Hong Kongs Economy Research Paper Example | Topics and Well Written Essays - 1250 words

Hong Kongs Economy - Research Paper Example In 2006 alone, Hong Kong with its population of 6.857 million enjoyed the recognition of being the world's freest (1st of 155) economy (Heritage 2007: 205) for the thirteenth straight year, the 11th (of 125 countries) most competitive nation on earth (World Economic Forum 2006: xvii), the 6th richest economy in the world in terms of per capita GDP at current market prices (HKSAR 2007: 14), and the world's 2nd most competitive economy after the U.S. (IMD 2006: 7). Before going into a discussion of Hong Kong's economic statistics in the last ten years, it would be appropriate to summarize the main events that took place during the period which had noticeable effects on its economic performance. Shortly after the handover in July 1997, Hong Kong was caught in the middle of the Asian financial crisis that lasted until late 1998. As its economy rebounded, it was then hit by the global economic downturn in 2000-2001. By 2002, Hong Kong's economy was recovering with the rest of the world when it was hit by a health scare: fatal cases of Severe Acute Respiratory Syndrome (SARS) turned away tourists and led many skilled workers to leave. From 2004-2005, political problems related to pro-democracy strikes by locals created instability that led to the resignation of its Chief Executive, Tung Chee Hwa, who was into his second term of office. These events explain some of the movements in Hong Kong's economic indicators during the ten-year period. Nature of Hong Kong's Economy Hong Kong's economic performance in the last ten years can be better understood by reviewing briefly how its economy functions. Hong Kong was "developed" by its former British colonizers in the mid-19th century as a free port and evolved into the world's freest economy by the time of its handover in 1997. Its economy enjoys a liberal investment regime without trade barriers, no discrimination against overseas investors, free capital movement, an established rule of law, transparent regulations, low tax rates, a government that does not interfere with the private sector, allowing businessmen to do anything to make money within the law. Supported by world-class infrastructure (airport, seaports, road transport, energy, communications, housing, etc.) and highly-skilled labor from all over the world, Hong Kong is home to the regional offices of thousands of multinational corporations. Its main natural resources are its people, government policies, an ideal seaport, and location close to China. Hong Kong transformed its economy from one that was manufacturing-based and export-led after the communist takeover of China in 1949 into one that is now dominated by services - trading, legal and financial services, tourism, property ownership and development, and re-export of goods manufactured in China. Latest figures (in 2006) show that services accounted for over 90% of Hong Kong's Gross Domestic Product (GDP) of HK$ 1.47 trillion, and that this is even exceeded by the value of its goods (mostly re-exports from China) amounting to HK$ 5.07 trillion (HKSAR 2007: 20-24; Heritage 2007: 205-206). With the exchange rate at a rel atively stable level of HK$ 7.768 per U.S. Dollar (US$) in 2006, these figures translate into US$ 189.2 billion of GDP, a per capita income of US$ 27,598 and total annual trade of US$ 652.7 billion. Economic Indicators The following key economic indicato

Web Browsers Research Paper Example | Topics and Well Written Essays - 1750 words - 1

Web Browsers - Research Paper Example Over time their usability has increased. Though, their main function is to act as browsers for the web, they are also used in different networking solutions. The first web browser was introduced in 1993 by Marc Andreessen and Eric Bina. It was named Mosaic and made to run on UNIX platform (Rosen et al. 290). Mosaic Communications Corporation was founded and later named Netscape Communications Corporation and hence, the browser was renamed Netscape. Functionality was added over time and it was fairly simple. Various bundles were added along with the browser to improve its functionality and enable it to connect with an email client and for composing a webpage. In 1995, Microsoft countered Netscape with the introduction of Internet Explorer for its Windows platform. The browser was based on the original Mosaic browser. The two companies fought for dominance for almost three years and a race started between the two. This war for dominance is known as the Browser War (Ensor 164). Over this time new features were introduced and the development of feature rich modern browsers started. Microsoft gained dominance by including Internet Explorer fr ee in its Windows operating system and furthermore, developed a version for the UNIX foundation also available free of cost. Netscape could not sustain damages and was sold to Mozilla Foundation; the maker of Firefox. Over time, other browsers joined in the list. Most notable of them are Apple’s Safari, which was introduced in 2003 and the more recently Google’s Chrome introduced in 2008. The major web browsers in use today include Internet Explorer, Chrome, Firefox and Safari. The basic functionality of all these browsers is to enable user navigation in a webpage. Different features have been added over time and they are all different from each other in operation, features and interface. The most common features besides supporting HTML files include; built in search

Essay Example | Topics and Well Written Essays - 500 words - 183

Essay Example I was a bit upset for there was nothing interesting about them; they were just common people everyone can see in a cafà © in the morning. Despite this, I enjoyed being there because of the sun that shone just right through the window, the cafà © smelled of coffee and freshly baked muffins, and I felt peaceful and contended with my life. At that very moment, a man came in and caught my attention immediately. He seemed to be very excited, even nervous. He looked around as if he was looking for someone or something, sat down at a table and ordered tea. The man was dressed very neatly, and at first I thought that he came on a date; it was too early for that though, and I put that thought to rest. Also, it was quite an early morning for a business meeting. Curiosity was eating me up as the man checked his watch almost every two minutes and looked out the window. He was definitely waiting for someone. About fifteen minutes of waiting passed, and a boy bounced into the cafà ©. He was about thirteen or fourteen years old, not too tall, and he reminded me of someone I had already seen before. When he came up to the man, I understood who the boy reminded me of. It became obvious they were a father and a son. When the man saw the boy, he glowed with happiness and finally calmed down. The boy was also very glad to see his father for he ran up and hugged him. It was such a nice and moving scene! I think that the fact that they met at the cafà © suggests that they did not live together; perhaps, the boy’s parents were divorced, and his mother had a sole custody of her child. In any case, it was clear that they had not seen each other for a long time. As I looked around, I noticed that everybody who was at the cafà © at the moment also was watching the man and his son. Just like me, they also seemed to be moved by the scene. At that very instance, I felt that the entire cafà © was filled with peace, happiness and even

