannot be denied if we look at the health of the people experiencing it. Recent studies have shown that wealthier nations are healthier as compared to economically challenged nations and countries (, 2005). It was held by  and  (2002) that in meeting the specific needs of the vulnerable populations and groups worldwide, there must be a balance between accessible, high quality universal services, and targeted programs. With this, the World Health Organization have acknowledged the help of non-government organizations to the poor people who are not able to access on proper health care system, sewage disposal, clean water, food safety.   A second influence on the development of a new policy agenda for health promotion has been the rediscovery of the determinants or ‘root causes’ of excess morbidity and premature mortality which are external to individuals and provide the context for their behaviour and actions. Several widely used models of health ( & , 1991, , 1998,  & , 1994) illustrate the range of contextual factors, including the economic, psychosocial, cultural and physical environments that shape overall population health and inequalities in health relating to socio-economic status, gender, age and other social positions.   Health promotion is increasingly characterized by working with key stakeholders or agents in decision making processes that affect outcomes ( 2001), although the means of achieving collaborative practice are still not fully understood. Working with people and communities, ‘people-centered health promotion’ ( &  1998) requires an ecological and holistic approach to health, one that can capture complex social phenomena ( 2001). Within health promotion, key principles of sustainability and community development are focused on. Health promotion approaches to justify the effectiveness of their practice and to demonstrate measurable outcomes. Internationally it has resulted in a number of initiatives, particularly in Europe, which aim to build an ‘evidence base’ for health promotion. Although in the process of the development of these initiatives, there have been debates on what constitutes evidence in health promotion (, 2000;  & , 2001) and the criteria by which evidence is defined have been subject to philosophical and theoretical scrutiny ( & , 1998), there remains a danger that initiatives will encourage the very value systems they seek to challenge by buying into the notion of the existence of objective evidence.   Public health is the promotion of health at a community level by the government. It includes prevention of disease through supplying clean water, proper waste disposal, and legislation for clean air, health education programs, and medical care for the whole community through doctors, nurses, and hospitals (). Government acceptance of responsibility for public health began in UK with the Public Health Act in 1848. Now, the welfare state, National Health Service, and health education and protection measures are government responsibility. In early 19th century, concerned social reformers tried to improve the living conditions of the poor. In 1842,  recommended that investing in public health would improve the health and reduce the death rates among the poor. He contended that the expense of basic public health measures would be less than the cost of having to support a poor and unhealthy population ().               With the government taking over the responsibility, developments in public health included the introduction of environmental health officers to investigate potential hazards such as hygiene in shops and restaurants, the launching of health education campaigns, such as anti-smoking campaigns to reduce cancer and heart disease, and road safety campaigns to encourage drivers to slow down and pedestrians to take care when crossing the road. Food safety became one of the biggest issues of public health in UK. The government implemented laws on food safety, such as the  (1990). In 2000, the British government established the Food Standards Agency to coordinate action on food safety and the protection of public health ().               Since 1997, the Government has set out a major program to improve public health and address health inequalities. The program includes action to eradicate child poverty, improve poor housing, raise employment, and strengthen communities, in order to address the deep-rooted causes of ill-health. It also includes major programs to prevent cancer and heart disease, and modernizing public health. The department’s approach is to create an environment where people are encouraged and supported to adapt healthy lifestyles. This may be done by providing clear information to enable people to make their own decisions about choices that may have some impact on their health, offering tailored support, personalized services and equal access, and by partnership working across communities (). The Department of Health in 2004 also issued the following standards, the minimum level of service that patients and service users have a right to expect, that health care organizations, including the NHS Foundation Trusts, and private and voluntary providers of NHS care are expected to meet in terms of safety; clinical and cost effectiveness; patient focus; accessible and responsive care; care environment and amenities; and, public health. The standards were divided into two categories – core and developmental. These standards are part of National standards, local action, the NHS three year planning framework, and are in line with actions set out in the NHS improvement plan (, 2004).   