International businesse in emerging market Assignment - 1

International businesse in emerging market - Assignment Example The emerging market accelerated growth of its international business, which were up 4% LFL. In June 2014, the company planned to invest $20 billion in a gas-fired power complex in Vietnam. In its planning, the company recognized the need to create a partnership with a host well-known company in Vietnam in an attempt to sell its products in this emerging market. It, therefore, collaborated with Vietnam’s state-owned petrol Vietnam. It erected two power plants with a capacity to produce between 6000 and 6500 megawatts of power. In this perspective, the company focuses on capturing the gas and oil market in Vietnam through provision of cheaper prices and diversified oil and gas brands (Regester & Larkin, 2014). It proposed to position its operation in 700 locations and several retail operations. In addition, the strategy aims to present its brands closer to consumers and therefore making its brand most accessible products in Vietnam. Vietnam is one of the top five developing nations in Asia. It has a robust middle class, a crucial driver of economic expansion in a developing country. It is valid to argue that middle class mainly supports the policy change significantly to the success of the country and in supporting capitalist democracy. The country has the fastest-growing middle class in the whole Southeast Asia and is expected to double in size from 12 million (2014) to 32 million by 2020. Generally, Exxon Mobil was experiencing various impending challenges in Vietnam such as complex foreign investment laws, corruption in infrastructure projects, lack of comprehensive and transparent legal system and restricted land usage rights (Plunkett, 2014). However, Vietnam is currently undergoing trade liberalization through negotiations toward a free agreement with the European Union (Van Dyke, et al., 2014). The negotiation presents viable market to Exxon Mobil since its