Customer behavior summary about social media Essay

Customer behavior summary about social media - Essay Example We will therefore focus on these level of needs and how marketers can use them to their advantage. First are the physiological needs which are basically biological needs such as food, water, oxygen and shelter. Of all the needs, the physiological needs are the most important and basic and therefore, they should be satisfied first. In the social network sphere, the marketers can satisfy the customers’ physiological needs by finding out the information concerning nutrition and medicine of their existing and potential customers. The second level is composed of the safety or security needs which become active only after the physiological needs have been met. Whereas adults have usually little awareness of their safety needs apart from periods of emergency, children usually show signs of insecurity thereby prompting the need to be safe. Individuals can use social networks to update their status and inform security firms such as police and other authority of any insecurity or emergency. By doing this, the individuals’ safety needs are met appropriately. Thirdly, the needs of Love, affection and belongingness enables individuals to overcome the feelings of isolation and loneliness. These needs therefore comprises of both showing and receiving love and affection from others which one to have a sense of belonging. Through social networks such as Facebook, Twitter and Instagram, people are able to share love by commenting on statuses, liking pictures and even engaging in online dating. This actions reduces or eliminates the feeling of loneliness and alienation thus enabling them to attain the needs of love, affection and belongingness. Comparatively, after the first three needs have been met, an individual develops the needs for esteem which involve self-esteem and esteem for others. In this segment, an individual tends to have a high level of self-respect and therefore desires to have respect from others too. Through the social networking

Mussoliniss Foreign Policy Essay Example for Free

Mussoliniss Foreign Policy Essay How consistent was Italian foreign policy between 1922 and 1943? Mussolinis main aim through foreign policy was to exalt Italys pride, which was seen severely deteriorated after the First World War. By the statement My objective is simple. I want to make Italy great, respected and feared Mussolinis objectives are clearly can be clearly deduced. However, historians still disagree over Mussolinis conduct of foreign affairs, in the years between his assumption of the premiership and the conquest of Ethiopia in 1935-6. Some support the view, once he acquired strong dominance on the communists, that the imperialism of 1930s was the unplanned response to domestic problems of a dictator whose main concerns where the internal consolidation of his regime. More recently, however, the balance of opinion has tended towards the belief in the underlying consistency of Mussolinis foreign policy. Mussolinis foreign policy operates along fairly well-worn paths, and his main areas of interest remained the Mediterranean, Africa and the Balkans Mussolinis foreign policy operates along fairly well-worn paths, and his main areas of interest remained the Mediterranean, Africa and the Balkans. As these two aims were, to some extent achieved during the 1920s, Iitalian foreign policy became increasingly expansionist in the 1930s, aiming not only to control the Mediterranean but as well, the African Empire. In the course of 1922-3 the weakness of Italys position became all too clear to Mussolini. He first failed to gain any substantial concessions in Africa or in the middle East from Britain and France when, at the Lausane, the negotiated a new peaceful treaty with Mustapha Kemal after his successful resistance would avoid the Treaty of Sevrà ¯Ã‚ ¿Ã‚ ½s to be applied on Turkey. Secondly, he was also unsuccessful in exploiting in the interests of Italy the international crisis caused by the French occupation of the Ruhr in January 1923. Mussolini changed his role from mediator between France and Britain, who opposed the occupation, to opponent of at one point of a potentially anti-British building bloc, composed of the main Continental States. He was mistrusted by both, London and Paris and was set aside from the European stage. The incident in Corfu, in 1923 gave Mussolini the reputation of being a dangerous firebrand. In 1923 Mussolini seized the chance to occupy Corfu, a strategically important island guarding the Southern entrance into the Adriatic, given that the Greek government seemed to refuse to pay the 50 million lira compensation they asked for the assassination of an Italian general and his staff, who were mapping out for an international inter-allied Commission the new Greek- Albanian frontier on Greek territory. Mussolini not only rejected the Leagues intervention but began to build a military base in the island. The incident was celebrated as a great success for Mussolini however, in reality it was a diplomatic defeat for Mussolini, since he had been forced to leave Corfu by Anglo-French pressure. However, Mussolini felt obliged into adopting a more conventional foreign policy. Mussolini could not run the risk of isolating Italy from the rest of Europe, therefore seeked for to establishing closer relationships with Britain and France. Mussolini, in order to maintain an independent state, cultivated the friendship of Austria and Hungary and in 1930 a similar treaty with similar treaty with Austria. Relations with Austria became ever closer after Hitler came to power in Germany after Hitler came to power in Germany and Mussolini provided the arms and money for the Austrian chancellors private army. In 1924 the Pact of Rome was signed with Yugoslavia, by which Italy received the long-disputed town of Fiume, though a part of it, Susak, went to Yugoslavia, along with port Barros. Two treaties with Alabania were signed in 1926 and 1927, firmly established Italian influence in Albania. This marked the first stage in Mussolinis efforts to establish Italy in the Balkans where Czechoslovakia, Roumania and Yugoslavia were tied to France, Italys like enemy, ver closely. During the 1920 Mussolini realised that he needed the friendship of France and Britain in view that he could not yet attempt to have the Versailles treaty revised in his favour. He went to Locarno thus in 1925 he went to Locarno and signed the treaties which guaranteed the frontiers between France and Germany, as well as the ones between Belgium and Germany, and in 1928 he signed. In particular, he drew closer to Britain, and though he privately resolved to end British power in the Mediterranean, he saw her as a possible friend in any future conflict. The