Ethical and Moral Issues in Business

Ethical and Moral Issues in Business MGT/216 Dorica Irvin 27 June 2011 Margaret Frise In the business world, both ethics and morals are a requirement in the corporate world. Employees are face with moral and ethical issues each day people behave differently because they have their own special set of morals. This essay will discuss the differences between ethical and moral issues, the differences between personal and business ethics as well as provide examples of common ethical problems in business for each of the abovementioned ethics.

An ethical issue when there is a conflict. In addition, a person’s personal ethics deals with he or she personally believes to be right or wrong. For example, a co-worker possing a fair with another co-worker, which against the company’s code of ethics and the spouse raises the question of his or her fidelity. The person believes there is no wrong with fidelity. At times ethical and moral clashes because everyone has different morals, obligations, and views are often ethical issues in the workplace or home. A moral issue is difference between right and wrong.

For example, a co-worker has committed a crime by stealing food out of the freezer. The moral issues, do you report to your supervisor or not? In the business world, some co-workers will ignore the situation because not all situations are not easy resolve. As employees, there are guidelines and standards expected to follow if he or she decides to stay employed. Personal and business ethics are differing. Personal ethics depends highly on personal beliefs and loyalties. Personal ethics can also change depending on major events in someone’s lives (Mitchell, 2011).

An example of major events is death in the family, marriage, and the economy. Another definition for “personal ethics” is an individual’s code of behavior toward the people around him or her and the efforts he or she makes to be the best person he or she can be in his or her private life (Mitchell, 2011). For example, a co-worker might have a specific ideal about how much it is acceptable to drink and how drinking may affect his or her personal ethics if he or she receives a DUI (drinking under the influence).

However, DUI are increasing in the US Navy the military are discharging Sailor. Ethics and morals are a requirement in the corporate world. A company can only be successful as the people make it successful in a moral concept. For instance, in a business ethics an employee cannot use his or her personal feelings in decision making on a business decision. Business ethics is different from personal ethics, which an employee will ethically responsible to obey the code of ethics. Inclusion, ethical and moral issues is apart of our personal lives and business.

The choices an employee makes if its good or bad he or she will be responsible for the consequences. Companies ensure that all their co-workers adhere to the code of ethics. It is important for employees in the business ethics to have morals in defining issues and obligate to be honest with its customers. References Mitchell, Stephanie. (2011, May 02). Differences and Similarities in Personal and Professional Ethics. Retrieved from http://www. ehow. com/info_8341694_differnce-similarities- Personal-professional-ethics. html.

Tourist Spots…

Tourist Spots in Philippines Photos and Images Explore the Philippines. Take a peek at Filipinos’ history and culture mirrored by century-old churches, ancient forts and modern museums. See the best of nature in our white-sand beaches and three-layered virgin forests. Discover the Philippine islands. Blessed with an extensive coastline, the Philippines is ringed with unspoiled beaches and first-class resort facilities. Its deep-blue, crystal-clear waters offer about 40,000 square kilometers of coral reefs teeming with a wide variety of marine life.

Endowed with a temperate climate, the Philippines offers a perfect treat to enjoy the sunlight. Lying in southeast Asia and surrounded by the Pacific Ocean, the Philippines boasts of unsullied beaches, spectacular sunsets, luxuriant pastoral lands, cool mountain weather, brilliant man-made resorts and dazzling islands. The Philippines boasts some of the best beaches and scuba diving waters in the world, supported by golf and an increasingly-impressive inter-island tour and transport system. Witness the vast expanse of nature’s splendor under the spell of cool mountain breeze.

A perfect setting for romance or nature tripping, the country’s mountain villages serve as a perfect hideaway from the lowlands’ summer heat. If you have yet to see the Philippines, then embark now to what promises to be a trip to paradise! Feel the breeze of summer at white-sand beaches deemed as among the world’s finest; be fascinated at the spectacular view of Baguio and Tagaytay; and take a dip in the refreshing waters of modern resort facilities. White-Sand Beaches Boracay Island Widely known as one of the finest swimming destinations in the world, Boracay is blessed with unsullied fine talcum powder-sand beaches.

