Analysis of Kri Kri Milk Company

Analysis of Kri Kri Milk Company KRI KRI S.A. company was created in 1950 from George Tsinavo and is activated in the milk industry. The company initially dealt with ice cream that was first sold by hawkers using ice and salt for cooling and sold in every neighborhood in the city of Serres, Greece. In 1963 when the first electric freezers where introduced KRI KRI expanded and developed a market opportunity. Few years later, in 1968, the company developed further and transferred the companys facilities to new privately owned premises. The company established there its first automatic production line for milk and other products based on milk such as yogurt and ice cream. That was the first sign of the beginning of a new era of the companys lifecycle. In 1997, the company expanded by participating in a three year investment programme arising about six million Euros and modernized throughout the equipment and the factory facilities. The investing programme increase and improved the production and set the foundation stone for future development. Nowadays, KRI KRI has a well expanded network all over Greece and aims to strengthen its activities and development prospects in Greece as well as Balkan. KRI KRIs factory located 5km from the center of Serres and occupies about 50 square meters plot. The premises are composed by two different factories, one for ice cream and one for producing dairy products such as milk, which encloses modern mechanical equipment with new ecological technology. The company has been certified according to ISO 9001:200 for its producing processes on all product range. Furthermore, the company has established and applied the HACCP system according to Hellenic Organization for Standardisation under the supervision of the Minister of Development in Greece for all of the products in order to thoroughly safeguard consumers health and safety. For this purpose KRI KRI has established a quality control laboratory equipped with technological tool and staffed with scientific personnel properly trained. The Industry The milk industry consisted in its major component by large industrial companies which have the largest market share. These companies have developed a distinguished brand names and trade marks, new technological equipment and facilities. The industry does not offer many entrance opportunities to new companies and has high barriers to entry. The Demand The demand of the milk products is basic in peoples diet and irreplaceable. The milk products is one of the principal source of food and the demand does not affected much from price variations so the demand can be characterised by low volatility in price. Furthermore, the income in consumers wallet does not affect the quantity that is needed to cover the consumers basket and is unrelated with the desired quantity, so the demand can be characterised by low volatility in quantity. In addition, the substitutes product of milk has low substitutability to affect the milk industry. The milk industry had established an oligopoly and the milk prices are determined by large companies with low intervention by the Greek government. In the last decade, the only threat that the milk industry has encounter was the unexpected deceases that affect the animals and the raw material, which shocked the consumers confidence for milk products and have as a result the decrease in the consuming. The Supply The main distribution channel of the milk products are the supermarkets and the mini markets. Large companies have established a well synchronised and efficiency distribution channels throughout Greece while the few small companies in the industry have a locally limited target group to provide their products. Both categories of companies even if their activities are locally limited or national ensured that such a susceptible product as milk delivered in very good conditions and on time. Financial Indicators of the Market Financial indicators of the companies in milk industry should be taken into consideration in order to analyse and comprehend the financial position of the industry. On the 15 largest companies of the milk industry the average gross margin of the last 5 years was 26,12%, the net profit margin was 2,99% and the EBITDA index was 12,16%. The return on equity index was 6,26% and the return on capital employed was 2,50%. The general liquidity index was 1,71 while the cash flows ratio was 0,35. The average operation capital of the 15 largest companies the last 5 years was 4.543.754 euros. Competitive analysis: Porters five-forces model Porters five forces In order for a new company to enter, remain and expand a market it would be useful to analyse the industry and especially concentrate on the five basic points that are proposed by the Porter and show the attractiveness of the industry under consideration. Entrance of new competitors According to industry analysis, the milk industry seems to offer more opportunities to the already existed companies while it is quite difficult for a new company to enter the industry. The industry analysis indicates that there are high barriers to the market. Specifically, this sector does not offer many entrance opportunities to new companies due to the fact that it requires great investing amount to technology while the existent products are trade in from large well-developed companies that are high competitive. Moreover, the susceptible products of milk demands high coordination treatment throughout the life-cycle of production from the raw material to the final distribution. Additionally, the existing distribution channels that have been established from the companies are the results of investment through a long time period. So, a new company that intent to enter the milk market has to face the already well-established names in order to achieve high market share. Substitute products Another factor that should be analysed is the degree of products substitutability. The milk products are essentials in peoples diet and irreplaceable. In this industry there are few substitutes such as the soya milk, powdered milk, juices or other beverages but the substitutability is very low to affect the milk industry. Bargaining Power of Suppliers The bargaining power of suppliers of raw materials is complex but it is considered as low. The majority of milk companies sign contracts between farmers in order to absorb their milk while the companies control the production process through established production requirements in farming lifecycle such as the raw material required to feeding procedure, the existence conditions of living and the reproduction of the animals. So, the bargaining power of suppliers is limited in the milk industry and the large companies that