Effects of the Stock Market on Economic Development

Effects of the Stock Market on Economic Development Over the last few decades world stock markets are growing enormously and the stock markets particularly in developing countries represent a large share of this boom. Investors are venturing into the world s newest markets and some are seeing handsome returns but are developing countries themselves reaping any benefits from their stock markets? The evidence indicates that they are. Over the past 10 years, the total value of stocks listed in all of the world s stock markets rose from $4.7 trillion to $15.2 trillion, while the Share of total world capitalization represented by the emerging markets jumped from less than 4 percent to almost 13 percent. Trading in the emerging markets also surged: the value of shares traded climbed from less than 3 percent of the world total in 1985 to 17 percent in 1995. The emerging markets have attracted the interest of international investors while raising a number of critical questions for policy makers in developing countries: Do stock markets affect overall economic development and, if so, how? What is the relationship, between stock markets and banks in fostering economic growth? And, how can developing countries benefit from stock market growth? Impact on development: Do stock markets affect overall economic development? Although some analysts view stock markets in developing countries as casinos that have little positive impact on economic growth, recent evidence suggests that stock markets can give a big boost to economic development. Stock markets may affect economic activity through the creation of liquidity. Many profitable investments require a long-term commitment of capital, but investors are often reluctant to relinquish control of their savings for long periods. Liquid equity markets make investment less risky and more attractive because they allow savers to acquire asset equity and to sell it quickly and cheaply if they need access to their savings or want to alter their portfolios. At the same time, companies enjoy permanent access to capital raised through equity issues. By facilitating longer-term, more profitable investments, liquid markets improve the allocation of capital and enhance prospects for long-term economic growth. Further, by making investment less risky and more profitable, stock market liquidity can also lead to more investment. Put succinctly, investors will come if they can leave. There are alternative views about the effect of liquidity on long-term economic growth, however. Some analysts argue that very liquid markets encourage investor myopia. Because they make it easy for dissatisfied investors to sell quickly, liquid markets may weaken investors commitment and reduce investors incentives to exert corporate control by over- seeing managers and monitoring firm performance and potential. According to this view, enhanced stock market liquidity may actually hurt economic growth. The empirical evidence, however, strongly supports the belief that greater stock market liquidity boosts or at least precedes economic growth. To see how, consider three measures of market liquidity three indicators of how easy it is to buy and sell equities. One commonly used measure is the total value of shares traded on a country s stock exchanges as a share of GDP. This ratio does not directly measure the costs of buying and selling securities at posted prices. Yet, aver- aged over a long time, the value of equity transactions as a share of national output is likely to vary with the ease of trading. In other words, if it is very costly or risky to trade, there will not be much trading. This ratio is used to rank 38 countries by the liquidity of their stock markets in four different groups. The nine countries with the most illiquid markets are in the first group; the nine countries with the most liquid markets that is, with the largest value-traded-to-GDP ratios are in the fourth group; the second and third groups, each of which contains 10 countries, fall between the two extremes of liquidity. As Chart 1 show, countries that had relatively liquid stock markets in 1976 tended to grow much faster over the next 18 years than countries wi th illiquid markets. The second measure of liquidity is the value of traded shares as a percentage of totals market capitalization (the value of stocks listed on the exchange). This turnover ratio measures trading relative to the size of the stock market. Chart 2 indicates that greater turnover predicted faster growth. The more liquid their markets in 1976, the faster countries grew between 1976 and 1993. The third measure is the value-traded-ratio divided by stock price volatility. Markets that are liquid should be able to handle heavy trading without large price swings. As Chart 3 shows, countries whose stock markets were more liquid in 1976 countries with higher trading-to-volatility ratios grew faster over the next 18 years than countries with less liquid markets. As demonstrated in the series of papers on which this article is based (see back- ground note), the strong link between stock market liquidity and economic growth continues to hold when controlling for other Economic, social, political, and policy factors that may affect economic growth, and when using instrumental variable estimation procedures, various periods, and different country samples. The basic conclusion that emerges from this statistical work is that stock market development explains future economic growth. What is important is that other measures of stock market development do not tell the same story. For example, stock market size as measured by dividing market capitalization by GDP is not a good predictor of economic growth (Chart 4), while greater stock price volatility does not necessarily predict poor economic performance (Chart 5). Empirically, it is not the size or volatility of the stock market that matters for growth but the ease with which shares can be traded. Countries may be able to garner big growth dividends by enhancing the liquidity of their stock markets. For example, regression analyses suggest that if Mexico s value-traded-to- GDP ratio in 1976 had been the same as the average for all 38 countries in our sample (0.06 instead of Mexico s actual ratio of 0.01), the annual income of the average Mexican would be 8 percent higher today. This type of forecast does not explain how to enhance liquidity, but it does give an indication of the potentially large economic costs of policy, regulatory, and legal impediments to stock market development. Is there really a link between stock market liquidity and economic growth, or is stock market liquidity just highly correlated with some nonfinancial factor that is the true cause of economic growth? Multiple regression procedures suggest that stock market liquidity helps forecast economic growth even after accounting for a variety of nonfinancial factors that Influence economic growth. After controlling for inflation, fiscal policy, political stability, education, the efficiency of the legal system, exchange rate policy, and openness to international trade, stock market liquidity is still a reliable indicator of future long- term growth. Stock markets versus banks: Is there and independent link between stock market development and growth, or is stock market liquidity correlated with banking development and is the latter the financial factor that really spurs economic growth? Although countries with well-developed banks as measured by total bank loans to private enter- prises as a share of GDP tend to grow faster than countries with underdeveloped banks (Chart 6); the effects of banks on growth can be separated from those of stock markets. To evaluate the relationship between stock markets, banks, and growth, our 38 sample countries were divided into four groups. Group 1 had greater-than-median stock market liquidity (as measured by the value- traded-to-GDP ratio) in 1976 and greater- greater-than-median banking development. Group 2 had liquid stock markets in 1976 but less-than-median banking development. Group 3 had less-than-median stock market liquidity in 1976 but well-developed banks. Group 4 had illiquid stock markets in 1976 and less-than-median banking development. Countries with both liquid stock markets and well-developed banks grew much faster than countries with both illiquid markets and underdeveloped banks. Furthermore, greater stock market liquidity is associated with faster future growth no matter what the level of banking development. Similarly, greater Banking development implies faster growth no matter what the level of stock market liquidity. Thus, it is not a question of stock market development versus banking develop- mint each, on its own, is a strong predictor of future economic growth. Why might stock markets and banks both, independently of each other, boost economic growth? Although the empirical evidence is consistent with the view that stock markets and banks promote economic growth independently of each other, the reasons are not fully understood. One argument is that stock markets and banks provide different types of financial services. Stock markets offer opportunities primarily for trading risk and boosting liquidity; in contrast, banks focus on establishing long-term relationships with firms because they seek to acquire information about projects and managers and enhance corporate control. (There is, of course, some overlap. Like stock markets, banks help savers diversify risk and provide liquid deposits. Like banks, stock markets may stimulate the acquisition of information about firms, because investors want to make a profit by identifying under- valued stocks to invest in; stock markets may also help improve corporate governance by simplifying takeovers, providing an incentive to improve managerial competency.) Is greater stock market liquidity associated with more or better investment? Both Chart 7 shows that countries that had more liquid stock markets in 1976 enjoyed both faster rates of capital accumulation and greater productivity gains over the next 18 years However, although liquid equity markets imply more investment, new equity sales is not the only source of finance for this increased investment? Most corporate capital creation is financed by retained earnings and bank loans. Although this phenomenon is not wholly understood, greater stock market liquidity in developing countries is linked to a rise in the amount of capital raised through bonds and bank loans, so that corporate debt-equity ratios rise with market liquidity. Stock markets tend to complement not replace bank lending and bond issues. Economist believes differently regarding the importance of financial system and its impact on economic growth. Walter Bagehot (1873) and John Hicks (1969) viewed role of financial system as a critical factor for the mobilization of capital. Joseph Schumpeter (1912) explains that a well developed financial system stimulates funding for entrepreneurs; According to his view, Economic development fabricates demand for financial arrangements, and the financial system automatically counters these demands. Besides this, some economists just do not believe the role of finance development is crucial to economic growth. Among those (Robert Lucas, 1988) reasoned that economists poorly over-stress the role of financial development for economic growth. A growing body of work would push even most skeptics toward the belief that the development of financial markets and institutions is a critical and inextricable part of the growth process and away from the view that the financial system is an inconsequential side show, responding passively to economic growth and industrialization. There is even evidence that the level of financial development is a good predictor of future rates of economic growth, capital accumulation, and technological change. This research paper is based on an existing papers by (Garcia and liu; 1999) and (Julia Losseva, 2006). The main objective of this paper is to find the relationship between stock market development and the economic growth in developed economies. However there is an effort made to address the role of liquidity in the development of stock market which hasn t been given much of the attention. Some researchers argue that there is no influence of stock market development on economic growth. Recent evidence confirmed that Stock markets may affect economic development by providing liquidity to the market. Usually a profitable investment require long term commitment of the capital however Investors are apprehensive in holding up there capital for long time. Liquid equity market makes facilitates investment and offer quicker ways to alter portfolios so it s vital to both the investor and stock market development. (King and Levine, 1933) provide mechanism to enhance the economic activity they highlighted that financial system is better able to evaluate and finance the profitable prospective investor. The study explicate that financial institution provide the mechanism of evaluation and monitoring less costly and more efficiently, than the individual investors. Additionally the financial system provides better mobilization of capital and financing to the investors. Therefore promotes the growth by productivity improvements. Besides this financial system also assist in risk diversification for investor in relation to uncertain innovative improvements despite of the fact that financial system distortion result in a reduction over the rate of economic growth. It is stressed that the more developed financial system including banks and stock markets enhances the productivity and stimulate economic growth. Government policy on financial systems may have crucial influence on long run growth. (Levine and zervos, 1998) proposed that a well functioning stock market and banks enhance long run economic growth. In light of these conflicting views, this paper uses existing theory to organize an analytical frame work of the finance-growth nexus and then assesses the quantitative importance of the financial system in economic growth. In light of these conflicting views, this paper uses existing theory to organize an analytical frame-work of the finance-growth nexus and then assesses the quantitative importance of the financial system in economic growth. Although conclusions must be stated hesitantly and with ample qualifications, the preponderance of theoretical reasoning and empirical evidence suggests a positive, first-order relationship between financial development and economic growth. Broad problem area Is there a Causal relationship between stock market development and economic growth? Literature Survey: Financial development and economic growth: the role of stock markets: Economists Hold startlingly different opinions regarding the importance of the financial system for economic growth. Walter Bagehot (1873) and John Hicks (1969) argue that it played a critical role in facilitating the mobilization of capital. Joseph Schumpeter (1912) contends that well functioning banks spur technological innovation by identifying and funding those entrepreneurs with the best chances of success. In contrast, Joan Robinson (1952, p. 86) declares that, economic development creates demands for particular types of financial arrangements, and the financial system responds automatically to these demands. The relationship between financial development indicators and economic growth has received a considerable attention in recent empirical literature. Many authors have concluded that the development of the financial system has a positive effect on the rate of economic growth. And the volume and efficiency of investment Fry, (1997), McKinnon (1973) Shaw 1973, and others such as Kapur (1976), Matheson (1980) and fry (1989) and (1997) have presented the theoretical backward of the relationship . Financial intermediation has positive effect on economic growth. McKinnon, 1973 and Shaw, 1973; emphasis the role of financial liberalization to increase saving and investment they argued that financial deepening improve not only productivity but also capital and saving. Therefore it improves prospects for investments and growth. Second by reducing the information and transaction cost the financial intermediaries. The main policy implication of the McKinnon/ Shaw frame work is that government restriction on the financial sector such as interest rate ceilings, high reserve requirements and directed credit policies distort the process of financial development and reduce economic growth. Greenwood and Jovanovic (1990) and king and Levine (1993) argue that the government intervention in the banking system reduces the growth rate of the economy because of the high transaction cost. Gurley and Shaw 1955, 1960, 1967; centred their theme on the importance of financial intermediation to direct saving to investment. Further to their research Atje and Jovanovich; 1993, link stock market development as a positive sign for economic growth and efficiency. Similarly Levine and zervos; 1998 and Singh; 1997 proposed stock market development as a positive function to the long term growth. (Gold smith; 1969) emphasized that the well structured financial system facilitates the growth economy and explained the overall positive impact of financial structure on economic growth. Pagano, 1993; identify that there is an increased risk sharing benefits in larger stock markets through market externalities while Levine and bencivenga smith and Starr, 1996; show that the stock market may affect economic activity through the creation of the liquidity similarly Devereux and Smith, 1994; and obstfeld 1994 shows that the risk diversification through internationally integrated stock markets is another vehicle through which the stock markets can effect economic growth. In the early researches carried out by (Greenwood and jovanovic s, 1990) emphasized the argument that well functioning financial markets lowers the transaction cost which help in directing the capital to most favourable project in terms of returns therefore promotes growth. Both (McKinnon/ Shaw and Gurley and Shaw 1955, 1960, 1967) stress the role of financial intermediaries on economic growth and they concluded that the easy transfer of funds gears the high social return for economic growth. (King and Levine, 1933) provided empirical evidence by observing financial intermediaries and their role in economic growth by using a cross country data of 80 different countries establish a direct relationship between a well developed stock market, banking system promotes economic growth. (King and Levine, 1933) provide mechanism to enhance the economic activity they highlighted that financial system is better able to evaluate and finance the profitable prospective investor. The study explicate that financial institution provide the mechanism of evaluation and monitoring less costly and more efficiently, than the individual investors. Additionally the financial system provides better mobilization of capital and financing to the investors. Therefore promotes the growth by productivity improvements. Besides this financial system also assist in risk diversification for investor in relation to uncertain innovative improvements despite of the fact that financial system distortion result in a reduction over the rate of economic growth. It is stressed that the more developed financial system including banks and stock markets enhances the productivity and stimulate economic growth. Government policy on financial systems may have crucial influence on long run growth. (Levine and zervos, 1998) proposed that a well functioning stock market and banks enhance long run economic growth. Joseph Schumpeter s view financial intermediaries are crucial for innovation and economic development and the same argument was concluded in the empirical work by Goldsmith, 1969; McKinnon, 1973); However some economist like Lucas, 1988 believe that financial development is not important for economic growth and describe the relationship of financial development and economic growth as over stressed. King and Levine strongly hold the view that there is strong relationship between among financial development and real per capita GDP growth and the rate of capital Allocation. They also determined the financial development is robustly correlated with future rates of economic growth. As a result King and Levine supported the idea which was proposed by Schumpeter 80 years back. In another article (Levine, 1933) develop an endogenous model to clarify the relationship between growth finance and entrepreneurship. The study the role entrepreneurs in initiating economic activity there are two views of Schumpeter; the first one which states that innovation are the motivation to seek temporarily monopoly profit. The second view which less popular is financial intermediary play a vital role in economic growth because of the fact that these financial intermediaries provide fund to the entrepreneur for their innovative activity and facilitate development of new product in the market. Previously the economist such as (Schumpeter, 1911) and (Walter Bagehot, 1873) emphasize the role of banking system in economic growth. Beside this historical emphasize on banking system there are few researches on the relationship between stock market and long run growth. Therefore (Levine and zervos, 1998) focused on stock market by using 47 countries data from (1976 -1993). The study empirically investigates whether banking and stock market indicators are strongly correlated with the current and future rate of economic growth, capital accumulation and productivity growth. Te evidences are consistent with the views that service provided by financial institution and markets are noteworthy for long run growth as argued by (King Levine, 1933) finally the study summarizes that financial environment plays crucial role in the economic growth process. In recent papers by (Rajan and Zingales, 1998) contribute to the finance and growth literature by examining whether industrial sector requiring external finance, in countries with well developed financial markets grow faster compared to those less developed financial market. The results are consistent with the theory that financial markets and institution reduce the cost of external finance. For firms and promote industrial growth a emphasized this would imply that an industry in need of external finance such as pharmaceutical grow relatively faster than tobacco industry requires little external finance in countries with well developed financial system Rajan and Zingales ,1998. Similarly Demirguc-kunt and Maksimovic, 1966 found consistent results with Rajan and Zingales, 1998 that firms in countries with well functioning banking system and equity markets grow faster than it was predicted to sum up the study suggest that financial development may cause the rise of new firms and can improve the growth indirectly and also finding provide evidence that financial market imperfection have an important role in on investment and growth. Moreover, some economists just do not believe that the finance-growth relationship is important. Robert Lucas (1988, p. 6) asserts that economists badly over-stress the role of financial factors in economic growth, while development economists frequently express their skepticism about the role of the financial system by ignoring it (Anand Chandavarkar 1992). The link between liquidity and economic development arises because some high-return projects require a long-run commitment of capital, but savers do not like to relinquish control of their savings for long periods. Thus, if the financial system does not augment the liquidity of long-term investments, less investment is likely to occur in the high-return projects. Indeed, Sir John Hicks (1969, pp. 143-45) argues that the capital market improvements that mitigated liquidity risk were primary causes of the industrial revolution in England. The critical new is capital market liquidity. With liquid capital markets, savers can hold assets-like equity, bonds, or demand deposits-that they can sell quickly and easily if they seek access to their savings. Simultaneously, capital markets transform these liquid financial instruments into long-term capital investments in illiquid production processes. With liquid capital markets, savers can hold assets-like equity, bonds, or demand deposits-that they can sell quickly and easily if they seek access to their savings. Simultaneously, capital markets transform these liquid financial instruments into long-term capital investments in illiquid production processes. Informational asymmetries and transaction costs may inhibit liquidity and intensify liquidity risk. These frictions create incentives for the emergence of financial markets and institutions that augment liquidity. Liquid capital markets, therefore, are markets where it is relatively inexpensive to trade financial instruments and where there is little uncertainty about the timing and settlement of those trades. Before delving into formal models of liquidity and economic activity, some intuition and history may help motivate the discussion. Demirguc kunt and Levine; 1996 identifies the relationship between stock market development and financial intermediary development. They find that better developed stock markets also have better developed financial intermediaries. Levine and Zervos; 1998; proposes that liquidity of the stock market is significantly correlated with current and future rates of economic growth. They also discovered that stock market liquidity and banking development significantly predict future areas of growth. Demirguc kunt and Levine, 1996; investigated the relationship between stock market development and financial intermediary development they also found that those countries having well developed stock markets have better developed financial intermediaries. Therefore they concluded that stock market development goes hand in hand with financial intermediary development. The financial development and its impact on new firms creation are investigated by (Beck, Demirguc-kunt and Levine, 2001) and the impact of economic development and financial structure on industry growth are examined by using country industry panel based on work by Rajan and Zingales, 1998 it is questions that whether industries that heavily depend on external finance grow faster in market or bank based financial system. Whether the level of financial development is a matter for economic development , beck Demirguc kunt and Levine, 2001 found that the banks non banks financial intermediaries and stock market are larger more active and more efficient in richer countries. These characteristics of financial system develops as countries become wealthier also the result indicates that while countries become wealthier stock markets become more active and efficient relative to the banks the more important finding of the article is that externally dependent industries grow relatively faster in countries with better developed financial systems which is consistent with the financial services view predicting that industries that dependent on external finance grow faster in economies with a higher level of financial development grow relatively faster in countries with better developed financial systems, which is consistent with the financial services view predicting that the industries that dependent on external finance grow faster in economies with a higher level of financial development. Further to their research by using 44 industrial and developing countries they investigated that institutionally developed market with strong information disclosure laws, international accounting standards and unrestricted capital flows are larger more liquid markets with less volatility and are internationally integrated with smaller markets. (Levine and Renelt, 1992; Arestis and Demetriades, 1997; Luintel and khan 1999) regarded the presence of endogeneity which weakens the estimated effect of stock market indicators (Harris, 1997) as in case of cross country regression to establish the relationship between stock market development and economic growth. Thus our results may be indirectly valuable for less developed economies in way that may help policy decision relating to the adoption of specific types of financial system. Informational asymmetries and transaction costs may inhibit liquidity and intensify liquidity risk. These frictions create incentives for the emergence of financial markets and institutions that augment liquidity. Liquid capital markets, therefore, are markets where it is relatively inexpensive to trade financial instruments and where there is little uncertainty about the timing and settlement of those trades. The ability to acquire and process information may have important growth implications. Because many firms and entrepreneurs will solicit capital, financial intermediaries, and markets that are better at selecting the most promising firms and managers will induce a more efficient allocation of capital and faster growth (Jeremy Greenwood and Boyan Jovanovic 1990). Bagehot (1873, p. 53) expressed this view over 120 years ago. Acquiring Information about Investments and Allocating Resources It is difficult and costly to evaluate firms, managers, and market conditions as discussed by Vincent Carosso (1970). Individual savers may not have the time, capacity, or means to collect and process information on a wide array of enter-prises, managers, and economic conditions. Information acquisition costs create incentives for financial intermediaries to emerge (Diamond 1984; and John Boyd and Edward Prescott 1986). Assume, for example, that there is a fixed cost to acquiring information about a product-ion technology. Without intermediaries, each investor must pay the fixed cost. In response to this information cost structure, however, groups of individuals may form (or join or use) financial intermediaries to economize on the costs of acquiring and processing information about investments. Information costs, however, may also motivate the emergence of money. Because it is costly to evaluate the attributes of goods, barter exchange is very costly. Thus, an easily recognizable medium of exchange may arise to facilitate exchange (King and Charles Plosser 1986; and Williamson and Randall Wright 1994). The financial systems ability to provide risk diversification services can affect long-run economic growth by altering resource allocation and the saving rates. The basic intuition is straightforward. While savers generally do not like risk, high-return projects tend to be riskier than low-re-turn projects. Thus, financial markets that ease risk diversification tend to induce a portfolio shift toward projects with higher expected returns (Gilles Saint-Paul 1992; Michael Devereux and Gregor Smith 1994; and Maurice Obstfeld 1994). Furthermore, a growing literature shows that differences in how well financial systems reduce information and transaction costs influence saving rates, investment decisions, technological innovation, and long-run growth rates. If we will consider the discussion exist on the relationship between the financial system and economic growth; financial markets development is always considered as pivotal element for growth of economy through the diverse contribution of stock markets and banks. Stiglitz (1985) argues that, because stock markets quickly reveal information through posted prices, there will be few incentives for spending private resources to acquire information that is almost immediately publicly available. The absence of financial arrangements that enha

