Introduction of E-commerce

Commerce (the trading of goods) has been a major impetus for human survival since the beginning of recorded history and beyond. The mass adoption of the Internet has created a paradigm shift in the way businesses are conducted today. The past decade has seen the emergence of a new kind of commerce: e-commerce, the buying and selling of goods through human-computer interaction over the Internet. Traditional physical trading of goods and currency is becoming increasingly unpopular and more businesses are Jumping on the e-commerce bandwagon.Today, the line between e-commerce and traditional commerce is becoming more blurred as more businesses start and continue to integrate the Internet and e-commerce technologies into their business processes. 1. 2 DEFINITION OF E-COMMERCE The e-commerce can be defined as a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and services and increasing the spe ed of service delivery, by using Internet.It differs from the traditional electronic commerce (e-commerce) in he way that it enables the trading of goods, money and information electronically from computer to computer. Business is done electronically and there is no longer a need for physical currency or goods to conduct business. 1. 3 EVOLUTION OF E-COMMERCE Evolution of e-commerce can be attributed to a combination of regulatory reform and technological innovation. Though Internet (which played an important role in evolution) appeared in the late sass, e-commerce of today took off with the arrival of World Wide Web and browsers in early sass.The liberalizing of the electrification sector and innovations such as optic fiber, DSL etc. (which has helped to expand the volume and capacity of communications) have helped in the process of that rapid growth. As a result the barriers to entry and engage in e- commerce have fallen rapidly. A brief timeline of evolution is as follows: 2 E-CO MMERCE 1. 4 1969 Internet/Apparent 1989 WWW HTML invented at CERN 1991 NSF lifts restrictions on commercial use of Internet 1993 Mosaic browser invented at University of Illinois, Urbana Champagne, is released to public 1994 Netscape releases Navigator browser 1995 Dell, Cisco, Amazon etc. Gang aggressively to use Internet for commercial transactions The growth of Internet has a special significance in the growth of e-commerce. It has the potential to involve general people into the process thereby increasing its reach far beyond large companies. CONDUCTING BUSINESS ONLINE (E-COMMERCE) Doing business online is electronic commerce, and there are four main areas in which companies conduct business online today: 2. 3. 4. Direct marketing, selling, and services. Online banking and billing. Secure distribution of information. Value-chain trading and corporate purchasing. 4. 1 Direct Marketing, Selling, and Services Today, more websites focus on direct marketing, selling, and services tha n on any other type of electronic commerce. Direct selling was the earliest type of electronic commerce, and has proven to be a stepping-stone to more complex commerce operations for many companies. Successes such as Amazon. Com, Barnes and Noble, Dell Computer, and the introduction of e-tickets by major airlines, have catcalled the growth of this segment, proving the reach and customer acceptance of the Internet. 1. 4. 2 Financial and Information ServicesA broad range of financial and information services are performed over the Internet today, and sites that offer them are enjoying rapid growth. These sites are popular because they help consumers, businesses of all sizes, and financial institutions distribute some of their most important information over the Internet with greater convenience and richness that is available using other channels. For example, you have: ; Online banking Online billing Secure information distribution 1. 4. 2. 1 Online Banking Consumers and small busines ses can save time and money by doing their banking n the Internet.Paying bills, making transfers between accounts, and trading stocks, bonds, and mutual funds can all be performed electronically by using the Internet to connect consumers and small businesses with their financial institutions. ELECTRONIC COMMERCE-?TECHNOLOGY AND PROSPECTS 3 1. 4. 2. 2 online Billing Companies whose bill can achieve significant cost savings and marketing benefits through the use of Internet-based bill-delivery and receiving systems. Today, consumers receive an average of 23 bills per month by mail from retailers, credit card companies, and utilities. 1. 4. 2.Secure Information Distribution To many businesses, information is their most valuable asset. Although the Internet can enable businesses to reach huge new markets for that information, businesses must also safeguard that information to protect their assets. Digital Rights Management provides protection for intellectual and information property, a nd is a key technology to secure information distribution. 1. 4. 3 Maintenance, Repair, and Operations (MR.) The Internet also offers tremendous time and cost savings for corporate purchasing of low-cost, high-volume goods for maintenance, repair, and operations (MR.) activities.Typical MR. goods include office supplies (such as pens and paper), office equipment and furniture, computers, and replacement parts. The Internet can transform corporate purchasing from a labor and paperwork-intensive process into a self-service application. Company employees can order equipment on websites, company officials can automatically enforce purchase approval and policies through automated business rules, and suppliers can keep their catalog information centralized and up-to-date. Purchase order applications can then use the Internet to transfer the order to suppliers.In response, suppliers can ship the requested goods and invoice the company over the Internet. In addition to reduced administrativ e costs, Internet-based corporate purchasing can improve order-tracking accuracy, better enforce purchasing policies, provide better customer and supplier service, reduce inventories, and give companies more power in negotiating exclusive or volumetrically contracts. In other words, the Internet and e-business have changed the way enterprises serve customers and compete with each other, and have heightened awareness for competing supply chains. 1. 4. 4 Value-Chain IntegrationNo other business model highlights the need for tight integration across suppliers, manufacturers, and distributors quite like the value chain. Delays in inventory tracking and management can ripple from the cash register all the way back to raw material production, creating inventory shortages at any stage of the value chain. The resulting out-of-stock events can mean lost business. The Internet promises to increase business efficiency by reducing reporting delays and increasing reporting accuracy. Speed is cle arly the business imperative for the value chain. 1. 5 ISSUES IN IMPLEMENTING ELECTRONIC COMMERCEAlthough it is simple to describe their benefits, it is not nearly as easy to develop and deploy commerce systems. Companies can face significant implementation issues: ; Cost Value 4 Security Leveraging existing systems Interoperability 1. 5. 1 cost Electronic commerce requires significant investments in new technologies that can touch many of a company's core business processes. As with all major business systems, electronic commerce systems require significant investments in hardware, software, staffing, and training. Businesses need comprehensive solutions with greater ease-of-use to help foster cost-effective deployment. 5. 2 value Businesses want to know that their investments in electronic commerce systems will produce a return. Business objectives such as lead generation, business-process automation, and cost reduction must be met. Systems used to reach these goals need to be fle xible enough to change when the business changes. 1. 5. 3 security The Internet provides universal access, but companies must protect their assets against accidental or malicious misuse. System security, however, must not create prohibitive complexity or reduce flexibility. Customer information also needs to be protected from internal and external misuse.Privacy systems should safeguard the personal information critical to building sites that satisfy customer and business needs. 1. 5. 4 Leveraging Existing Systems Most companies already use information technology (IT) to conduct business in unlettered environments, such as marketing, order management, billing, inventory, distribution, and customer service. The Internet represents an alternative and complementary way to do business, but it is imperative that electronic commerce systems integrate existing systems in a manner that avoids duplicating functionality and maintains usability, performance, and reliability. 5. 5 Interoperabil ity When systems from two or more businesses are able to exchange documents without manual intervention, businesses achieve cost reduction, improved performance, and more dynamic value chains. Failing to address any of these issues can spell failure for a system's implementation effort. Therefore, your company's commerce strategy should be designed to address all these issues to help customers achieve the benefits of electronic commerce. Your company's vision for electronic commerce should also be to help businesses establish stronger relationships with customers and industry partners.For example, a successful strategy for delivering this vision is described by three work-flow elements (platform, portal, and industry partners), each backed by comprehensive technology, product, and service offerings. 5 From self-service portals to transaction processing, a successful work-flow strategy can be the underlying engine delivering state-based, processed-focused control services for e-busin ess applications. Human labor is expensive, and work-flow technology allows e-businesses to supplement, and in some cases eliminate, reliance on human supervision and intervention. . 6 HOW DO YOU WORK WITH E-COMMERCE? E-commerce is about setting your business on the Internet, allowing visitors to access your website, and go through a virtual catalog of your products/services online. When a visitor wants to buy something he/she likes, they merely â€Å"add† it to their virtual shopping basket. Items in the virtual shopping basket can be added or deleted, and when you're all set to checkout, you head to the virtual checkout counter, which has your complete total, and that will ask you for your name, address etc. ND method of payment (usually via credit card). Once you have entered all this information (which y the way is being transmitted securely) you can then Just wait for delivery. 1. 7 COMPARISON BETWEEN TRADITIONAL COMMERCE AND E-COMMERCE In many cases business processes u se traditional commerce activities very effectively, and these processes cannot be improved upon through technology. Products that buyers prefer to touch, smell, or examine closely are difficult to sell using electronic commerce.For example, customers might be reluctant to buy high-fashion clothing and perishable food products, such as meat or produce, if they cannot examine the products closely before agreeing to purchase them. In the case of traditional commerce retail merchants have years of experience in creating store environments that help convince a customer to buy. This combination of store design, layout and product display knowledge is called merchandising. Sales people in course of time develop skills that allow them to identify customer needs and find products and services that meet those needs.The arts of merchandising and personal selling can be difficult to practice over an electronic link. Through commerce branded products such as books or CDC can be easily sold. As one copy of a new book is identical to there copies and because a customer would not be concerned about freshness he would willingly order a title without examining the specific copy they would receive. The advantage of electronic commerce, namely the ability of one site to offer a wider selection of titles than even the largest physical bookstore, can outweigh the advantage of a traditional bookstore, namely the facility to browse.Some examples of business processes are listed in the following table that suit to the e-commerce and traditional commerce respectively. Business processes well-suited to: Electronic commerce Traditional commerce ; Sale/purchase of books and CDC Sale/purchase of high-fashion clothing ; Online delivery of software ; Sale/purchase of perishable food products ; Advertising and promotion of travel services ; Small-denomination transactions ; Online tracking of shipments ; Sale of expensive Jewelry and antiques 6 1. 8 E-COMMERCE TECHNOLOGIES What technologies are necessary for e-commerce?The short answer is that most information technologies and Internet technologies that we discuss throughout the book are involved in e-commerce systems, biz. – Customers must be provided with a range of secure information, marketing, transaction, processing, and payment services. Trading and business partners rely on Internet and extranets to exchange information and accomplish secure transactions; including electronic data interchange (DE') and other supply chain and financial systems and databases. Company employees depend on a variety of Internet and intranet resources to communicate and collaborate in support of their SEC work activities. . 9 The Internet, intranets, and extranets are the network infrastructure or foundation of e-commerce. Information system professionals and end users can use a variety of software tools to develop and manage the content and operations of the websites and other SEC sources of a company. ECONOMIC POTENTIAL OF E -COMMERCE Consumers are pushing retailers to the wall, demanding lower process, better quality, a large selection of in-season goods. Retailers are scrambling to fill the order. They are slashing back-office costs, reducing profit margins, reducing cycle times, buying more wisely, and making huge investments in technology.They are revamping distribution channels to make sure that warehouse costs are down by reducing their average inventory levels and coordinating the consumer demand and supply patterns. In the push to reduce prices, more and more retailers are turning to overseas suppliers, in part because of cheaper labor costs. The effect of e-commerce can also be seen over the retail industry and marketing. 1. 9. 1 E-commerce and Retail Industry Retailers are in the immediate line of fire and are first to bear the brunt of cost cutting.They are putting that pressure on the manufacturing and supplier end of the pipeline. At the same time, the quest for efficiencies has led to turm oil and consolidation within the retail industry. The pressure experienced by retailers and suppliers can be seen in the disappearance of Jobs, in mergers, and in the increase in business failures in the manufacturing sector. The problems are indeed serious. Electronic markets could provide a partial solution by promising customers more convenience and merchants greater efficiency and interactivity with suppliers to revivalist the troubled retailing sector. . 9. 2 E-commerce and Marketing Electronic commerce is forcing companies to rethink the existing ways of doing target marketing (isolating and focusing on a segment of the population), relationship marketing (building and sustaining a long-term relationship with existing and potential 7 customers), and even event marketing (setting up a virtual booth where interested people come and visit). Consider the case of conventional direct marketers, who devote some 25 percent of their revenues to such costs as printing and postages for c atalogs.Interactive marketing could help cut such expenses and may even deliver better results. Interactive marketing is accomplished in electronic markets via interactive multimedia catalogs that give the same look and feel as a shopping channel. Users find moving images more appealing than still images and listening more appealing than reading text on screen. Those are two powerful reasons why every text-based and still-picture-based interactive experimental-based service has ever generated anywhere near the volume of retail merchandise orders that televised shopping channels have achieved.Maximum public acceptance will require that interactive catalog services have a more entertaining visual appearance than traditional text-intensive catalogs have had. Ideally, an interactive shopping program should produce full-motion demonstrations of selected products, but such a practical and economical technology has yet to be developed. 1. 10 INCENTIVES FOR ENGAGING IN E-COMMERCE A basic fa ct of Internet retailing is that all retail websites are created equal as far as he â€Å"location, location, location† imperative of success in retailing is concerned.No site is any closer to its web customers and competitors offering similar goods and services may be only a mouse click away. This makes it vital that businesses find ways to build customer satisfaction, loyalty, and relationships, so customers keep coming back to their web stores. Thus, the key to e-commerce success is to optimize several key factors such as selection and value, performance and service efficiency, the look and feel of the site, advertising and incentives to purchase, personal attention, immunity relationships, and security and reliability.The incentives for engaging in e-commerce are listed as follows: Selection and Value. Attractive product selections, competitive prices, satisfaction guarantees, and customer support after the sale. Performance and Service. Fast, easy navigation, shopping, a nd purchasing, and prompt shipping and delivery. Look and Feel. Attractive web storefront, website shopping areas, multimedia product catalog pages, and shopping features. Advertising and Incentives. Targeted web-page advertising and e-mail promotions, discounts and special offers, including advertising at affiliate sites. Personal Attention. Personal web pages, personalized product recommendations, web advertising, and e-mail notices, and interactive support for all customers.