frontier between Libya and Egypt was reached through an agreement, and there was a possibility of British aid for the railway building in East Africa. During the 1920 therefore, Italy remained a member of the League of Nations and acted as good citizen of Europe. Mussolinis foreign policy therefore followed a peaceful path. However, the peaceful pattern which Mussolinis foreign policy followed during the 20s was to be changed suddenly in the 30s, and thus also the slight consistency it had been following so far. This was mainly caused by Hitlers advent to power, what obviously altered things considerably. Mussolini saw the potential of a German alliance against Britain and France to revise the 1919 settlement; on the other hand he took care of having Germany too close. In April 1933 Goering and Papen visited Rome, however, all what Mussolini could achieve was German agreement to the Four Power Pact (between Italy, Germany, France and Britain) to keep peace in Europe, thus replacing the League. It was even signed actually by Germany and Italy (on 15 July 1933). A crucial meeting with Hitler took place in his visit to Venice in 1934. The meeting went bad unfortunately, since Mussolini refused to have an interpreter despite his German being very poor, so the meeting meant little to either. Things became worsened by the crisis following the death of Dollfuss a month later, so that Mussolini was far from being an ally of Hitler in 1934-5. Mussolini even attended the Stressa conference in April 1935, which was called by France, and in which it had to be considered what action to take in order to guarantee the independence of Austria. Italy joined to the declarations and protests, partly in genuine hostility to Germany, but mainly to avoid British and French hostility. In the 1920s the Italian empire was hardly promising. In Lybia, which was the territorially the heart of the Empire , but only some 2000 Italians had settled there and by 1930 it was costing over 500 million lire per annum, compared with 107 million in 1921. There were two smaller Italian colonies which looked more promising, for they bordered on to Ethiopia (Abyssinia), one of the few remaining independent kingdoms of Africa. Italy therefore took special interest in Abyssinia, sponsoring her membership on the League in 1923 and signing a treaty of friendship in 1928. However, in view that Haile Selassie (the ruler) did not intend to allow his country to be dominated by a modern power (signature of a treaty with Japan in 1930) Mussolini considered the possibility of war to force Abyssinia under Italian control. The clue incident which brought war about was the Ual Ual incident, in which the Italians claimed the right to use this oasis, which was located in the border of Abyssinia and Italian Somaliland, which was marked in the maps as being part of Abyssinia. Italians in Ual Ual were therefore murdered in the oasis in December 1934. Mussolini demanded an apology as well as compensation from Abyssinia, while the Abyssians claimed investigation from the League of Nations, and were pleased in May 1935. Mussolini made preparations for his attack, by either building up forces and sounding out the attitude of Britain and France. In June, Enden, on behalf of the British government offered the Abyssinians a corridor to the sea through British Somaliland if they gave Mussolini part of Ogaden, offer however rejected by Mussolini. In the summer Italian troops under generals de Bono and Graziani arrived at Eritrea. Mussolini continued to make noises about his intentions, feeling disastified by the League resolutions in which it established that neither part was to be blamed by the Ual Ual incident. Italians brought war about provided that the meeting the held with British and French, in which Italy was offered the opportunity to develop Abyssinia provided that the Abyssinians agreed, did not satisfied Mussolini, since he foreshadow that it would be unlikely to obtain such agreement. The conquest of Abyssinia was regarded as a major triumph in Italy, ranking alongside the Concordat of 1929. Mussolini had said the Italian character has to be formed through fighting, and he stuck at this idea definitely between the 30 and until the 40s, completely contrasting the peaceful means through which Mussolini had been able to achieve good foreign relationships, by the 1920s. When the Spanish civil war broke out Mussolini supported immediately Franco and the Nationalists by providing them with men and equipment, on the grounds that he could not allow a communist government to be formed in the Mediterranean. It deepened the rift between Italy and Britain and France, and aligned Mussolini more firmly with Germany. In 1936, exalting the new closeness between Italian-German relationships, the October Protocols were signed. Italy conceded German predominance in Austria, while Germany recognised the Italian empire in East Africa. Both governments agreed on the danger of Communism and the need to keep a careful watch on alleged British plans for encirclement. There was also to be close co-operation between the two powers in Spain. The axis however was not a formal treaty and Mussolini was by no means committed to German alliance. Mussolini, on his visit to Berlin in September 1937, seemed more convinced than ever that Nazism was an invincible force in Europe and Italy had no choice but to ally herself with it. He thus distanced himself further from Britain and France, and joined with Japan and Germany in the Anti-Comitern pact on November. In 1938 Italys weakness was underlined by the fact that neither Shuschnigg nor Hitler bothered to contact Rome, when the Anshluss was signed. Mussolini also was powerless to back Schuschnigg in his attempt to renounce the ultimatum for the Anshluss. . Mussolini was to pay the price for his break with Britain and France in 1935. Mussolini therefore decided to retake Italys traditional policy of equidistance between the Western powers and Berlin. By the Munich agreement Musolini could effectively stop Hitler plunging Europe into war before he judged Italy to be ready for it. It was a considerable diplomatic succes for Musolini and was praised as the man who saved the world. However, Italys policy of equidistance did not last for long. Since Mussolini decided a full military alliance with Germany, since he considered than a German alliance was intended to be more an instrument of diplomatic pressure than a prelude to war. Mussolinis Foreign policy was therefore inconsistent in the sense that Mussolini not only switched his ideas rather frequently (aiming first to align with the Four powers, and then switching to establish closer relations with Germany, and at the end again with Britain and France), but as well in terms of its degree of aggressiveness, since through the 1920s Mussolinis foreign policy can be said to had been quite peaceful (foreign affairs were mainly solved through Treaties and Agreements), switching in the 1930s to a more aggressive foreign policy with the advent of Hitler. Between the 1930s and 1940s he used war mongering (e.g. The Spanish Civil War, the Abyssinian incident, and the Corfu incident).