In UK, the Independent Inquiry into Inequalities in Health ( 1998) was guided by a socio-economic model of health. This model emphasized the impact of over-arching general, societal, living and working conditions, which themselves influence the quantity and quality of social and community networks, which in turn condition health lifestyle attitudes and behaviors. The Report notes the evidence of long-standing and widening gradients in mortality between the higher and lower socio-economic groups in UK and prioritizes the implementation of policies which will reduce income inequalities and lead to the redistribution of resources to those who find themselves, unavoidably, outside the labor market. The authors of the Report are adamant that the policy emphasis must move ‘upstream’, from the de-contextualized individual to the social and economic structure: ‘We consider that without a shift of resources to the less well off, both in and out of work, little will be accomplished in terms of a reduction of health inequalities by interventions addressing particular “downstream” influences’ (, 1998, ).   This view is reinforced by the growing evidence of a strong relationship between income inequality and premature mortality within developed societies (see, especially,  1996). One plausible explanation for this relationship is the relative strength or weakness of the psychosocial fabric, in particular, features of everyday life which engenders and promotes social cohesion. ‘Social capital’, which has been defined by  (1995) as ‘the features of social organization such as networks, norms and social trust that facilitate co-ordination and collaboration for mutual benefit’, is the concept now widely employed to capture this societal attribute. It is hypothesized that more egalitarian societies generate higher levels of social capital which in turn reduce health inequalities and increase life expectancy.  (1998) argues that the notion of social capital revitalizes social approaches to public health and health promotion, since it permits examination of the processes whereby social connections operating through different networks can act as a buffer against the negative health impact of relative (as well as absolute) deprivation.   Recognizing the multi-faceted nature of health, its production and maintenance, the tendency has been to assume that health promotion practice should encompass a similarly broad sweep.  (1997) have argued that this tendency is unhelpful because it masks tensions between competing paradigms and agendas. Specifically, they warn that ‘the creation of …“global” health promotion models could inhibit constructive debate around alternative perspectives on health’ (). They conclude by noting that ‘permanent tensions’ exist that need not necessarily be resolved. They identify three initial areas for attention: professional and political matters, technical and methodological dilemmas, and research questions. The challenge for practitioners is how they manage these tensions in order to deliver action that addresses contemporaneous policy agendas (, 1997, ).   The effectiveness and cost-effectiveness of health promotion interventions are under increasing scrutiny in the new evidence-based cultural climate within the health sector in UK. While there is some concern about the extent to which expectations relating to the success of health promotion practice are more pronounced than those relating to clinical practice, the problem most commonly identified by researchers is the unwillingness of funding and commissioning agencies to accept the validity and viability of non-experimental evaluation strategies.   As such, this will divert limited resources from knowledge development in collecting evidence to satisfy a managerial agenda driven by searches for efficiency, cost effectiveness and quality assurance in public expenditure, which, in the UK at least, has led to an obsession with targets and indicators. Much better that those resources are invested in the development of approaches which address the complex holistic nature of the social change processes that constitute health promotion. It is also important that the methods and criteria of effectiveness used are consistent with the fundamental principles of health promotion, empowerment, participation, collaboration and equity.                       References:

SOCIAL CARE PROVISION IN UK

Social Care Provisions in UK Poverty is one of the major causes of the uprising of health problems especially in poor nations and co...