Kawasaki Swot

Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review Phone: +44 20 8123 2220 Fax: +44 207 900 3970 [email  protected] com http://marketpublishers. com Phone: +44 20 8123 2220 http://marketpublishers. com Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review Date: Pages: Price: ID: Summary Suzuki Motor Corporation (Suzuki Motors) is an automobile company. It undertakes the designing and manufacturing of passenger cars, commercial vehicles, motorcycles, all terrain vehicles (ATVs), outboard motors, and other products.The company is into manufactures marine and power products, motorized wheelchairs, and electro senior vehicles and houses. The company also provides financial services, logistics business and other services related to its operations. The company operates through Automobile, Motorcycle and Other reportable segments. It operates 134 subsidiaries and 37 affiliates across 23 countries worldwide. Geographically, the company operates in Japan, Asia, Europe, North America and others. Suzuki Motors is headquartered at Hamamatsu-shi , in Shizouka, Japan.Suzuki Motor Corporation Key Recent Developments Sep 06, 2012: Toshiba's SCiB Rechargeable Battery Selected For Newest Suzuki Motor's Cars Dec 09, 2011: Panasonic To Supply Electric Drive System For Suzuki Electric Scooter Nov 30, 2011: Suzuki Plans To Launch Electric Vehicles In India Nov 22, 2011: Mitsubishi In Talks With Suzuki Towards OEM Supply Of Minicar-class Light Commercial Electric Vehicle Mar 09, 2011: Suzuki Burgman Fuel Cell Scooter Obtains Whole Vehicle Type Approval This comprehensive SWOT profile of Suzuki Motor Corporation provides you an in-depth strategic SWOT analysis of the company’s businesses and operations.The profile has been compiled by GlobalData to bring to you a clear and an unbiased view of the company’s key strengths and weaknesses and the potential opportunities and threats. The profile helps you fo rmulate strategies that augment your business by enabling you to understand your partners, customers and competitors better. The profile contains critical company information including: Business description – A detailed description of the company’s operations and business divisions. Corporate strategy – Analyst’s summarization of the company’s business strategy.SWOT Analysis – A detailed analysis of the company’s strengths, weakness, opportunities and threats. Company history – Progression of key events associated with the company. Major products and services – A list of major products, services and brands of the company. Key competitors – A list of key competitors to the company. Key employees – A list of the key executives of the company. Executive biographies – A brief summary of the executives’ employment history. Key operational heads – A list of personnel heading key departments/f unctions.Important locations and subsidiaries – A list and contact details of key locations and subsidiaries of the company. Detailed financial ratios for the past five years – The latest financial ratios derived from the annual financial statements published by the company with 5 years history. Interim ratios for the last five interim periods – The latest financial ratios derived from the quarterly/semi-annual financial statements published by the company for 5 interims history. November 7, 2012 32 US$ 125. 00 S283112A164EN Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review Phone: +44 20 8123 2220 http://marketpublishers. com Note: Some sections may be missing if data is unavailable for the company Key benefits of buying this profile include: You get detailed information about the company and its operations to identify potential customers and suppliers. The profile analyzes the company’s business structure, operations, major products and services, prospects, locations and subsidiaries, key executives and their biographies and key competitors. Understand and respond to your competitors’ business structure and strategies, and capitalize on their weaknesses.Stay up to date on the major developments affecting the company. The company’s core strengths and weaknesses and areas of development or decline are analyzed and presented in the profile objectively. Recent developments in the company covered in the profile help you track important events. Equip yourself with information that enables you to sharpen your strategies and transform your operations profitably. Opportunities that the company can explore and exploit are sized up and its growth potential assessed in the profile. Competitive and/or technological threats are highlighted.Scout for potential investments and acquisition targets, with detailed insight into the companies’ strategic, financial and operational performance. Fin ancial ratio presented for major public companies in the profile include the revenue trends, profitability, growth, margins and returns, liquidity and leverage, financial position and efficiency ratios. Gain key insights into the company for academic or business research. Key elements such as SWOT analysis, corporate strategy and financial ratios and charts are incorporated in the profile to assist your academic or business research needs. Table of ContentSECTION 1 – ABOUT THE COMPANY Suzuki Motor Corporation – Key Facts Suzuki Motor Corporation – Key Employees Suzuki Motor Corporation – Key Employee Biographies Suzuki Motor Corporation – Major Products and Services Suzuki Motor Corporation – History Suzuki Motor Corporation – Company Statement Suzuki Motor Corporation – Locations And Subsidiaries Head Office Other Locations & Subsidiaries SECTION 2 – COMPANY ANALYSIS Suzuki Motor Corporation – Business Descriptio n Suzuki Motor Corporation – SWOT Analysis SWOT Analysis – Overview Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review Phone: +44 20 8123 2220 http://marketpublishers. com Suzuki Motor Corporation – Strengths Strength – Diversified Business Mix Strength – Strong Distribution Network Suzuki Motor Corporation – Weaknesses Weakness – Limited Operating Income Suzuki Motor Corporation – Opportunities Opportunity – New Product Launches Opportunity – Emerging Markets Suzuki Motor Corporation – Threats Threat – New Emission Standards for Two Wheelers Threat – Intense Competition Threat – Rising Raw Material Prices Suzuki Motor Corporation – Key Competitors SECTION 3 – COMPANY FINANCIAL RATIOSFinancial Ratios – Capital Market Ratios Financial Ratios – Annual Ratios Performance Chart Financial Performance Financial Ratios – Int erim Ratios Financial Ratios – Ratio Charts Suzuki Motor Corporation, Recent Deals Summary SECTION 4 – COMPANY’S RECENT DEVELOPMENTS Suzuki Motor Corporation, Recent Developments Sep 06, 2012: Toshiba's SCiB Rechargeable Battery Selected For Newest Suzuki Motor's Cars Dec 09, 2011: Panasonic To Supply Electric Drive System For Suzuki Electric Scooter Nov 30, 2011: Suzuki Plans To Launch Electric Vehicles In India Nov 22, 2011: Mitsubishi In Talks With Suzuki Towards OEM Supply Of Minicar-class Light Commercial Electric Vehicle Mar 09, 2011: Suzuki Burgman Fuel Cell Scooter Obtains Whole Vehicle Type Approval SECTION 5 – APPENDIX Methodology Ratio Definitions About GlobalData Contact Us Disclaimer LIST OF TABLES Suzuki Motor Corporation, Key Facts Suzuki Motor Corporation, Key Employees Suzuki Motor Corporation, Key Employee Biographies Suzuki Motor Corporation, Major Products and Services Suzuki Motor Corporation, History Suzuki Motor Corporation, Other L ocations Suzuki Motor Corporation, Subsidiaries Suzuki Motor Corporation, Key Competitors Suzuki Motor Corporation, Ratios based on current share price Suzuki Motor Corporation, Annual Ratios Suzuki Motor Corporation, Interim Ratios Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review 4 Phone: +44 20 8123 2220 http://marketpublishers. comSuzuki Motor Corporation, Recent Deals Summary Currency Codes Capital Market Ratios Equity Ratios Profitability Ratios Cost Ratios Liquidity Ratios Leverage Ratios Efficiency Ratios LIST OF FIGURES Suzuki Motor Corporation, Performance Chart (2008 – 2012) Suzuki Motor Corporation, Ratio Charts Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review 5 Phone: +44 20 8123 2220 http://marketpublishers. com I would like to order: Product name: Product link: Product ID: Price: Suzuki Motor Corporation (7269) – Financial and Strategic SWOT Analysis Review http://marketpublishers. com/r/S283112A164EN. html S283112A164EN US$ 125. 00 (Single User License / Electronic Delivery) If you want to order Corporate License or Hard Copy, please, contact our Customer Service: [email  protected] com PaymentTo pay by Credit Card (Visa, MasterCard, American Express, PayPal), please, click ‘BUY NOW' button on product page http://marketpublishers. com/r/S283112A164EN. html To pay by Wire Transfer, please, fill in your contact details in the form below: First name: Last name: E-mail: Company: Address: City: Zip/Post Code: Country: Tel: Fax: Your message: * All fields are required Customer Signature _______________________________________ Please, note that by ordering from MarketPublisher. com you are agreeing to our Terms & Conditions at http://marketpublishers. com/docs/terms_conditions. html To place an order via fax simply print this form, fill in the information below and fax the completed form to +44 20 7900 3970 Powered by TCPDF (www. tcpdf. org)