Anatomical Discoveries During the Renaissance Period Essay -- history o

More medical discoveries and advances are occurring every day. Medical treatments and understanding of the human anatomy have come a long way. Though if it weren’t for certain Anatomists, we may have not have had the right comprehension of the human body which could have led to errors in surgery and more deaths while treating patients. The Renaissance period was a time where Anatomists searched for clearer understanding of the human body. During the Renaissance period, Anatomists questioning and experimentation led to great discoveries of the human body. Wrong theories of the anatomy have been assumed to be correct for thousands of years. Theories of using a scientific base were not used by the Europeans until the Renaissance period (â€Å"Medicine†). These theories, made by a Greek Physician named Galen, were supported by the Catholic Church. The Middle Ages were a difficult time to achieve medical advances because Galen’s theories were not to be questioned or tested(â€Å"The Impact of the Renaissance on Medicine†).Even after these theories appeared to be inaccurate, the support from such a high authority made it extremely difficult to change the medical practices and training(â€Å"Rennaissance medicine†). The knowledge of medicine grew drastically during the Renaissance period (Siralisi 189). Research conducted during the Renaissance period by Andreas Vesalius, Matteo Realdo Colombo, Geronimo Fabrious, Ambroise Pare, and William Harvey has given us a better understanding of the human anatomy ("Renaissance medicine"). Once the Renaissance period hit, anatomists were able to work through the scientific method and find the flaws in Galen’s theories(â€Å"The Impact of the Renaissance on Medicine†). A vital advance made during the Renaissance per... ...ways to clean and heal wounds. He realized the importance of cleaning the wounds. He also designed prosthetic limbs and the truss, which is designed to keep hernias from growing ( â€Å"Medicine†). Works Cited Siraisi, Nancy G.  Medieval and early Renaissance medicine: an introduction to knowledge and practice. University of Chicago Press, 2009. "Renaissance medicine."  Hutchinson Encyclopedia. 2011.  eLibrary. Web. 13 Apr. 2014. "medicine."  Compton's by Britannica, v 6.0. 2009.  eLibrary. Web. 13 Apr. 2014. About William Harvey (Harvey Medical Research Foundation).  eLibrary. Web. 13 Apr. 2014. "The Impact of the Renaissance on Medicine."  Hutchinson Encyclopedia. 2011.  eLibrary. Web. 13 Apr. 2014. "Colombo, Matteo Realdo."  Hutchinson Encyclopedia. 2011.  eLibrary. Web. 15 Apr. 2014. "Fabricius, Hieronymus."  Hutchinson Encyclopedia. 2011.  eLibrary. Web. 15 Apr. 2014.

The policy and implications of the British Government’s

The Olympic spirit is undoubtedly the most universal celebration of global unity ever achieved and the continuation of the same will always be an integral part of international cooperation and globalization. In this regard it is an honor for any city in this world to host the Olympic Games since doing so bestows several opportunities for such a city and its dwellers. The Olympic movement has had to involve in many ways depending on its leadership in a bid to make it more integral, independent and reach a wider audience than before (Constantine, 2000).This changes has necessitate the need to adopt modern and innovative practices to the organization and running of Olympic affairs in order to cater for the monetary and logistical obligations of the management committees and to be able to organize superior games n broadcast them to a world audience. The IOC presidency of Samarech saw the international committee acquire rights to sell broadcasting rights to media companies in a bid to mak e the IOC financially independent. Furthermore, they developed an Olympic brand that could be sold to companies who would use it as an exclusive tool to market their products.This brand becomes one of the biggest revenue earners for the Olympic committee since acquiring the rights to use the brand is an extremely expensive affair. The IOC is responsible for choosing the host city for the Olympic Games and therefore enjoys immense power since an interested city has to convince the committee that it is capable of hosting the games and upholding the standards that are vital for the success of the mammoth games. These have led to unethical conduct of some bidding committees who have tried to influence the award of this honor by offering bribes to committee members.The idea of having the Olympic Games held in the U K is not new. Several bids have been put forward in past years by the city of Birmingham and Manchester without much success since the Olympic committee saw it as a lack of co mmitment on the U K authorities and interpreted their bids as not being serious enough. However, there has been a change of attitude amidst various stake holders who have been seeking an avenue of effecting a growth in elite sportsmanship by ensuring that elite English athletes are given forums to compete and excel and consequently earn U K respect in the sports arena.Some concern has existed in the inability of the U K to be among the very top medal earners in the Olympic Games and efforts have picked up momentum to correct this deficit. It was therefore clear that drastic measures will have to be taken in order to draw the necessary attention which hopefully would translate to more attention on sports funding and a significant progress in the success of U K athletes (Gibson & Booth, 2009)The momentum to host the Olympic 2012 games was not easy to build due to a lack of commitment on the part of the central government. There were questions as to the viability of London to host the games due to several factors that many saw as a stumbling block to the success of the games. However, there was general consensus among the various ranks of private groups in all sectors that the competitiveness of London as one of the major and important cities in world arena was under threat by emerging powers.Others felt that the U K governments have continuously failed to give priorities to games in a nation plagued by obesity and idle youths. Therefore, several groups of people and the media played a significant role in forcing the government to concede to be the guarantor against the total cost of hosting the games. On July 6 2005 the president of the Olympic committee announced that the 2012 games would be hosted by London acting as the climax of a process that had taken over 7 years to become reality (B O A, 2009).The bid committee popularly known as the BOA initiated in the early days a massive PR campaign that sought to gain the approval of the government and fuel public s upport for the bid in the hope that doing so would give them the necessary edge to beat the other competitors. The team used a strategy of persuading all involved of the diverse benefits that were to be reaped following the success of the beads among them public exposure, improved transportation, employment and housing improvements.The success of the commonwealth games in Manchester acted as a booster for the team since it showed the commitment and ability of the country to host large games events. And thus the effort of this committee, the government and several other contributors led to the successful biding and the process of building the necessary facilities to host the games is underway. Hosting the Olympic Games poses serious challenges to any country due to the great infrastructural and logistical needs of the project.The games are expected to cost nearly 9 billion pounds for the building of the Olympic village and the upgrading of other vital sectors including upgrading of e xisting venues and the road and rail system. There is a worry that the games might cost the tax payers more money since it is expected that the current budget might not be sufficient to cater for all the requirements. Another challenge is the transport system which is below standard and there will be a need to improve it and expand it if the games are to go on smoothly (Briginshaw, 2006).Another challenge is the need to provide the venues and management committees with modern technology in order co ordinate the games effectively. Lastly is the problem of the Olympic legacy and how the various equipments and facilities will be put to use after the games. There are those who feel that most of the venues and assisting facilities in the Olympic village will be converted into schools and technical institutes for games development for the benefit of London youths.Furthermore, this is estimated to create over three thousand permanent jobs for the local people. Most importantly it is hoped that the Olympic Games will increase the level of sports participation in the U K including for those who are disabled (Rose, 2009). Bibliography B O A 2009, London 2012 Olympic Bid – An Eight Year Journey, Viewed 8 May 2009, . Briginshaw, D 2006, An Olympic Challenge, International Railway Journal, Viewed 8 May 2009, < http://74. 125. 113. 132/search?q=cache:zVQ6EWubIj8J:library. kmi. re. kr/BibAttfile/0000050180200607. pdf+challenge+of+london+as+an+olympic+venue&cd=19&hl=en&ct=clnk&gl=ke&client=firefox>. Constantine, S 2000, History of the Olympic Games, Seaburn Publishing, New York. Gibson, O & Booth, R 2009, Halfway to the opening ceremony, London 2012's progress report, Guardian, Viewed 8 May 2009, . Rose, E 2009, Disability Sports, London 2012, Viewed 8 May 8 2009, < http://www. london2012. com/>.