Ethics Essay Example for Free

Ethics Essay Businesses are concerned with their company image, breaking of the laws in work related duties and any doing that will involve a law suit against the company. This is mainly their reputation and restoring it will involve a lot of money. To avoid all of this, they adapt a moral behavior in knowing what is right and wrong for the company. Therefore ethics are derived from the moral obligations, profit maximization and in following the laws set. In human ethics, an individual is expected to prevent harm, be fair and just, respect the opinion of others, have a heart for others, to be honest and wiling to comply with the law (Pojman, 2004). In professionalism, there is need for objectivity and impartiality, avoidance of conflict of interest, confidentiality of information, duty of care respected, integrity and full disclosure of information. History of utilitarianism A proposition on utilitarianism lie with Hume but its formulation and understanding credit is received by Bentham. It was incorporated during the 18th century. It was intended to view the principle of utility and the motivation of human beings. They found out that happiness and pain were humans’ utility and that what generates more happiness to many people is the ultimate right. However, having a large number being happy was difficult thus they settled for principle of happiness to represent utilitarianism. Since then, it has been an influence to economics and used to support different political moves. Introduction Utilitarianism is a principle of moral ethics. It supports that a moral right action in a situation is the one that produces more advantages than disadvantages (Buckle, 2007). Many individuals use this type of ethics in daily decisions as it brings more benefits even if lies or manipulation of others were used. It is easily aid sin decision making process. The required courses of actions are identified then their advantages and disadvantages in value are highlighted and lastly the action that generates more advantages is then selected to be morally right. It is characterized by the relevant consequences, impartiality and neutrality of the action as every person’s happiness is counted the same. The act and rule utilitarianism are its types and have been competing on which real should be followed. In act, what benefits the people more is the right morals despite their different feelings. However, the rule type acknowledges the justice, fairness and benefits a large number of people. Therefore the rule values the people feelings, their laws and the benefits. They both have problems in comparing the exact consequences value in money and happiness since they all differ. They believe in obligation to the society and not the act of being a heroine. Since it is consequences on choice, they tend to predict the future. However, act type will be favorable to one today and may be unfavorable the next day. The rule type on the other hand, is very instable on what is actually morally right. Utilitarianism can be objective in supporting the effect that the rightness of an activity is whether it would indeed encourage and promote the goodness of the already available acts to the agents. On the other side, it can take the form of subjective utilitarianism. It involves that when choosing an activity one should first determine which activities of those available would mostly promote the good more than the others, then chose that activity. Critics against utilitarianism It is difficult t assign value in money form to certain items and acts such as human life, happiness, pain, pleasure and more feelings (Pojman, 2004). They could be representing opposition’s ideas in the sense that someone’s pleasure could be another individual’s pain. This does make the comparison of values difficult for a person to choose what action will give a high better pleasure. The benefits and costs value may be underestimated or overestimated. This principle violates the human conscious acts and the different personal ideas in interest of more valuable advantages of an action. It’s like it gives us permission to do harm but specifically little harm in order to gain. In protest then, little or more harm is still harm, it never changes. Lying for the sake of saving more benefits represents an injustice to human kind. It does not promote justice but rules in favor of injustice. It is difficult to know how right an action is when the law seconds some offences committed with the excuse of the principle of utilitarianism. It does not follow the law guide thus can at all times be interchanged to commit evil. The integrity, reputation and image of a person are lost with utilitarianism ethics. The consequences of a lie for the sake of creating more profits to a company, kills the integrity that was taught of being present. Maintenance of reputation is not easy and therefore loosing the little you have will mean a slow start in creating another image. It does not encourage creativity and development of products and services as it tends to cut out considerations of new ideas generation. To other individual this is a difference making on what and how they feel. They argue that each one is responsible for what hey do and not the value of how they do it. An individual might be creative and willing to undertake his idea a step ahead and fulfill it, may not succeed at all if the majority umber do not support his idea. Therefore, a chance of having had to grow an idea in other people no matte how good it would have been, is lost because of this system. It relies entirely on a single principle of ethics thus an action committed could either produce best or worst consequences despite the argument that it will provide more benefits. Different principles in deciding what is right or wrong have to be used on a single action so as to make the solution effective and efficient. It uses the human being as means to an end of suitable action by only considering happiness and equating it as the main pleasure of a person. By only counting happiness, it encourages individuals to do the right things for an entire wrong reason. After all, they can justify the evil doing as their happiness. The theory also concentrate on a belief that human are common in nature thus desires same things. It discourages the individual’s tastes and preferences. Some people even appreciate more things than others who do not even take an account of the thing presence. Humans are very different in personalities and their goals also differ. Grouping them a sonly one group of nature, is not justice and happiness at all. It does not take into considerations the potential intention of an individual in carrying out an action. An individual could be fulfilling his evil motives on an individual but ends up defending himself using the utility benefits thus being set free and innocent. Every action should be accounted for legally so truth of right and wrong could be