purchase large quantities of raw material has a competitive advantage in terms of trading commodity prices and offset suppliers.. The bargaining power of the suppliers is unconcernedly and does not affect the milk industry, so can be characterised as low. Bargaining power of Customers The main customers of the milk industry are the super markets and the mini retail markets which both have high bargaining power. Both markets have a strong bargaining power especially the super markets through the large turnout that the premises offer, the mass final consumer that covers their needs has as a result to made large volume of sales through them. Mini markets have quite big supplier power due to the fact that are larger in number, almost in every neighborhood, they serve the final consumers in a more extensive market hours and the milk products are their primary trading consumer attraction. Furthermore, in order to attract more final customers through super markets and mini markets, companies have to be competitive and attractive. So, the main objective is to advertise their products in order to gain customers acceptance. This can be confirmed from the large amounts of investment in advertising and promotion campaigns that the majority of the milk companies spend. The competition The last but not least factor according to Porter that affects the entrance in the milk industry is the competition. The Greek milk market is highly controlled by few large milk production companies. This has as a result the creation of an oligopoly among the companies while they try to retain or expand their share in the market by enhancing their brands through advertising, various discounts offers and by exploiting the benefits from exclusive distribution in mini retail markets. The created oligopoly is the main characteristic of milk industry and this point out that the competition is considered as low. SWOT Analysis KRI-KRI S.A. S STRENGTHS Very strong financial position Strong contracts with suppliers and associates Technological industrial and manufacturing facilities Organized distribution network channels Products with Popular Trademarks and strong preference of Greeks for domestic products Tight quality control, awards and certifications, brand name, recognizable firm (ISO, HACCP certifications) W WEAKNESSES No use of options to outweigh the potential risk of interest rates Insufficient money spent for marketing and advertisement. O- OPPORTUNITIES Balkan countries growth Living standards growth The gradual acceptance of biologic products by consumers. T- THREATS Unexpected deceases that affect the animals and have as a result the decrease in the consuming Greek crisis Competition from imports SO STRATEGY Expansion of the distribution network to Romania, where there are greater growth opportunities (S4+O1). WO STRATEGY Increase advertisement to attract more customers in refined products through the growth of living standards (W2+O2, 3). ST STRATEGY Restructure of the company to become total quality producer through tight control and cooperation with certificated farms (S6 + T1). WT STRATEGY Advertisement to commend on the origin and quality of its products instead of the imported ones (W2+T3).Combined Strategies Proposed scenarios Four scenarios were established from the above swot analysis matrix and the situation of the milk industry has been considered. SCENARIO 1 SCENARIO 2 SCENARIO 3 SCENARIO 4 CURRENT GROWTH ADVERTISEMENT EXPANSION FINANCIAL CRISIS SALES GROWTH RATE 1,33% 3,00% 7,00% -2,00% FIXED ASSETS (AT COST) GROWTH RATE 13,79% 4,50% 7,00% -2,00% TOTAL DEPRECIATION/FIXED ASSETS AT COST 5,79% 5,79% 5,79% 5,79% COST OF GOODS SOLD/SALES 54,27% 55,00% 40,00% 63,00% ADMINISTRATIVE SELLIG EXPENSES/SALES 28,82% 30,00% 15,00% 18,00% Table 1: Proposed scenarios First scenario. Basic Case: Current growth rates In this scenario would be examined how the companys equity value would be affected if will continued its activities with same sales growth as the average of past 5 years, the fixed assets growth rate, cost of goods sold/sales and administrative and selling expenses. Second scenario. Increase of advertisement Advertisement and promotion campaign in milk industry plays a significant role that determines the sales ratio growth. In this scenario we suppose that the company emphasises to increase its advertisement expenses that would lead to increase the sales growth up to 3%. We assume that the administrating and selling expenses rise up to 32% while the cost of goods sold per sales remain in 55%. Also, we decrease the fixed assets at cost growth rate at 4,50% in order to balance the past years expansion of fixed assets growth rate. Third scenario. Expansion to Balkan Balkan countries have been demonstrated high gross domestic product rate such as Bulgaria with 6,2% in contrast with Greece that the International Monetary Fund forecasted that would slightly increase from negative ratio to 0,80% gross domestic product. Considering the development in the past and forthcoming years in Balkan the third scenario supposes that the company expands in Balkan markets. Moreover, KRI KRI S.A. has already made the first expansion step in Balkan and has already begun to organise distribution network among Balkan region. Finally, KRI KRI S.A. has access to Balkan because its facilities located no more than 100 kilometres from Balkan borders such as with Bulgaria, Serbia and Yugoslavia. This scenario is realistic and feasible considering that the short distance from Balkan countries satisfied the demanded requirements in order to ensure the initial quality of the products. So we suppose that the sales growth rate would be increase up to 7% and similarly the fixed assets at cost growth rate would be up to 7%. Due to the mass production and the optimum production capacity we suppose that the cost of goods per sales and the administrating/selling expenses per sales would be decreased down to 40% and 20% respectively. Fourth scenario. Financial Crisis In the last scenario we consider the current financial crisis in Greece that already had occurred. The milk industry does not affected so much from the income of the consumers but in the current condition we supposed that the sales growth rate would be decreased down to -2%. The fixed assets growth would be decreased as well as the financial crisis would affect negatively the investing expansion to new fixed assets or even worse may forced a necessary liquidation of fixed assets. So, we suppose that the fixed assets at cost growth would be down to -2%. Finally, the decreasing in sales growth and the low volume of production would have as a result an increasing to cost of goods sold and administrative/selling expenses per sales ration up to 62% and 40% respectively.