Sunwind Ab Case

2) Draw the schematic flow diagram for Sunwind and all Volvo plants. (Draw at abstract level not detailed level). Provides detail of distances and demand (quantity based on 1987 forecast) flow. Ans) Demand of Sunwind is 1250/week = 1250*45 = 56250 units The following table gives us the demand of each plant yearly for the year 1985 Plant|   | Torslando | Kalmar| Ghent| Total| Year| 1985| 17050| 4525| 12090| 33665| | %| 50. 65%| 13. 44%| 35. 1%| 100%| Year| 1987| 32919. 947| 8736. 819| 23343. 23| 65000| Depending on the percentage of share of each plant of the total in 1985, the same percentage is used to calculate the demand of each plant in 1987, as we know the total production of Volvo from all the plants put together in 1987. 3) What are the challenges facing Sunwind? Do they need a change in strategy by Sunwind? Why? Ans The challenges faced by SUNWIND are as follows : The main problem is to meet the increase in the demand from Volvo which is around 650 per week in 1985 to 1200 per week in 1986 * There is also a problem of meeting the quality of the finished products supplied by them, some of the machines like gluing machine had proved particularly troublesome and has increased rejects. * Some other bothering issues would be the off-spec plywood blanks received from Finnish supplier. * The rejection of the batches by Volvo as they haven’t met the quality constraints imposed by them. The demand for the finished goods is around 1400 units/week while the ideal capacity of plant excluding wastages is only 1250 units/week; this mismatch is of a greatest concern for the Sunwind in the present scenario. * The trend of the major manufacturers like Toyota who are working on â€Å"Less† suppliers’ model to increase the efficiency is of a big threat as Volvo might even persuade it. * The system of JIT which is being implemented recently by the Volvo group, the Belgian manufacturer is turning out to be major competitor to Sunwood on this perspecti ve. The batch size if we see for different operations varies from 2500 to 500, such a huge amount of batch size might lead to having no control over the quality issues i. e. in case of any damage done its hard to find out and the who batch has to be set off which is of a huge loss for the plant. * This large batch size might also increases the MLT hence leads to a lot of inventory which has a lot of adverse effects. For the other part of the question whether they need to change the strategy of the Sunwind or not, yes they have to change indeed to so as to protect themselves from Volvo by meeting their demand needs.At the same time the technological aspects of Sunwind are at a ground level, they need to compete with the competitors and have to go for new machinery. Right now they are not following the JIT method while Volvo has gone for it, In that case to meet the Volvo demands it might have to put a huge pile of raw materials instead if it makes itself a JIT system it could save it self from one of the competitors. Their batch size as mentioned before is also very large, hence they need to change this strategy too. There is a quality issue also being faced hence they a need a new strategy which can address all these issues in a very efficient way. ) What are the benefits to implement JIT for Sunwind? How Volvo will get benefited if Sunwind goes for JIT production and delivery? Ans) The benefits to implement JIT for Sunwind are 1. The main advantage would be saving on inventory i. e. there is no need to spend a lot of money in storing the inventory for huge number of days until it is used instead JIT takes care of inventory only when needed hence there is no idle inventory. 2. The JIT system will take care of the batch size this will help increasing the frequency and also easy transportation and on time as the batch size is small 3.In case of any defects the wastage would be in a small scale 4. The quality issue can be addressed, if we have the batch size to be small there is an every chance to make strict quality checks and reject the rest. 5. This helps in cutting the waste by cutting the excess capacity or inventory and removing the non value-added activities. 6. This will develop a close relationship with their suppliers, in a way they will get suppliers as a partner in the venture. 7. This will also encourage the suppliers to get themselves placed in and around the Sunwood plant so as to deliver the raw materials on time. 8.This system gets an in-plant representative who will be onsite in Sunwind on behalf of the suppliers whose main purpose is to plan and schedule the replenishment of the materials from the supplier hence even the forecasting is also taken care by him. 9. He also helps in designing ideas to help reducing cost and improve manufacturing processes and managing production schedules for suppliers, materials contractors and other subcontractors. 10. It also provides the best organizational structure needed to improve the supplier coordination by integrating the logistics, production and purchasing processes together.The advantages of the Volvo if Sunwind go for JIT is same as the ones enjoyed by Sunwind on behalf of their supplies * This will develop a close relationship with Sunwind. * This system gets an in-plant representative who will be onsite in Volvo on behalf of the Sunwind whose main purpose is to plan and schedule the replenishment of the materials from the supplier hence even the forecasting is also taken care by him. * He also helps in designing ideas to help reducing cost and improve manufacturing processes and managing production schedules for suppliers, materials contractors and other subcontractors. It also provides the best organizational structure needed to improve the supplier coordination by integrating the logistics, production and purchasing processes together. 6) How many varieties of products does the Sunwind manufacture for Volvo? How does this information help to design pro duction and delivery? Ans) Sunwind was the only supplier for the floorlid for the 5-door 700 series station wagon. These were offered in several carpet/ colour combinations. The lid comprised of 4 separate items – front panel, rear panel, left panel and the right panel.The carpeting could be any of four different colour choices – beige, blue, black and burgundy. The carpeting could be either needle felt or tufted. Thus 32 part numbers were needed to specify a particular part/ colour/ carpet combination 4 parts x 4 colours x 2 carpets = 32 This data of the variety of products being manufacture will give us an advantage of designing the production through JIT. One of the process considerations in lean systems â€Å"Uniform workstation loads â€Å" comes into the picture. This in turn would decrease the big lots there by decreasing the average inventory level.We can follow the production model of â€Å"heijunka† which is the levelling of production load by both v olume and product mix. Using this what we can do is to form batches in a way so that each batch gives us 32 varieties of different materials instead of having the same variety in a batch. This would help workers to get acquaintance of all the products and also though there is any wastage in a batch the other batch can cover up for it, if a batch has all the products of same kind it would be a problem if there is any defect or quality issues.Thus this data of the variety of products gives us the division of batches in an efficient way which reduces the extra non value added costs. 8) Provides details of some critical characteristics of one of the Volvo operations (Customer interface point) between Volvo and Sunwind. How does may this information be helpful to get advance intimation to prepare the next JIT delivery? Ans) Sunwind’s interface with Volvo parts at the order placement. Every 4 weeks Volvo send an order form indication the requirement over a 60 week planning horizon. This was broken into seven 4 week periods and one 32 week period. The next interface was at the loading stage of the shipping process. Volvo mandated that it suppliers use Volvo’s wholly owned transport company, use standard containers and ship one part per container. Sunwind ordered transportation and empty containers as required. Post shipping, the next interface would be at the inspection upon receipt of parts by Volvo. If the randomly chosen container did not pass the stringent quality control criteria, the entire shipment would be rejected and the supplier would be called.Sunwind could then either replace the entire shipment ot come to Torslanda to check the rejected shipments and replace the defective parts. Rejected parts were either scrapped or sent back to the supplier at the supplier’s expense. The fault would be officially notified and the next shipment would be subjected to 100% inspection. The interface points are at various stages in the part procurement process. Continuous communication between supplier and vendor enables updation of records on both ends and real time flow of information.The 4 week periodical order placement can help Sunwind plan its production such that they complete production just in time for shipment and the shipment occurs just in time for assembly at Volvo. Shipping is done through Volvo’s own transport system. Knowledge of the production schedules of Volvo in advance will enable Sunwind to request transport and containers in advance so that they arrive just in time for loading. This makes for efficient operations as the production can then be planned to meet the shipment schedule.Inspection procedure is well defined and knowledge of this can help Sunwind optimize its production to avoidrejection upon shipment. Rejection of shipments can be costly and they run the risk of not being able to meet the just in time production schedule. 9) How KANBAN, facilitator of JIT inventory Design be used for Sunwind operations? Show few sample calculations. Ans) In order to avoid the stock outs or overproduction Kanban can be used as a facilitator of JIT system. According to Kanban system, there is a card which contains the requirement or the supply of units written on it.Once if the card reaches the supplier depending on the requirements the desired date the supplier manufactures or prepare the goods and then they will be put in the same box with the card in place. The same process is done when the units reach the ordered company it will crosscheck the number of units in the box with the required in the card, once it matches it will then proceed to the operations. The best use of this comes when the manufacturing process has lots of operations involved in it with different batch sizes and cycle time and lead time.For example if we take Sunwind it has 8 operations with different batch sizes hence by using this it can send the Kanban cards at will according to the lead time to the respective sup pliers and they can receive the desired goods right on time and can verify it also accordingly. The basic formulae to calculate the number of Kanban cards is Kanban quantity = Daily Demand x Lead time (in days) x Safety factor Container quantity Here the daily demand can be calculated as we know that the demand per week is 1250 and there are 5 working days per week thus the daily demand is 250 unitsThe lead time here as it is not mentioned clearly anywhere in the case we have taken the sentence† the production is planned two weeks before†. Using that we can get the lead time as 2 weeks i. e. 14 days (including working and non-working days) Safety factor: we are taking a standard 10%(assumption) hence the whole quantity is multiplied by 1. 1 Container quantity is given in the case as 20 units Hence Kanban quantity = 250*14*1. 1 = 192. 5 20 Thus using this estimate this will give us a forecast of how many Kanban cards are in place for the JIT beforehand and would make the process efficient enough. 1) Repeat Q10 for Volvo’s Kalmar and Ghent plants. Write only short discussion and detailed calculation and diagram is not expected as in Q10. Ans) The distance plays a major role when it comes to Kalmar and Ghent plants as for us to make a JIT delivery of 4 times a day, the transportation including all logistics plays the deciding factor. Similarly if we look into this case the distances are shown below Save to Kalmar —– 179. 82 Miles or 289. 39 KM (Source : http://www. mapcrow. info) Save to Ghent —– 1284 KM (source : Google Maps)For both the plants if we see there is no feasibility to do the JIT supply 4 times a day as the distance is so large that the transportation becomes a problem and even though if pains are taken and the things are meeting the deadline, the efficiency decreases as this will in no way an add on for the current existing process in terms of the ROI ( Return on Investment ). Q 5 ) Draw the process flo w diagram of Sunwind operations. Perform capacity analysis Sunwind’s operations. Is the capacity at plant sufficient to meet the requirement (Demand and any other) of all VOLVO plants?How would you interpret the capacity calculations? (Consider a batch size and process time information in Exhibit 8). What is the Manufacturing Lead time? Do you think it is right or a long MLT in line with JIT requirement? If it is short or long, what is cause of such short/Long MLT? Ans. Operation 2- Painting Cycle time: 1. 15 min Operation 3&4-batterns, riveting inserting studs Cycle time: 6. 85 min mins Operation 1-Shaping plywood panel Cycle time-2. 8 min Raw material (plywood) Operation 7- Attaching metal and carpet fixturesCycle Time: 2. 2 min Operation 6-Gluing Carpet Cycle Time: 4. 25 min Operation 5-Mounting hinges Cycle Time: 0. 95 min Operation 8-Assembly of left and right units Operation 3 is the bottleneck with maximum cycle time of 6. 85 mins. So it becomes the cycle time for the entire process. The working time for a personnel/week = 40. 7 hours. So, effective working hours/day= 8. 14 hours. Therefore, total no. of units produced/ day=8. 14*60/6. 85= 71 units. ( considering 100 % capacity utilisation) So at 100 % utilization,output/week= 71*5= 355 units/ weekMonthly production= 1420 units. Starting from January 1985 Volvo’s maximum demand per month till July was 1115 units. So Sunwind was able to meet the demand . In August 1985 when demand of Volvo’s three plants surmounted to 4000 units / month Sunwind was unable to supply the required quantity. In 1986 when the forecasted demand of Volve stands 1387 units/ week present capacity of Sunwind ( 355 units/ week) is not sufficient to meet the demand . Direct labor content ( parts fabrication + operations 1-9 ) =18. 8+25. 2+5. 15= 49. 15 mins/ shirt (excluding set up time)If we consider batch sizes of 500 (operation 6 has the minimum batch size of 500) the changed cycle time for each operation are as follows: Operation 4 with zero set up time still remains the bottle neck time and hence the cycle time. So the batch size does not influence the process cycle time. To meet the average forecasted demand of 1400 units/week in 1986 the cycle time of the entire process should be 1. 4 min assuming the plant operates at 80 % efficiency level. Since different operations have different WIPs( according to batches as shown below):Manufacturing lead time is given by MLT= WIP * Cycle time At current plant capacity, considering lids are produced in batches of 500 MLT= (2500+1500+1000+1500+500+500)* 6. 85 = 51375 mins =856. 25 hrs= 21 weeks (considering working hours of 40. 7 /week as bottleneck operation is run in 1 shift only) The lead time is very high and the primary cause for this is large lot size used for production. A high MLT cannot go hand in hand with JIT production. The JIT philosophy is timely delivery of customer order . To meet the delivery deadline for a JIT e need to start t he production as soon as the order is booked. For this we need to maintain a minimum Manufacturing Lead Time as products are produced in batches. Q 7) Should Lars Olav were to design a JIT programme at Sunwind, what should be its elements? Give details about the current status and future requirement of few essential ingredients of JIT/Lean elements requiring improvement/change in Sunwind. Please suggest/show your improved/changed version of the Sunwind operations process to meet the requirement (Demand and any other) to all Volvo plants.Hint: You may like to meet the new demand (1987 forecast) by balancing the capacity of Sunwind operations. Ans. The elements of a JIT programme would be as follows: 1) Make to order strategy and not make to stock. This will reduce over production which not only creates excessive lead times and inventory but also makes it difficult to detect defects. 2) Reduction of inventory level so as to identify quality issues more promptly and effectively thereby correcting at source instead of creating rejections at end. ) Setting a plant layout such that the distance between adjacent workstation is minimum. This will reduce material handling cost and time. Excessive movement of products can at times cause damage and deterioration of product quality. 4) Manufacturing lead time to be minimum so as to reduce waiting time for starting production when an order is booked. 5) Close ties with supplier making sure they are located in close geographic proximity in order to promote strong partnerships and better synchronise product flows.Current status and requirements for adopting JIT in Sunwind: 1) High raw material and WIP inventory level. High batch sizes don’t allow problems to surface immediately. This hinders quality check at source. Few of the quality control procedures were followed in practice. Processes were not monitored formally. Defects were inspected by customers after delivery instead of identification in-house. Defective mate rials were rejected by eliminating the problem but no summary statements were available in Sunwind concerning the rejects.Sun Wind needs to reduce its inventory level and present MLT so as to identify defects at source thereby reducing cost as rejection rate comes down. 2) Presently in Sun wind due to extended delivery lead time of some items (eg. Carpeting) the purchasing department uses a 3-6 months planning horizon. On the contrary the production planning department focuses on first four weeks of delivery schedule which unnecessarily increases the inventory level. As a result raw material inventory unnecessarily goes up.Sun Wind should ask it supplier to reduce this lead time as it is planning to go for JIT. The benefits of a successful JIT can only be realized if your inventory levels are low. Considering suppliers as partners in venture can build long term profitable relationship wherein there is a win-win situation for everyone. 3) Sun Wind is presently operating in moderate b atches which is giving a very high Manufacturing lead time which is not acceptable for a JIT . To meet the increased demand for Volvo Sunwind needs to improve its cycle time as well as reduce its MLT by reducing batch size.Only operation 6 has a significant set up time which has to be reduced for going to JIT by enacting machine controls or preparing for changeovers while a job currently in production is still being processed. 4) In Sunwind the workstation load at different operations is not uniform. The cycle time at different processes vary considerably. As a result there is inventory pile up at workstations with high cycle time. Capacity planning and line balancing are to be used to meet the changed requirement of Volvo plant in 1987. In 1987, Volvo needs 65000 units of 700 series 5-door station wagons.To meet this demand Sunwind needs to produce =65000/52= 1250 units/week. At current capacity Sunwind can only produce 350 units/week. To meet the demand Sunwind needs to produce=12 50/5=250 units/day. We propose change in number of workers and number of shifts to meet the required demand(considering Save plant of Sunwind alone will be producing for all Volvo plants) as shown below. Present Situation Proposed Capacity Planning and line balancing to meet new requirement In this changed line balancing the bottleneck operation is Operation 6 with a cycle time of 2. 83 mins.Since operation 6 has got maximum set up time and Sunwind is producing 32 combinations of part/color/carpet, we assume Japanese concept of heijunka for a JIT, a batch of 32 each wherein all the varieties will be there per batch. Assuming a reduced set up time of 15 mins /batch for JIT achieved by machine control , we get a cycle time of 2. 83+0. 47= 3. 3 mins. Since this operation is run for two shifts the daily production will be = 2*8*60/3. 3= 290 units/day. Operation 7 which has a lower cycle time becomes the bottle neck as the process is run for 1 shift only. No of units produced /day = 8*60 /1. 3=262 units. Hence we can say the actual bottleneck is operation 7 with a cycle time of 1. 83 mins which run for single shift. Hence this becomes the cycle time for the entire batch process. To meet this requirement 3 additional workers at Sun wind’s Save factory are needed as per changed capacity planning. In this scenario of JIT an operational efficiency of above 95 % will be needed to meet the demand requirement of 250 units/day or 1250 units/week (assuming 5 days week) If each batch of JIT is 32 units, in that case per day no of batches produced will be =250/32=7. Hence a JIT will shorten the Manufacturing lead time thereby reducing the inventory level and lumpy requirements on different workstations. This will help identify defects immediately and strengthen quality control measures and help achieve higher efficiency. MLT for JIT= WIP* Cycle time = 32*6*1. 83=351. 4 mins=5. 86 hours. Q 10 Assuming that Sunwind is now ready for JIT delivery (hope so, based on your Q1 to 9 analysis and suggested improvement), how to synchronize the delivery of product 4 times a day to Volvo’s Torslanda Plant? For this you may require the one day demand of Torsdland plant) Ans. The actual demand of 5 door model 700 for Volvo’s Torslanda Plant is 1985 is 17050. The total demand for Volvo isn 1985 is 33665. So Torslanda plant produced around 51 % of total Volvo’s production. Considering the same percentage production of total Volvo’s requirement, by using the overall forecasted demand of Volvo plant in 1986, Torslanda plant will require to produce =51% of 62400= 31824 units annually.Hence per week demand is calculated to be=31824/52= 612 units. Since Sunwind runs 5 days a week, daily production requirement will be=612/5= 122 units. Considering new Capacity planning and line balancing for Sunwind as in Q7, our cycle time is 1. 83 mins ( bottleneck process 7 running for single shift). As the bottleneck operation is for single shift, in orde r to synchronise the delivery of products 4 times a day to Volvo’s Torslanda plant we need to have an MLT which will be atleast= 8*60/4= 120 mins.Considering the previously arrived cycle time of 1. 83 mins in Q7 There will be WIP of equal size at 6 different work stations (Operation 1 to 7) where processing will be done in batches. Hence maximum batch size that can be allowed so as to make a just in time delivery of new order booked 4 times a day =120/(6*1. 83)=11 Lot sizes of 11 units if produced in JIT system can enable us to deliver products 4 times a day, if the product criteria and combination is known beforehand.