Maintaining Shanghai Tang’s Market Leadership

Maintaining Shanghai Tang’s Market Leadership   Introduction             Shganghai Tang started in 1994. It has been a pioneer in the Chinese luxury goods industry with international presence. The company’s mission is to become the global ambassador of contemporary Chinese Chic. Shanghai Tang showcases the best of Chinese heritage and craftsmanship through a unique product universe and multi-sensory shopping experience.   China’s Luxury Market             In recent years, the Chinese luxury goods sector has experienced growth. Foreign companies share a growing interest in tapping into China’s luxury market. Statistics show not only that the number of wealthy people is growing fast in China, but that their willingness to spend on big-ticket items is also on the rise, driven by an appetite for status as well as the comforts and trappings of luxury products. Asia is the largest target market for luxury brands, accounting for more sales than any other region, including Europe and the United States. According to one of the world’s leading financial group, Goldman Sachs, consumption of luxury goods in China, except private jets and luxury yachts, reached USD 6 billion in 2004, making up 12 percent of the global total consumption on the goods – up from 1 percent just five years previously. According to their findings China has turned into the third largest consumer of luxury goods in the world. Sales of luxury goods are booming across the world as the strength of the global economy helps to forge a new class of wealthy consumers in Asia, the Middle East and Eastern Europe. The above-average growth in Asia is attributable in large part to China. Goldman Sachs has predicted that China will consume about 29 percent of the world’s total luxury goods in 2015.   The Chinese Consumer             Research suggests that while the emerging middles class will continue to save heavily, they will also spend increasing amounts of money. This is consistent with trends that suggest that China’s younger generation of teenagers and twenty-somethings show less of the caution of their parents and grandparents and far more inclination to spend than save. The Chinese mainland luxury market is still in its formative stage. As Chinese consumers turn toward luxury goods as a means of rewarding themselves for their success or as a token advertising their wealth, analysts believe growth in the world’s most populous country could boost Asia’s share of world luxury sales to 60 percent.   Shanghai Tang’s Strategy             Shanghai Tang is the first and currently the only luxury brand emerging from China. It fuses the best of Chinese culture with contemporary elements of style for the globe-trotting shopper. The product offering ranges from affordable items of luxury to bespoke gown and suits, each delivering a distinct style. Shanghai Tang’s brand and store concept is founded on the nostalgia of 1930s Shanghai with its East/West glamour and vibrancy, art deco elements accent the black lacquer fixtures while Shanghai Tang’s signature lime green and fuchsia highlight the interior. Shanghai Tang attempts to establish a ‘unique’ design strategy, based  on the representation and mythologizing of ‘Chineeses”, to appeal to a global market, including China. From the outset the company aimed at becoming ‘the first global luxury Chinese brand’ through a design strategy that reinterpreted the Orientalist styles associated with Shanghai in the 1930s. The flagship store opened in central Hong Kong, followed by a shop in New York, and then in other major world cities. The design strategy was based on retro and nostalgia, and was popular with expatriates and foreign visitors to Hong Kong. But some local Hong Kong Chinese found it so unacceptable as to be offensive. The development of Shanghai Tang outlets in China during the twenty-first century also reflects the more sophisticated, international and wealthy populations of mainland cities. In January, 2010, the company opened the Shanghai Tang Café restaurant bar in Shanghai’s Xintiandi area, where the Shanghai flagship store is also located. Its opening was a society event reinforcing the brand’s positioning as purveyor of the notion of ‘reinventing culture with a modern sophistication’. The company employs a diverse range of designers to create its merchandise, stores, and corporate identity. Its design team is specialist and international; several designers are featured on the company website. Despite an over ambitious expansion policy in its early years, and an incoherent design strategy, Shanghai Tang now seems to have established a successful design identity for its stores, publicity and, most important for its fashion merchandise, which has moves away from some of the earlier design clichés.

Maintaining Shanghai Tang’s Market Leadership

Maintaining Shanghai Tang’s Market Leadership Introduction Shganghai Tang started in 1994. It has been a pioneer in...