Gcc economies

Gcc economies Introduction Challenges and Opportunities in GCC Economies. General Attitude towards Foreign Investors Trade integration and Economic Philosophy in GCC economies. Economic Status of GCC economies. Economic Stability. GCCs Political Stability . FDI in the GCC countries The size of the Market . Physical Infrastructure . Resource Endowment and Industrialization . Labor Force . GCC India business relationship . Challenges. Trade Protection and Competitiveness. Lack of diversification The Changing Economic Context of Gulf Politics. Recommendations and conclusions Reference Executive Summary The Gulf Cooperation Council (GCC) is an attractive location for investment and a salient consumer market for imported goods and services, and information technology to one of the youngest population that is considered to have highest powers of spending in the world. The common market of the six GCC economies are open to foreign capital investment and are continually working to grant national treatment to all foreign investment firms and cross country investment and services trade. By 2010, GCCs inter-state trade is expected to enhance by 25 percent, and international trade in this states is anticipated to grow by multiples. Given its trade history and strategic location, the six GCC economies has had long trade and diplomatic relationships with Asia, Europe, and African states, suggesting that it stands to benefit in the long-term from the anticipated growth of these countries. The GCC economies have upheld an open system of trading, free capital movement, convertibility of currency with fixed nominal rates, and large labor inflows- both skilled and unskilled. Additionally, the GCCs advanced financial systems have been an essential channel for advancing their trade integration into the global community. Despite current global economic crises, the GCC has remained a very liquid expanse. The economic growth in several key sectors is forecasted to be moving forwards across the region. Any investor considering venturing in the GCC should be centrally positioned to take advantage of one of the worlds fastest-growing markets. Given the GCCs comparative advantage in oil, gas, petrochemical products, and private capital, and given the Indias technology, know- how, marketing skills and that can be marketed in a very sizeable market indeed. When countries or trading partners specialize on the basis of their comparative advantages, returns are maximized. Therefore Indian firms invested heavily according to the strategy emphasizing their comparative advantages in oil and gas service sector, which presents a great scope for Indian enterprises to undertake joint investments in these fields. Introduction The Gulf Cooperation Council (GCC) consisting of states six Arab states (Saudi Arabia, Bahrain, Qatar, Oman United Arab Emirates, and the Kuwait) located in Arabian Gulf. The GCC economies are one of the fastest-growing international markets and have become increasingly important to the economy of the whole world. GCC attracts an ever-increasing number of foreign investments and across wide-ranging sectors. Its rapid development and expansion has made it an active seeker for modern technological capacities, infrastructure development, and business services. Development and improvements have been made to build up a private sector that is fewer dependants on government or natural resources, thus making the area an attractive destination for investment and competitive market for expatriate workers and overseas expansions (Al Bawaba, 2007). The GCC countries investment climate is conducive to foreign investment. GCC countries are continuously adopting policies and taking measures to improve this climate and taking into consideration changes in the international economic parameters and factors. GCC economies recognize the value of attracting and maintaining foreign investment and have resulted to adopting measures aimed at attracting and encouraging foreign investment. GCCs openness to foreign investment and capital has been motivated by an expectation that foreign capital and investment will attract financial resources- visible and invisible, as well as bringing in modern technology (Al-Shamali Denton, 2000). In addition, it may also raise marketing potentials of the local firms by providing access to export markets. Foreign capital and investment can also advance skills and techniques of management and set up state-of-the art facilities of training. The initiative for encouraging invest mostly focuses on the institutional structure and on creating legal and administrative conditions appropriate for carrying out investment activities. Despite current global economic crises, the GCC has remained a very liquid expanse. The economic growth in several key sectors is forecasted to be moving forwards across the region. Any investor considering venturing in the GCC should be centrally positioned to take advantage of one of the worlds fastest-growing markets. However, investments and trade links among the Arab countries leave much to be desired. Capital-rich countries do not feel safe investing in people-endowed or resource-rich countries. However this latter group of Arab countriescan insure food safety, enlarged markets for industrializing GCC countries and investment opportunities (Al Bawaba, 2007). Political risk is often cited as a deterrent, along with bureaucracy. Most often governments are blamed for failure to devise a system that motivates the public as well as the private sector to joint efforts. This paper identifies investment prospect and provide advice on the challenges and opportunities for an Indian enterprise intending to embark on an investment in oil and gas service sector in the GCC region. Challenges and Opportunities In GCC Economies General Attitude towards Foreign Investors Generally speaking, GCC Countries religion, social fabric and norms, and their economic and political cultures do not have in any way prejudices against foreign investors (Al Bawaba, 2007 b). The fact is that there is a history of fruitful co-operation and strong tradition of hospitality. The number of foreign firms and expatriate workers in the region clearly manifest this attitude. Hostilities in whatsoever manner of at any level of contact are absent. Trade integration and Economic Philosophy in GCC economies The GCC economies has had an apparent degree of success in terms of trade integration, capital mobility, labor creation, and in setting regular standards in diverse regulation areas. Some of the GCC members have extended cordial privileges to foreign capitals and investment in areas such as share-market, investment, and government procurement. The longstanding economic philosophy of the region is obviously an open free market and outward oriented (Al Bawaba, 2007). Private property rights are well established and honored. GCC countries, unlike many developing countries, have never experienced what could be called socialist inclinations. Capital and goods are allowed to freely enter and leave GCC countries. Foreign exchange control measures are non- existent and as thus expatriation of profits, remittances and dividends face no restrictions. GCC countries openness is also manifested in their high foreign trade openness ratio which reached more than 70%. For comparison reasons, the same ratio amounted to 