Fdi in Lithuania

Foreign Direct Investment (FDI) occurs when a firm invests its resources in business activities outside its country (Hill, 2002, pp. 8). This essay will critically evaluate the impact of inward FDI in an emerging economy of Lithuania. First it will be looked at the impact of FDI on technological development and its importance for a country, particularly in Lithuania. Further discussion will be carried to effects on competition and its development, some negative side effects will be mentioned. Later it will be looked at what effect FDI has on Lithuanian national sovereignty and autonomy. Finally conclusions will be provided. Technological diffusion plays central role in the process of economic development (Borensztein, 1995). Emerging economies domestic growth rates are highly dependent on the growth rates of the rest of the world. Therefore, economic growth rates of emerging economies such as Lithuania depends on the extent of a â€Å"catch-up† process in level of technology by adopting and implementing it from leading countries such as for example United States. The main reason is that developing countries lack their own resources in developing own indigenous product and process technology. Such countries must rely on FDI by advanced industrialized nations and multinational corporations (MNCs) for much of technology required to stimulate economic growth. Findlay (1978) claims that FDI increases the rate of technical progress in the host country. Lets look at the example of Mazeikiu Nafta – the largest oil refinery complex in the Baltic region. Lithuania was not able to keep up with technological advances, therefore from early 1980 it had to trust on FDI from other countries. Back then with help of Soviet Union it was one of most modern oil refineries. Later on after the collision of Soviet Union Lithuania was unable to keep up with technological changes so it started inviting foreign investors. One of them was US based MNC Williams International, which promised reconstructing the refinery. However due to legal reasons acquisition was stopped and new investor from Russia came. Yukos promised to modernize and bring Mazeikiu Nafta’s production to western markets. One of the biggest project’s with Yukos was the completion of Bugtine Terminal for crude oil export and import. One of other positive contributions of FDI to a host economy is the upply of capital, management techniques and skills. MNCs have world vide access to individuals with more advanced skills and knowledge. Local employees can easily transfer knowledge and skills from more advanced companies to local firms or even set their own firms. New organizational practices and management techniques are also brought to country with FDI. Local firms copy them in no time. This happened in Lithuania. Latvian company â€Å"Double-Coffee† opened their restaurant in Lithuania, because there was a good market opportunity as there were no other coffee shops. Pretty soon there were other local coffee restaurants and coffee shops that opened for instance â€Å"Coffee Inn†. This was a clear result of knowledge transfer by FDI. FDI by Latvian company had an effect on competition and economic growth of the industry. Adequate level of competition leads to efficient functioning of a market. With different coffee shop brands in Lithuania consumer choice has increased, therefore prices have been driven down this way the economic welfare of consumers was increased. Increased competition tend to stimulate capital investments by firms in plants, equipment, and R&D as they struggle to gain an edge over their rivals (Hill, 2002, p217). FDI in coffee shop industry had a positive impact on service quality, because here export was not an option so it had to be produced where it is delivered. Despite all the positive effects FDI had some negative ones too. In grocery store market some foreign MNCs came into the country which have greater economic power than some local ones. Swedish â€Å"Rimi Baltic† was one of the first big MNCs to come into this sector, then â€Å"IKI† followed. They have â€Å"crowded out† local grocery store â€Å"Lenstata†. â€Å"Lenstata† was unable to reach maturity for full competitiveness against foreign competition, the maturig process also didn’t take that long so that the discounted preset social costs could outweigh the social benefits. Other small town local shops were also crowded out because they simply couldn’t offer same variety of goods. Crowding out in this sector in Lithuania can impose a long-term cost on its economy it if holds back the development capabilities or retards the growth of local innovative base. FDI in Lithuania has some negative impacts on national sovereignty and autonomy. FDI from Yukos, â€Å"Rimi Baltic† or other MNCs can cause some loss of economic independence. Key decisions that may affect economy are now made by MNCs controlling such important sectors as for example oil refinery or grocery store industry. The concern is that the governments has no real influence over this. For such as small economy a Lithuania’s this is a threat, because foreign MNCs have no real commitment to the country, however very real impact on its economy. To conclude, this essay has looked at what impact does FDI have on Lithuanian emerging economy. Using various sources evidence was provided to support statement that technological development has an effect on countries overall development. The case of â€Å"Mazeikiu nafta† was mentioned, evidence on what impact foreign MNCs on company’s technological development have was provided. Further discussion was brought to economic impact, example of what positive impact did FDI from Latvian MNC have on Lithuanian coffee market was given. Negative impacts on the economy of Lithuania were also mentioned and the example of grocery stores was provided. References: Borensztein, E. & De Gregorio, J. Lee, J-W. , (1998). â€Å"How Does Foreign Direct Investment Affect Economic Growth? † Journal of International Economics, vol. 45(1), pages 115-135 Coffee Inn, (http://coffee-inn. lt/blog/apie) [Accessed: 05/12/2009] Double Coffee , (http://www. doublecoffee. lv/eng/company/history/) [Accessed: 05/12/2009] Hill, Charles W. L. (2009) International Business: Competing in the G lobal Marketplace, 7/E, McGraw-Hill Irwin. Lideika, Petrauskas and Valiunas, Doing business in Lithuania (http://www. lexmundi. com/images/lexmundi/PDF/guide_lithuania. pdf) [Accessed: 30/11/2009] Mazeikiu nafta AB annual report, (http://www. orlenlietuva. lt/repository/pdf/reports/Annual99. pdf) [Accessed: 07/12/2009] Mazeikiu Nafta (http://www. randburg. com/li/maznafta. html) [Accessed: 07/12/2009] New Nations, (http://www. newnations. com/Archive/2002/November/lt. html) [Accessed: 07/12/2009] OECD, Reviews of Foreign Direct Investment, Volume 13, Lithuania RIMI Lietuva, (http://www. rimi. lt/apie-rimi/rimi-lietuva/rimi-istorija/199) [Accessed: 05/12/2009] UAB â€Å"IKI† (http://www. iki. lt/lt. php/apie/dabar) [Accessed: 05/12/2009] World Investment Report (1999), UNCTAD.