Marketing Information Overloading the Consumer

ARE CONSUMERS TRULY “OVERLOADED” WITH MARKETING INFORMATION – OR NOT?   Introduction               Providing information clearly, concisely and in a consumer-friendly way -- whether through fliers, packaging, advertising, the Web and/or personal service -- can be an important tool for supermarkets and brands. Information overload is a problem that keeps on growing -- as do the number of technological solutions. We all know and experience the problem firsthand on a daily basis. There's just too much data coming at us from all directions - journal articles, newspapers, e-mail, web pages, Internet discussion groups, intranet information, notes databases, phone mail, and more.             As businesses continue their intense competition for new customers and strive to retain the ones they have with increasingly frequent promotional campaigns, information overload has become a common ailment among your customers. Consider that the average consumer has to wade through a daily flood of mail and telephone solicitations; television, radio and print advertising; blimps, billboards and other media blitzes. While consumers are looking for value as never before, they are becoming increasingly frustrated by the torrential flood of information they must digest, and understand. The result is that communications have less and less impact. And the return-on-investment for marketing efforts is squeezed thinner and thinner.             The taking in or information of the consumer and how this affects consumer behavior is affected to a large extent by the process of perception. This, in relation to information overloading, will be discussed in this paper.   Body   An attribute of desirable markets include adequate and reliable market information which is provided to market participants, both producers and consumers (1999). However, researchers report that consumers are confused by an abundance of less-than useful information about virtually every product’s specific benefits, correct dosages, uses, contents, and many more. This though has not stopped consumers from sampling and even buying products.             The collection and dissemination of marketing information involves not merely the passive receipt or acceptance of information offered by sellers but active efforts to collect data from other sources, such as governmental institutions and trade associations. Moreover, the collection of information would be of little value unless it is interpreted and disseminated with skill and intelligence. No small part of business success is attributed to the skill with which specialized marketing research departments and companies collect, analyze, and distribute factual information that serves as the basis for marketing decisions. Also, some marketing institutions such as brokers and resident buyers owe their existence, in large part, to their skill in obtaining, analyzing, and distributing information concerning sources of supply, prices and price trends, and other market conditions (1999). Qualitative studies suggest that many consumers who go into a store specifically to purchase a supplement come out without buying anything. They're so confused that they become paralyzed. This kind of situation not only happens with buying supplements. This happens in all other things. Due to vast information being fed to consumers, unwanted and wanted, consumers become confused of what to buy. Communications glut in the marketplace is more than just an inconvenience, it's also the reason the reader never finds the needle in the haystack. Customers may have difficulty understanding essential information or may entirely miss what the marketing department has worked so hard to develop and disseminate because of too much useless information. The end result is a waste of time and money (Johnson, 1997), on both the parts of the consumers and marketers. The solution to this is to provide only the useful information that could help the consumers and not confuse them instead. Home Depot is an expert in its category on providing useful information to customers in the form of signage, books, magazines, workshops, fliers and in-store help. All of these assist the shopper through the decision process (1999). An understanding of how consumer perceptions affect consumer buyer and behavior is also important. A major goal for providing marketing information is to have an enduring emotional impact on an audience by facilitating their creation of personally relevant understandings of an advertisement. Perceived utility is the key to a marketing program's impact - does it contain information that people can understand and use? Marketers should give structure, order and access to marketing information through the use of graphic devices and text formats that help users navigate and understand complex data. Cognitive learning theories are also tapped to create appropriate hierarchies for complex information (1997). This is achieved through a process of cocreation in which consumers integrate marketing information content with their own attitudes, beliefs, and values to produce the meaning of an advertisement or commercial (2006).             