Walt whitman comparison essays

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Progressive Era

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How to Craft a Perfect Customer Service Resume Using Examples

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Frank Lloyd Wright Essay Example | Topics and Well Written Essays - 2000 words

Frank Lloyd Wright - Essay Example At the age of eighteen, Wright got admitted into the University of Wisconsin; however he was dropped before two years.3 Then he worked for Chicagoan architect James Lyman Silsbee, where he stayed only for few months. And later as he was employed by Sullivan and Adler, he was highly influenced by Sullivan's work that is now recognized as the first modern architect of America. One the prominent theory of Sullivan, which summed up his experience and knowledge was "form follows function," which meant that buildings design determine their use.4 However, it appeared quite far-reaching then, but was Wright accepted this by his 'Master'. Wright continued for five years with Sullivan where he worked as a designer and a draftsman. He designed the Charnely House, 1891 and worked for the greatest of the Sullivan buildings Chicago. He designed his own house in Oak Park in 1889. 5Later in 1893, to start his own practice in Chicago and Oak Park, he left Sullivan and Adler. Then he went for a year t o Europe, form where upon his return he went to an inherited farmhouse in Spring Green, Wis., where he built the Taliesin, the farmhouse in 1911. Later in 1915, in Tokyo Japan he built the Imperial Hotel, thereafter until its construction in 1922 he stayed in Japan.6 Due to his creativity and a longer period for w... Architectural Work Due to his creativity and a longer period for which he lived and worked, historians have divided his work into three divisions, i.e. the early period from 1893 to 1910, later the mature period between 1910 and 1945 and lastly the later period extending from 1945 to the year 1959.78 Early Period In the initial period of his work and practice, Wright mainly designed apartment buildings, and houses in Oak Park, Ill and Chicago and near townships. Although these buildings didn't actually indicated the pattern he was to follow later, but they represented great design and detail and were quite analogous to the forms of those designed by most of the educational and experimental designers.9 However, in 1902, he built the Willits House which contributed to his career, which reflected the signs of the themes he built in his later creations. More specifically, they had exteriors which were low and had wide overhangs and hipped roofs these themes later turned out to be recognized as the Prairie Houses or Style which were one of his identities. The Martin House built in 1904 in Buffalo, N.Y., and the Heurtley House at Oak Park in 1902, were significant in this particular style.10 Moreover one of his greatest creations was the Larkin Company Administration Building in Buffalo in 1904, which was the first of his masterpieces. Not only the design and level of detail were not only significant, but the its interior entrance hall; and the use of air conditioning and plate glass, were of considerable attention then, though it's quite common in houses today, and also the, however this building was demolished in 1905. Soon afterwards he created a number of masterpieces of the Prairie Style; of