Brother Dear

Brian Van-Huynh â€Å"Brother Dear† by Bernice Friesen In the short story Brother Dear, Bernice Friesen introduces the antagonistic relationship a parent and child share when they do not see eye to eye in terms of success. Greg and his father struggle through difficulty as Greg is caught in the midst of what his father wants him to do as appose to what he wants for himself. The conflict that exists between Greg and his Father proves that parents should allow their children to discover and follow their dreams, rather than forcing them upon their own wishes.In addition, the author suggests that success can come in various forms, but each form is unique to each person. Therefore when parents deny their kids’ ambition to achieve something, they only create dissatisfaction and despair. This story takes place when Greg comes home from university, where his Dad had paid for his tuition, and had planned for Greg to study law. Sharlene, who is in grade 11, parallels the conflict between the ideals of success based on her brother and father. She is caught between two contrasting approaches on life where agreeing with her father or supporting her brother Greg are her only options.Greg is introduced to be a rebellious character that does not take orders from anyone. This does not meet his fathers standards for he is strict and controlling when it comes to planning his children’s future. When Greg’s father discovers that he has chosen a different path in life, he is enraged. Not only does this create a predicament between two individuals but also draws in the whole family as it becomes the topic of discussion. In reference to the above, the pressure that Greg’s father puts on him makes him feel meaningless because he has chosen to do what he wants to do rather than following in his fathers footsteps.Greg’s father claims he is lazy, has â€Å"no drive, and no ambition to do well in school† (Friesen 4), this only forces Greg aw ay from caring about school and creates resentment towards his father who constantly puts him down. What the family does not notice is that Greg does not want to walk a narrow road, but to be free and do what he is passionate for. When Greg lashes back saying that his family is too materialistic and wastes money on unnecessary items, his passion is revealed and portrayed through his actions and words.In addition to what creates a sense of individuality seen in Greg is the conversation at the dinner table. When brought up by his Father, Greg mentions that he no longer eats meat because he's a vegetarian. He lets his family know he did not go to exams because he skipped it to go to a protest in Edmonton. Greg also tells his family of how he isn't going back to school, and that he's going to spend his summer planting trees. These three prime examples give the reader a strong sense that Greg has a lot of motivation and ambition.By skipping his exam, it is proven that planting trees or p rotesting is not just a hobby of Greg’s but more of a lifestyle. Towards the end, Greg asks a simple question before he leaves: â€Å"Is that all my family can ever do? Point out what’s wrong with me? † (Friesen 6) it is this question that makes Sharlene wondrous. This question further supports the theme of conflict between two individuals who don’t see eye to eye, because many parents think they are always right. Greg is simply doing what he loves, and this is not up to par with his father and considered irresponsible. Be something. Be something. That’s all I ever get from Dad† (Frieson 5), this sentence describes how his father is always demanding Greg to do something he sees as successful, such as going to university and earning a degree. Nevertheless, Greg believes that he is old enough to make his own decisions and benefit from them. When Sharlene asks, â€Å"So you never want to be anything? †(Friesen 6) as if Greg is never going to be successful, Greg is enraged because his perspective on life is the opposite of what his dads is.It is evident that although he is not going to follow his fathers path of success, he will still be successful, but in his own eyes. Lastly, Frieson proves it can be difficult for parents to allow their children to follow their own dreams, risking the relationship between parent and child. Greg shares his knowledge of life with his sister Sharlene and together they come to an understanding that you live life to bring joy upon yourself, not to please the others around you. In the end, Greg has defined his own success, which links his ambition and passion to dictate his own life.