Managerial Economics Essay

1) The elasticity of one variable with respect to another between two given points. It is used when there is no general function to define the relationship of the two variables. Arc elasticity is also defined as the elasticity between two points on a curve. The P arc elasticity of Q is calculated as The percentage is calculated differently from the normal manner of percent change. This percent change uses the average (or midpoint) of the points, in lieu of the original point as the base. 2) Definition of ‘Law of Diminishing Marginal Returns’ A law of economics stating that, as the number of new employees increases, the marginal product of an additional employee will at some point be less than the marginal product of the previous employee. The law of diminishing marginal returns means that the productivity of a  variable input declines as more is used in short-run production, holding one or more inputs fixed. This law has a direct bearing on market supply, the supply price, and the law of supply. If the productivity of a variable input declines, then more is needed to produce a given quantity of output, which means the cost of production increases, and a higher supply price is needed. The direct relation between price and quantity produced is the essence of the law of supply. An economic theory that states as additional inputs are put into production, the additional return will be in successively smaller increments. This can be due to crowding, adding less appropriate resources or increasing inputs of lower quality. In More Laymen Terms As the saying goes, â€Å"Too Many Cooks Spoil the Broth,† in any production there is a point of diminishing returns where just adding more inputs will not give the same income as it once did. Although many industrial firms strive to reach ‘scale,’ where their size gives them a cost advantage at higher production levels, no matter what industry a firm finds itself there will always be a point where the additional gain from added input is reduced. 3) The prisoner’s dilemma is a canonical example of a game analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interest to do so. It was originally framed by Merrill Flood and Melvin Dresher working at RAND in 1950. Albert W. Tucker formalized the game with prison sentence payoffs and gave it the â€Å"prisoner’s dilemma† name (Poundstone, 1992). A classic example of the prisoner’s dilemma (PD) is presented as follows: Two men are arrested, but the police do not possess enough information for a conviction. Following the separation of the two men, the police offer both a similar deal—if one testifies against his partner (defects/betrays), and the other remains silent (cooperates/assists), the betrayer goes free and the cooperator receives the full one-year sentence. If both remain silent, both are sentenced to only one month in jail for a minor charge. If  each ‘rats out’ the other, each receives a three-month sentence. Each prisoner must choose either to betray or remain silent; the decision of each is kept quiet. What should they do? If it is supposed here that each player is only concerned with lessening his time in jail, the game becomes a non-zero sum game where the two players may either assist or betray the other. In the game, the sole worry of the prisoners seems to be increasing his own reward. The interesting symmetry of this problem is that the logical decision leads both to betray the other, even though their individual ‘prize’ would be greater if they cooperated. In the regular version of this game, collaboration is dominated by betraying, and as a result, the only possible outcome of the game is for both prisoners to betray the other. Regardless of what the other prisoner chooses, one will always gain a greater payoff by betraying the other. Because betraying is always more beneficial than cooperating, all objective prisoners would seemingly betray the other. In the extended form game, the game is played over and over, and consequently, both prisoners continuously have an opportunity to penalize the other for the previous decision. If the number of times the game will be played is known, the finite aspect of the game means that by backward induction, the two prisoners will betray each other repeatedly. 4) Third degree discrimination involves charging different prices to different segments of customers. This method of price discrimination is really an imperfect variation of the perfect type represented by first degree price discrimination. In this method different segments of customers are identified and each segment is charged price base on what price is most profitable for the company in each segment. The most common way of segmentation for this type of price discrimination is by geographic location. A very prominent example of this type price discrimination is charges for operations by surgeons. For the same type of operations surgeons and hospitals charge different fees depending on the type of hospital room and other facilities that the patient chooses during hospitalization for  operation. Other common forms of such price discrimination include discounts such as those for students or senior citizens. SECTION B: CASE LET 1 1) Demand theory indicates that the determinants of consumption are income (I), the price of the good in question ( pi ), the prices of other goods ( po ) and other variables such as tastes: i i q ï€ ½Ã¯â‚¬  q ( i o I, p , p , other variables). Consider the case of an illicit commodity such as marijuana. The consumption of marijuana involves risks of fines, in some cases imprisonment and, possibly, other costs associated with the shame of being caught. Consequently, the price of marijuana in its demand function ( p ) m should be interpreted as being made up of the conventional money cost ( p ) mï‚ ¢Ã¯â‚¬  plus the expected â€Å"other costs† per unit: 2) Legalization of marijuana would eliminate the criminal sanctions and penalties associated with its consumption. As this would decrease the â€Å"full† price, consumption would be expected to rise. Marijuana consumption is significantly higher amongst males than females – 60 percent of all males have consumed it, compared to 46 percent of all females. Consumption of marijuana is estimated to increase by about 4 percent if it were legalised; and by about 11 percent following both legalisation and a 50-percentfall in its price. Price is a significant determinant of marijuana consumption. Whilst marijuana consumption is estimated to be price inelastic, estimates of most of the price elasticities are significantly different from zero. Two types of price elasticities of demand for marijuana were estimated, gross and net. The gross price elasticity includes the effects of both legalisation and a price change, while the net version excludes the legalisation effect. The price elasticity of demand for marijuana differs significantly with the type of consumer. For more frequent users (daily, weekly and monthly), gross and net price elasticities are estimated to be  -.6 and -.4, respectively. Occasional smokers having a gross price elasticity of about -.3 and net elasticity of about -.1. Regarding those who are no longer users, they have gross and net price elasticities close to zero. For a given type of consumer, males and females share the same elasticity value. CASE LET 2: 1) In my opinion Yes, the Indian companies are running a major risk by not paying attention to cost cutting. To illustrate Comparing major Indian companies in key industries with their global competitors shows that Indian companies are running a major risk. They suffer from a profound bias for growth. The problem is most look more like Essar than Reliance. While they love the sweet of growth, they are unwilling to face the sour of productivity improvement. Nowhere is this more amply borne out than in the consumer goods industry where the Indian giant Hindustan Lever has consolidated to grow at over 50 per cent while its labour productivity declined by around 6 per cent per annum in the same period. Its strongest competitor, Nirma, also grew at over 25 per cent per annum in revenues but maintained its labour productivity relatively stable. Unfortunately, however, its return on capital employed (ROCE) suffered by over 17 per cent. In contrast, Coca Cola, worldwide, grew at around 7 per cent, improved its labour productivity by 20 per cent and its return on capital employed by 6.7 per cent. The story is very similar in the information technology sector where Infosys, NIIT and HCL achieve rates of growth of over 50 per cent which compares favorably with the world’s best companies that grew at around 30 per cent between 1994-95. NIIT, for example, strongly believes that growth is an impetus in itself. Its focus on growth has helped it double revenues every two years. Sustaining profitability in the face of such expansion is an extremely challenging task What makes this even worse is the Indian companies barely manage to cover their cost of capital, while their competitors worldwide such as Glaxo and Pfizer earn an average ROCE of 65 per cent. In the Indian textile industry, Arvind Mills was once the shining star. Like Reliance, it had learnt to cook sweet and sour. Between 1994 and 1996, it grew at an average of 30 per cent per annum to become the world’s  largest denim producer. At the same time, it also operated a tight ship, improving labour productivity by 20 per cent. Despite the excellent performance in the past, there are warning signals for Arvind’s future. The excess over the WACC is only 1.5 per cent, implying it barely manages to satisfy its investor’s expectations of return and does not really have a surplus to re-invest in the business. Apparently, investors also think so, for Arvind’s stock price has been falling since Q4 1994 despite such excellent results and, at the end of the first quarter of 1998, is less than Rs 70 compared to Rs 170 at the end of 1994. Unfortunately, Arvind’s deteriorating financial returns over the last few years is also typical of the Indian textile industry. The top three Indian companies actually showed a decline in their return ratios in contrast to the international majors. 2 ) Fast moving consumer goods will become a Rs 400,000-crore industry by 2020. A Booz & Company study finds out the trends that will shape its future Consider this. The anti-ageing skincare category grew five times between 2007 and 2008. It’s today the fastest-growing segment in the skincare market. Olay, Procter & Gamble’s premium anti-ageing skincare brand, captured 20 per cent of the market within a year of its launch in 2007 and today dominates it with 37 per cent share. Who could have thought of ready acceptance for anti-ageing creams and lotions some ten years ago? For that matter, who could have thought Indian consumers would take oral hygiene so seriously? Mouth-rinsing seems to be picking up as a habit — mouthwash penetration is growing at 35 per cent a year. More so, who could have thought rural consumers would fall for shampoos? Rural penetration of shampoos increased to 46 per cent last year, way up from 16 per cent in 2001. Consumption patterns have evolved rapidly in the last five to ten years. The consumer is trading up to experience the new or what he hasn’t. He’s looking for products with better functionality, quality, value, and so on. What he ‘needs’ is fast getting replaced with what he ‘wants’ Categories are evolving at a brisk pace in the market for the middle and lower-income segments. With their rising economic status, these consumers are shifting from need- to want-based products. For instance, consumers have  moved from toothpowders to toothpastes and are now also demanding mouthwash within the same category. The trend towards mass-customization of products will intensify with FMCG players profiling the buyer by age, region, personal attributes, ethnic background and professional choices. Micro-segmentation will amplify the need for highly customized market research so as to capture the specific needs of the consumer segment targeted, before the actual product design phase gets underway. 3) Industies impressive growth in value added as observed in the previous sub section is not accompanied by a commensurate rise in the level of relative productivity in terms of the cross–country analysis. The fragmented nature of Indian pharmaceutical sector characterized by the operation of a very large number of players, estimated to be about 10,000 units of which just 300 units are medium and large sized7, may be a reason for low level of productivity. The other important factor for low productivity can be due to the nature of technological activities in the sector, which tends to rely more on process than product development. Further, it may be that Indian companies are focusing at the low end of value†chains in the pharmaceuticals like producing generics than opting for branded products or supply bulk drugs to global players than market formulations of their own. 4) The Indian textile industry has been one of the foremost contributors to the country’s employment, exports, and GDP. The industry has been rated as one of the key drivers of the Indian economy and a bold target of exports of $50 billion (currently it’s $22 billion) had been targeted by the year 2012 by the government after the dismantling of the quota regime in 2005. However we are still far away from that target. Though now it can be blamed on the worldwide recession, I think we need to do some soul searching as to was it anyways possible. Globally, the Indian industry is recognized for its competitive advantages, especially in the cotton segment. The government has set huge targets for the industry and expects to attract investments of about Rs 1.5 lakh crore during the eleventh Plan period. This would meet the export and domestic targets, while taking various initiatives like setting up textile parks, training centers, and ‘made in India label promotion’ to global markets. The Indian textile industry is facing tough competition in the US, as exporters from smaller countries like Bangladesh are cornering the lucrative market at a faster pace, a FICCI study said. â€Å"In addition to China, countries like Indonesia, Vietnam and Bangladesh have managed to perform better than India in the US market in 2009,† the study said. Bangladesh, Indonesia and Vietnam managed to increase their share in the US textiles and apparel import in 2009 year on year at a faster rate than India. The Indian textile industry will no doubt survive and move along by the strengths of its traditional position and domestic market. However, the growth envisaged and it being re-classified as sunshine industry over the last three years from a sunset industry may turn out to be a myth Section C: 1) A vision of the impact of free trade can also be gleaned from Nobel Prize winning economist Paul Samuelson (1970) who confidently asserted that: Free trade promotes a mutually profitable division of labour, greatly enhances the potential real national product of all nations, and makes possible higher standards of living all over the globe. It promotes a regional division of labor — this means that some regions of the world (or countries) will specialize in certain things. They will specialize in areas where they have a comparative advantage. It enhances national production — this means that countries will be able to produce more things if there is trade. That is because they focus on producing things they are good at and do not waste resources on things that they are not good at. It allows higher standards of living because there is more production. If there is more production, there are more things available to be consumed. Another belief in the importance of free trade can be ascribed to its  perceived indirect effect on peace, security and the prevention of war. One of the first articulations of this is by Baron de Montesquieu, who writing in 1748, stated: Peace is the natural effect of trade. Two nations who traffic with each other become reciprocally dependent; for if one has an interest in buying, the other has an interest in selling, and thus their union is founded on their mutual necessities. This theory of mutual interdependence has been explored in some detail by authors such as Keohane and Nye67 and is echoed in attempts to build and protect the mandates of global institutions seeking such co-operation. However few attempts are made to track the results of policy activities on whole population of States, and as a result the overtly negative impact on some groups, usually minorities and indigenous 2) The Decision Trees, used to help with decision making in business ( and many other areas), are a form of diagrammatic analysis. They are used as a tool for helping managers to choose between several courses of action. They provide an effective and clear structure for presenting options and within decision trees the probabilities and financial outcomes of these options can be measured. They also help to form a balanced picture of the risks and potential financial rewards associated with each possible course of action. In many business decision making situations chance (or probability) plays an important role, and the use of decision trees helps build probability into the decision making process. Pictorial representation of a decision situation, normally found in discussions of decision-making under uncertainty or risk. It shows decision alternatives, states of nature, probabilities attached to the state of nature, and conditional benefits and losses. The tree approach is most useful in a sequential decision situation. For example, assume XYZ Corporation wishes to introduce one of two products to the market this year. The probabilities and present values (PV) of projected cash inflows follow: A decision tree analyzing the two products follows: Based on the expected net present value, the company should choose product A over product B.