Managerial Economics Research Paper Example | Topics and Well Written Essays - 2000 words

Managerial Economics - Research Paper Example Often, the patient needs to adjust with the hearing aids and usually it takes quite a long time failing the endurance of the patient. Social stigma is also a reason for the people not to use the hearing aids as they are likely to be tagged as old and not-so-smart people in the society. It is general perception that price is a chief attribute to penetrate the market but often it is not true for several reasons as has been found in the case of hearing aids too. Price becomes important when consumers view two or more competitive products fulfilling their needs in equal terms. When product differs in their attributes and users see one of them clearly fulfilling their needs in all respects, price becomes a secondary issue. Often, people pay higher prices for a product that meets their needs in clear terms – establishing superiority over competitive products. Amiani (2007) has explored the various attributes that measure elasticity of demand for a product or service. Demand is said to be elastic when total revenue decreases on raising the product price. In contrast, the demand is said to be inelastic when total revenue increases on raising the product price. Some of the attributes, which can decide about elasticity of demand for the hearing aids, can be described as per the following. Hearing aid is an important product, which must have unique features to satisfy the customer needs. Unfortunately, most of the hearing aids available in the market fail to satisfy the customer needs. Hearing aids are in the market since several decades yet consumer perceptions on this product have not changed. Hearing aids are not perceived to be user friendly at the first place. This is one of the major causes for not an appreciable change in the user perception in last several decades. That is to say till date hearing aids suffer from inelastic demand of the market. Hearing aid technology is not yet matured enough so that consumer can differentiate among the products and its at tributes. In other reason, hearing aids require a considerable investment for the patient as it falls out of insurance coverage. Hearing aid yet does not have any substitute in a real sense making it inelastic to the market demand. Amiani (2007) asserts from the past research of ‘Lee and Lotz’ as well as ‘Kochkin’ that hearing aids do not exhibit high elasticity of demand and the reasons are many and varied as mentioned earlier. From this perspective, it makes no sense to reduce the price to increase the revenue of the firm. On the contrary, any such attempt may bring down the revenue of the company. Question: Evaluate different possible strategies that companies could implement to gain a sound position among their competitors in this hearing aids market. Use relevant theoretical concepts discussed in chapters. Answer: Revenue is a function of product price and the corresponding sale in numbers. Any marketer would be interested to increase the revenue and t hereby the profit of the firm. Amlai (2007) has already demonstrated that hearing aids are price inelastic to their demand. Given inelastic nature of demand, as in the case of hearing aids, any reduction in price does not come with corresponding increase in the sale of the product. Marketer needs to explore some other means to expand the market. Currently, only 23.6 percent of the people use hearing aids of the total potential that makes up to 31 million. Even one percent expansion of the total pote

The Stock Plans Essay Example | Topics and Well Written Essays - 1500 words

The Stock Plans - Essay Example The major difference between the two accounting methods is that the intrinsic value based method overstates the income of the company. This method does not reveal the fair value of the stock, whereas the fair value based method, which is also recommended by FASB is based upon the estimated fair value of the company’s stock. Amount Of Compensation Under a stock options plan, 100 shares were offered to each employee that was purchased or exercised at $45 per share i.e., the grant price. The stock options would cost them $4500 ($45x100). However, the current market price of the stock is $60, which makes $6000 ($60x100) if sold in the market. The shares would obviously be sold on the current market value and hence each employee would get the difference ($6000-$4500) between the grant price and the current market value. The total amount of compensation that each employee would get is $1500 making the total compensation of $3000 paid by the company to two employees. Recording Of Sto ck Options In XYZ’s books The US GAAP requires the companies to expense out the employee stock options on the fair or intrinsic value, as well as disclose it in the company’s financial statements, which is supposed to decrease the company’s earnings significantly. Therefore, an expense will be recorded in the books of XYZ Corporation against the amount of employee stock options as per the accounting practice of FASB and the corresponding expense will be disclosed in the company’s financial statements.

Can Religion Heal Racism Research Paper Example | Topics and Well Written Essays - 1250 words

Can Religion Heal Racism - Research Paper Example For the sake of argument, and since it is true in some cases, it will be said that religion can help to heal racism, but the other side will also be discussed within the content of this paper so the situation can be fairly analyzed by all readers attempting to take a stand. When discussing issues such as these, it is first important to understand the definitions of some key terms. First up is racism. According to the Anti-Defamation League (2010, pg. 1), â€Å"Racism is the belief that a particular race is superior or inferior to another, that a person’s social and moral traits are predetermined by his or her inborn biological characteristics. Racial separatism is the belief, most of the time based on racism, that different races should remain segregated and apart from one another. Racism has existed throughout human history. It may be defined as the hatred of one person by another -- or the belief that another person is less than human -- because of skin color, language, cus toms, and place of birth or any factor that supposedly reveals the basic nature of that person. It has influenced wars, slavery, the formation of nations, and legal codes.†" Next, it is important to understand the definition of religion. According to Princeton (2010, pg. 1), religion is "a strong belief in a supernatural power or powers that control human destiny; "he lost his faith but not his morality" or an institution to express belief in a divine power; "he was raised in the Baptist religion"; "a member of his own faith contradicted him." One thing all religions have in common is a guiding set of morals or principles that lead their followers to believe in a certain way. It is these beliefs that make some hopeful that religion can heal something as horrible as the concept of racism. There are many things that can cause racism, and religion is even one of them. It all depends upon what the followers of a certain religion consider to be right or wrong. Just looking at the plethora of wars that have broken out in the name of religion can show one that these rights and wrongs vary immensely from religion to religion. Racism of any form is condemned by the Church of England and the Catholic Church. Christians are raised to believe that racism is definitely wrong, but it still happens today. Middle Eastern and similar religions obviously have a problem with other people's religious beliefs, along with their races, or the heavy corruption that is there would not exist today. Many places in the Bible teach that racism is wrong and that God shows unconditional love towards his followers, no matter what race they are a part of. The Bible clearly outlines that God loves all people regardless of color or race. This shows that Christian teaching is not racist by any means. It is important to note, however, that Christians do not hate racists; they merely believe they have been misinformed. Racism can be challenged by Christians in a strong fashion. Even though these guidelines are taught to Christians, we have to think about what teachings are given to non-Christians. Certain religions even believe that if a person is of a different race, they are not worthy to be of their religion. Even though the Bible says that racism is wrong, that fact is going to mean nothing to a non-Christian. Those individuals are going to go with what their books and other teachings convey. Reading these passages, whether they comply with one's religion or not with common sense applied will allow them to be understood by virtually anyone with a conscience and a good heart, however. There is a quagmire that exists within the aforementioned concept, however. Christians may believe that God is not a racist, but to other religions, it does not carry

Babcock Marine Essay Example | Topics and Well Written Essays - 2500 words

Babcock Marine - Essay Example In the year 2012, the loss of power especially in Devenport Dockyard eventually called for the attention of the senior management team belonging to Babcock Marine in adopting certain effective measures to address and mitigate this issue. This is owing to the reason that the issue had potential nuclear implications in accordance with the report published by Ministry of Defence (MoD). According to certain nuclear analysts, the power loss which happened in the dockyard that continued for 90 minutes could become â€Å"catastrophic† and might prove to be disastrous for Babcock Marine. It can be apparently observed that the power loss was mainly caused due to the fault in central nuclear switchboard and thus, it was regarded as one of the potentially dangerous events that have been recorded in the year 2012 (BBC, 2013). In this respect, an effective communication plan will be depicted in the form of developing effective communication tools that require be strategically employing as well as managing in an effective manner. The key areas of the communication would generally comprise determination of promotional objectives and marketing communication strategies along with promotional mix and utilising the accessible resources. The expected outcomes of the above depicted communication plan can be eradicating the potential problems that would arise due to the power loss and assisting the senior management team of Babcock Marine to handle this issue or problem quite efficiently. 2. Context Analysis 2.1. Market Context Technology has been playing a significant role in remoulding of customer awareness and also to the companies in improving their competitive advantage. A global distribution network is quite essential for marine products or services in order to create a physical identity of those products in front of the consumers. The marine industries have highly been benefited from the competitive strengths prevailing in the UK business market. The UK market is famou s for its popularity in maintaining quality and adoption of technical knowledge and skills. Thus, in relation to this scenario, Babcock Marine is having a huge significance in the field of acquiring huge volume of valuable customers. It is operating in the UK business market, wherein there pertains number of growth opportunities for Babcock. Since the past few years, there have been no change in the economic environment of the UK business market and the only left choices for the company can be viewed as elimination of services, reduction of outputs and seeking for applying different delivery models of the marine services. From a theoretical perspective, it can be apparently observed that the business of Babcock Marine expanded extensively throughout the region of the UK. This can be justified with reference to the fact that it employs nearly about 6,500 competent along with experienced workforce for performing its wide assortment of operational functions to the business markets wher e it operates (Stratton, n.d.). From the aforesaid study, it can be affirmed that the UK market was much favourable for Babcock Marine (Babcock International Group PLC, 2013). 2.2. Consumer Context The major consumers of Babcock Marine division generally include the Royal Navy of the UK and

Organizational Development Research Paper Example | Topics and Well Written Essays - 1000 words