16% in U.S.A. and 18% in Japan. This manifests the dependence and incorporation of GCC economies in the international market (Al-Shamali Denton, 2000). Economic Status of GCC economies The combined Gross Domestic Product (GDP) of the GCC economies is estimated to reach 1.15trillion dollars according to the Gulf Finance House (GFH) projections. The projection by the Saudi American Bank (Samba) and Al Ahli Bank estimates that by 2018, total investment in the GCC economies could reach up to 670 million dollars. The GCCs world economy share is estimated to enlarge slightly higher than the annual average global growth with an aggregate of 4.5 percent, compared to globally annual average of 3.3 percent (Emerging Markets Monitor, 2008). Within 10 years, the GCC countries are expected to be supplying nearly one-quarter of the world with oil as well as increased quantities of petrochemicals, plastics and metals. Economic Stability The six countries of the GCC possess many common and rather special characteristics. They all depend on oil and gas for government revenues and foreign exchange earnings. These governments revenues and expenditures move the engine of the economy. The non-oil sector, while growing constantly, remains relatively dependent. Oil will remain the major source of energy and the main vehicle to development for years to come (Al-Shamali Denton, 2000). Its role in the international economy as an important strategic commodity needs no elaboration here. Thus, GCC countries status as major producers and exporters will continue to enhance their economic power. GCC production of this strategic commodity accounts for more than 20% of world production. Of the worlds proven oil and natural gas reserves, GCC states hold 45% and 15% respectively, according to conservative estimates (Emerging Markets Monitor, 2008). GCC states have been recording positive GDP growth rates even at times of international recession. Their Consolidated GDP has surpassed the landmark of $ 550 Billion according to World Bank. Expenditure on capital formation (investment) totals more than 25% of GDP. Another indicator of stability, inflation, has remained one digit, and below 5% in most recent years in all GCC countries. Not only that, but inflation was recorded with a negative sign in some years. GCC states have maintained their realistic path of rationalizing expenditure and conservatively estimating revenues. This years budgets which have been based on expected oil prices of $ 40 per barrel, at a time when market indicators and oil experts expectations foresee a price close to $ 60 per barrel. In fact, this behavior has helped GCC countries to record large surpluses in their actual oil revenues during the last few years, and thus assisted them in settling internal debt arrears, and replenishing their foreign exchange reserves. It is evident that GCC countries have started to reap the fruits of the daring measures adopted for the last few years of rationalizing expenditure and embracing the concept of efficiency in the management of both the private and the public sectors. More importantly, they have succeeded in reducing peoples expectations regarding the role of t he government in providing subsidies, employment opportunitiesetc. GCC countries have enjoyed surpluses during the last decade, sometimes substantial, in the current balance of payments (Al Bawaba, 2007). High rates of savings, however, have been unmatched by corresponding internal investments, the potential growth vehicles for these economies. The exhaustibility of their resources implies the urgent need for long-term economic and financial planning in these countries before nonreversible trends take root Economic stability and growth are also combined with general trends which among other results strengthen and enhance foreign investments. GCC governments are pursing policies towards more economic liberalization, privatization and giving a greater role to the private sector. Moreover, export 0riented policies are dominating and manifested in the creation of export financing institutions and establishing specialized exporting units in ministries and chambers of commerce and industry. GCCs Political Stability GCC countries are renowned for their stable political and administrative governance. Power is smoothly handed and regime change is less frequent as compared to most of the developed and developing countries. The stability of the regimes in GCC countries is totally correlated with the stability of general strategies and policies (Al-Shamali Denton, 2000). The strong legitimacy and popular support enjoyed by GCC regimes is rather rare in other developing countries and even in some developed ones. However, on the political and administrative level, there are several fundamental problems that have remained unsolved. Some customs union are yet to be fully implemented, while unstable bilateral agreements between individual GCC states and other trade partners undermine the consistency of the external tariff regime. The monetary union of some GCC economies has been called into question and especially by latest announcement by Oman to opt out and by the reluctance of the governments to agree on representative criteria of convergence. Political tensions have been created between some neighboring GCC States, particularly between Saudi Arabia and Qatar, which could make the political stability level of the GCC economies to wobble. FDI in the GCC countries Having recognized the importance of attracting FDI, GCC economies have adopted new measures aimed at attracting foreign capital and investment. These new measures and development priorities include realizing sustained economic growth by raising investment rates of private sector; enhancing technological skills and local capacities; improving the exports into the world markets, creating more competitive employment opportunities. Openness to foreign capital and investment has been stimulated by an expectation that this openness will bring in financial resources, while attracting modern technology. In addition, foreign capital and investment provides raises marketing capabilities of local firms and access to export markets. It also facilitates upgrading of the management techniques and skills. In the GCC economies, the FDI flow accounts for more than the worlds average in two of the GCC states (Bahrain and Qatar). Conversely, except for the UAE, FDI stock has accounted for a key share weighed against to the value of Gross Domestic Product in these GCC economies, as was evidenced in the case of Bahrain, in which the stock reached more than 74 percent and 70 percent of the level of GDP in 2000 and 2004 respectively. The GCC Service sector Market The size of the market is considered one of the main factors in determining inflows of foreign investments. The larger the size of the market and the greater its growth rates, the larger are volumes of foreign investments. Unfortunately, a popular perception, based on the population estimates only, sees GCC states markets as small. This perception fails to appreciate a number of facts: First, GCC states constitute an economically united bloc which entails among other things a market size of a population approaching 38.7 million inhabitants. Second, the per capita income for GCC states is more that $ 14,317. In other words the populations of the GCC countries enjoy high levels