Accounting Assignment Example | Topics and Well Written Essays - 250 words - 13

Accounting - Assignment Example The healthcare sector represents a major part of America’s economy. Current expenditure on healthcare exceeds 15% of the GDP and Economists project it to hit $4.2 trillion or 20% of the GDP by 2016. Yet according to Commonwealth Fund’s analysis of World Health Organization data, America ranks last among developed nations in preventable mortality with over 47 million Americans lacking health insurance. Additionally, healthcare continues to be one of the fastest growing components of the economy, growing at a faster rate than the GDP. Health related expenditure is a large and growing segment of government budgets. Last year, healthcare expenditure accounted for one quarter of federal spending. From the public interest point of view, the economic stakes in healthcare reform is high. However, it is wise to note that for all the problems, the United States healthcare system has much strength and policy makers should not lose the good while addressing the bad. The major financial challenge of healthcare reforms is controlling the costs. The problem here is not the high level of spending on healthcare but rather the rapid growth of spending on healthcare. The per capita spending in America continues to increase at a faster rate than per capita income. Economic projections indicate that persistence of this trend would lead to a relentless rise in income devoted to healthcare expenditure. A large portion of state and federal spending goes towards subsidization of health insurance. In 1975, federal expenditure on Medicaid and Medicare accounted for 6% of total non-interest federal spending. Today, this figure stands at 23%. Due to the increases in cost of healthcare, the CBO projects that, without reform, Medicaid and Medicare will account for about 35% of non-interest federal spending in 10 years’ time. This trend points toward

Origens Allegorical Interpretation Essay Example | Topics and Well Written Essays - 3250 words

Origens Allegorical Interpretation - Essay Example In this paper I will look into the history of Allegorical interpretation. Moreover I will precisely study why Origen chose to interpret allegorically, what were the factors that influenced him to do so, the times and circumstances when he studied the holy words and also whether his approach was successful or not. Origen was born to a Christian family in Alexandria in either year 185 or 186. His father was believed to be a prosperous and prominent man, who gave his son with schooling that was equally Hellenistic as well as Christian and was based on the learning of the standard literary works of olden Greece and the Holy Bible. Hence he grew up as together as a learned Greek and a committed Christian. This combat education definitely caused somewhat of an inside stress in Origen as he sought to settle his pledge to Christian belief and the Bible with the Hellenistic viewpoint he was educated. From the outlook of Hellenism, Christianity was slightly more than an additional barbarous false notion and the Bible represented a substandard set of texts that were not worth stern thought from the viewpoint of Greek visual standards2. Origen was not the initial one to face this anxiety, and he was proficient to find out from preceding Jewish and Christian whereabouts with Hellenism, mainly Platonic philosophy, in his individual effort to confirm the Bible and its ideas in the framework of the Greek intellectual surroundings. Undeniably, as a student at the school in Alexandria, it is probable that some of his instructors were from Clement of Alexandria, and was also well known for his challenge to communicate Christian teaching to Greek philosophical reflection5. Out of Origen's many works two are valued most in the history of the initial church and Christian thinking. "On First Principles" is a structured and methodical version of Origen's theological and truth-seeking arrangement relating to God, foundation, the different Logos of God, Jesus Christ and salvation. The second one that is "Against Celsus" is a comprehensive remorseful justification of Christian belief written in opposition to the analysis of the Roman thinker Celsus. In this book Origen tries to reveal the supremacy of the teaching and insight of the Bible over against that of the famous Greek philosophy. Allegory Before I proceed to explain the history behind Origen's allegorical interpretation, I would like to mention the formal definition for the term allegory as given by scholars. The word "allegory," is a derivative from the Greek language, from the word "alla," which refers to "other," and another term "agoreuo," which means "to declare." It initially referred to a form of dialogue that Cicero put forward as a 'incessant flow of similes.' Allegory is a style of communication in which one thing is explained by another 5. Allegory varies from the parable, as it is a more organized appearance of the diverse features of the thought that it demonstrates, and also in its contents which are apprehensive with the explanation of hypothetical truths rather than realistic exhortation. The History Of Allegorical Interpretation Allegorism was not a new concept at all. Infact it was well-known in