identified. A person stealing money and justifying it that it was to be used for a sick person medical expenses, might b lying or not. He might be a thief in the making. Critics in support of utilitarianism In human moral life, majority value the self sacrificial factor and happiness. Utilitarianism supports these morals in their decisions as some are sacrificed and the happiness of the people affected by the consequence mattering a lot (Mayer, 2009). An individual known for self sacrificial mostly promotes peace, loyalty and unity. If an organization is willing to sacrifice some items for the entire society benefits, it is received well and brings happiness which is the goal of utilitarianism. It promotes equality, impartiality, fairness and neutrality in all its decisions (Buckle, 2007). This is because to them no one deserves special treatment at the expense of another as they are all equal. A decision is basically made from everybody’s point of view with consideration of the majority. If the majority needs a company closed down, then that percentage would be a representation that every individual of that area wants the company closed. The consideration of the outcome of an activity is important. This theory is in support of knowing the consequences first before undertaking an action. The consequences received should be of great value that would not contribute to pain but joy. These would prepare the users to face the outcome with an open mind as they had been expecting it. They could be outcomes based on researches or people personal experiences. In addition, it aids in future planning of activities leading to enhancement of efficiency. This system is straightforward and direct in evaluation because it conveniently uses one denominator in its evaluation calculations. Therefore, it becomes easy in resolving conflict interests for straightforward answers to the decision. An easy way to resolve things is many people choice as many of them understand it, support it and ready to conceptualize into their daily activities. This ensures less money and minimal time spent in evaluations process. Nietzsche on ethical concept, background and theories He explained that the existence of structure theories is as a result of leaders who dominate their decisions over others. He argues that it is through self consciousness that one can determine the evil and the good with its both doers. He did not support the utilitarianism principle of ethics and argued that it placed too much emphasis on the large numbers of people instead of an individual that his personal welfare is lost to the general crowd. In addition, his other reason was that humans do things just to survive in this world even if they were unpleasant or unhappy. Utilitarianism show there is a wrong and a right but according to him this are the terms men use to interpret a situation or experience. He believes human will be motivated by to many thing snot only pleasure, happiness and pain. Aristotle ethical concepts, background and theories He showed that conduct depended on the role of an individual habit. He said that it was in between pleasures and pain that allowed one to choose which indeed was right or wrong. Being a business minded person, he advices that the root to fairness, justice and happiness is in asking questions. He does not uses utility in his work but stresses that the behavior of a person is what is reflected on his performance and goodness, thus supporting the theory of virtue of ethics and not consequences (History of Utilitarianism, 2009). He campaigned that happiness of a person could only be known after his life and thus could not be short termed using utilitarianism. Conclusions Utilitarianism should take into account that not only making people happy is a pleasure but also involving one in the success of the project, institution, a career and a cause to ensure that they are committed. Many people though support it because it is easy to use, they have practice of using it daily and it tends to avoid the divine revelation of living morally but outside the belief in a supernatural being. A person deciding should include other principles and theories of ethics that are likely to affect an action and determine if they are right or wrong. They could use principle of; virtue, moral right, egoism, deontological, justice and fairness and their emotions reflected in their feelings. This would give a wide reflection balance of the choice picked. In all the actions an individual undertakes from a selection, he should first weigh their goodness and badness and not necessarily through its money value alone. One should be able to know how the action would affect him, the law and the society. An evil action such as killing a corrupt leader for money should not be justified that it made everyone evil that had fallen into his corrupt evils.

Analysis of StratSim

Analysis of StratSim The StratSim is a growing and a wider spread industry around the global among the automobile sellers. Notwithstanding the economic and energy instabilities, that led to decreased vehicle demand, sales revenues strongly increased as Gross Domestic Products (GDP) increase from period 1- 4, and remains constant in period 5, and inflation rate decreased from 2.5% period 1 to 1.0% in period 3. However, in some circumstances, sales were increased and/or decreased since firms started making decisions. These 7 competitors were; firm A, firm B, firm C, firm D, firm E, firm F and firm G. In StratSim, there are 7 vehicle classes; Minivan (M), Family (F), Sports (S), Luxury (L), Utility (U) Economy (E), and Truck (T). Vehicle attributes being; performance, styling, quality, interior and safety. Furthermore, advertisement plays a significant role especially when firms striving to create brand image, awareness as well as interests to target customers. Dealerships contributed in generating revenues through sales of ranges of vehicles which in turn enabled the firm to increase its market share while maximising shareholders wealth. Firm B has had 3 vehicle classes; Boss -Truck Boffo Family and Buzzy Economy. 2.0 Strategic Analysis According to (Johnson et al, 2006, p 9), strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through the use of resources and competence with the aim of fulfilling shareholder expectations. Figure 1. Processes by which strategy is described and executed. Source:http://www.12manage.com/description-deliberate-strategy.html. In a competitive business environment such as StratSim, analysing firms strategies is vital in order to enhance performance and customer satisfaction. 2.1 Firm Bs Strategic Intent Firm Bs mission was to become the leader in automobile industry worldwide by offering highly innovative vehicles to diverse customer segments that will consistently satisfy their dynamic needs. 