of income, even by advanced industrialize countries standards. Third, the high incomes enjoyed by GCC countries are reflected in high purchasing power and effective demand. GCC states are also strategically situated, by neighboring the African and European continents and being the entrance gate to Asia. It should be mentioned that GCC imports from the rest of the world totaled about $ 119,524.35 million in 2004. Physical Infrastructure Whenever foreign investment in developing countries is discussed, inadequate physical infrastructure is cited as a major discouraging factor. On the contrary, GCC states have succeeded in utilizing their abundant resources in creating a very well developed by any standards physical infrastructure. Major industrial and population centers are connected to each other and to the ports with international standard road network. Recently installed telecommunication systems are in some ways even better than some industrialized countries. New power and water capacity is being installed, and the consumption is being rationalized through meaningful tariffs (Diekmeyer, 2009). Most large urban centers in the region have been provided with industrial parks, complete with necessary utilities and other amenities needed by manufacturing operations (Diekmeyer, 2009). Resource Endowment and Industrialization As petroleum and natural gas form the greatest volume of GCC resources, their industrial development has been directed mainly towards oil and gas based industries such as petroleum refining, chemical fertilizers and petrochemical industries and/or to energy intensive industries such as aluminum and steel (Al-Shamali Denton, 2000). This goes in line with the concept of comp of comparative advantage i.e. if countries specialize in producing commodities on the basis of their comparative advantage, returns from production and trade will be maximized. The availability of cheap energy resources is a blessing for GCC industrialization. For example, the gas used as a feed stock to the petrochemical industry is associated gas and most of it is a by-product of crude oil production. The cost of producing this gas is very low and if it is not used it would have to be flared (Al-Shamali Denton, 2000). Developments in the level and efficiency of the industrial capabilities of the GCC region enhanced the availability of a number of foreign investment attracting factors such as the skills available to prospective investors, efficiency of local suppliers and service firms, and a net-work of supporting institutions, both private and public. Labor Force The substantial developments which took place in all economic sectors have affected GCC labor force in two major ways. First, it required and induced large influxes of foreign professional, skilled and unskilled labor. On the positive side, this has helped in bridging the shortage in local labor, expediting the development process, and exposed the local labor force to a variety of rich experiences and high levels of theoretical and practical training in all fields and aspects of life. That is definitely a plus and an encouraging factor for any future investments, both local and foreign. Second, the tradition and experience in bringing and dealing with well-trained foreign labor reduces the possibility of manpower bottlenecks. That is to say labor as a factor of production is no problem for whoever is interested in establishing production or services units. Expatriate labors as well as nationals do not pay income taxes. Another important factor for foreign and local investors is that in the GCC region there is no record of business disruption because of labor disputes. Gcc India Business Relationship: GCC countries and India have strong trade relations. In 2005, the volume of trade between the two parties was nearly $20 billion GCC countries supply India with a large portion of its oil imports, near $6 billion (Alam, 2008). For GCC countries, their comparative advantages lie in the manufacture of hydrocarbons and the development of energy intensive metal and mineral based products. In addition to this there is a great scope for investment in small and medium size ventures. Furthermore, forecasts show that petrochemical industries for example can branch out into two categories during the next few years (Ramazani Kechichian, 1998). Industries in the GCC countries can specialize in basic petrochemical and energy intensive metals while Indian companies can benefit from such products by using them in manufacturing highly specialized and specialized and sophisticated products with higher value added (Alam, 2008). As a result, this step will certainly enhance the ability of GCC countries not only to import more specialized Indian products, but also will help them in diversifying their industrial base. The attractive investment climate and the geographical market proximity of GCC countries make them suitable candidates for export platform of Indian investments and joint ventures. This scenario is strengthened by the availability of more than 6000 GCC small and medium sized enterprises, covering a wide variety of manufacturing activities (Ramazani Kechichian, 1998). These include food, textiles, wood, paper, chemicals, metallic, non- metallic, engineering and other fields of activities (Alam, 2008). Studies reveal that about 90% of these SMES have plans for expanding their activities. This fact offers the Indian business community wide opportunities via joint ventures, turnkey operations, production sharing, licensing, and other forms of non- equity involvement. The GCC Indian economic relationship would be enhanced by: Arranging visits for Indian businessmen to GCC countries so that they learn more about the regions investment and business opportunities. FGCCC can co-ordinate such visits. Organizing joint exhibitions both in the region and in India. Organizing events to enlighten GCC businessmen with the available Indian co-operation instrument and institutions in fields of trade and investment. We notice a dearth of information on trade, markets and investment opportunities. There is a need for India GCC body to collect and disseminate such information. Challenges Trade Protection and Competitiveness Although many GCC countries boost of open trade policies, they extensively use production subsidies protect a large inefficient, domestic non-oil sectors, often public owned. Price related factors ones are usually among the most imperative factors that affect trade outcomes (Al Bawaba, 2007). The prices of goods and services being traded are considerably influenced by tariffs level and non tariff barriers as well as by real effective rates of exchange, which are themselves influenced by macroeconomic conditions and policies. There is a compelling evidence that trade protection is high for some GCC countries relative to their income levels. Lack of diversification The GCC countries lack diversification in the sustainable economic base and need to devise a system which encourages private investment in industry, agriculture, exports and re-exports, i.e., production and movement of goods. The virtual absence of continuous local water resources and reliance on desalinated water, which is both expensive and insecure, is a constant challenge. Local food and agricultural production falls far short of providing self-reliance and security in light of a burgeoning