Several researchers in the area of consumer behavior have studied how people organize knowledge in a categorical manner in memory. However, early work in psychology on categorization and time also asserted that there seemed to be basic temporal categories, and that these are part of larger networks of on-going cognitive processes (2001). The creation of a full sensory and emotional experience for the customer can open marketing opportunities in the future, but there has been little research work carried out in recent years on the potential of haptic perception as a marketing tool (Solomon et al, 2002). The buying decision for materials is a complex process as it represents a mixture of technical, economic, and emotional factors that determine the motivations and actions of the consumers (2006). There is a lack of scientifically based information concerning the sense of touch, either as a direct experience with a product or regarding the contact with our skin, but we know that touch is a very important factor in many products and services (Hoyer and Maclnnis, 2004). The role of touch and its implications on customer behavior (1992) or the importance of touching products during the buying decision process and the lack of it in non-touch-media like e-commerce and mail order (2003) have been researched. The reconstructive view of memory holds that the memory for the same event is different each time it is recalled and that the person doing the recalling is unaware of these changes. We present an experimental paradigm that assesses advertising's influence on consumers' own memory of their beliefs. It has been demonstrated that advertising can unconsciously alter consumers' beliefs as reflected by a change in how consumers recall their earlier reporting of these beliefs following an advertising exposure. That is, advertising that causes consumers to remember differently earlier (preadvertising exposure) reported beliefs and in which the change is in the direction of the advertisement's message is an advertisement that contains information the consumer has unconsciously adopted as their own and therefore is likely to be personally relevant and to have an enduring impact on their emotions (2006)             Consumers and marketers generally distinguish between two types of information used to make decisions: internal and external. Internal information is that which the consumer has gained through experience; external information is information they may have encountered that attempts to influence their beliefs. When making their decisions, consumers prefer to believe they are relying on their own internally generated information because "people rarely derogate themselves as sources of information" (2006). Many researchers have sought ways to measure a marketing information tool such as advertisements integration into consumers' internal belief systems. For example, consumers may be asked to rate their involvement in the advertisement, their emotional reaction to the advertisement, or the personal relevance of the advertisement. Such measures rely on questions about the advertising itself but often fail to reveal the true impact of the advertisement on consumer cognition. These measures may be biased by other information such as brand "liking," which may result in a "halo effect" that distorts how a person responds to the copy test questions. More broadly, such measures depend on the consumer's ability to self-report; and as mentioned in the initial paragraph, consumers may not be able to do that accurately. This may be in part due to cultural factors, where consumers tend to discount the influence of advertising (2006), and in part due to cognitive factors, in that they might not have the ability to accurately access that information (2004). Due to the increased phenomenon of stimulus satiation, it is more important than ever to ascertain how the properties of a material are perceived with our senses. If marketing strategies place more emphasis on increasing consumers' perceptions of a product, this could lead to more sustainable impressions and reactions in the purchasing process. In the marketing aspect, perception was considered the cutaneous stimulation and the kinaesthetic stimulation that convey significant information about objects and events (1998).   Conclusion               Consumer behavior is affected by marketing information that consumers themselves get. Marketing information is helpful in that it provides the consumers the information they need about the product or service before buying it. However, too much of a good thing is bad. Too much information chokes the consumer instead of helping them. The value of perception is also important in consumer behavior. Decisions are affected by consumer’s perceptions on certain products and services. This affects decisions more than the other marketing information that they get. As mentioned, if marketing strategies place more emphasis on increasing consumers' perceptions of a product, this could lead to more sustainable impressions and reactions in the purchasing process. This is more helpful than overloading the consumer with too much useless information.

Marketing Information Overloading the Consumer

ARE CONSUMERS TRULY “OVERLOADED” WITH MARKETING INFORMATION – OR NOT? Introduction Providing information clearly,...

CASE ANALYSIS OF MARKS AND SPENCER

CASE ANALYSIS OF MARKS AND SPENCER Table of Contents I.     Introduction.. 3 II.    External Analysis.. 4 a.    PEST Analysis. 4 i.      Political Factors. 5 ii.     Economic Factors. 5 iii.    Socio-Cultural Factors. 5 b.    Analysis of the External Environment of Marks and Spencer. 6 III.       Internal Analysis.. 7 a.    Value Chain. 7 i.      Primary Activities. 7 ii.     Support Activities. 8 IV.      Current Program Diagnosis.. 8 V.    Generation of Strategic Options.. 9 a.    SWOT Analysis. 9 i.      Strength. 9 ii.     Weaknesses. 10 iii.    Opportunities. 10 iv.       Threats. 11 b.    Analysis of the Macroenvironment and Microenvironment. 11 VI.      Evaluation of Strategic Options.. 12 a.    Consistency. 12 b.    Consonance. 13 c.    Feasibility. 13 VII.     Description of Selected Strategy.. 14 VIII.    Action Plan for Implementation.. 14 IX.      Conclusion.. 15   I.        