2.2 Objectives 2.3 Basic Strategy Our strategy was to provide good quality vehicles at premium price trying to differentiate our vehicles from incumbents while avoiding price war from our competitors. By doing so, we became the leader twice in economy (Buzzy) car, period 2 and 5. To meet diverse customer taste and preferences, we made minor upgrades to our vehicles during decision periods, e.g. technology, promotion, advertising, etc. 2.4 External Analysis Scanning the macro-environment is vital since there are several factors that hinder firms performance and growth. In order for managers to come up with effective and suitable strategies that will enable the firm exploit overt and hidden opportunities while overcoming threats, those factors need to be thoroughly tackled before decisions are made. The external analysis comprises; The Michael Porters five forces. PESTEL analysis. Opportunities and Threats (OT) from SWOT analysis, And Critical Success Factors (CSF). 2.4.1 PESTEL framework PESTEL framework is a useful tool that is used by organisations to analyse the complexity of macro-environment variables. It also provides a picture on how these key factors may influence firms success or failure of its particular strategies in future, so that managers can find ways of overcoming. PESTEL refers to; political, economic, social, technology, environment and legal. Figure 2 the PESTEL Framework Source: (Johnson et al, 2006. p 68) The Organisation Political Taxation policy Government stability Social welfare policies Foreign trade regulations Legal Health and safety Competition law Product safety Employment law Economic factors Business cycle Inflation Interest rates Unemployment GNP trends Money supply Disposable income Environmental Environmental protection laws Waste disposal Energy consumption Sociocultural factors Population Demographic Socio mobility Consumerism Income Distribution Lifestyle changes Level of Education Attitudes to work and leisure Technological Government spending on research Speed of technology transfer New discoveries/developments Government and industry focus on technological effort Rates of obsolescence Political/Legal Since 1960, laws and government regulations have affected the automotive industry (Highfill et al, November, 2004). Political changes may favour or hinder the firms production since anti-pollution laws and taxes may be imposed, so, firm B should continuously pay special attention to any rules, codes and regulations regarding carbon-dioxide emissions. Economic During simulation, firm B had experienced unstable economic growth. Its variables like inflation, interest rates, gas prices, and material costs were fluctuated, these have affected firm profitability. Social Due to increased health awareness, people tend to change their lifestyles, while turning to low-emission vehicles, also income distribution and demographic population both affect vehicle production either positively or negatively. Technology Rapid change in technology has provided both opportunities and threats to the automotive industry. Those who employ it effectively, it facilitates them in enhancing firms efficiency by producing vehicles that appeal to customers whilst lowers costs. So far, internet and firm websites as part of technology have been used by many buyers as a reference tool before making purchases decisions. 2.4.2 Critical Success Factors (CSF) Johnson et al (2009) defined CSF as those product features that are particularly valued by a group of customers and, therefore, where the organisation must excels to outperform competition. CSF comprises; threshold features and differentiators. Source: Johnson et al (2009) CRITICAL SUCCESS FACTORS (CSF) THRESHOLD FEATURES DIFFERENTIATORS Threshold features These are features that customer values mostly, and they are likely not to buy a product or service that lack one among them. In StratSim industry, threshold features are; quality, performance, safety and size. Differentiators These are customised or added qualities some customers may/may not consider before purchasing a service or products. During our simulation, price, styling and interior were regarded as differentiators. In reality, differentiators have had given a difficult moment to distinguish what they prefer most, since many vehicles were similar among competitors after modifications being made during decisions. Lastly, firms should take it seriously, creative and keep innovating in these CSF in order to outwit its competitors through customer satisfaction. 2.4.3 Porters Five Forces model The 5 competitive forces model was developed by Michael Porter in 1980 (Johnson et al, 2006). Since then, the model is used by firms as a tool to analyse the attractiveness (profit potential) while determining the intensity of competition (threats) of an industry, and finally come up with the right strategies that will support in exploiting opportunities, neutralise threats and hence grow. Figure 3 Porters Five Competitive Forces model SUPPLIER POWER Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Supplier concentration Importance of volume to supplier Impact of inputs on cost or differentiation Differentiation of inputs Cost relative to total purchase in industry BARRIERS TO ENTRY Government Policy Capital requirements Access to distribution Economies of scale Switching costs Proprietary learning curve Access to inputs Expected retaliation Brand identity Absolute cost advantages Proprietary products BUYER POWER Price sensitivity Threat of backward integration Substitutes available Bargaining leverage Buyer concentration vs industry Buyer information Buyer volume Buyers incentives Brand identity Product differentiation www.scribd.com DEGREE OF RIVALRY Brand identity Exit barriers Switching costs Product differences Industry growth Fixed cost/ value added Diversity of rivals Industry concentration Corporate stakes Intermittent overcapacity RIVALRY THREAT OF SUBSTITUTES Buyer inclination to substitute Switching costs Price-performance trade-off of substitutes Threat of New Entrants The threat of new entrants in automobile industry is low, since barriers to enter are very high, such as high amount of start-up capital required. Moreover, incumbents have; adequate experience curve, distribution access, economies of scale, strong research and development (RD) and even brand and customer loyalty. These become difficult for new entrants to manage as Incumbents can produce at mass to cover potential and existing customer needs. Bargaining Power of Suppliers Suppliers power in automobile industry is low, since producing a car/vehicle requires a range of inputs (parts) from diverse suppliers. If some inputs not found in one supplier, it is easy to switch from one supplier to another finding a substitute for the required input due to low switching costs. Threat of Substitutes Substitute threats in this industry is likely to be moderate and depends much on customer geographic location, other customers like walking, taking train or riding bike. But in Dar es Salaam city for example, people prefer public transport, motorcycles (BAJAJ known as rickshaw in India) as alternative means to automobile due to increased congestion. Bargaining Power of Buyers In this industry, buyers power is a bit high. Low switching costs from one firm to another seeking for substitutes since most of the customers are price sensitive. For the case of the simulation game we played, most of the products were undifferentiated, so that, buyers can easily shifts to an alternative producer as well as products. Competitive Rivalry The intensity of competition in automobile industry is high due to lack of differentiation strategy and innovation among incumbents especially to the three vehicle classes, i.e. family, economy and truck because most of the firm use similar strategies like price, this reduces market growth as well as profitability. 