Its tranquil crystal clear waters are perfect for swimming, sailing, fishing and sunbathing. Boracay also boasts of sapphire seas and spectacular sunsets. Countless hidden coves dot the island and tall coconut trees line up along the beaches. Boracay lies at the northwest tip of Panay, in the west Visayas region, off the Sibuyan Sea. The island is made up of little communities: Yapak in the north, Balabag in the middle, and Manocmanoc in the south. Hilly elevations up to 100 meters above sea level characterize Yapak and Manocmanoc.

Intertwining trails link the small villages together but many sometimes lead to lush tropical jungles. To get to Boracay, one has to book a flight to Kalibo, the capital of Aklan province. Air-conditioned coasters or public buses offer one-hour-and-a-half drive to Caticlan where one can board a motorized banca for a 30-minute trip to Boracay. Siargao Island This newly discovered island boasts of white-sand beaches and surfing waves compared to that of Hawaii. Lying 800 kilometers southeast of Manila, the tear-shaped Siargao Island is a perfect haven for the sun, sea, and surf buffs.

It lies on the eastern portion of Surigao del Norte and on the southeastern tip of Mindanao. The island is a mass of tropical land with scores of reefs, points and white beaches. Its promise as a surfing mecca in the making was discovered in 1993 by American surf photographer John Callahan who went to investigate the rumors of spectacular waves in a little known Mindanao town. He came back from his trip armed with stories about the lovely sun-drenched island and documented his find with beautiful photographs.

Siargao opened itself to the international surfing community by playing host to the Siargao Surfing Cup in the municipality of General Luna. Siargao’s Cloud Nine break is said to be among the best in the world and foreign sportsmen view “the unparalleled surf of Siargao as a magnet for deep sea fishing, sailing, wind-surfing, kayaking, and sunbathing on miles of white sandy beaches that the reef-ringed island and its rich waters afford the visitor. Samal Island Samal Island offers unending fascination with its white-sand beaches, thick mangroves, coral reefs, rolling hills and rock formations.

It is an archipelago of nine islands located in the Davao Gulf about 700 meters south of Davao City. An ideal model for resort and development, Samal Island provides a fabulous site for sunrise and sunset. Samal Island, like the rest of Mindanao, is outside of the typhoon belt, and enjoys relatively calm weather. Its coastline is characterized by tall, swaying coconut trees, white sand beaches, rock formations, mangroves, coral reefs, and small fishing villages, all suggestive of a tropical island paradise.

Almost all of the beach areas have white sand, with widths varying from only a few meters to more than 10 meters. It provides ample space for picnic huts, reclining chairs for sun bathing, or for simply relaxing and enjoying the tropical scenery. The water is crystal clear throughout the coastline, which varies in terrain from gently sloping sand beaches to steep cliffs and rock formations. The colors of the coastline at the beach areas transforms itself from the green lush vegetation of coconut trees, to the white sandy beaches, to the dark blue color of the sea, with its deep waters and coral reefs.

Among its popular attractions are the Aguinaldo Pearl Farm, the caves of Talikud Island, the White Stone Mountain, and the San Jose Muslim Fishing Village. Bohol’s Springs and Beaches Bohol is one of the loveliest islands in southern Philippines. It is situated at the heart of Visayas and with coastline skimmed by gentle coves and white-sand beaches. Many highways snake along sparkling beaches or leafy rivers where one can stop at any point and jump in. With its rolling hills and plateaus, crystal springs and beaches, the province of Bohol is a picturesque province replete with ancestral homes and centuries-old churches.

Bohol is composed of numerous isles -Panglao, Pamilacan, Cabilao, Jao, Mahanay and Lapinin, which are excellent dive spots. The Chocolate Hills is but one of the many natural wonders to be found in Bohol. The province is the home of the world’s smallest monkey, the tarsier. The size of a fist, the tarsier lives on the hills of Corella, some ten kilometers from Tagbilaran. Other exotic flora and fauna may also be found amongst the forest of Bohol. Bohol’s various mountainous and water formations also serve as a natural playground for the adventurous tourist.