population and evolving patterns of consumption. Population increase and a dramatic upsurge in education require finding appropriate employment for those with improved skills, as the present rate of growth in the non-oil sector leaves a widening gap between manpower supply and demand. The Changing Economic Context of Gulf Politics The Islamist sectors in the states making up the GCC have grown more politically active since the time that the welfare states were established in the 1970s. The population in these regions has also increased while the price of oil, the main source of revenue, remained fixed. The educated young generation is actively seeking participation in administrative and political levels of governance, while the middle demands work with good wages (Ramazani Kechichian, 1998). On the political and administrative level, there are several fundamental problems that have remained unsolved. Some customs union are yet to be fully implemented, while unstable bilateral agreements between individual GCC states and other trade partners undermine the consistency of the external tariff regime. The monetary union of some GCC economies has been called into question and especially by latest announcement by Oman to opt out and by the reluctance of the governments to agree on representative criteria of convergence. Political tensions have been created between some neighboring GCC States, particularly between Saudi Arabia and Qatar, which could make the political stability level of the GCC economies to wobble. Recommendations and conclusions The GCC countries investment climate is conducive to foreign investment. GCC countries are continuously adopting policies and taking measures to improve this climate and taking into consideration changes in the international economic parameters and factors. GCC economies recognize the value of attracting and maintaining foreign investment and have resulted to adopting measures aimed at attracting and encouraging foreign investment. For Indian enterprises trading in the oil and petroleum service sector, their comparative advantage lies in their specialization in production technology The Gulf Cooperation Council (GCC) is therefore an attractive destination for an entrepreneur wishing to invest in oil and petroleum service sector and the opportunities in this sector far outweighs the challenges. References Alam A., (2008) India and West Asia in the Era of Globalisation, Michigan: New Century Publications, Al-Shamali A., Denton J., (2000) Arab business: the globalization imperative, India: Kogan Page Publishers, Al Bawaba, (2007 a), The Future of the Gulf: The World Economic Forum Launches Scenarios on the Gulf Cooperation Council Countries, p1 Al Bawaba, (2007 b), Saudi Arabia intensifies reform efforts to improve competitiveness around two thirds of $240 billion in planned projects outside oil, gas, and petro p1 Diekmeyer, P. (2009) †Export Wise, Summer,† GCC: Infrastructure Development Opportunities., p26-28, 3p; Emerging Markets Monitor, GCC: Implications Of The Credit Crunch. (2007), Vol. 13 Issue 20, p1-2, Emerging Markets Monitor, (2008) US Crisis: GCC, 14 (26), p17-17,; Ramazani, R. K. Kechichian J. A. (1998) The Gulf Cooperation Council: record and analysis, US: University of Virginia Press,

The Black Cat - Symbolism Essay -- essays research papers

Symbolism in Edgar Allan Poe’s "The Black Cat" In Edgar Allan Poe’s "The Black Cat," symbolism is used to show the narrator’s capacity for violence, madness, and guilt. "The Black Cat," written by Edgar Allan Poe serves as a reminder for all of us. The Capacity for violence and horror lies within each of us, no matter how docile and humane our disposition might appear. In this story, the narrator portrays a man who is fond of animals, had a tender heart, and is happily married. Within several years of his marriage, his general temperament and character make a radical alteration for the worse. He grows moodier, more irritable, and more inconsiderate of the feelings of others. This change for the worse caused by alcohol, ends in the narrator’s waiting on death row for the murder of his wife. The symbolism of the first black cat (Pluto), the second black cat, and the white spot illustrate the narrator’s expanding capacity for evil and perverseness. The most important symbol of the story is the first black cat. The first black cat is symbolic of the narrator’s evil heart and there are many ways one can prove this. Black cat one started out in the story as the narrator’s favorite pet and playmate named Pluto,which is the name of the God of the Underworld. And one night, after returning home much intoxicated the narrator’s love for the pet seem to fade away. That night in which the narrator is...

Andre Dubus IIIs House of Sand and Fog Essay -- Andre Dubus III House

Andre Dubus III's House of Sand and Fog "House of Sand and Fog," by Andre Dubus III, explores the catastrophic repercussions of a complex misunderstanding between three characters. The conflict initially involves a dispute between Kathy Nicolo and Massoud Behrani over the â€Å"rightful† ownership of a house. The county wrongfully evicts Kathy and Behrani then buys her house at an auction. When Deputy Sheriff Lester Burdon enters the situation, events quickly slip out of control. Superficially, Lester’s character is important to the novel because he acts as a catalyst, propelling the plot into unexpected action. But Lester impacts the novel in a more profound way, because were it not for his insecurity and selfishness, the rest of the characters could have been spared an avoidable tragedy. Lester’s commitment to help Kathy at all costs undeniably alters the outcome of the novel. By providing her with money for a motel, and later with shelter at a friend’s cabin, he allows her to continue avoiding the reality of the situation. If Lester had never met Kathy, she would have been forced to be upfront with her lawyer. Instead, Kathy tells herself â€Å"there a limit to how much [her lawyer] wants to help,† and continues to tell Connie Walsh that she is staying with friends (88). Knowing the severity of Kathy’s plight could have prompted Connie Walsh to more ardently pursue the county on Kathy’s behalf. Because of Lester, however, the truth is kept from the lawyer. Additionally, although proclaiming his love for her, Lester becomes a negative influence on Kathy. Under the false sense of security he provides, Kathy, a recovering alcoholic, allows herself to start drinking again after an abstinence of three ye... ...observes the situation as merely a problem that requires a quick fix, and he sets about â€Å"fixing† the situation instead of fulfilling Kathy’s emotional needs. In the tradition of a Greek tragedy, Lester’s insecurity is his hamartia, his tragic flaw. His egocentrism stems from this, causing him to overlook the needs of others in his quest for self-justification. This is not to say that the awful outcome of the novel can be attributed to Lester alone. All three main characters fail to understand one another and rush to false assumptions based on cultural differences. But the fatalities of the scenario can be traced back to the overreactions of Lester. In the form of Lester Burdon, Dubus imbues his story with a potent warning against dishonestly with oneself. Only when a man truly understands himself and accepts his flaws can he attempt to overcome them.