Cooperative Learning Essay Example | Topics and Well Written Essays - 2750 words

Cooperative Learning - Essay Example Moreover, each member of a team is responsible not only for learning what is taught but also for helping teammates learn, thus creating an atmosphere of achievement. Hence, students work through the assignment until all group members successfully understand and complete it (Kennesaw State University, 2009) There are several uses and benefits of cooperative learning, which have been typified by many authors. As such, according to Kennesaw State University (2009), the use of cooperative learning research design renders the following benefits: As stipulated by the authors above, cooperative learning provides positive learning experiences on students and might as well to the teachers. It improves not only the intellectual aspect of students, but also their overall sociability, that is, improved social interaction, communication, and above all, cooperative learning epitomizes the respect to classmates or members of a group regardless of color, ethnicity, or race. The above methods of cooperative learning are said to have considerable diversity (Kagan, 1985). Nevertheless, although the aforementioned methods have different philosophies distinct from one another, a common purpose seems to be their uniting point- group empowerment through cooperation (Kagan, 1985). According to Kagan (19... 5. It promotes positive social relations and pro-social development; and 6. It increases the liking among students for class, school, learning, and self. (p 67) As stipulated by the authors above, cooperative learning provides positive learning experiences on students and might as well to the teachers. It improves not only the intellectual aspect of students, but also their overall sociability, that is, improved social interaction, communication, and above all, cooperative learning epitomizes the respect to classmates or members of a group regardless of color, ethnicity, or race. The Methods of Cooperative Learning Cooperative learning has various methods, which adhere to its principle of learning through cooperation. Kagan (1985), in his chapter, presented six cooperative learning methods, which are as follows: 1. Student Teams-Achievement Division (STAD) a) Class Presentations b) Teams c) Quizzes d) Individual Improvement Scores e) Team Recognition 2. Teams-Games-Tournaments (TGT) a) Game Tournaments 3. The Orginal Jigsaw (or Jigsaw I) 4. Jigsaw II 5. Group Investigation 6. Co-op Co-op The above methods of cooperative learning are said to have considerable diversity (Kagan, 1985). Nevertheless, although the aforementioned methods have different philosophies distinct from one another, a common purpose seems to be their uniting point- group empowerment through cooperation (Kagan, 1985). The Elements of Cooperative Learning According to Kagan (1985), cooperative learning has certain elements that make its distinction from traditional instructional formats, which are summarized by the Kennesaw State University (2009), as follows: 1. Positive Interdependence 2. Face-to-Face Interaction 3. Individual and Group

Goerge Bernad Shaw's Pygmalion Term Papaer Essay

Goerge Bernad Shaw's Pygmalion Term Papaer - Essay Example Even belonging to the middle stratum of society, Shaw was the torch-bearer for the cause of the poor and suppressed section of society, and studied socialism as the philosophy that aimed to diminish social injustice and inequality from society. It is therefore the ray of class conflict and exploitation of the proletariat at the hands of the bourgeoisie can be felt in almost all his writings and plays. He was a highly learned and intellectual person, and contained both seriousness and burlesque attitude while entering into social interaction with others as well as while creative a piece of literature. He applied his sense of humor and irony in all his plays, to address the faults and shortcomings prevailing in society, which present the most sublime precedent of satire in the modern drama. Like all other works produced by Shaw, his masterpiece under the title â€Å"Pygmalion† is also a true example of satire that reveals the hypocritical and dual standards have been introduced and implemented by the individuals belonging to elite class of society. He worked for the cause of socialism with great fervor and enthusiasm and wholeheartedly condemned capitalism by stating it a system that widens the gulf between haves and haves-not. â€Å"In his pamphlets George Bernard Shaw argued in favor of equality of income and advocated the equitable division of land and capital. Shaw believed that "property was theft" and believed like Karl Marx that capitalism was deeply flawed and was unlikely to last.† (Retrieved from spartacus.schoolnet) Based on the social behaviors and attitude observed by the people come out of leisure class of society, the great playwright has successfully analyzed the mentality of the rich individuals while treating the lower classes. By analyzing the history of the globe, it becomes obvious that almost all human societies have been observing

Examine and discuss the philosophical views developed by Epicurus Essay

Examine and discuss the philosophical views developed by Epicurus - Essay Example They  cannot be created or destroyed  though there can be added or subtracted to provide different structure. He  is of the view that atoms exit in different shapes and he states, â€Å"for so many varieties of things as we see could never have arisen out of a recurrence of a definite number of the same shapes. The like atoms of each shape are absolutely infinite, but the variety of shapes†¦not absolutely infinite† (Epicuris.net 12).These atoms are moving all the time as mentioned in Herodotus, â€Å"The atoms are in continual motion through all eternity (Epicuris.net 13)† Furthermore, Epicurus gave reasons that these invisible atoms were of different sizes that provide different sensations and feelings in people as mentioned, â€Å"Again, you should not suppose that the atoms have any and every size, lest you be contradicted by facts; but differences of size must be admitted; for this addition renders the facts of feeling and sensation easier of explanation† (Epicuris.net p.27). Epicurus did not approve of the idea that there was indivisibility of matter as atoms are not divisible. Epicurus believed that cosmos consisted of many worlds that were endless in number, had their point of origination and ends and were in constant movement. It is mentioned in a letter to Herodotus where he clearly stated that these cannot be divided or changed (Epicuris.net p.9). Epicurus had the view that cosmos could be explained by humanistic experiences as humans could remain happy if they became free of supernatural agents like Gods, fear of life after, punishments. Epicurus had the view that it was the nature of human beings that they associate knowledge of cosmos with facts that should be based on empirical data. However, for Epicurus, human beings sensation is the foundations of any investigations of cosmos. According to him, sciences are still inexhaustible which makes the