Organizational Development - Research Paper Example Table of Contents Overview of the Case 2 Diagnosis of the Ben & Jerry’s Organisation 4 Determination of the Business- Under Organised or Over Organised 5 Approaches to Launch for OD Effort 5 Further Logical Steps for the Organisation 6 Bibliography 8 Diagnosis of the Ben & Jerry’s Organisation Diagnosis is a phenomenon that is essential in finding the reason of anything that is happening. In Ben & Jerry’s organisation, the root causes of the problem are inefficient leadership style of the managers in the top level and the breakdown in the ethical work climate. The leadership style has been mentioned ineffective on the grounds that clear and significant goals are missing in the organisation. There is evidence of situations when the goals seemed ambiguous and thus misleading for the team members in the organisation. Managers are inefficient in becoming leaders as they are unable to incorporate the feeling of oneness among the team members in the organisation. As a result of this failure on the part of the style of leadership, there aroused lack in the perception of common goals and missions and this factor initiated the problem. The other cause of the problem that represents the ethical work culture within the organisation has also resulted due to the failure of the management to resolve problems. The unclear set of goals and objectives in front of the team members initiated problem in the ethical perspective of the job. The political concern in the organisational objective even initiated failure in maintaining the cohesive work climate within the organisation. The issues that hampered the ethical working culture are the ambiguous line of responsibility and authority along with the lack of control in the operations. Determination of the Business- Under Organised or Over Organised The diagnosis of the causes of the problems states that the business at Ben & Jerry’s is under-organised. The concerns depict that the organisation was unable to handle the challenges in the dynamic market place and also within the workforce. The workforce in the organisation was of the view that the organisational goals and objectives misled them and they were incapable of setting their individual priorities for fulfilling the ultimate objective of the organisation. The tasks in the organisation were charged to be ‘half-finished’ by the members. With the ongoing process of the task, the organisation took another task and in this course the former task remained unfinished forever. There was even lack of time to be allocated to a particular task to get it completed within stipulated time. From the point of view of the interviewees of the organisation, the general members and the founders are both the strength and weakness of the company. One of the founders would go for betterment of the quality with development of flavour and funkier promotions of the products. On the other hand, one general manager would strive to initiate certain other aspects that in turn increase the organisation’s expenses. The factor of organising the entire structure of the business was the primary requirement in the organisation for certain point of time. Weakness in the internal base of the organisation has been due to the under organised form. Approaches to Launch for OD Effort The approach that was followed to handle situation in Ben & Jerry’s organisation had a valid reason to be incorporated. The

Babcock Marine Essay Example | Topics and Well Written Essays - 2500 words

Babcock Marine - Essay Example In the year 2012, the loss of power especially in Devenport Dockyard eventually called for the attention of the senior management team belonging to Babcock Marine in adopting certain effective measures to address and mitigate this issue. This is owing to the reason that the issue had potential nuclear implications in accordance with the report published by Ministry of Defence (MoD). According to certain nuclear analysts, the power loss which happened in the dockyard that continued for 90 minutes could become â€Å"catastrophic† and might prove to be disastrous for Babcock Marine. It can be apparently observed that the power loss was mainly caused due to the fault in central nuclear switchboard and thus, it was regarded as one of the potentially dangerous events that have been recorded in the year 2012 (BBC, 2013). In this respect, an effective communication plan will be depicted in the form of developing effective communication tools that require be strategically employing as well as managing in an effective manner. The key areas of the communication would generally comprise determination of promotional objectives and marketing communication strategies along with promotional mix and utilising the accessible resources. The expected outcomes of the above depicted communication plan can be eradicating the potential problems that would arise due to the power loss and assisting the senior management team of Babcock Marine to handle this issue or problem quite efficiently. 2. Context Analysis 2.1. Market Context Technology has been playing a significant role in remoulding of customer awareness and also to the companies in improving their competitive advantage. A global distribution network is quite essential for marine products or services in order to create a physical identity of those products in front of the consumers. The marine industries have highly been benefited from the competitive strengths prevailing in the UK business market. The UK market is famou s for its popularity in maintaining quality and adoption of technical knowledge and skills. Thus, in relation to this scenario, Babcock Marine is having a huge significance in the field of acquiring huge volume of valuable customers. It is operating in the UK business market, wherein there pertains number of growth opportunities for Babcock. Since the past few years, there have been no change in the economic environment of the UK business market and the only left choices for the company can be viewed as elimination of services, reduction of outputs and seeking for applying different delivery models of the marine services. From a theoretical perspective, it can be apparently observed that the business of Babcock Marine expanded extensively throughout the region of the UK. This can be justified with reference to the fact that it employs nearly about 6,500 competent along with experienced workforce for performing its wide assortment of operational functions to the business markets wher e it operates (Stratton, n.d.). From the aforesaid study, it can be affirmed that the UK market was much favourable for Babcock Marine (Babcock International Group PLC, 2013). 2.2. Consumer Context The major consumers of Babcock Marine division generally include the Royal Navy of the UK and

The stock exchange market in the UK Essay Example | Topics and Well Written Essays - 2500 words

The stock exchange market in the UK - Essay Example This observance is furthered by the fact that the stock market in UK is weak-form efficient, while some capital market studies have called the stock exchange more towards being semi-strong-form efficient. Smith (2004) by studying the grain futures market pointed towards semi-strong form efficiency of the stock exchange because of the release of large trader position information. Further studies have compared the share prices after the takeover announcement with the bid offer. It was found that the share prices immediately adjusted to the correct levels.   Hence the study concluded that the stock market in the United Kingdom was semi-strong-form efficient.It must however be remembered that the market's ability to efficiently respond to an event like a takeover announcement which is widely publicized and short term in nature does not reflect on the market’s efficiency as is related to long term factors. David Dreman has pointed out that an instantaneous response is not always an efficient one and that the long-term performance of the stock market also needs to be considered before labeling a market efficient.The efficient-market hypothesis (EMH) states that the financial markets are "information efficient". As a result of this efficiency based on information, it is impossible to achieve constant returns that are greater than the average market returns, given the information that is available at the time of the investment.The advent of industrial revolution brought about the growth of a growing affluent merchant class.