Enhancing Employability Essay Example | Topics and Well Written Essays - 1000 words

Enhancing Employability - Essay Example For our study, we will look at how DELOITTE Company does perform its recruitment process. Deloitte Company is a headhunting firm. The recruitment and selection is a major function of the human resource department. The recruitment process is normally the first step towards creating the competitive advantage and strategic advantage. It involves a systematic procedure from sourcing the candidates to arranging and conducting the interview. This requires time and resources. In this process, Deloitte company deals with the targeted effort, performance level, and experience level, and also whether the individuals are seriously looking for a job. At this stage, firms prioritize their job so that they can focus on resources on jobs with the highest business impact. Understanding decision criteria of your target — the most important part of this process is attracting the best talent, this cannot be achieved without knowing your targets. In this step, we focus on key factors, known referred to as â€Å"job acceptance criteria,† that are important so that we can convince a qualified manpower to apply for and accept a job in your firm. Knowing where your target is, After defining your target and their decision criteria, this step aims at helping you to get to where you are most likely to find the targeted talent, including best communication channels for effective recruitment messages. If the company does not identify where these targets are, you will experience a low probability of placing compelling information about the company and vacancies in a wrong place.

Research paper Example | Topics and Well Written Essays - 2000 words

Research Paper Example The frames were set in a simple indoor background which was predominantly blue. Beside the two frames arranged one on top of the other was the name of the product in a vertical box bordering the whole height of page. The top of the said box the website the customer can check for additional information, SliderStyle.com was presented (Note: Due to the fact that the ad was used on 2003, the website is no longer connected to the product). In the lower part of the box, the brand name Kyocera, the model name Slider V5, and the network provider Virgin mobile were shown. The caption â€Å"do U slide?† was the main advertising line that focused on the sliding feature of the mobile phone model (Kyocera 34). The advertisement presented key elements important in a magazine advertisement such as visually appealing, targeting a specific audience, and intellectually stimulating. Analysis of the Kyocera Advertisement The study of a magazine advertisement is important to be able to determine t he different reasons and principles related to the moves undertaken by manufacturers and service providers in relation to improve the sales of products. Advertising is an important form of marketing communication to be able to make the product known to the target market (Kitchen 12). The Kyocera advertisement met the different factors pertinent to printed advertisements. One factor in a printed advertisement is the presentation. The Kyocera ad was presented in a visually attractive manner with the different elements contributing to the total impact of the ad such as the colored presentation, the male and the female model and how they look, the images in the ad, the information about the product and the different representations used. Advertising is an integration of the different principles of visual presentation and marketing techniques, thus, the term â€Å"integrated marketing communications† can be considered related to the presentation of the ad (Grove, Carlson and Dorsc h 37). Based on the work of Kitchen (2006), advertising is a synergy of multidisciplinary tools, procedures and principles (p.12). The visual effects in the advertisement aided in the successful presentation of the main impact. Specifically, this is the changes in the height of the male model as a corresponding representation of the compact and the slide-open form of the Kyocera Slider V5 mobile phone. This factor is the main selling point of the product which is versatility. Other factors contributed in attracting audience’s interest towards the advertisement. One is the visual presentation of the two almost identical frames. The upper frame was showing the male model as a short guy, the female model being taller and the mobile phone was in the compact form. The lower frame presented the male model as being taller than the female model, while the mobile phone was in its slide-open form. The two frames visually can be considered very similar to the game â€Å"spot-the-differ ence† which creates a relaxed feeling in relation to viewing the ad. The blue background added to the effect. Even the mood elucidated by the cool and relaxed male model created an impression that the product is for the audience with the same characteristics. The simplicity and the clean finish of the other frame served as the final missing element to the whole impact of the ad. Based on the study by Vanden Bergh and James (1990), â€Å"

Critically analyse the concept of fair and equitable treatment in Essay - 1

Critically analyse the concept of fair and equitable treatment in investment treaties, taking into account recent investment - Essay Example CMS Gas Transmission Company v. Republic of Argentina, Violation of FET provisions, ICSID Case No. ARB/01/8 (Adopted May 25 2005). Eureko B.V. v. Republic of Poland Eureko B.V. v. Republic of Poland, violation of FET provisions, ICSID Case No. ARB/02/17, (Adopted August 19 2005). Jan de Nul N.V. and Dredging International N.V. v. Arab Republic of Egypt, violation of FET principles, ICSID Case No. ARB/04/13) (Decision on Jurisdiction, June 16, 2006). LG&E Energy Corp., LG&E Capital Corp., LG&E International Inc. v. Argentine Republic, ICSID Case No. ARB/. 02/1, Emphasis on the obligation of transparency (Decision on Liability, Oct 3, 2006). Loewen Group, Inc. and Raymond L. Loewen v. United States of America, violation of FET provisions, ICSID Case No. ARB (AF)/98/3, (Awarded on Award of June 26, 2003). Metalpar S.A. and Buen Aire S.A. v. Republic of Argentina, violation of FET provisions, ICSID Case No. ARB/03/5, (Awarded on April 27, 2006). MTD Equity Sdn. Bhd. and MTD Chile S.A. v. Republic of Chile, violation of FET provisions, ICSID Case No. ARB/07/27, (Awarded on Mar 21, 2007). Parkerings-Compagniet AS v. Republic of Lithuania, violation of FET provisions, ICSID Arbitration Case No. ARB/05/8, (Awarded on September 11, 2007). PSEG Global Inc. and Konya Ilgin Elektrik Uretim v. Ticaret Limited Sirketi v. Republic of Turkey, obligation on transparency on FET provisions, ICSID Case No. ... v. United Mexican States, rule of law under FET provisions, ICSID Case No. ARB (AF)/00/3, (Awarded on June 2, 2007). NAFTA –UNCITRAL Cases Alex Genin, Eastern Credit Limited, Inc. and A.S. Baltoil v. Republic of Estonia, violation of FET provisions, Case No. ARB/99/2, (Awarded on June 25, 2001). S.D. Myers, Inc. v. The Government of Canada, Chapter 11-NAFTA ARBITRAL TRIBUNAL/ UNCITRAL RULES, (Awarded on November 26, 2002). UNCITRAL (UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW GAMI Investments, Inc. v. The United Mexican States, UNCITRAL, (Final Award November 12, 2004). International Thunderbird Gaming Corporation v The United Mexican States, violation of FET principles ,UNICITRAL ( NAFTA), ( Final Award January 26,2006). Occidental Exploration and Production Co. v. Republic of Ecuador, violation of FET provisions, UN 3467, (Final Award July 1, 2004). Pope & Talbot v. Canada, violation of FET provisions, UNCITRAL (NAFTA) (Award on Merits of Phase 2 of April 10, 2001). Ronald S. Lauder v. Czech Republic, violation of FET provisions, UNCITRAL, (Final Award of 3 September 2001). Saluka Investments BV v. The Czech Republic, violation of FET Provisions, UNCITRAL Rules; IIC 211 (2006); 4P 116/2006 (Award on September 7, 2006). INTERNATIONAL COURT OF JUSTICE (ICJ) Elettronica Sicula S.p.A. (ELSI) (US v. Italy), violation of FET provisions, ICJ Rep.15, 94-95, 28, ILM 1109 (1989), (Final Award n July 20, 1989). List of Treaties and Conventions â€Å"Convention on the Protection of Foreign Property of the Organisation for Economic Cooperation and Development (OECD).† (Adopted 1995 entered into force 1997). â€Å"North American Free Trade Agreement (NAFTA)† (Entered in to force from 1 January 1994). Abs /Shawcross Draft of 1967 (adopted 1959 entered into

Business Environment and Organisational Purpose - Scuba diving market Essay

Business Environment and Organisational Purpose - Scuba diving market in UK - Essay Example mployees driven by organizational mission of creativity, quality and sustainability, the manufacturer is now recognized as one of the leading manufacturers in scuba diving equipment. Evidently, some of its products that are now widely used in diving spot include diving masks, snorkels, B.C.Ds and Fins. These products have been purposely designed to meet diverse needs of diving sports. The purpose of the Mares manufacturers in anchored in their strategic marketing strategy, it strives to meet the dynamic market of the diving sport and recreational needs. It envisions the growing nature of global sport coupled with the dynamism in customers taste and preference; the company believe that its purpose in the market is to meet such diverse customers needs. Scuba Pro is another leader in manufacturing of diving equipment in today global market. For over fifty years, the company has continue to be ranked as one of the companies with high quality and affordable diving equipment. In addition, their products, branding in the marketing has been incredible in giving them an edge in the competitive market. Driving by their mission of becoming an innovative hub in diving equipment, the manufacturer has produced regulators, dive computers, wetsuits and much more equipment to meet the dynamic diving market. The employees contribution to the overall success throughout its existence has been incredible. It will go down in diving sports history that Scubapro was the first creative producer of a computer radio transmitter that measures the tank pressure through wireless technology. In addition, the equipment allows for measurement of heart parameters. The manufacturer stabilizing jacket monitors buoyancy. In line with the purpose of this company, creativity and innovation in diving equipment has been an important marketing platform. The company purpose is to introduce innovation and creativity into the diving equipment designs in order to enhance the equipment efficiency in