Similarities Between Franz Liszt And Kurt Cobain :: essays research papers fc

Similarities Between Franz Liszt and Kurt Cobain Franz Liszt was one of many classical composers. In some ways, he can be compared to a modern rock and roll star. Franz Liszt was born in Raiding, Hungary, on October 22, 1811. Much like Mozart, he was a very great piano player at a very young age. Liszt composed an opera called Don Sancho at the age of fourteen. Professionals of Liszt's time thought that he was only a genius with the piano, which was not enough to give his ideas the great recognition they deserved. Many people thought that Liszt was â€Å"a mover and a shaker, a rebel, chased women, and had much talent and personality." He had invented the solo recital. When Liszt had a concert, he usually played his own music and came out wearing decorations hanging on chains, which was unusual for his time. For two years Liszt was hospitalized for a nervous breakdown. In some ways he was much like Kurt Cobain, the late lead singer of the rock band Nirvana. Kurt Cobain was born on February 20, 1967, in Aberdeen, Washington. He was passed on to several relatives after his parents divorced when he was eight years old. For some time he even lived under a bridge and was hospitalized for a heroin addiction. It was not entirely unexpected that Cobain committed suicide. He had had entered a coma by overdosing on a mixture of champagne and tranquilizers on March 4. Also, Kurt's family history showed that two of his father's uncles committed suicide, along with the fact that there were a lot of dysfunctional marriages and alcoholism present. During a concert, Kurt would jerk around as if he was being electrocuted. After his death, the sale of Nirvana memorabilia increased dramatically. As you can see, both Franz Liszt and Kurt Cobain have some characteristics in common. They had both been hospitalized for an illness. However, one was physical while the other was mental. Both had unusual concert styles. Like many classical composers, Kurt was not truly appreciated until his

Foxconn and Apple

Subject: Apple and Foxconn controversy from the eye of the consumer Over the last couple years, Apple and Foxconn have been partaking in poor business methods thus causing them a great deal of deserved criticism. The consumer, must decide whether or not to continue buying from Apple because the consumer is what causes Apple to continue to make new products which results in the poor conditions at Foxconn. Foxconn and Apple violate many ethical, moral and basic human principles. The SituationOver the past several years, Apple's major hardware and development contributor, Foxconn, has received a great deal of criticism over their working conditions and benefits. There are over a dozen Foxconn factories in China, all of which employ hundreds of thousands of people. To this day Foxconn remains the leader in electronic component manufacturing. Since 2010, various accounts of mistreatment of employees have arose, causing many controversies. The most significant to date, are the many reporte d suicides of Foxconn plant workers.In early June, the most recent suicide occurred of twenty three year old man. It was the first suicide since Foxconn agreed with the United States and Apple to improve working conditions (Foxconn Suicide, 2012). Prior to this suicide, there had been over a dozen suicides in direct correlation to the poor working conditions and low pay. Various news reports and documentaries arose in 2012 exposes this supposedly giant scandal. Apple, one of the worlds most prominent developers of consumer electronics, is making numerous attempts to fix the current issues at Foxconn. The move comes after Apple, criticized over working conditions at its sprawling chain of suppliers in China, agreed to an investigation by the independent Fair Labor Association earlier this year to stem criticism that its products were built in sweatshop-like conditions† (Foxconn Suicide, 2012). The next several years will be dedicated to making Foxconn a positively labeled corpo ration thus giving Apple is good reputation back. The Impact on a Stakeholder Group (Consumer) As a consistent consumer of Apple products over the last decade, one can only be disappointed in the decisions made by Apple.Of course the consumers were not directly involved in the poor conditions of the company or the deaths of many workers. In reality, we the consumers, are indirectly contributing to the current issues at Foxconn. We choose to purchase their products, buy stocks and invest our hard earned money into a company that chooses to do things the easy way rather than the smart way. In a report written by the Insider Staff in 2012 called Apple, Foxconn and China: The Cost of Manufacturing, they said â€Å"Think of your iPhone you would as a hamburger—the meat was once part of a living, breathing animal.Its life was taken so you could have lunch. This is the price for the type of life we lead, whether it's the price we pay to buy something once living that's now a packag e of hamburger or the price for a brand-new iPhone. † The iPhone, Macbooks and iPods we purchase were all at one point a collection of parts. Thanks to the many news reports, we realize that these parts are stained with the blood, sweat and tears of the many workers just trying to make a living. The consumer is the most affected party in this scenario. We choose to purchase Apple's new products for lower prices and faster shipping.We demand Apple to make newer products knowing that we will then buy them. Through these actions taken by the consumers, it allows for all the problems occurring at the Foxconn factories to continue. Apple does deserve come credit for the attempts they have made to fix all of the previously stated issues. â€Å"There is no question that Foxconn has been scrutinized because it produces products for Apple. Also a few years ago there were a number of suicides at Foxconn factories, which prompted labor groups to start looking into working conditions the re.Apple sent a team to China, including a group led by Tim Cook, who is now Apple's CEO. Apple also hired the non-profit Fair Labor Association to audit working conditions at Foxconn. The group has said that Foxconn has made progress at reducing workers' hours and improving conditions, and that Foxconn and Apple do make an effort to let students know they can resign from Foxconn and still graduate, and link the jobs they do at Apple with their studies† (Adams, 2012). The Fair Labor Association conducted a two week examination of the company to make sure it was up to date on all laws and regulations.Foxconn has raised all workers salaries by 16 to 25 percent. They have chosen to hire tens of thousands of more workers so that never again would an individual die from working a thirty hour shift. The FLA conducts interviews of over a hundred thousand employees to make sure they are content and have no serious, life threatening issues with Foxconn (Poeter, 2012). They correct step s have been taken to regain Apple's status as an ethical and beneficial company, while also fixing all of Apple's supplier companies like Foxconn. Ethical Dilemmas There were many ethical dilemmas after the Foxconn Apple scandal was exposed.A CNN documentary team went there and filmed the companies average work day. On January 29th the CNN report appeared which displayed graphic images of the Foxconn factory. â€Å"The segment graphically showed the suicide nets and the factory, it showed workers reportedly as young as 12 who worked shifts as long as 12 to 14 hours a day, six days a week. It also reported on the death of one worker who died at work after a shift of more than 30 hours. There's no question these condition approach the emotional feeling of slavery, if not legal definition.What's missing from the conversation is that Foxconn builds electronics products for a wide variety of companies, not just Apple† (Apple, Foxconn and China, 2012). All of the previously stated conditions