Concept to Full Production Contract Essay Example | Topics and Well Written Essays - 1750 words

Concept to Full Production Contract - Essay Example There are a myriad of reasons this happens. They include the encourage competition, to assist small and medium businesses, to expedite performance of contracts deemed essential, to make possible large dollar acquisitions, to reduce contractor risk and to lower the overall costs of the contract. Approaches to Contract Financing Customary contract financing The government does not give financing in cases of Simplified Acquisition Procedures or foreigners being awarded contracts. The basic steps when giving this kind of contract financing, usually undertaken by the government, is to decide if the money will be offered, minimizing the government’s risk, approving or disapproving the request and the liquidating or recovering financing payments. In noncommercial and commercial acquisitions, the solicitation states whether financing will be availed under the particular contract, though actual clauses in the contract may differ. It is vital to note that financing may be availed after award even if the contract had indicated that they didn’t need financing. In this case, the contractor should give reasonable considerations, for instance reduction in price of contract, improved delivery date or an increase in quantity. This is for the increased risk and cost to the government. When financed, the contract should obviously show their need in the proposal. Contract financing from the government is a benefit to contractors and they should therefore reflect it in the form of more favorable terms or lower prices. Need for contract financing need not be treated as a bad thing for award of contract. Performance-Based Payments These are contract financing arrangements that are made on the basis of accomplishment of defined events, performance measured by quantifiable or objective methods or other measurable events. The method is usually for competitively sole or negotiated source services or supplies. It is the most preferred method by government to contracts workin g under fixed price contracts. Payment are based on the achievement of specific accomplishments defined in advance by parties to the contract instead of tying them to costs Progress payments based on costs This is used on service or supply contracts made on basis of costs input by the contractor as progress of works under the said contract. It does not include performance based payments, partial delivery payments accepted by the government, payments based on the stage or percentage of completion accomplished. This contract financing approach can be used for sealed bid, sole or negotiated contracts for services and supplies. Interim payments/ public vouchers These are a means of vouchering eligible expenses including labor, materials, overheads and fees under the cost-reimbursement contracts. While it is not considered a customary contract financing method, it pays expenses incurred under such contracts. Loan guarantees Loan guarantees made by Federal Reserve Banks through guaranteei ng agencies to enable the contracts to get financing from private sourcing to so they can fulfill contract obligation involving supplies or services for the national defense. Some kind of congressional authority is required for this to take place. In recent years, however, the Department of Defense has not requested such authority. Advance payments The government may advance to the prime contract before the completed performance sums of money under one or more contracts. They are to be liquidated from payments due to the contractor subject to the

Benchmarking - Marketing assignment Essay Example | Topics and Well Written Essays - 1250 words

Benchmarking - Marketing assignment - Essay Example The set standards for the classification of this type of coffee suggests that it can only grow at certain height and therefore the brand as such has to meet certain criteria in order to be categorized as blue mountain coffee. There are two important reasons as to why the Blue Mountain Coffee became the leading coffee brands in the world. First is the overall quality of the coffee which is relatively superior to other brands of coffee whereas secondly, strict quality controls and protection has been ensured in order to make the brand an exclusive brand. These characteristics of the product therefore made it one of the most acceptable coffee brands in the world. Jamaica’s Blue Mountain Coffee is considered as the most controversial coffee brands in the world. It is also however, one of the premium brands of coffee due to its overall aroma, flavor as well as acidity and other qualities. It is however, argued that overproduction and changes in environment in recent years has resulted into the decline in the overall quality of the coffee. (Flock)2 Jamaica’s Blue Mountain Coffee shot to the prominence during 1960’s and 1970’s when it was considered as the best coffee in the world. It takes around seven years to mature and contains less caffeine as compared to other commercially produced brands of coffee. The history of Blue Mountain Coffee suggests that it was introduced in the region by Sir Nicholas Lawes during 1728. However, gradually, it spread to other parts of the Blue Mountain Area and as such was widely cultivated and exported. 3During first half of 20th Century, the overall quality of the coffee deteriorated thus resulting into significant reduction in exports of the brand from Jamaica. However, in 1948 Coffee Industry Regulation Act was passed in order to promote the industry as well as the social and economic life of those who are involved in the cultivation of the coffee. It is