Introduction Marks and Spencer is included in the long line of UK companies that has acquired a reputation of greatness and quality. Armed with experience, the company has been seasoned with its battles with both its internal and external environments. Since the 1880s, it adhered to a strict tradition involving its processes and trading practices which essentially spelled fairly well on the part of Marks and Spencer. To date, the company is considered as one of the most recognisable names in the area of retail. From apparel to even food services, the Marks and Spencer has ubiquitously hounding the top players in the UK market and the rest of the world. The case study provided by Collier (2004) provided several descriptions on the basic elements of the company. It has been described as a company that adheres to top-down management approach compounded by the close supervision provided by its former CEO. This has worked well with the company for several decades, however in the latter part of the 1990s a noticeable decline in the sales as well as in the overall performance of the company was observed. Various revolutionary and evolutionary changes have been implemented in the Marks and Spencer with the numerous changes in its leadership. To date, though there have been numerous changes in the strategies invoked by the company, its operations, to a certain extent, is still based on several principles: to offer a selective range of high-quality, well designed and attractive merchandise at reasonable prices; to encourage suppliers to use the most modern and efficient production techniques; to work with the highest quality control; to provide friendly and helpful service to their customers; to improve the efficacy of the business; and foster good human relations to its stakeholders. However, along the way they might have neglected to deal with the changes in the external environment as they focused on addressing the inner workings of their operations. This paper will look into the conditions surrounding that phenomenon. II.        External Analysis The external environment is basically comprised of all the elements that determine what the company needs to compete in its respective industry. In this part of the paper, a presentation of the external environment and consequent analysis will be carried out employing the PEST analysis.   a.    PEST Analysis The PEST Analysis is called by many names (STEP, PESTEL etc) yet it still uses the same principles of examination. Specifically, it looks at the political, economic, socio-cultural, and technological elements of the environment. This too essentially places importance on how these elements influence the organisation. (Blair and Hitchcock, 2001, 99) Usually, the use of this analytical tool is for planning and strategy creation of the company specifically to find a way to complement these plans with the findings of this analysis. More importantly, it allows the company the volition to exercise flexibility on the company and to serve as a safeguard in instances where major shifts in the trading environment take place. The primary source of this discussion is the case study provided by Collier (2004).                                   i.    Political Factors The UK political environment basically encourages trade in its territory. It is generally accepted that any trade is allowed in the said region provided that it does not oppose public policy, public order, or any existing law in the land. This is reinforced with the inclusion of UK in the European Union and the World Trade Organisation. However, in the case of Marks and Spencer, one of the more troublesome political elements that they have to contend to deals with the issue of labour laws and industrial relationship. In the past decades, the development efforts sought by the company have been constrained by several infringements in labour laws not only in their local operations but also in their international initiatives. This is especially true in their operations in France where the company is charged of grave abuse and breaking of expressed labour laws.                                    ii.    Economic Factors The United Kingdom is one of the hubs of commerce in Europe. Consumers are not limited to the locals as a considerable number of tourists flock the streets on a regular basis. This is similarly true in the context of the retail business, particularly in the area of fashion and apparel. The consumer base tends to require numerous types of clothing based on the existing climate of the region.                                iii.    Socio-Cultural Factors In the context of social and cultural aspects of the environment, the common UK consumer tends to be loyal to a particular brand. Quality of the product is a must in every transaction but could easily be defeated by a fairly competitive pricing strategy from a competing brand. Recent observations also indicate that preference on trendy styles over the classics tend to manifest among the UK consumer. This is seen in the case of Marks and Spencer over the years as it struggled to gain a greater market share. This shows that the UK consumer places high value on their money.                                  iv.    Technological Factors In the area of technology, a good number of the population is able to access in the internet. This means that some of the trading organisations are able to make the most of their operations and widen their scope with the use of e-commerce. This is seen in leading retail companies like Tesco and Sainsbury. Thus, online marketing and purchases made through the net is becoming one of the competitive advantages held by the leading retail companies in UK. b.    Analysis of the External Environment of Marks and Spencer The environment in UK, specifically its retail environment, appears to be highly attractive. Companies have the support of the government with minimal barriers of entry. The problem in this regard is the fact that there is some level of difficulty in penetrating the retail market, especially for new entrants, as there are existing monoliths that are willing to drive them out of business as quickly as they entered. This is similarly true in the case of companies with lush histories like Marks and Spencer. Seeing that their environment is essentially welcoming, neglecting the cutthroat nature of the competition would point to the imminent demise of any company. III.        