violate countless ethical laws. In an article called Business Ethics- Issues written by Jim Riley, he says that a business can not claim to be ethical if the violate ethical practices such as child labor, production is sweatshops, violation of basic rights and ignoring health and safety issues. Foxconn violated absolutely every single one of these practices.The employed children to work and had them working shifts just as long as your average adult would. The physical conditions of the company were terrible, people were hardly allowed to eat, grime and dirt layered the floors and people worked countless hours shoulder to shoulder. Some have even chosen to compare it to Nazi death camps and the blood diamond controversies in Africa. Due to the constant allegations and controversies, Apple has taken giant steps towards creating a bright future. Apple sent in a Chief Operating Officer to the Chinese facility.The team interviewed more than one thousand workers along with crea ting a 24-hour care center (Sherr, 2011). Since 2007 Apple has audited 288 supplier facilities and even continues to do so even if it mean no longer working with them. Apple has found 91 underage workers in these facilities and will break off any ties to those who choose to overlook the issue. Apple is working hard to establish a good reputation for itself. They are pushing their supplier factories to follow every ethical and business guideline so that we the consumer can be happy and comfortable with the products we are purchasing.Analysis of Solution/Actions The 7 Guidelines for Making Ethical Decisions are a perfect example of the rules in which Apple and Foxconn decided to disobey. Firstly, the TV Test states that managers should always ask, â€Å"would they feel comfortable explain this to a TV audience? † Going back to Foxconn and Apple the clear and most obvious answer to this question is NO. Apple and Foxconn hid every negative aspect of the company for over two years . It was not until 2012 where CNN was allowed to go in and film the factory.If the numerous child workers, poor conditions and suicides were exposed earlier, this issue may have been resolved by now. Instead Foxconn covered up the scandal and allowed it to grow and infest throughout the company. Secondly, every child was raised by the Golden Rule, treat others they way you want to be treated. From the managers perspective, they chose to get things done rather than doing them the right way. What this means is that managers did not obey any ethical rules, rather they pushed workers to the extreme so that they could make as many products as possible.In conclusion, Apple's and Foxconn's violations were unacceptable. However, Apple has taken the right approach in correcting all of the issues at Foxconn. Whether or not it works, Apple has done all they can. Now it lies in the hands of the stakeholders to continue to or not to buy the companies products. Cited Work Adams, S. (2012). Apple' s New Foxconn Embarrassment. Forbes. Com, 8. Apple, Foxconn and China: The Human Cost of Manufacturing. (2012). Channel Insider, 1-2. Foxconn Suicide: Company Says Plant Worker Jumped From Apartment. (2012, June 14). HuffingtonPost.Retrieved  October  7, 2012, from http://foxconn suicide: Company says plant worker jumped from apartment . (2012, June 14). . Retrieved from www. huffingtonpost. com/2012/06/14/foxconn-suicide_n_1596138. html Poeter, D. (2012). Report: Apple Supplier Foxconn Raises Worker Pay at Chinese Plants. PC Magazine, 1. Riley, J. (2012, 9 23). Business ethics- issues. Retrieved from http://www. tutor2u. net/business/strategy/business-ethics-issues. html SHERR, I. (2011, February 15). Apple Says China Partner Made Changes For Workers. Wall Street Journal – Eastern Edition. p. B5.

Is India Safe for Its Residents? Essay

In fact I think INDIA is the safest place to live in on earth for Indians.Yes I do agree that there is terror of terrorism; but then u need to firmly fight againstit. U can run off ur responsibilities by saying that India is not a safe place. Toh†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. do u think that settling down in foreign can make u feel secure If u think so ur definitely wrong!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Are Indians safe in a country like AUSTRALIA,infact Indians are insultedthere and where ever we go and what ever we do†¦..there is nothing that equals our mother and mother land. violence and problems maybe a trouble for us ..but i think there will be no placewith out problems †¦. what we need to do is justto manage ourselves†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ any ways to sum it up..INDIA IS THE SUPERIOR,THE SUPREME AND THE HEAVEN FOR INDIANS. right ______________________________________†¦ In India there has been lack of political will and assertive decision making to bring such fugitives to justice. Barely a month later, with the Delhi blasts this weekend, the NSA might have to revise his earlier estimate; his claimssound meaningless. Jammu and Kashmir is facing unrest. The Northeast is unsettled.West Bengal andTelangana are simmering, over 160 districts in 13 states are in the grip of left wing extremism. While the crime rate is growing, abductions and extortions have almost become an industry. The rangdari and supari culture is now a new brandof threat to the Indian citizen.Money laundering, hawala, small arms proliferation and human trafficking are on the rise. The debate on countering these internal threats, however,has been overwhelmed by politics, rather than deterrent action.While India seems tobe safe are Indians secure? Or are we on course to a functional anarchy? India’s current crisis of internal security has been a concern particularly since Decembe r 2001. When terrorists assaulted Parliament, they struck at India’s nerve centre; a qualitatively different target; and at variance with India’s previous experience with multiple threats of insurgencies, terrorism, left wing extremism, narcotic trafficking, religious fundamentalism and subnationalism. The Indian security apparatus and elite are largely indifferent, or have shied away from formulating an internal security doctrine. There has been no serious attempt to institutionalise a mechanism, direction or assertive policy to deal with â€Å"internal threats†; interim, ad hoc and incremental means have been the favoured methods adopted by successive governments. There is virtually no means to define coherentlythe enemy within. The continuous assault on Indian citizens and their psyche has shown clearly that the security apparatus has failed to plug the reocurrence of terrorist attacks. The intelligence fraternity gropes in the dark about the actual strength, source, capacity and logistics of the enemy’s next attack.With our domestic security apparatus going so horribly awry we can take it for granted that we will almost never apprehend the killers. Worse, these terror attacks and militancy are seen as merely a â€Å"law andorder† concern and treated as subject of state, whenever, political violence on a massive scale breaks out in a state, the police become the first responders. The police in India are trained, equipped and mentally conditioned to deal only with civil disorders.When confronted with serious threats to internal securitylike terrorism, insurgency and other proxy war situations, they find it difficult to respond effectively. In such a situation, the state seeks the expertise of paramilitary forces. Creation of fast track courts to avoid judicial delay and enactment of a deterrent anti-terror law would constitute an essential step forward. The need of the hour is toinstitutionalise, develop procedures and processesthat would boost inter institutional co-ordination, facilitate professional conduct of operations on athorough, professional policy analysis. Lack of professional mindset for informed debate, fierce expression of spite, bitterness and mutual political acrimony take place instead of constructive policy discussions