Corn coffee Essay Example for Free

Corn coffee Essay Majority of Filipinos are coffee drinkers. The growing number of coffee shops in almost every corner of the metro has become the most evident indication that the coffee industry is a thriving business. Whether it’s a form of social activity or simply a favorite pastime, drinking coffee has become an inevitable trend. With the popularity of coffee as a beverage comes the cautious effort to lessen the caffeine intake especially among health conscious consumers. Hence, introducing alternative drinks that will let people enjoy drinking coffee without worrying too much caffeine intake. â€Å"Corn coffee looks and tastes like your good ol’ caffeinated coffee, but it is healthier to drink. Perhaps a distinction comes with the aroma since corn coffee comes from ground, roasted corn,† explained Mr. Chito Rodriguez of the Institute of Plant Breeding-University of the Philippines Los Banos (IPB-UPLB) in a seminar talk organized by the Bureau of Agricultural Research (BAR). In the presentation titled, â€Å"Corn Coffee: Health and Economic Benefits,† Rodriguez underscored the â€Å"dark side of caffeine† one common of which are panic attacks. â€Å"Caffeine intake triggers the fight-or-flight mechanism in our bodies. When the fight attack mode wears off, panic attack starts. We get nervous, jittery, sweaty, and shaky. Caffeine is also addictive so once we get into the habit of getting our caffeine fix, our body begins to crave the boost that we get from it. If we fail to get the dose of caffeine that our body has adapted to, we become irritable, tired, and even depressed,† Rodriguez explained. Given the side effects of caffeine, he advised trying coffee corn instead. The healthful benefit. Essentially, the healthful benefits came from corn which is packed with vital nutrients that provide energy, growth and development, and regulate bodily functions. â€Å"Although some of these may have been reduced after roasting and grinding the corn, the essential nutrients are still there. Every 100 gram of corn coffee contains carbohydrates, fiber, ash, protein, and antioxidants,† explained Rodriguez. In a taste test conducted after the seminar, Mr. Patrick Lesaca, one of the participants and a coffee enthusiast, revealed that, â€Å"corn coffee does look like your regular cup of coffee, except that it smells roasted corn. † â€Å"Clearly, a great distinction comes with the health value of corn coffee. The dark liquid you are drinking is caffeine free and is healthier,† Rodriguez added. Aside from the nutritive value, Rodriguez enumerated some of the healthful benefits one can get from drinking corn coffee. â€Å"It can control diabetes, prevent cardiovascular disease, lower hypertension, reduce cholesterol level, minimize risk of colon cancer, and prevent neural-tube defects in infants,† he reported. The economic benefit Corn coffee is not new. In fact, people in the province have been boiling their roasted, ground corn as alternative to coffee. Currently, with the advent of new technologies and the need for healthy alternative, corn coffee has already reached the mainstream market. It is being commercially sold and is available in the supermarket, one of which is the famous Sumilao Corn Coffeeâ„ ¢. â€Å"But if you want to produce your own coffee, it’s easy. Ground corn is roasted until the color turns to dark brown. The resulting coffee powder is boiled for 10-15 minutes. You just allow the sediments to settle and then get the black liquid and then your hot corn coffee is ready to serve. Sugar and cream can also be added to enhance the taste,† explained Rodriguez. The production cost of corn coffee is cheap. â€Å"One kilogram of corn when processed can produce an approximately one kilogram of coffee,† he said. When packaged, the production cost is about Php120 per kilogram. Corn coffee is currently being sold in the market from Php 350 – Php 500 for every kilogram. This means at least Php230 profit for every kilo of corn coffee sold.