One can cruise its rivers, hike up the hills, swim the deep waters, or just stroll down the avenues. Bohol is just waiting to surprise you. Tagbilaran, Bohol’s capital town can be reached by plane or boat from Cebu and Manila. Numerous tourist inns and excellent resorts are found in Tagbilaran and Panglao island. The Beaches of Palawan The exotic beauty of Palawan remains undefiled. Branded as the country’s last frontier, Palawan is a sanctuary to an amazing variety of exotic flora and fauna that are found nowhere else.

Palawan is also home to Tubbataha Reef, the only national marine park that made it to the World Heritage List and whose grandeur is comparable to the Great Barrier Reef of Australia. With more than a thousand islands and islets, Palawan boasts of white-sand beaches, scenic rock formations, underwater rivers and magnificent caves. Other well-known attractions include Saint Paul’s National Park which boasts of caves that nestle an underground river; El Nido, a world-class resort famous for its awe-inspiring seascape and limestone cliffs; and Calauit island, home of Philippine and African wildlife.

Also in Palawan is the primordial island of Busuanga, a perfect starting point for sorties to other nearby islands. In Palawan, each day is promising. The sun rises over the South China Sea and soon everything else sparkles, including the smiles of its people. The Beaches of Glan, Sarangani Glan, the largest town in the Sarangani province, boasts of world-class beach resorts and rich fishing grounds. The terrain of Glan is characterized by flatlands, rolling hills and mountains. Most land areas have been converted to agriculture and fishponds.

The town of Glan is bounded on the east by Davao Del Sur, on the north by Malapatan town, on the west by the South China Sea, and on the south by Sarangani Bay. Many foreign and local tourists flock to the area during summer because of its splendid beach resorts. The sorrounding waters, particularly in Gumasa, Baliton and Margus areas are rich fishing grounds. As many as 2,400 species of marine animals have been found in the bay. The dominant catch include yellow-fin tuna, shipjack, and mackerel.

Glan can be reached from Manila and Cebu by airplane going to General Santos City and a 45-minute drive from the airport. Subic Bay Subic, the former US naval base in the Philippines, is now a hub for commerce and tourism. Just two-and-a-half hour drive north from Manila, Subic offers a full view of the blue mountain and sea and of the green background of a three-layered virgin forest. Points of interest include the 18-hole Binictican Golf Course and Clubhouse, a white-sand beach, bowling and arcade center,a ship wharf past a restricted forested area, firing ranges, fishing grounds and an area for bungee jumping.

Visitors to Subic can take a 12-hour jungle survival course, visit an Aeta tribal village, take a bay cruise, explore the coves, end up at the white-sand beach of Grande Island, engage in water sports, go horseback riding or simply enjoy the scenic view of the sea. Subic Bay is complete with tourism-support facilities that include a marina, a yacht club, hotels, shopping arcades and food shops. It also boasts of an international airport. Anilao Anilao, a resort village in Mabini, Batangas is considered the summer mecca of diving fanatics.

The resort offers accommodations and diving facilities, plus the services of training clubs that provide courses on diving. Situated in the southeast area of Batangas province, Anilao may be reached within three hours from Manila through public buses or jeepneys. From Anilao, one can start diving from the shore or go in bancas to nearby islands. Among them is Sombrero (Hat) Island, a marine preserve where sports activities are regulated. Other dive spots in this side of Batangas are Mapating Rock at Maricaban Island, Caban Cove and Layag Layag Point. Puerto Galera

Puerto Galera (which means Galleon Port) is one of the most popular beach resorts in the Philippines. A marine reserve, it is endowed with coves, fine sandy beaches and shallow coral reefs ideal for snorkeling. The place can be reached from the port of Batangas City where a ferry service to Mindoro awaits the tourists. Bancas may be hired to go to Escarceo Point, the best dive spot in Puerto Galera. The area offers positive thrills and guaranteed excitement, with its sudden rushes of strong currents and steep slopes which are a favorite gathering place for large pelagic fish.