How would you create a healthy, holistic atmosphere for children that Research Paper

How would you create a healthy, holistic atmosphere for children that addresses their physical, cognitive, and socioemotional ne - Research Paper Example The teacher serves as a facilitator rather than an instructing boss, and this aids the students in better communicating with the teacher and with other members of the group, and in getting an improved understanding of complicated problems related to their curriculum. An ideal curriculum would have the students focus not only on the theoretical segment of the subject but also upon the practical objectives that can also be applied to â€Å"their personal and professional lives† (Adamson). A healthy, holistic atmosphere encourages the students to work in groups in an informal environment where teacher does not act as a boss or a dictator; rather, the students act as their own instructors. They discuss the topic among themselves; ask each other questions; and, try to come up with the best possible solutions. This way, they learn to better communicate with peers and get to know each other better along with achieving a clearer concept about the topic in hand. An ideal environment sh ould so much keep the student occupied with the topic that they want to stay in the class even after the class is over so that they can argue about the uncertain concepts with the teacher.

Labeling, Indentity and Education Essay Example | Topics and Well Written Essays - 750 words

Labeling, Indentity and Education - Essay Example In the essay â€Å"I Just Wanna be Average† by Mike Rose, it is implied that they are, as vocational students, are treated with not much respect by the society. â€Å"Vocational education has aimed at increasing the economic opportunities of students who do not do well in our schools† (Rose, 1). With that prejudice over their school, the students also identify with the prejudice and treat themselves like they are expected to be treated in the society, according to what they perceive the society perceives them to be – the lowest class of students. This is what he calls â€Å"identity that is implied on the vocational track† (Rose, 3). The schools are actually responsible for labeling us, the students. For putting identities on people based on their scholastic abilities. In the immigrants’ case, because of their poor English, they were put in the vocational track – which is basically assigned for those with scholastic difficulties. This is also part of the prejudice, or the identity being served on one’s person if he is in the vocational trac