Investigation And Evaluation Of Two Organizations Management Essay

Investigation And Evaluation Of Two Organizations Management Essay Marks and Spencers is one of the major British retailer companies. It has over 895 stores all over the world in more than 40 countries. marks and spencers have over 600 domestic stores and 295 international stores. marks and spencers is the UKs largest clothing retailer and a high end food retailer. marks and spencers is the worlds 43rd largest retailer. It sells clothes, food and wine, furniture, flowers and gifts and electronic products. It has made a pretax profit of over 1 billion  £ in 1998. They were the first British retailer to achieve such target. This clearly indicates that marks and spencers is a retail giant and has been an undisputed leader in the retail sector as far as the United Kingdom market is concerned. It has also proved itself in the international retail market and plans to expand its business in more directions and covering newer international market. Marks and Spencer was founded by Michael Marks and Thomas Spencer in 1894 as their first store in partnership at Cheetham Hill Road, Manchester. They made their reputation on a policy of only selling British made goods in 20th century. This was something extremely new in the market and hoped to capitalize on the buyers sense of belongingness to UK They sold food and clothes under the â€Å"St. Michael† brand which they introduced in 1928. They are also repudiated for having the most generous 35 days return policy on the British High Street. By 1950 almost all the goods were sold under â€Å"St. Michael†, women clothes and uniforms of girls were under â€Å"St. Margaret† label until the whole thing became â€Å"St. Michael†. The Asian food was introduced as the beginning of the cautious international expansion. Marks and Spencer opened stores in Europe in 1975 and in Ireland in 1979. This was a calculated step as Asian food was gaining popularity in the wes t and also the inflow of Asians in the western countries was on an upswing. This idea clicked and the company made huge returns. The company is known for emphasizing quality and offering fair value for money. marks and spencers has been a historic iconic retailer of British Quality goods. marks and spencers is aware of the fact that a solid and consistent growth is only guaranteed if it maintains its standards and delivers the best quality at the most reasonable rates. Being retail oriented company; customer satisfaction is of utmost importance and marks and spencers ensured it by healthy customer relations and most importantly provided post sales services to its customers In 1973 the company expanded in Canada. At a point they had 47 stores there. But they had never been able to improve their as a dull retailer. In late 90s efforts were made to improve and unprofitable locations were closed, but it wasnt successful. So they had to close the remaining stores in 1999.In 1975 they expanded in France by opening the stores in Paris. Paris being the worlds fashion capital, there was already stiff competition and it made it tough for Marks and Spencer to survive in such highly competitive environment. Except for Paris the European operation did not fare and the stores were sold in 2001.The Company acquired Brooks Brothers and Kings Super Markets in US but they were sold off. Several factors like these combined to threw Marks and Spencer into a heavy fall in 1997/98, which took everybody by surprise. These were the results of some bad decisions taken by Marks and Spencer which resulted in downfall of the company. The companys share fell by 70% approx. and its profits degraded from 1 billion to 145 million  £ at the end of 2001.In 2001 there were changes in their business focus. They started accepting credit cards and a new range of clothes was introduced. They also redesigned their business model. This resulted in some recovery but the problem still remained. In 2004 there was an attempt to take over marks and spencers by Bhs boss, Philip Green and Arcadia group. In Feb. 2007, marks and spenc ers announced to open worlds largest Marks and Spencer store at Dubai festival city. This surely turned out to be an intelligent move as Dubai is slowly becoming the trade capital of the world. Dubai, which is the most popular emirate of UAE, is now one of the hottest destinations for shopping, trading and travel and tourism industry. The high end Zendra Rhodes Collection was introduced in late 2009. PERFORMANCE: Marks and Spencer is listed on LSE (London stock Exchange) as a constituent of FTSE 100. Here is Year/Net Profit plot for Marks and Spencer. From the above data we can conclude that There was a heavy fall in 1998. In year 2001 the profits were very low only  £ M 2.8. There was some recovery in 2003-04 but they were still facing problem. From 2006 to 2008 there is some improvement. There is a significant decline in 2009. BRITISH HOME STORES (Bhs): â€Å"British home stores† is a departmental store chain in Britain which have branches in high street locations. They are primarily selling clothing and household items such as bed linen, cutlery, crockery and lighting. Now they have also started selling furniture etc. Bhs competes on value and quality. They are targeting at lesser part of the population as compared to John Lewis and Marks and Spencer. They have over 186 stores all over UK. The company is listed on LSE (London stock Exchange) as a constituent of FTSE 100 and is currently owned by Sir. Philip Green. HISTORY: In 1928 the first shop of Bhs opened in Brixton. They copied the business model of United Kingdom arm of US based FW Woolworth in that the price of goods was at max 1 shilling. In 1929 the maximum price was increased to 5 to enable the company for expanding the range of products. This includes furnishing and drapery. Bhs became Public company in 1931. After World War II selling based on price was stopped and goods with value and quality to money have been started to be offered. Bhs started expanding in 1970-80. They also opened the stores in indoor shopping malls. In 1977 they launched a joint venture with the firm â€Å"Sainsburys† to create hyper markets using SavaCentre brand. Sainsburys took control of the whole brand in 1989 and converted all the stores. There was a downturn in business in 1980s which was tried to be fought with the reconstruction