2.4.4 Opportunities and Threats Opportunities: Advanced technology Firms can use it more efficiently in enhancing product features that can appeal to the eyes of customers. Also use e-commerce to advertise and sell globally. Bargaining power of suppliers. Low supplier power is an advantages to an automobile firms since they can set input prices, and hence be able to enjoy cost advantages while offer good quality products that will satisfy customers. European Union (EU) Automobile manufacturers can use the EU to sell their products. Diversification Diversification can be done to widen the market to other untapped segments like high income earners or internationally and also locate the firms near raw materials where they can enjoy location economies. Differentiation strategy In order to sustain customers, after satisfaction is being met, differentiation strategy can be used as a weapon in delivering a range of added values that surpass those of competitors, since most of the firms use similar strategies. Threats: Bargaining power of buyers Strong bargaining power buyers associated with low switching costs to alternative products, force suppliers to an increased competition in order to provide the best that will satisfy their customers. Increased gas prices Gas being one of the operating energy, increased price will also affect firms production as well as profitability e.g. in simulation that we played, period 1 $/gal was 3.15 rise to 3.50 in period 5. New laws New rules and regulations on carbon-dioxide emissions in environmental protection hinder production of cars that use petrol engines. World economic recession Recession discourages consumption of luxury goods, and streamlines production while people turn to public transports. High competition Initially, all firms in the StratSim industry were in similar position e.g. financially and other resources; these prove difficult in making decisions on how to create demand in order to enhance market shares as well as profits. Each firm was competing. Inflation Inflation has started to increase in period 4 from 2.0% to 2.5%, this will affect consumer prices. Fuel price instability. Rapid change in technology This threatens vehicle production since other substitutes to vehicles may be produced. 2.5 Internal Analysis 2.5.1 Resources and Capabilities These are those which will create a strategic fit in order for the firm to survive and prosper even in a competitive business environment. Lucino Noto, (2007, p 125) Analyzing resources and capabilities: The interface between strategy and the firm THE FIRM Resources and Capabilities Goals and Values Structure and System STRATEGY THE INDUSTRY ENVIRONMENT Customers Competitors suppliers The firm-Strategy Interface The Environment-Strategy Interface Organisation resources are divided into two categories (Johnson et al (2009); Tangible Resources These are firms physical assets. Firm B physical assets were; Three vehicle classes, each of these represents a unique configuration while targeting different customer segments like value seekers, families, singles, high income and enterprisers (the StratSim case, 2010). Financial resources, at period 0, each firm were given sales amounted to $ 15.5 billions (the StratSim case, 2010), which enabled firm B to diversify into different segments. Manpower, firm B had 4 competent human resources who made diverse valuable decisions and hence became twice the leader of economy car (Buzzy). Intangible Resources These are non-physical resources such as; information, reputation and knowledge i.e. intellectual capital. (Johnson et al, 2008). Firm B holds a number of unique competences over its rivals. Firm B capabilities were; Quality. Safety. Performance. Style. Interior. 2.5.2 V.R.I.O Are criteria that are used to assess the sustainability of an organisation resources and capability that will enable the firm achieve durable competitive advantages. V.R.I.O stands for Value, Rarity, Inimitability and Organisation. (Johnson et al, 2008). Value As the game started, firm B had enough resources and capabilities i.e. unique brand name that facilitated it in formulating and implementing different strategies to meet customer needs. But due to increased market demand, demand exceeded production in the periods around since the firm lacked efficiency. Rareness At the beginning, all firms had similar starting point which led them to have a low degree of rarity. This positioning by StratSim made firm B to create more appealing strategies like vehicle enhancements and improvements in terms of its attributes which allowed it to come with things which turned out to be less common among the firms. Inimitability During simulation game, product imitation was very high since previous results and almost all modifications and other statistics were openly published for other firms to see. This means that competitors can possibly copy other firms techniques. Organisation In StratSim industry, there were 7 firms producing identical vehicles, because they used similar strategies, lacking differentiation. Due to these, it became easily for customers to switch from one firm to another if satisfactions have not met. 2.5.3 SWOT- SW SW is a tool that is used in identifying or analysing firms internal strengths and weaknesses and enables it to use the available strengths to minimise or turned those weaknesses to strengths. SW means Strengths and weaknesses. Strengths: Unique brand name Best Motor Works. Unique product names like Buzzy, Boffo, and Boss. Twice leader of Buzzy-Economy car, period 2 and 5. Reliable dealerships. Innovation, almost every decision period, firm B upgraded its vehicle attributes to meet emerging customer needs. Weaknesses: Weak financial position. Unstable growth of market shares. Limited product lines, this means that firm B did not exploit the available opportunities of unsatisfied and potential new customers to launch any new vehicle that will satisfy their needs. 3.0 Decisions 3.1 Technology Firm B upgraded its technology capabilities during decision periods considering dynamic business environment and customer tastes and preferences, while special attention given to economy (Buzzy) and family (Boffo) cars. Investment in technology facilitated firm B in enhancing its production capacity as well as vehicle attributes that appealed to target customers and hence satisfy their emerging needs. 