The History of Walmart Essay Example for Free

The History of Walmart Essay Since Sam Walton opened his first store in 1962, Walmart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. Walmart is comprised of three business segments, Walmart US, Walmart International and Sam’s Club. Walmart Global eCommerce works across all three segments. Walmart’s mission statement â€Å"We save people money so they can live better†, is not indicative of where its strategic focus areas are, but it does sound good for the average customer who has a limited budget. This mission statement leads directly into Walmart Global eCommerce goals which include combining online, social innovations with physical stores to give consumers â€Å"anywhere, anytime shopping experience† in addition to its organizational sustainability goal of creating zero waste, using only sustainable energy and selling products that sustain the environment which is important to all of Walmart’s segments including eCommerce. Walmart’s overall objective is to deliver shareholder value by increasing earnings per share, returns and maintaining strong stable returns on investment. According to Walmart CEO, Mike Duke, Walmart’s strategic focus areas are: †¢Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates; †¢Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers †¢Being even more disciplined about operating expenses and capital spending; †¢Investing to serve more customers globally and accelerating the vision of anytime, anywhere access by bringing together best-in-class online, mobile and social capabilities and our more than 10,700 stores; and †¢Benefiting our communities and having a world class compliance organization. Walmart has been a giant of the traditional brick and mortar retailers, having topped the Fortune 500 list on more than one occasion. Walmart is moving from a traditional brick and mortar discount retailer to a click and mortar discount retailer as it tries to capture the growing electronic retailing (etailing) opportunities. According to CNN Money, Walmart plans to become an online juggernaut, but its online business numbers have been disappointing. According to Business Insider, Walmart Global eCommerce has come up with a plan to do eCommerce right by using the following strategies: †¢Walmart began recruiting top Silicon Valley talent and acquiring start-ups last year. †¢Walmart is investing in the social gifting market. †¢The retailer got a better search engine. †¢Walmart is trying to lead the charge in same-day shipping. †¢Walmart is investing like crazy in its mobile app. While Walmart’s strategies have lead them to overall very good profitability in the past, their eCommerce is struggling against Amazon, an eCommerce giant, and other traditional retailers who are moving to capture customers that are turning to online purchases. Walmart appears to be moving in the right direction with its mobile application, with Smartphone sales having outpaced personal computer sales in 2011. Walmart Global eCommerce will need review and tailor its value chains in order to comprehensively differentiate itself from other click and mortar businesses. As 2014 approaches Walmart will face several issues/problems which include: Customers who can access competitor prices online when shopping in Walmart; and finding ways to successfully break into the e-tailing market which is a primarily untapped, rapidly growing market. The SWOT analysis will look at Walmart Global eCommerce as it attempts to move definitely into eCommerce while supporting all Walmart’s traditional brick and mortar businesses. Since Walmart Global eCommerce is responsible for all online and mobile innovation, this SWOT analysis will include issues pertaining to all of Walmart, but will pay particular attention to the eCommerce aspect. Stakeholder Analysis Walmart Stakeholders include the stockholders, executives, employees, suppliers, customers, non-profit groups, non-governmental organization, the communities that Walmart serves, online retailers, brick and mortar retailers, labour unions, and the government (politicians). These stakeholders can be divided into two separate groups: market and non-market stakeholders. Market stakeholder are those who have an economic stake in what and how the company does, whereas non-market stakeholders have a non-economic or political stake. Market Stakeholders Walmart shareholders are a market stakeholder who want a return on their investment in Walmart. Between 2009 and 2013 more than 60 billion dollars was returned to shareholders through dividends and share repurchases. Walmart executives, like shareholders, have an economic stake in what Walmart, since many receive stock options. Although employees may purchase stock options, they are a market stakeholder given that they rely on Walmart for their income. Many of Walmart’s suppliers rely heavily on Walmart as a buyer of their goods, since Walmart is the largest retailer in the US and is growing internationally as well. Customers rely on Walmart to provide â€Å"Every Day Low Prices† which will only continue if Walmart performs well. Non-profit organizations have an economic stake in Walmart as many of these organizations rely on funding provided by the Walmart Foundation (for example the Fighting Hunger Together program). Communities that are served by Walmart are also an important stakeholder: these communities rely on Walmart to employ its citizens and provides goods for purchase at â€Å"Every Day Low Prices†. Online/brick and mortar retailers have a unique stake in how well Walmart does given the potential of Walmart impacting their sales Non-Market Stakeholders Labour Unions play an enormous political role in Walmart. Walmart has been criticized in the news on more than one occasion with regards to fighting with labour unions in their stores and/or mistreating union members. Small retailers and/or labour unions may petition their government politicians to prevent Walmart from moving into their district. Governance Walmart is governed by three basic beliefs that support a business integrity which include: Service to customers; Respect for the individual; and Striving for excellence. Walmart strives to be honest by telling the truth and keeping their word, be fair by using their business influence appropriately and creating an open environment for raising questions and concerns, be objective by making decisions based on Walmart’s interests, rather than personal interests, and by avoiding even the appearance of impropriety. Walmart has a Global Ethics Office which is responsible for promoting Walmart’s culture of integrity. This includes developing and upholding their policies for ethical behavior for all their stakeholders everywhere they operate. Corporate Social Responsibility (CSR) Walmart believes that it has an obligation to lead when it comes to CSR. Walmart is committed to using renewable energy, demonstrated by ensuring 21 percent of its electricity globally comes from renewable energy. Walmart created the Walmart Foundation which is responsible for many of Walmart’s CSR projects. The Walmart Foundation has a program in place to empower women around the world through training and career opportunities. The Walmart Foundation also gives money to support local organizations throughout the world. Value Chain Analysis – Walmart The Figure can of Walmart’s Value Chain Analysis can be found at Annex A. Human Resources (HR) Walmart’s HR practices are based on communication which is clear, concise and relates Walmart’s principles, high expectations and ethics. Walmart provides a comprehensive Health and Well-Being program. There is room to grow from a store associate to manager. These benefits come at a cost, which Walmart has tried to decrease by ensuring more employees are part-time and, therefore, not entitled to the benefits. Technology Technology integration is one of the primary focuses of Walmart, having played a vital role in its success. Walmart was one of the first retailers to use bar codes. Walmart also employs a Point of Sales (POS) system which is used to guide re-stocking. Walmart’s IT systems have been built to integrate prices, costs and sales in order to lower overall cost and increase profit across the world. Technology has permitted Walmart to ensure an effective and efficient supply chain that it leverages to provide products at low prices that it promises to customers. Walmart Global eCommerce is aggressively growing its technology infrastructure to become a leader in eCommerce. Infrastructure Real Estate Walmart makes a concerted effort to opens its stores and warehouses in ideal locations support its â€Å"hub and spoke† arrangement which support its brick and mortar stores. These stores and warehouses are supporting Walmart Global eCommerce, since this infrastructure had not been previously built to support it. Procurement Walmart deals direct with manufacturers to leverage its buying power to obtain the best price possible. Under scrutiny in the past, Walmart has moved quickly to have its suppliers’ manufacturing, subcontracting and packaging facilities follow standards which are outlined in its Standards for Suppliers. These standards include Compliance with Laws, Voluntary Labour (Slave, child, underage, forced, bonded, or indentured labour will not be tolerated. ), Labour Hours, Compensation, Freedom of Association and Collective Bargaining, Health and Safety, Dormitories and Canteen, Environment, Gifts and Entertainment, Conflicts of Interest, Anti-Corruption, and Financial Integrity. Walmart has put in place a Supply Chain Capacity Building program (SCCB). The SCCB program components vary from half-day group training sessions to several months of one-on-one engagement with suppliers and factories. Walmart also ensures that the employees of its suppliers have the ability to report violations. All reports are directed to Walmart’s Global Ethics Office, where they are referred for investigation and corrective action if required. Primary Activities Inbound and Outbound Logistics These have been included together from an eCommerce perspective. Walmart has an enhanced inbound and outbound logistics system, although this has been problematic for Walmart Global eCommerce, it is working on resolving this issue so it can leverage Walmart’s brick and mortar capabilities. Walmart has adopted the concepts of distribution centers and â€Å"hub and spoke† arrangements. It is this â€Å"hub and spoke† arrangement which permits stores to effectively keep inventory levels in check while reducing transportation costs in addition to cross-docking. Walmart is always searching for ways to do things cheaper, faster which has more reliable logistics systems by implementing methods such as cross docking systems. Walmart operates their own logistics system, however Walmart Global eCommerce had to use third party warehouses in order to expedite its business. Walmart is remedying the situation by building warehouses to accommodate its eCommerce business. These practices will not only help Walmart reduce expenses, but also give it more control and flexibility. Operations Based on Walmart’s Mission statement, Walmart’s goal is to offer a wide range of products at low prices so people can live better. It carries nationally branded products, its own Great Value brand and other private label products tailored to local demand. Walmart has continuously expanded the brands it offers to meet various customer needs which include popular upscale brands such as Apple, and Sony. Walmart’s operational structure has decentralized store management which permits store managers to make decisions relating to product range and pricing. Marketing and Sales Walmart’s â€Å"Every Day Low Prices† provides appeal to its customers, because it permits customers to know that they can buy products at the lowest price all the time. Once criticized for its ethical sourcing and environmental sustainability, Walmart’s annual report affirms dedication and commitment to ethical sourcing and environmental sustainability. Customer Service Walmart tries to focus on providing customers with the best experience whether they are in store or online. In store, a Walmart associate greets each customer as they arrive, however this type of customer service has not always worked in the past. Walmart strives to have a customer oriented workforce who are motivated and believe in Walmart’s culture. Walmart could not successfully integrate into Germany, since Walmart’s American overtly friendly culture could not be successfully integrated with Germany’s very reserved culture. Summary It is impossible to look at Walmart Global eCommerce without looking at Walmart, since Walmart Global eCommerce leads all online and mobile innovations across all Walmart segments. Although doing well financially, several business news agencies have noted that Walmart is stumbling in eCommerce market as it attempts to adapt its click and mortar business strategies to its eCommerce. It appears that Walmart is attempting to take on Amazon, the king of online businesses, in eCommerce. This means that Walmart. com, started in 2000, is playing catch up, and it is only in the last few years that Walmart has invested heavily in its eCommerce. Walmart Global eCommerce is run as a distinct business, with its own headquarters, CEO and buyers who buy items specifically for its website. Although Walmart is known as pioneering the supply chain, it has not been overly successfully in imitating Amazon’s supply chain management. Walmart has tried to leverage the same supply chain as its retail stores in addition to third party warehouses, which has resulted in additional costs for delivery. Amazon’s supply chain, which uses robotic assistants to help fill orders along with warehouses that are dedicated to filling orders, has permitted Amazon to rule eCommerce with ability to deliver products to home for less. One strategy that Walmart is investing in are lockers which were initially introduced by Bufferbox. Walmart is not alone in adapting this strategy; Amazon is also using this in order to get orders into the hands of its customers more quickly, however Walmart will be able to leverage the over 10,000 stores globally to place lockers which are close to customers. In order to understand Walmart, it is important to look at its review its Value Chain in Annex A, in conjunction with Porter’s Five Forces Analysis in Annex B, PESTEL Analysis in Annex C, SWOT Analysis in Annex D and TOWS in Annex E. Recommendation It is recommended that Walmart Global eCommerce continue on its current path of @Walmartlabs developing new technology which will enhance a customer’s online experience Walmart and Walmart Global eCommerce to be sensitive to the culture of different countries as it expands globally, and the challenges that comes with each country it moves into. It is also recommended that Walmart Global eCommerce continue to leverage Walmart’s strong brand image while continuing to add differentiated products at â€Å"Every Day Low Prices†. It is further recommended that Walmart Global eCommerce continue to lead all online and mobile innovation for Walmart to ensure that no one segment will fall behind. It is essential that Walmart address HR issues that have the potential to impact its bottom line ? Walmart Value Chain Analysis ? Porter’s Five Forces Analysis PESTEL Analysis Political factors: Walmart is currently operates in 27 countries under 69 different banners. Walmart must follow government rules and regulations in each of its host countries. Political conditions that Walmart faces in its host countries include political instability, economic conditions, currency regulations, legal and regulation constraints, tax systems, etc. Economic factors: Economic condition within host countries has the potential to dramatically impact Walmart. Walmart has faced high inflation rates and currency devaluations. In US and Canada, Walmart is dealing with the challenge of higher fuel and energy costs, inflation, high levels of unemployment, excessively high consumer debt, and high tax rates. The global economic slowdown has hit many companies including Walmart. Social factors: Walmart’s international operations must operate according to local culture of its host countries. As the world becomes more conscious of child labour, unsafe working conditions. Consumers are demanding that companies be cognizant of where and how their products are produced. This has been made very evident after recent fire/building collapses in the garment industry. Technological factors: Technology has an enormous impact on many businesses, Walmart included. Walmart must continue to invest in Research Development activities, and automation if it wishes to remain competitive Walmart has recently invested heavily in its eCommerce, so it can compete with the likes of Amazon Ecological factors: Previously criticized for its company’s view on sustainable resources Walmart is moving to become more sustainable. In 2008, Walmart de Mexico opened Plaza Ecologica Ciudad Jardin, located in former Neza 1 dump, in the municipality of Netzahualcoyotl, State of Mexico. The mall has state-of-the-art technology to save energy and water. Legal factors: Walmart Global Compliance Action Steps. Walmart is an international company, therefore it is addressing 14 compliance subject matters in every market. Every country also has compliance subject matters that are specific to it, but the following 14 areas are common everywhere Walmart does business: anti-corruption, food safety, anti-money laundering, antitrust, pharmacy, labor employment, environment, privacy, consumer protection, licenses permits, health safety, trade, product safety, and ethical sourcing. ? SWOT Analysis StrengthsWeaknesses †¢Enormous scale of operations which permits it to leverage its buying power. Operates internationally in 27 countries †¢ Strong brand image †¢Supply chain with integrated technology (inbound and outbound logistics) which enables it to operate effectively and efficiently (i. e. cross docking). In addition Walmart is working closely with its suppliers to maintain an enhanced global standard †¢Walmart Global E-Business leads all online and mobile innovation †¢Provides a diversified range of products and services including high end brands (Apple, Sony, etc) †¢Customer loyalty †¢Strong financial performance even during the global recession †¢Its people – a very strong culture and values that are shared among associates at all levels. A focused human resource management and development strategy which provides benefits. Walmart invests time and money in training its employees †¢Walmart is a market leader with regards to cost leadership which permits to offer products at much lower prices †¢Walmart has changed its store format to include four formats: Supercenters, Discount stores, Neighborhood Markets and Express stores which has allowed Walmart in addition to eCommerce. These smaller format stores have allowed Walmart to penetrate urban centers which it did not have a presence†¢High employee turnover †¢Walmart Global E-Business has not been able to effectively leverage Walmart’s brick and Mortar supply chain †¢Price sensitive customers †¢Unlike shopping in a brick and mortar store, customers must wait to receive their goods, goods can be expensive to ship to customers †¢Security and fraud are common for eCommerce which makes some customers reluctant to use credit cards online †¢Customers still prefer to look at items in a store before purchasing †¢As a global retailer, Walmart has the potential to be weaker in some areas due to its huge span of control †¢It is not focused in one specific area, therefore it is not as focused as some its competitors †¢Although growing internationally, Walmart is very reliant on its US Segment †¢Reputation Negative Publicity (labour related lawsuits). Although Walmart has worked hard to change its reputation on environment sustainability, diversity, labour relations, and its ethical sourcing, but it has been slow to turn around in the media †¢Walmart is lagging behind its competitors in eCommerce †¢Walmart US culture cannot be easily impos ed on other countries. †¢Walmart USA must be careful that its current expansion plans do not begin to cannibalize sales †¢Walmart is trailing its eCommerce competitors ? OpportunitiesThreats †¢Walmart has been slowly moved into developing economies including Mexico, South Africa and Brazil in addition to China, and India. It is expected that customers in these countries will move from manufacturing most of Walmart’s goods to purchasing them. This will permit Walmart’s income to grow as it enters more of these companies both through brick and mortar and eCommerce. †¢@WalmartLabs team has been busy delivering the next generation of commerce combining online, mobile and stores to let customers shop when, where and how they want. †¢@WalmartLabs is expanding their team to continue creating best-in-class eCommerce technologies †¢Walmart Global eCommerce is aggressively growing its technology infrastructure in order to be a leader in eCommerce †¢Social media sites provide free or low-cost promotions †¢Walmart is investing in the social gifting market †¢Walmart is working closely with apple to create a mobile application which will make a customer’s checkout experience much easier†¢Walmart has moved from having full time employees to having many part time employees to get around providing benefits to full time employees †¢There is a big push to increase the minimum wage and benefits available to part time and full time workers †¢Low barriers to entry are a constant threat in eCommerce. Anyone can have an eCommerce business. People can sell items via Facebook or eBay without the need to have their own websites †¢Social media sites provide free or low-cost promotions †¢All eCommerce merchants are competing with Amazon and its successful shipping program. Amazon is the Goliath of eCommerce †¢Walmart offers many of the same products that its competitors do †¢High fuel, currency fluctuations and inflation costs †¢Global recession †¢Cultural barriers TOWS Analysis External Opportunities †¢Walmart has been slowly moved into developing economies including Mexico, South Africa and Brazil in addition to China, and India. It is expected that customers in these countries will move from manufacturing most of Walmart’s goods to purchasing them †¢ECommerce is growing exponentiallyExternal Threats †¢Cultural barriers †¢Same day shipping †¢There is a big push to increase the minimum wage and benefits available to part time and full time workers †¢Security and fraud are common for eCommerce which makes some customers reluctant to use credit cards online Strengths/Opportunities †¢Throughout the economic slowdown disposable income was reduced. Walmart was able to gain/retain customer’s loyalty by offering products at affordable prices †¢As online shopping has grown more prevalent, Walmart has allowed customers to order online using the most current technology †¢Walmart is working to create an application to find appropriate gifts for friends using information found on their social media pages †¢Walmart Global eCommerce must develop software which will prevent fraud and provide online security for customers which will enhance customers online experienceWeakness/Opportunities †¢Customers can look at items in a retail store before purchasing then either purchase in store or via smartphone while in the store †¢All eCommerce merchants are competing with Amazon and its successful shipping program. Walmart retail stores permit customers to order online and pick up in stores reducing shipping costs †¢Security and fraud are common for eCommerce which makes some customers reluctant to use credit cards online @Walmartlabs can develop software to minimize the chances of security and fraud †¢Walmart Global E-Business has not been able to effectively leverage Walmart’s brick and Mortar supply chain. Walmart Global eCommerce must build a supply chain which is comparable to Walmart or find a means to leverage Walmart’s supply chain †¢Walmart US culture cannot be easily imposed on other countries. Walmart should hire local specialists to advise Walmart as it expands into new countries Internal Strengths †¢Walmart Global E-Business leads all online and mobile innovation for Walmart †¢Strong brand image †¢Strong financial performance even during the global recession †¢Customer loyalty and low prices †¢Walmart is investing in the social gifting market †¢@Walmartlabs is developing technology to improve customers online experience †¢Walmart has an enhanced supply chain Internal Weaknesses †¢Walmart is lagging behind its competitors in eCommerce †¢Walmart global eCommerce does not necessarily offer the same products that its retails stores do †¢As a global retailer, Walmart has the potential to be weaker in some areas due to its huge span of control †¢Walmart US culture cannot be easily imposed on other countriesStrengths/Threats †¢Although Walmart has a strong brand image, it faces competition from its rivals. Walmart can avoid this by selling differentiated products at low prices †¢Customers prefer to receive their purchased good quickly. Walmart Global eCommerce can leverage Walmart retail store convenient locations to allow customers to pick up their orders quickly Weaknesses/Threats †¢Walmart has had problems adapting its culture as it enters foreign markets, failing to adapt its culture to match foreign markets could be disastrous †¢As a global retailer, Walmart has the potential to be weaker in some areas due to its huge span of control. Walmart has divided its business into three separate segments. Walmart Global eCommerce works across all three segments