Internal Analysis In support of the external analysis of the environment of the organisation, the internal environment should also be taken into consideration. For this part of the study, the value chain of Marks and Spencer will be examined. a.    Value Chain The value chain of the organisation is coined primarily by Porter as a tool to recognise the inherent capabilities of the organisation to realise its competitive advantage. The following will describe the primary activities and support activities of the company.                                   i.    Primary Activities As indicated in the value chain theories of the primary activities take in hand several specific functions of the company: inbound logistics, operations, outbound logistics, sales and marketing, and service. In the area of inbound logistics, Marks and Spencer receives inventories coming from its suppliers. Initially, the management of the company held strictly on the exclusive use of English suppliers. Eventually, they have already taken the prerogative to receive materials from suppliers from other countries. In terms of operations, Marks and Spencer is involved in the direct selling of apparel, foodstuff, and even home furnishings. In the same manner, they are also involved in the distribution of these items to all the Marks and Spencer stores in UK. This essentially covers the outbound logistics of the organisation. Moreover, sales and marketing of the company seems to be one of the more prioritised elements in the organisation. With the intense competition present in the industry, vying for consumer favour and adding value to the brand takes a step above the rest of these primary activities. In the area of service, the company also have to deal with the maintenance of their respective stores. The case study provided by Collier (2004) provided that the company has acquired stores that also require maintenance. This is where the primary activity of service takes place.                                 ii.    Support Activities In the area of support activities, the company holds     of the areas of human resource and technology. In the context of human resource, minimal training is required as the skills needed to fulfil the duties of the common employee of the company involves knowledge of the product and the awareness of the processes of selling. On the other hand, the use of technology is significantly infused in the operations of Marks and Spencer. Basically, every store uses a computerised cash register not only to deal with payments but also to take into consideration the use of loyalty cards recognised by the company. Other areas involving technology covers e-commerce and other online transactions. IV.        Current Program Diagnosis Based on the case study of Collier (2004), despite the long history of Marks and Spencer, it has yet currently takes on a larger market share and continues to suffer in its profits and other financial aspects of their operations. This implies weakness in a rather cutthroat world of retail. This then spells possible acquisition from much larger companies. On the other hand, the brand of the company appears to stay in a particular era. The management failed to display any form of awareness on the part of the market as they focused initially on the production process. As seen in the case study, the company is lagging behind the leading retail organisations in UK like Tesco and Sainsbury. V.        Generation of Strategic Options In order to generate sound strategic options for the company, one must first establish the faculties and flaws of Marks and Spencer. In this manner, one will know what areas to work on and what lot to maximise. In this part of the study, the SWOT analysis will be used as an analytical tool. a.    SWOT Analysis The SWOT analysis is one of the traditional and dependable tools in looking at the existing conditions of the company and how it fits with the current conditions in the external environment. The following will focus on the situation of Marks and Spencer as covered by the case study of Collier (2004)                                   i.    Strength Looking at the case study, Marks and Spencer possess a very potent weapon in business: very high brand name recognition. In this manner, their brand is connected with the elements of class and quality. Another strength that the company possess is seen in its rich history of trade. Throughout the years of its operations, it has acquired a lot of facilities at double as moneymaking centres. Along with this history is the existence of longstanding partners and alliances that has been acquired through over a century of operations.                                 ii.    Weaknesses Among the major weaknesses of the company are primarily seen its management. Specifically, a fit between the structure of the company, the nature of its trade, and the actual management styles has yet to be found. In the same regard, being a player in the cutthroat industry of retail, a company must possess dynamic marketing skills. Based on the case study, Marks and Spencer has been left behind in terms of marketing innovations like loyalty cards and implementation of customer-focused operations.                                iii.    Opportunities One of the seen opportunities in the retail market is the encouraging legislation present in the political environment. This shows that the company is able to maximise its operations provided that it is within the bounds of the law. In the same manner, the dynamic nature of the market also shows that the major consumers are placing value on their money. This means that they lay preference on issues of price over quality. Furthermore, the current marketing campaigns of the company appear to be highly promising as they are now employed icons of UK to help them convey the message of the Marks and Spencer brands.                                  iv.    