3.2 Marketing Firm Bs marketing mix was to create leverage with customers and build strong brand loyalty which will enable customers purchase our products even in intense competition as in StratSim industry. Firm B unique selling price USP was quality. Quality being the key in our products while charging premium price enable Buzzy (economy) car to become the leader in period 2 and 5. Despite this success, it was hard for firm B survive in just a success of one car and become the market leader. Though the marketing mix was thoroughly applied by adding or reducing the number of dealers in each area, increasing dealer discounts and product promotions attracting customers, firm B marketing share was increased and decreased during decisions due to overspending. (For more marketing and distribution details for period 5, see appendix 1 2) 3.3 Finance During simulation, firm B financial performance was somehow poor despite a slightly increase in sales ($), net income was negative during period 2 and 5 results. We discovered that one of the problems could possibly be overspending, however, (Firm B performance summary period 5, see appendix 3). 3.4 Production In the year around, production was increased as well as vehicle attributes to meet customer demand. Though Boss (truck) and Buzzy (economy) vehicles were upgraded in period 4, there were some shortages on Boss; this means that if we were given a chance to continue making decisions, we could probably increase production to meet the demand (see appendix 4). 4.0 Conclusion Firm Bs mission was to become the leader in automotive industry offering highly innovative vehicles to different customer segments that will satisfy their emerging needs. Unfortunately, firm B did not meet its expectations. Though it became the leader twice in Buzzy (economy) car, this means that its strategies fits in economy market, having success in one vehicle does not guarantee survival, thus why firm B income and market share fluctuated. We were not pretty sure of what contributed in unstable financial performance, though we speculated that overspending was one of the problems. 4.1 What I Have Learned I learned that, in the business, taking risks is the way of success. In StratSim industry, almost each period, market research has identified some potential new customers whose needs were not yet satisfied by current vehicle (the StratSim case, 2010). But firm B overlooked to take advantage of launching new vehicle in order to exploit these opportunities and hence increase our turnover and margins due to being risk averse. 5. Reference and Bibliography: Johnson G, Scholes K, and Whittington R, (2006), Exploring Corporate Strategy, 7th Edition, Prentice Hall. Johnson G, Scholes K, and Whittington R, (2009), Exploring Corporate Strategy, Prentice Hall. Highfill D, Baki M, Copus S, Green M, Smith J and Whineland M, (November, 2004). Automotive Industry Analysis-GM, DaimlerChrysler, Toyota, Ford, Honda, overview of industry analysis, available at http://www.academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive-industry-analysis.html. Accessed on 19/11/1010. The StratSim Case (2010), Automobile industry. Lucino Noto, (2007), Analysing resources and capabilities: the interface between strategy and the firm, available at. http://www.blackwellpublishing.com/grant/files/CSAC05.pdf . Figure , Porters Five Forces Available at www.scribd.com/doc/16998313/Diagram-of-Porters. Accessed on 20/11/2010. 6. APPENDIXES 1. Technology Capabilities Period 5 Firm Ratings (1=low capability) Dev. Centers Interior Styling Safety Quality Max. Feasible 5 11 12 11 12 Firm A 3 4 6 4 7 Firm B 3 4 6 5 7 Firm C 2 4 7 6 6 Firm D 2 4 6 5 6 Firm E 2 6 8 6 8 Firm F 2 4 6 4 6 Firm G 3 5 8 7 9 Tech Dim Considerations Interior flexibility of cargo space Styling general curb appeal, styling, handling, finish Safety structural design, braking system, safety features Quality overall reliability, durability, consistency of products StratSim Ind:ind1 Firm:b Period 5 2. Marketing Detail Period 5 Firm B Consumer Budget (mill.) Company Owned /Fleet Budget (mill.) Regional Corp. Adv. $48 Direct Sales Force $0 Direct Mail $6 Direct Mail $0 Public Relations $12 Total $66 Total $0 Vehicle Val Mkt Share MSRP Dealer Disc. Avg Sell Price Adv. (mill.) Adv. Theme Promo. (mill.) Days Inv. Buzzy 2.4% $11,550 12.0% $10,572 $33 Quality $20 18 Boffo 9.4% $20,400 15.0% $18,749 $34 Safety $29 0 Boss 3.2% $20,499 13.0% $19,859 $28 Perform $15 0 Total $95 $64 StratSim Ind:ind1 Firm:b Period 5 2.1 Product marketing period 4 Vehicle Platform MSRP Dealer Disc. Adv. (mill.) Adv. Theme Promo. (mill.) Boffo No Change $20,400 15.0% $34 Safety $29 Boss Upgraded $20,499 13.0% $28 Perform $15 Buzzy Upgraded $11,550 12.0% $33 Quality $20 Total $95 $64 2.3 Distribution Detail Period 5 Firm B North South East West Total Full Coverage 200 250 150 200 800 Established Dealers 137 137 133 133 540 Coverage 69% 55% 89% 67% 68% Planned Openings 10 9 11 12 42 Support/Dealer (000s) $150.6 $150.6 $153.2 $153.2 $151.9 Units/Dealer 2,187 2,284 2,389 2,756 2,401 Sales/Dealer (mill.) $36.9 $38.9 $40.2 $46.3 $40.5 Service/Dealer (mill.) $1.4 $1.5 $1.6 $1.7 $1.5 Gross/Dealer (mill.) $3.3 $3.6 $3.6 $4.1 $3.7 Dealer Rating 59 60 60 61 60 StratSim Ind:ind1 Firm:b Period 5 2.4 Product Contribution Period 5 Firm B Product Contribution Vehicle Units (000s) Dealer Sales (mill.) Direct Sales (mill.) COGS (mill.) Gross Margin (mill.) Adv Promo (mills.) After Mkting (mill.) Boffo 734 $12721 $0 $9797 $2924 $63 $2861 Boss 234 $4179 $0 $3262 $916 $43 $873 Buzzy 329 $3342 $0 $3319 $24 $53 $-29 Total 1,297 $20242 $0 $16378 $3864 $159 $3705 Note: Dollar amounts are in millions. StratSim Ind:ind1 Firm:b Period 5 2.5 Vehicle Classes Period 5 Class Mfr Sales Retail Sales Unit Sales %Chg (units) Num. Veh. Leader Economy $17,296 $17,904 1,726 +5% 7 Buzzy Family $84,734 $91,128 4,816 +4% 7 Efizz Luxury $0 $0 0 NA 0 Sports $0 $0 0 NA 0 AEV $0 $0 0 NA 0 Minivan $4,950 $5,421 220 NA 1 Goofy Utility $0 $0 0 NA 0 Truck $29,506 $32,278 1,669 -1% 7 Ace Total $136,486 $146,732 8,431 +6% 22 Efizz Note: Dollar amounts are in millions, units in thousands. StratSim Ind:ind1 Firm:b Period 5 3. Performance Summary Period2- 5 Firm B Per. 2 Per. 3 Per. 4 Per. 5 Sales ($) $14,800.9 $17,418.6 $18,244.8 $20,242.1 Sales (000s units) 912 1,088 1,144 1,297 Market Share ($) 13.5% 14.9% 14.2% 14.8% Market Share (units) 13.6% 15.0% 14.4% 15.4% Net Income $-897.1 $249.1 $494.4 $-239.3 Cum. Net Income $-373.6 $-124.5 $369.9 $130.6 Stock Price $18.95 $22.74 $26.42 $26.46 Market Value $9,472.5 $11,370.3 $13,208.4 $13,232.1 Return on Sales -6.1% 1.4% 2.7% -1.2% Return on Assets -10.0% 2.6% 5.1% -3.3% Firm Preference 15.2% 14.9% 13.5% 15.0% Dealer Rating 57 58 60 60 COGS 74.4% 76.2% 77.7%