Causes and consequences of childhood poverty

Causes and consequences of childhood poverty Anyone doing background research into the causes of child poverty will soon learn that parental income is only one of a large network of interrelated factors. To name a few; political, communal, environmental, and societal influences all play a role. As an example consider that; with the ever progressive move from a widespread agricultural, to a more localised industrial society, the number of jobs in many areas has decreased severely. And so the average number of non-educated workmen (or women) has subsequently decreased also. More and more Britains are joining the ranks of the poor each day (roughly 2,000). And with parents out of work and not earning, children will suffer as a result. Every day 1 in every 4 children is born into poverty. (Joseph Rowntree Foundation, 1995) This can lead to a number of consequences in children, which follows with them throughout adolescence and into adulthood. For example, children who grow up in families with a low income are more likely to experience mental health problems, and more likely to develop unhealthily. Greg Duncan found associations between poverty and poor health, cognitive development, behaviour, emotional well being and academic achievement. He also found that pregnant mothers who have insufficient resources such as food and warmth are 1.7 times more likely to give birth to a low weight baby, that child is then 2 times more likely to drop out of school, and 3.1 times more likely have an out of wed-lock birth (Duncan 1997). Although short term poverty can be overcome and the effects are reversible, long term poverty can be destructive on a childs life. Duncan found that children who had experienced 4-5 years of their early years of life in poverty, achieved a full 9 year decline on intelligence test scores compared to children from healthy backgrounds (Duncan 1997). The standards of living associated with children from poor families can have a negative effect on their health. For example, they are more vulnerable to asthma due to poor ventilation, as well as pneumonia due to poor insulation. Interestingly, they are also more vulnerable to developing obesity since a high carbohydrate, processed diet is the cheaper option. Those children are often excluded from participating in social activities, through both financial disadvantages as well as feeling the pressure of social stigma which can develop from having to dress inappropriately, or through receiving charity food, books, furniture and other necessities. It leads to a loss of self esteem, can be de-motivating, leads to less elevation after the simplest of pleasures, and poor ability to cope with stressful situations. Not only are they more likely to develop psychological problems as a result, these effects last longer than in those who are well off. And this leads to a vicious cycle of depression, leading to increased likelihood of a stressful event, leading to further depression. In Novaks (1995) view, this can lead to long term, irreversible changes in personality, such as; self defeatist attitudes, hopelessness, helplessness, low motivation, low drive, bitterness, aggressiveness and anti social personality disorder. Children with the latter are seen to be impulsive, have high sensation seeking, but without sense of morals or justice. It is often associated with young offenders, school drop outs, and those serving long term sentences. For these reasons, it is necessary for social workers; to get into family homes, assess their state of living, their needs, risk factors, problems, difficulties and anything else that is helpful for them to make an accurate evaluation, and to give them a better understanding. Late interventions can be damaging, for the longer things are kept untreated the harder they are to change. It is important that children are given opportunities in life to maximise their potential and make a contribution to society. Without the proper gui dance and support, they are likely to sink further and further. So it is clear that help is required. There has long been argument that to tackle poverty, social work (SW) would do best to position itself in and against the state. Workers are known to follow law, policy, the rules and regulations of agencies etc, whilst at the same time assuming a flexible role in relation to the safeguarding and supporting of individuals and families. (Bailey and Brake, 1975; Corrigan and Leonard, 1978; Bolger et al., 1981; Becker and MacPherson, 1988; Adams et al., 1998) Childhood poverty holds great relevance for social workers for it defines their very existence. If the role of social workers is to promote well being in the community, and to help young individuals achieve their potential and to function in society, then those in poverty will be the people who need help most. The Poverty and Social Exclusion Survey (PSE Survey, Joseph Rowntree Foundation 1999), which collected a number of individuals portraying an average society, found that 28% of the population were in poverty. Each of them were presented with 52 cards, each revealing an object or activity, such as central heating, a computer, going to the cinema. They were instructed to form two piles; one for items they believed were vital for living, the other for those which were not. For all those items where the majority voted them to be vital, researchers concluded that every person should have at least these in their lives. Social workers may use this as a base line when assessing families, and when children lack any (or all) of these so called necessities (i.e. are in poverty) then help should be provided; for without it, children will likely grow up depressed, suicidal or conversely, aggressive and violent. Children are vulnerable to feelings of hopelessness due to this lack of necessities.A build up of long term worries accompanying a loss of control combined with a sense of dependence, is likely to lead to distress. Chronic anxiety and even depression is not uncommon, which can be exacerbated by an oppressive society. Children from poorer backgrounds are well recognised as they are the ones who do not go on school trips, may dress differently to the rest, not have the correct equipment in lessons, have a more definable smell (not a pleasant one) etc. For those who spend time with such children it is likely they will be excluded from social groups as a result; for they become associated with the outsider and so they themselves are now too an outsider. Society recognises and treats differently any person (adults too) who stands out for whatever reason good or bad. Of course they are no different from the next person; however it is because others see them as different that they are made to feel paranoid. Paranoid that wherever they are people are staring at them, talking about them, thinking all sorts of thoughts. It is enough to cause any child, adult, man or woman huge distress and can affect their ability to be trusting around complete strangers. Constantly obsessing over ones situation will inevitably drain a child of their strength and make them feel weak, which subsequently will increase the level of stress felt. Here can be seen a vicious cycle, one which is hard to recover from without the appropriate help. Furthermore, it is often the case that parents are made to feel just as bad, if not worse. The negativity that radiates off of a child is bound to have implications, especially when he/she cannot have things that all their friends can. Parents have failed as providers and this can lead to a loss of motivation and of despair. So, childhood poverty causes a knock on effect for the rest of the family, and therefore makes it more probable they will seek social services aid. For example, schoolyard bullying can decrease a childs self esteem and affect their ability to form secure, long term relationships. This can lead to turmoil between parents and children, for parents will feel they have lost family connections. As a result, they become depressed and will seek guidance in parenting techniques. Another example would be a child whose parent cannot afford to buy them nice things such as clothes, toys or school equipment. Daily exposure to those who do have such possessions is likely to cause the child jealousy and envy; both at those children who take luxuries for granted, and also at their parents for not being able to provide. Because of the psychological issues that this can lead to, it is likely the child grows up with a desire to steal, spawned from a lifetime of unfulfilment. If they however, grow up with certain morals and choose not to steal, it is still possible that they resort to drugs/and or alcohol as a means of coping. Coping with the consuming hatred and loathe of society that has become them. Families in poverty are less able to provide for themselves, and so there is large chance that children will have to be taken away into care. Thus, a great deal of social workers time is spent within and around those in poverty (Joseph Rowntree Foundation, 1995; Becker 1997; Smale et. al. 2000; Social Exclusion Unit, 2004). Childhood poverty can lead to severe ramifications, both physical and mental, some of which people recover from in time while others can be long lasting. It is considered the universal belief poverty is as much a cause as well as an effect of mental health problems (Langner Michael, 1963). Evidence for this comes from impoverished families from lower class areas. Not only are these areas receiving low government funding they also have little support from neighbouring councils; research shows that these areas have the largest number of children with mental health problems (Department of Health, 1999b). It is clear that the linearity between poverty and wellbeing is long winded. Two possible theories however have met support, both social causation (breeder) (SC) and social selection (drift) (SS). SS describes how the accumulation of adolescents suffering mental issues, who live in poor areas, is the result of a continuous drifting towards the lower spectrum of education and while losing contact with social networks. In contrast, SC describes how a neglected socio-economic climate can have negative consequences on childhood well being to start with. From this it is to be concluded that: poor children have lifelong experience living in high risk areas, risk defined as: high chance of unemployment, growing up to rely on benefits, of teenage pregnancies, families separated, crime, street violence, rape, vandalism, malnutrition, obesity etc. Those at high risk are more likely to experience mental problems because their minds are already overburdened with every day worry. Furthermore, those at high risk are less likely to be treated for their illness because the local medical facilities are of low quality, have fewer staff and are constantly over worked. Child poverty therefore starts within neglected communities and leads to a number of psychological issues. A further difficulty is that the increase in mentally disturbed individuals can further exacerbate the ability to cope in others. That is, exposure to stressors causes stress, therefore numbers are constantly rising. There is large evidence for a correlation between low income and lack of support, and increased probability of contracting mood disorder. According to SC, the most contributory factor is the mental strain which results from all those issues associated with poverty so far mentioned, for example misfortune or wretchedness, death or separation within the family. While SS explains those born with a predisposition towards developing mood disorders will drift to such low stances, and be unable to crawl back upwards (Jarvis, 1971). Researchers found that when children were taken from their homes and placed into the care of middle class families then the number of those children who subsequently developed mood, or any other form of mental disorder subsequently reduced. This proves that economic status (ES) is an important factor, however it is likely to be the case ES leads to numerous other contributing factors rather than being sole contributor (Bruce Hoff, 1994). Factors include; access to a good education, support from extended family members, healthy living and nourishment, praise and encouragement from parents, etc. I spoke of psychological issues that rise from deprivation. It is a sad fact that children in poverty are often the topic of conversation among others. They are ridiculed, gossiped about, and excluded from social gatherings and out of school activities. It is as if the impoverished are viewed as if they have the plague. Common descriptions, taken from national surveys include words such as lazy, worthless, inferior, and undeserving. This misconception of the poor being the cause for their own predicament, not only removes any possible blame from neglected political responsibilities (which contribute largely), but also creates what psychologists termed a self fulfilling prophecy. This theory is based on the belief that beliefs shape and influence actions. By this one means; those who are seen as inferior are likely to be treated as inferior. So much so that they actually become inferior because of the lack of social support available. Children are particularly vulnerable to the influe nce of their social networks, because they are still developing and creating identities for themselves. The idea of a looking glass self is of relevance here also (Cooley 1902), which theorises that childrens self concepts are based on what others portray. There is high chance that their actual and their perceived self identity become misconstrued, if and when evidence from external sources supports the latter. They familiarise with the concept that they are weak individuals, and the negative emotions that accompany this such as self doubt, or guilt. It is important to recognise the relevance here for social workers, because this part of society categorised as lower class citizens will benefit the most from services such as child support, child therapy, connexions, EMA, every child matters and so on. And so in response to all this, SW agencies have implemented numerous partnership schemes; the women, infant and children (WIC) nutrition programme for example, which is designed to get pregnant