Threats As mentioned earlier, the competitors in this industry works 24/7 and they move like sharks. Every chance they have in acquiring a portion of the overall market share, they will take. This is a threat as the Marks and Spencer continues to hold that reputation of having boring and non-trendy designs that appeal to the much younger age brackets. Moreover, as Collier (2004) pointed out in her work, the company is for some reason always susceptible to imprudence, lack of skill, and lack of foresight of the management.   b.    Analysis of the Macroenvironment and Microenvironment Looking at the discussions above, there appears several strategic options that Marks and Spencer could focus on to refurbish their operations. For instance, the company should look into a partnership with the more current and competitive players in the retail industry. This is to broaden the overall outlook of Marks and Spencer regarding their standing in the market. This also reduces the possibility of the company being acquired by the larger competitors. Another possible course of action for the company is to further improve its brand by using repositioning initiatives. It is undisputed that Marks and Spencer has a strong name recall and significantly strong brand name. However, the company have to consider the constant repositioning of their brand so as to keep the public’s respect on their products. This has been the one of the innumerable mistakes held by the previous management of the organisation.   The company should look also in the possibility of improving the management of their resources. As stated in the SWOT analysis above, the company has a lot of resources yet they have yet to find a proper fit on how to manage these resources to their advantage. The maximisation may take on changes in restructuring the processes and the infusion of technology as well as other knowledge based processes. And lastly, the change may well start with the internal structure of the organisation, specifically the human resource element of the company. Finding potential leaders and managers could spell a shift from stagnation to a culture of innovation and constant development. VI.        Evaluation of Strategic Options The following discussion will evaluate the proposed strategic options mentioned above. For the purposes of this study, Rumelt’s criteria will be used to examine these options. a.    Consistency In the first option, the idea of selling an organisation full of history or at the very least tie up with other retail players is not consistent with the culture of the organisation as well as in the general strategies of the company. As seen in the case study, Marks and Spencer appears to be a company full of pride, too proud perhaps.    With reference to the option of brand repositioning, the case study shows that the company is taking on brand repositioning initiatives constantly and yet they still find their performance wanting. Possibly this option may not be consistent with the management strategies of the organisation. As the case study presented, the problem of the company is in its core. Thus, it would be very beneficial for the company to look at this option. The case study also mentioned that the changes made by the management of Marks and Spencer appear to be superficial and merely serves as a remedy. b.    Consonance Looking at the strategic options above, it appears that each and every one is implemented in the industry. Thus, these constitutes to a trend in operations. The issue in this regard is whether or not Marks and Spencer is able to handle the consequences of employing all the strategies. The more logical thing to do for the company is to choose one specific strategy that they could immediately implement and reap the results as timely.   c.    Feasibility The more logical thing to do for the company is to choose one specific strategy that they could immediately implement and reap the results as timely. The company has a capable management but does not have the luxury of money or capital and time is even not on their side. Thus, alliance and repositioning are out of the question as they take too much time to take care of and cost mounds of money to implement. VII.        Description of Selected Strategy The strategy involves an analysis on what modern models of quality would be effective for the company. The overall goal of the strategy is to maximise the existing assets of the company and look at ways to improve the performance in the market. VIII.        Action Plan for Implementation The strategy is done in two stages. The first one takes on pinpointing the what, where, when and how of change management. Plainly, it points to the area of improvement needed by the company. In this stage, streamlining the operations would be among the end results. For instance, the structure of the company as said in the case study is rather complicated; simplifying it by turning it into a flat structure would be advisable. In the same manner, the superfluous processes in the company should be done away with as it adds up to the overall costs of the organisation. The second stage is the creation or development of a culture closely appended with knowledge management initiatives. Basically, this points to the flow of important data in the organisation. Information like receipts or sales documents is covered in this area.  Moreover, this strategy could help in the planning process and meeting of the company’s economy of scale.   IX.        Conclusion The case of Marks and Spencer provides for a clear and present manifestation of the need for awareness of the demands of the external environment. In addition, it also serves a lesson on having the need of a decisive strategy and opportune reaction to the changes in the business environment. Based on the case study, Marks and Spencer is slowly levelling up with its competitors. The proposed strategic options above present an opportunity for the company to gain more market share and compete more actively in the retail sector of UK.

CASE ANALYSIS OF MARKS AND SPENCER

CASE ANALYSIS OF MARKS AND SPENCER Table of Contents I. Introduction .. 3 II. External Analysis .. 4 a. P...