of the stores and high profit margins selling. Bhs had to close its overseas stores during these times. In 1985 they opened fi rst franchise store. Such stores now operate in Europe and Middle east. There was a merger between Bhs, Habitat and Motherhouse. In mid 90s the brand went under reinvention under the guidance of retail design house 20:20.In May 2000 Philip Green took over Bhs (for  £ 200 million) and changed the company from public to private (ltd). In May 2005 Philip Green bought Etam UK (which included good girls fashion retailers). To improve Bhs girls perception as a whole the stand alone brands were integrated into Bhs.On Feb 27 2009, the company announced its merger with sister company Arcadia. Performance: The current condition of Bhs is not good. It is owned by Philip Green. Marks and Spencers performance is at present much better than Bhs. The growth is slow in retail market. To have a major growth you have to steal your rivals sales. Hence the gain of marks and spencers is resulting in Bhs loss. Philip Green is implementing cost cutting programs to increase the margin. There is a scope of improvement for others here. Cost pricing in this sector is continuously increasing because of the increase in energy and utility prices which accounts for  £ 12 million fall for Bhs. For revitalizing of the brand Green is investing at least  £ 100m and if he pulls this one out next time we will be discussing about marks and spencers slow recovery. Task 2: QUESTIONAIRE: The questionnaire has the questions on the following fields for evaluating the performance of both companies: Product design Shelf price Brand image Advertising Product range Shelf space Logistics Information and Customer relationships The answering of the questions has to be done on interval level. Questions specifically meant for staff members are marked as (SM). Rest can be answered by all. QUESTIONS: A) Product design: 1) How is the efficiency of the product designing process? (SM) bad excellent 2) Which product generation method is preferred? (SM) Based on idea Based on need 3) How good are solution designing and production methods? (SM) Poor Excellent B) Shelf price: 1) How is spending at each level of production handling and distribution? (SM) Very less just right Very high C) Brand image: 1) Which brand is more preferable? marks and spencers Bhs D) Advertising 1) How much does the firm spent on the marketing? (SM) very less just right Very high 2) Which brands advertisement is more enlightening about the product? marks and spencers Bhs E) Product range 1) Which brand has wider variety of products to choose from? marks and spencers Bhs 2) Which brand fulfills the better product requirement? marks and spencers Bhs F) Shelf space 1) Which brand has better stores? marks and spencers Bhs 2) Which brand store is easily reachable? marks and spencers Bhs G) Logistics 1) How good is the flow of goods, resources and information in the company? (SM) Poor Excellent H) Information and Customer relationships 1) Which brands store provide better information about the product? marks and spencers Bhs 2) Which brands customer service is more satisfactory? marks and spencers Bhs Statistical output: Output stats after a survey of 150 persons. Result interpretations of the survey: Product design process of Bhs is more efficient than that of marks and spencers . Idea based product generation is preferred more in Bhs, whereas it is almost balanced in marks and spencers . Shelf pricing efficiency of Bhs is much better than that of marks and spencers . marks and spencers brand is more preferable as compared to Bhs. Advertising marks and spencers spent more on Advertising. Product range marks and spencers have wider variety of products. Shelf space of marks and spencers is slightly better than Bhs. Logistics of Bhs are better than marks and spencers (there is not much difference). Information and Customer relationships: Customers are more satisfied with marks and spencers as compared to Bhs. CONCLUSION: From the result of the above survey and from the information collected from the various other resources we can conclude that: marks and spencers s (Marks and Spencer) is a much bigger company as compared to Bhs. marks and spencers have over 695 stores whereas Bhs only have over 185 stores. marks and spencers s net profits and turnovers are much higher than those of Bhs. Marks and Spencer can invest into more number of ventures and more capital which is generated by its huge network round the globe. marks and spencers is more famous and older brand as compared to Bhs. marks and spencers operations are more widespread as compared to Bhs. marks and spencers s targeted customers are much larger than those of Bhs. marks and spencers usually targets high end customers whereas Bhs do not. Product range of marks and spencers is much higher than that of Bhs. Customers prefers marks and spencers over Bhs. However, the internal operations, functions and working of Bhs are more coordinated better and efficient than that of the marks and spencers . This can prove beneficial to the company in the long run and this can result in Bhs having more output to input ratio as the system is more efficient. ROCOMMENDATIONS: From our current analysis I can say that Bhs has improved its internal structure to its maximum. There is a need to revitalize the plans, if that is successful then there is a good chance that Bhs might improve to the required level. However, marks and spencers have scope of improvement in its internal structure which will bring significant change in its profit margin. Currently marks and spencers have better hold of market but if they can side by side update their structure then they can avoid majority of the downfalls they face. References: Marks Spencer (n.d.). Retrieved on May 6, 2010, from http://www.marksandspencer.com/ (Marks Spencer) Modern living made easy (n.d.). Retrieved on May 6, 2010, from http://www.bhs.co.uk/ (Modern living made easy) How to begin your survey design project. (n.d.). Retrieved on May 6, 2010, from http://www.surveysystem.com/sdesign.htm (How to design your survey design project.) Bhs results in investment and retail sector. (n.d.). Retrieved on May 6, 2010, from http://www.moneyweek.com/articles/money-morning/why-bhs-could-be-just-the-start-of-retail-sector-woes.aspx (Bhs results in investment and retail sector.)