women and children under 5 eating more healthily, Head Start provides low cost day care to children from families earning less than the 60% threshold of the average family, and many areas now even have schemes to provide low cost/free health insurance for children of all ages. It is up to the SW to assess families/individuals and to determine their eligibility for government aid. For those who are suffering from mental health as a result of poverty, SWs are able to put them in touch with professionals who can help and advise. For those who have very few or none of the necessities from the PSE Survey SWs can organise for clubs where the children can go meet peers and to join in social activities. For parents who have racked up a series of debt SWs are able to help them devise a set of preliminary steps in a certain time period resulting in a more secure financial situation (See Task Centred Practice). Clients often give off negative reviews of SW because it has failed to be of any use with real concerns; state of housing, living, etc. But task centred practice can actually be therapeutic, because it is the client who becomes the changing agent, deciding which problems they want to tackle and in what order. By using this, service providers are employing a learning experience. One which relies on both self growth and skills development, whilst addressing the more important issues. But what issues should the SW investigate first? It would be a logical idea to get right back to the start and look at what caused the families decline into poverty. Here lies a problem however, for there are different theories on what the main area of focus should be; some theories blame the individual while others focus on the failings of society. Because of this conflict in ideas it can prove difficult for SWs to accurately make assessments, or come to an agreement with each other when conducting a review. Below are a number of theories on the causes of poverty, to give an idea of these so mentioned conflicts. Firstly, explanations can be fit into three main areas; functionalist, individualistic, and Structural (Marxist). So to start, functionalists focus on the idea that any form of poverty, be it adult, child or both, proves necessary, for without it society would not govern properly. Naturally such a statement has spawned a great deal of controversy; however the theory is conceivable because it is based on logistics. Society is viewed on a grander scale than simply the here and now. And so by applying somewhat of a utilitarianistic approach, rather than considering individuals, it looks at the whole picture. Philosophers such as Herbert Gans (1971) have made contributions to this, suggesting that poverty benefits the non poor and also the rich and powerful, who therefore have a vested interest in maintaining poverty. He further suggested 5 reasons why he believed poverty is acceptable. There will always be a need for individuals to fit the jobs seen as dirty, demeaning, and without prospects. Those in poverty would rather do these than starve. Those born into poverty will grow up to replace their parents and so the cycle continues. Industries require minimum wage (or lower) work staff in order to maintain profit margins. Those in poverty are generally of low/no qualification status and so are not liable to receive higher pay. Those born into poverty generally receive poorer education than most and so are just as unlikely to receive desirable qualifications as did their parents. Without poverty, there would be a loss of jobs for those individuals who strive to combat poverty, such as social workers. A large proportion of social work revolves around work with children, so if all child poverty was resolved then many social workers would find it is they who are in need of support. Furthermore, it would also reduce the profits of wholesalers who rely on the desperation of those in poverty. Children often find there is little in the form of food at home, and so any money they have goes towards buying whatever is cheapest from stores. Poverty provides a measure of comparison for those of low opinion of their situation, and works to reassure them that there will always be people worse off than they themselves. This is true for all age groups. The media uses those in poverty as scapegoats whenever anything goes wrong in society, such as incidents of crime, rape or violence. With no one to speak out for them, the blame resides. Children are seen as vandals, and so by putting the blame on them the media is protecting societies own mistakes. Gans makes it clear that he does support poverty; he states that Phenomena like poverty can be eliminated only when they become dysfunctional for the affluent or powerful, or when the powerless can obtain enough power to change society. From looking at this, one may conclude that the reason for child poverty is because people are allowing it to happen in the first place. An increasing number of adult workers are being rid of the opportunity to earn a stable income, and so their families will suffer as a consequence. Although this not explain what the actual cause is, it does give us an understanding of why child poverty has become such a widespread issue, and why not more has been done to prevent it. Individualists are of the opinion that people are responsible for their circumstances, and have devised several theories of their own. Firstly is the idea of culture, which draws from the research of Oscar Lewis (1966) on Puerto Rican and Mexican families. He acknowledged that children are brought up to appreciate certain values, which they identify with themselves and in time teach their own offspring thus continuing the cycle. And so for those families in poverty, who have low self esteem, motivation, a sense of helplessness etc, they will pass on their negative attitudes through each generation. They will also pass on (through learning and modelling) their negative behaviours, such as drinking, violence, staying at home and not finding work, adultery, divorce, etc. And so this creates a culture of poverty, the fundamental cause being family (specifically parental) influences on their children. Lewis has been challenged because he does not offer a suggestion as to what causes poverty to begin with. Furthermore, it was suggested that children in poverty are no different in terms of beliefs, values, or personalities than those from middle or upper class families. The differences there are, are between income, opportunities for skills, learning and development. And so the alternative suggestion is that the so called culture of poverty is a result of responses of living that parents bring to their children. Secondly is the idea of a cycle of deprivation, which is based on the works of Sir Keith Joseph (1970). He suggested that the causes of poverty stem beyond social status, and move into the domain of family problems. By this Sir Keith was referring to, for example cognitive skills, social skills, personality, health and development, etc. Now consider human relationships, what attracts people? More often than not we search for those who hold similarities to ourselves. Therefore, children in poverty, with their existing family problems, will grow up to form relationships with those who similarly have grown up in poverty and have their own family problems. The resulting offspring from such couples will inevitably follow the same patterns of development and hold similar preferences once they reach adulthood themselves. And so the cycle is endless. Child poverty results from both parents growing up in a relatively similar way. Sir Keith has been challenged just like Lewis, for not explaining how poverty actually starts, but also because it was suggested that not all children end up like their parents, and a number of them can in fact escape the cycle. Opportunities may arise for children that did not arise for their parents, they may form relationships with different kinds of people, or they may show a compassion for achieving that, although did not come from either parent, was just good fortune. And finally is the concept of underclass, which Jones and Novak(1999) describe as a brutal victim-blaming theory. They went on to write how poverty is caused by peoples behaviours and not their circumstances. For example there are many who go through periods of unemployment, are made redundant from current jobs, or who lose money due to household repairs, hospital bills, child support, etc. But of those people, not all of them sink into deprivation, the majority pick themselves up and go on to find something else, or look for support from friends and family until something comes along. Novak and Jones saw the problem to be those who come to rely on income support as a way of living. They were even more so concerned with the children who grow up in impoverished families, learning destructive values and beliefs and growing up to become delinquents. For these, poverty will continue across generations to come. Arguments against the underclass concept revolve around the fact that it negates consideration of structural factors as a cause of poverty, and the lack of evidence to support any of the suggestions made. Despite the criticisms to Individualistic theories, they still hold a high power in modern society. Politicians like Tony Blair for example have stated: This cycle of deprivation is bad for everyone. But it is particularly unfair for children who miss out on opportunities because they inherit the disadvantage faced by their parents, so their life chances are determined by where they come from rather than who they are. The final theory looks at structural explanations for child poverty, primarily directed at the economic standards for any area, child development services on offer, and various other components which form the foundations for living. Supporters of this view takes a Marxist approach; that a class system is necessary, for those at the higher end rely on those at the lower end to provide them with work staff, who they exploit and employ on menial wages. And so there will always be poverty, well at least until capitalism is defeated. Or when society moves towards equality of all its members irrespective of their situation and/or upbringing. Such a concept seems unlikely, as it lacks a sense of fairness to those who see themselves as more deserving. Although it is a misconception that those people in poverty have brought it upon themselves, there is a grain of truth in the matter. The actuality is that those well off have earned it, through hard work and good business sense, while many of those in poverty never managed to do well in school, missed out on opportunities, and failed to achieve. Child poverty results from a continuation of generations of un-achievers, and so there will always be able bodies to recruit into the unprofessional workforce. Marxists go on further to suggest that SW is another of lifes necessities, because social workers ensure that poverty is kept stable. They argue that SW does not aim to cure poverty, nor does it aim to remove people from their impoverished lives. Rather, SW looks to protect the well being of individuals and keeps them from distressing and becoming incapable of work. To do this, workers take service users focus away from blaming the system, and persuade them to look at faults of their own, their shortcomings and their failures. By doing this, SW manages to halt any challenge to the system that individuals may pose such as groups forming who speak out against the oppressors. In conclusion, there are numerous causes for child poverty, but at its roots the government has stated that worklessness is their primary concern, which interacts alongside with family dysfunction, neglect and insecure attachments, low quality day-care and schooling, and state of neighbourhood. With fewer work opportunities more people are having to settle for meagre salaries until something better comes along (which it wont). There is also an increase in the number of single parents, due to increases in death rates and divorce among the poor. With only one source of income, and a loss of support when it comes to raising children, single parents are forced to depend on income support. As a result, they will never manage to find their way out of poverty. References Bailey and Brake, Corrigan and Leonard, Bolger, Becker and MacPherson, Adams, The British Journal of Social Work; Poverty and Social Justice, Oxford Journals, 1975, 1978, 1981, 1988, 1998. Blair, T. Breaking the Cycle: Taking stock of progress and priorities for the future; A Report by the Social Exclusion Unit. The Office of the Deputy Prime Minister; London. ODPM publications, 2004. Bruce, M. L. Hoff, R. A. Social and physical health risk factors for first-onset major depressive disorder in a community sample. Social Psychiatry and Psychiatric Epidemiology, 29, 165-171, 1994 Cooley, C. Human Nature and the Social Order, New York: Charles Scribners Sons, revised edn, 1922 Denham, A. Garnett, M. From the cycle of enrichment to the cycle of deprivation: Sir Keith Joseph, problem families and the transmission of disadvantage. Policy Press; Benefits, Volume 10,Number 3, pp. 193-198(6), 1 October 2002 Department of Health Saving Lives: Our Healthier Nation. London: Stationery Office, 1999b Duncan, G. J. Brooks-Gunn, J. Consequences of Growing Up Poor. New York: Russell Sage, 1997 Gans, H. The Uses of Poverty: The Poor Pay All, Social Policy: pp20-24, July/ August 1971 Jarvis, E. (1971) Insanity and Idiosy in Massachusetts: Report of the Commission of Lunacy, 1855. Cambridge, MA: Harvard University Press, 1971 Jones, C and Novak, T. Poverty, welfare and the disciplinary state. London: Routledge, 1999 Joseph Rowntree Foundation, Inquiry into income and wealth. Volumes 1 and 2. York: Joseph Rowntree Foundation, 1995 Joseph Rowntree Foundation, Becker, Smale, Social Exclusion Unit, Sociology and Social Work; Poverty and Social Work Service Users, Learning Matters, 1995, 1997, 2000, 2004. Langner, T. S. Michael, S. T. Life Stress and Mental Health. London: Collier-Macmillan, 1963 Lewis, O. The Children of Sanchez. New York: Random House, 1967. Novak, T. Critical Social Policy; Rethinking Poverty. Vol 15, Sage Journals, 1995 The PSE survey, Joseph Rowntree Foundation, http://www.bris.ac.uk/poverty/pse/