Factors That Has Helped Four Seasons Hotel Tourism Essay

Factors That Has Helped Four Seasons Hotel Tourism Essay The main reason behind the preparation of this assignment is to analyse the case study about the factors that has helped Four Seasons hotel to succeed initially and understanding and appreciating the different growth strategies that are adopted and implemented by Four Seasons in order to be one of the successful operating company in hospitality industry. This assignment also discusses the various downturns that the hospitality industry has faced over the years and how Four Seasons dealt with the situation in order to survive in the business. Moreover, in the assignment, the unique business model of Four Seasons hotel is compared and relate to different theories such as value chain analysis which shows how Four Seasons hotel is able to manage their stakeholders expectations. In addition, I have given some recommendations for Four Seasons hotel, to sustain in the hotel business. Company Profile: Four Seasons Hotels and Resorts, the worlds leading operator of luxury hotels with a history spanning four decades and a portfolio that extended worldwide. It is one of the worlds biggest and finest chains of luxury hotels which have developed from one motel started by Isadore sharp 1961 in downtown Toronto Canada, to 82 luxury hotel properties in 34 countries worldwide. Four Seasons owns its own hotels, principally under the Four Seasons and Regent names, as well as some others, including the Ritz-Carlton in Chicago and the Pierre in New York. About half the companys earnings come from management fees, and half of it from properties it owns directly. Their highly admired service quality helped them to become benchmark in luxury hotel market. The basic operational policy of Four Seasons hotel is Treat others as you would like to be treated. Highest quality of service to the customers is acquired by Four Seasons by maintaining and improving their service standards also with an innovative approach and continuous development and an eye for detail every single time of service. The company shifted from hotel owner to hotel operator in 1990s the companys 95% of the shares are owned by Bill Gates the founder of Microsoft and Al-Waleed Bin Talal (Prince of Saudi Arabia equally). Rest of the shares are owned by Isadore sharp CEO and company founder. Establishment of Four Seasons: Four Seasons Hotel Chain was founded in 1961, by visionary Isadore sharp with the opening of 126 rooms Inn on the Park in downtown Canada. Sharp was a degree holder in architecture and not from a hotel management background thus Sharp was totally new to the Hotel Business. Sharp describes himself a builder who joined his fathers business after graduation. Joining a hotel industry business was not at all in his mind or his intention till he was working on a project to build a motel. He got an exposure with the motel project and he realised about the upcoming market of luxury hotels. The need of personalised service round the clock with the booming economy made him take a decision to get into Hotel business. The hotel he opened is named as The Four Seasons motor hotel which he opened with the help from his brother in law. The hotel became famous amongst the business travellers and celebrities as it had a innovative design it was different from other hotels as he built all rooms facing inwards giving a view of inner courtyard and swimming pool instead of the outside neighbourhood. Growth and expansion: With the initial success of his first hotel, the big break through which Isadore Sharp was waiting for came in 1970 by opening first Four Seasons Hotel in Hyde Park area of London. Comparatively the room rates were higher than the competitors in the 270 room hotel but then also Four Seasons enjoyed 95% occupancy through out the year. The success came with an innovative idea of hotel equipped with latest amenities unlike old traditional hotels in London. In 1972, Sharp opened a massive 1600 room hotel convention centre in Toronto, Canada in partnership with Sheraton. It took a long time to complete the project, almost 10 years. In 1980 the economy was booming and the demand for luxury hotels increased , and thus Sharp started building hotels across the North America, later in almost every major US city, also to take an advantage of real estate deals. In three decades by 1990, Four Seasons already opened 23 hotels in three countries with net earnings of $15 million. Four Seasons became Global leader in 1992 with acquisition of Regent International hotels. further strong financial base to build and buy hotel properties worldwide came in 1994 when Saudi Prince Alwaleed Bin Talal bought 25% of companys shares. They also signed a contract with Carlson Hospitality to develop and expand regent brand worldwide through establishing management contracts and franchising agreements. Initial Success Factors of Four Seasons: To combine best of small hotels with the best of large hotels Isadore Sharp He came up with the idea of opening the medium sized hotels which was enough to give a touch of personalised service providing with a range of luxury amenities and services. Running business from Customers Perspective: The most effective initial strategy for Sharp was to look at the business from customers point of view. He was a innovative thinker to fulfil customers needs in terms of luxury. Example When Four Seasons came into existence the trend was to use flimsy towels in bathroom, he replaced that we 100% cotton towels which worked really well. With experience of opening the first hotel, Sharp realised customers are ready to spend for one thing thats service. And as Four seasons most guest were business travellers and with the experience he came to a conclusion that for them Service means luxury. Luxury Redefined: Maintaining high quality service can also be a brand if delivered constantly according to Sharp. This idea provided him with the initial success in medium sized luxury hotels which gives commitment of providing homelike comforts and personalised service. Thus luxury was redefined as Service and not as decor and architecture. Quality of service comes before the hotel decor and architecture for the customers. As most of the customers for Four Seasons were business travellers Sharp commented They are mostly executives, often under pressure fighting jet lag, stress and the clock. We decided to redefine luxury as service. Thus the key towards Customer satisfaction was achieved by Sharp and he knew what the customers wanted unmatched service quality will give them competitive edge. Although Four Seasons charge 20% extra room rate than the closest competitors but still they were successful of maintaining high occupancy rates. Further Sharp wanted the highest personalised service quality for the guest which was possible only if employees are motivated and happy they will deliver it. Thus employee motivation, mutual respect and empowerment played a vital role in achieving customer satisfaction. And thus he introduced the golden rule. Golden rule: Sharp refer to his first business rule as Golden rule treat your customers as you want to be treated. This became the operational policy for Four Seasons. Every employee is a member of customer service and in charge of it. And he believed employees are the most important part of Four Seasons hotel because there is very limited time in which service encounter takes place unlike other industries. And the employee has to give his best to maintain proper service standards thus lot of screening and interviews are done to ensure the right candidate is selected for right job. Innovation: Innovation contributed a lot in the initial success of Four Seasons. Most of the luxurious amenities and services like Shampoo in the shower, bathrobes, 24 hour room service, two- line phone in guest room, pressing iron, 24 hour secretarial service, big well lit desk were the First to be introduced by Sharp and Four Seasons. The Custom made mattresses is now became the standard of luxury hotels which was Sharps favourite. Vision of Isadore Sharp: Provide each and every thing in the guest room that will make the customer happy. Growth Strategies adopted by four seasons: Initial success for Four Seasons did built a platform for them to grow world wide. It created a network of mid sized luxury hotel in almost all key financial cities all over the world. During this process Four Seasons adopted many different growth strategies as follows: Brand name is competitive advantage: The biggest asset for Four Seasons group was their brand name which was not responsible for their initial success but also a part of their global expansion strategy. The core business strategy for four seasons was to continuously improve their market position and profitability to ensure the competitive advantage while obtaining new management contracts worldwide. Strategic relationship with investors: With the help of strategic relationships with many small private institutions earlier helped them to expand their opportunities worldwide. Prince Alwaleed bin Talal bought 25% of company shares and with his major investments in Four Seasons which helped them to enter in new markets as well the ownership was not of Four seasons so it served their primary objective of being a management company. From Hotel owner to Hotel operators: Their unique business development model stated they wanted to be a hotel chain operator than hotel chain owner. It has ownership of only three hotels out of their sixty three hotels. Under this unique business model Four seasons hotel doesnt have a burden of ownership, the major capital is brought by the partners with whom Four Seasons developed strategic relationships. There is wide range of management fees (base fee, incentive fee, sales and marketing charge and reservation charge) for providing these services to the owner. How Four Seasons responded to economic downturns? Four Seasons faced economic downturns in different years in four decades 1970, 1980, 1990, 2000 in the following years 74, 81, 91, 2001. And all of them made a significant impact on Four seasons strategy. The hotel business during the time of recession were mainly affected by Increased interest rates and Decrease in market prices With the increased airfares and the increased occupancy rates the tourism was badly affected. Executives of the company were travelling less and the leisure facilities were decreased for the executives which affected the hotel and tourism market. Furthermore increased terrorism affected hotel and tourism market. There were drastic steps taken by different hotel operators by cutting labour cost, lowering prices buy Four seasons believed that the industry is going to return to normal soon and Isadore Sharp adopted exactly the other way. He took the challenge during the time of recession and saw the opportunity to develop the hotels. He told his executives about his thoughts that when our competitors are lowering standards we will raise ours The different actions taken by Four Seasons as an answer to economic downturns are: Four Seasons followed their words to look after their employees: During the time of recession most of the hotel operators cut down their labour cost but Four Seasons tackled the situation the other way, they responded by cutting the overhead costs but not the labour costs. They aimed for maximizing labours value instead of lowering labour cost. Sharp explained this strategy to his executives, And we also know that what we must do to meet that goal, is to lower costs and raise service and product quality. But cutting costs and raise service and product quality. But cutting costs by cutting labour, if carried too far, lowers quality. The only way these seemingly conflicting aims can be reconciled is by responsible employees committed to working smarter. Instead of minimizing labours cost we should maximize labours value: by convincing our employees that our purpose merits commitment. Four seasons offered Flexible Contracts to the employees rather than job cut, in which employees will be called on duty as per the demand of the business which replaced working four days a week instead of five days a week. It was in the agreement of the employees and all the employees were in favour of the decision furthermore the salaries and the bonuses of the managers was also affected. This all resulted in sharing a common policy in heading towards companys goals. Improving the products: Most of the hotel operators paused the construction or running of a hotel for a temporary period but the property business is really high during the time of recession because the properties are sold out on lower rates thus Four Seasons tackled the situation by renovation and refurbishment to improve the products. Isadore Sharp believed that providing quality service to the guest are a necessity and not a service by itself. And if the hotel wants to sustain in the market the new trends in the hotel industries should be followed to keep up with the market. Thus to accommodate these changes and provide customers with quality service. During recession the room occupancy is the lowest thus the inconvenience caused to the guests are very less and thus the guests get a royal out of the world service. They followed this strategy during recession period which gave them a steady growth over the decade. Advertising costs: Most of the competitors of Four Seasons hotel kept cutting their advertising and marketing costs, but Four Seasons didnt cut their advertising and marketing budget to maintain the brand recognition as they had a very good recognition in the Hospitality industry. It is easy to maintain the momentum rather than restart it. This strategy helped them to gain a competitive edge over their competitors in maintaining their brand recognition. Property market: During recession the supply in the market for the land was than the demand on low prices. Four seasons took the advantage of low prices of the land and they picked the premium locations which would have been difficult to buy them in normal times. Thus this strategy paid off to Four Seasons during the time of recession and they came with the finest of the hotels in top locations after recession. How four seasons managed various stakeholder expectations? Stakeholder: Person, group, or organization that has direct or indirect stake in organization because it can affect or be affected by the organizations actions, objectives, and policies. (www. businessdictionary.com) There are three most important aspects of managing stakeholder expectations: Know your stakeholders Know what exactly they except from you Make them accountable for realities of project by making them aware of risks and consequences. (According to Dr. James Brown, president of the project management company Seba Solutions). Different stake holders of Four Seasons hotel are Stakeholders play a vital role for a company to survive thus the company or organisation needs to implement a strategy for managing their stakeholder expectations. Thus Four seasons implemented following strategy for managing their stakeholder expectations: STAKEHOLDER MANAGEMENT Managing the stakeholders expectation is a step by step process: After identification of stakeholders, the second step is to identify their needs. Needs and expectations of the stakeholders of Four seasons can be described as follows: Owners: Returns on investment by profit Management: Management fees on the basis of gross revenue. Employees: Empowerment, Career opportunities and job security. Customers: High quality service and luxury. Society: Corporate social responsibility. Their strategy to manage stakeholder expectations can be summarised with relation to value chain analysis as well value_chain_analysis Value chain analysis is a concept to create competitive advantage and sustaining superior performance. Owner: Expectation of the owners are really high on returns in terms of profit because they are the one who made the capital investment in the projects. The different aspects of value chain used by four season hotels are like Infrastructure of the hotel, the most innovative idea of the initial strategy was to come up with medium sized hotels, and it worked really well. It was made possible and successful by Isadore Sharp who was the degree holder in architecture and he knew the latest designs of buildings and hotels like building rooms facing inwards to avoid view of neighbourhood made significant contribution to it. These innovative designs really helped Four Seasons to come up with the highest occupancy among the travellers. Thus they were successful in managing owners expectations by giving returns on their investments in less time. Management: To ensure a good gross revenue it is vital to get higher occupancy with good average room rate throughout the year. Sales and Marketing and technology come into picture from Value chain analysis. The marketing strategy for Four season hotel is to target the luxury segment of the market. 69% of their business comes from business travellers and groups. So almost all of their advertising and marketing programmes were designed to enhance the awareness of luxury service provided by Four seasons hotel. Technology played a vital part in achieving their goal by newly designed website and superior reservation system. They gained an advantage over other hotels by Global reservation system which gave an option to the guests to be comfortable with their own local language in North America, Asia and European Network. Example: There are so many hotels in Hyde Park area but over 30 years Four Seasons has gained and enjoyed the highest occupancy in the area with their strategy. Employees: Employees expect Mutual respect and Empowerment from Four season hotel. Employees are the most important stakeholders of the organisation, if they are happy to work for the organisation the whole business cycle can run smoothly, If Employees are happy then the customers are happy with their service it leads to word of mouth publicity and the organisation gets a repeat business. Employees deserve a mutual respect from the management. Human Resource Management from value chain ensures that employees should get what they deserve and expect. And most importantly the Golden Rule of Four Seasons is treat others as you would like to be treated also they believe that if employees are happy then only they can make customers happy. Four Seasons has maintained empowering their employees, and the best outcome and results can be obtained from their employees by empowering them. Im sure weve all read reports on the productivity gains achieved by empowering employees. And we all know the workplace has to change to attain this. And in a survey of 264 big company chairman, 62 percent agreed that one of the most important business issues facing them was building and keeping a qualified workforce. -Isadore Sharp d.) Customers: The expectation of the customers is very high as Four Seasons targets luxury segment of market. Service factor from Value Chain is wisely utilized by Four Seasons to manage expectations of luxury for the customers. They redefined luxury as service. Four Seasons gained a competitive edge by provided high standard of service with personalised touch. Customers got what they expected from Four Seasons. And they are very successful in making customers happy. E.) Society: As Society expects some corporate social responsibility(CRS) from all the hotels and organisation, their expectation for four seasons towards society is really high as well. CSR includes encouraging activities for development of society and avoiding practices which causes harm to the environment. Four Seasons explain how they help and take initiative towards community by various training and mentoring programmes for young people and helping whoever in need in their website www.fourseasons.com . Example: They donate organic food to local farmers to feed their animals (Costa Rica) and also providing shelter camps to Urban Elephants(Golden Triangle, Thailand), Raising significant funds for cancer research and awareness programmes. Recommendation: Four Seasons has a strong portfolio in the Hotel Industry but to sustain they should focus on few things which are as follows: Four Seasons should concentrate on building more brands and focus on all the categories like upper-scale, middle and budget hotels. Unlike Accor group of hotel they have segmented their hotels and created a brand focusing the needs of its customers such as Etap, Ibis, Novotel, Sofitel etc. To compete with other leading brands Four Seasons should come up with more hotels all over the world for more brand recognition and for customers to have a taste of their service. Furthermore Four Seasons should continue the effective management of the hotel the way they are doing it to sustain in the market. CONCLUSION With the base of the case study and research on Four seasons hotel, Canadian based business has an excellent brand recognition all over the world. The company is moving ahead with excellence along with strong financial and operational management. Different innovative ideas of Four Seasons hotel helped them grow in this hospitality business over the years furthermore during the time of recession Four Seasons hotel did really well, thus it says Fours Seasons Hotel has turned economic down turn to a competitive advantage over their competitors by coming up with different properties with prime location after recession (they responded very well to economic downturn). They took the down turn as an opportunity to expand and thus they are achieving excellence in their business.