Diving expeditions are usually organized by certified masters on specific dive spots. Hundred Islands Northern Philippines boasts of white-sand beaches in Pangasinan and Ilocandia. Among the best tourist destinations is the Hundred Islands which can be reached from the Pangasinan town of Alaminos, where the lodging accommodations and restaurants are situated. At Hundred Islands, the visitor may rent an island for one’s own private beach for a day. Short boat rides take off from the village of Lucap to the Hundred Islands. Beaches stretch along the western coast of Ilocos region.

Among the popular beach resorts are Cresta del Mar, Bali Hai, Cabana and the Coconut Grove in La Union province. Ilocos Norte also has fine resorts such as D’Coral Beach Resort and Fort Ilocandia. Pools and Resorts Aside from beaches and diving spots, the Philippines also has other beautiful places. You can either take a dip in the refreshing waters of modern resort facilities, feel the gush of volcanic hot springs or just have fun under the waterfalls. Pagsanjan Falls A popular tourist destination, Pagsanjan Rapids and Falls is a series of 14 rapids punctuated by mini-waterfalls on the way to the main falls.

Pagsanjan is a small Laguna town which served as the setting for Fracis Ford Coppola’s film “Apocalypse Now. ” The terrain towards the main falls offers a lot of exitement. As one negotiates the waterway, the trips becomes wilder, with the river flanked by towering cliffs lush with vegetation. Waters from the Cavinti and Luisiana dams cascade down Pagsanjan Falls and into a segregated part of the river which is about 150 feet deep. Here, one can rent a raft and enjoy riding under the falls. Laguna Resorts Aside from Pagsanjan Falls, Laguna has a lot more to offer.

Laguna has one of the Philippines’ incredibly beautiful countryside sceneries. The province offers a scenic view of a bay, considered as the largest in the country. The towns of Calamba and Los Banos abound with swimming pools and resorts. Many residents of Metro Manila head for these towns during summer. In Calamba, one can proceed to the ancestral house of National Hero Dr. Jose Rizal. The house now serves as a museum and is a repository of Philippine history and culture. Los Banos, on the other hand, is famous for its numerous hot springs.

Considered as a flower basket in Luzon, Los Banos produces a wide variety of flowers and other ornamentals. Mt. Makiling, an extinct volcano, stands guard over the town. Hidden Valley Springs Hidden Valley Springs is one of the most popular resorts in Alaminos, Laguna. The valley nestles at the foot of Mt. Makiling, a mystical mountain associated with local myths. A number of springs with hot, cold and soda water, lace a forest of huge fruit trees, tropical shrubs and flowering plants. A concrete path connects the pools and leads to the jungle’s interior where a waterfall has cut a gorge down the mountainside.

The resort has cottages for overnight stay and restaurants. It is an ideal base for visiting the surrounding provincial towns of Laguna and Quezon. Bulacan Resorts Bulacan, a progressive province just north of Manila, offers resort facilities that are generally clean and complete in amenities. The towns of San Jose del Monte, Sta. Maria, Balagtas, Pandi, Malolos, Plaridel and San Miguel boast of resort facilities that draw visitors from Metro Manila and nearby provinces. The rural setting provides a perfect blend of countryside nature and modern facilities for fun and recreation.

Among the well known resorts in the province are DJ Paradise Resort in Malolos; Sibul Spring Resort in San Miguel; Grotto Vista in San Jose del Monte; 4k Garden and Lanesca Resort; Latian in Marilao and Villa Christina in Balagtas. Bulacan is just a 30-minute drive from Manila via the North Luzon Tollway or through the Mac Arthur Highway. Villa Escudero Villa Escudero, a coconut plantation village in San Pablo City, was developed by its owners into a tourist destination complete with swimming pools, picnic area, fishing grounds, and modern amenities. Special packages can be arranged to include overnight stay with food and accommodation.

The village offers a glimpse of plantation living. The whole area is surrounded by coconut trees and flowering plants. The estate also houses a museum whose collection ranges from fabulous antiquities to kitsch. Bamboo cottages grid a river that flows to a dam where picnickers gather around the tables set up on the water. The village is a one-and-a-half hour drive south from Manila. Puerto Azul Situated on the southern entrance to Manila Bay and opposite Corregidor Island is Puerto Azul, a beach resort that offers a breathtaking sight with all its elegance and mystique.

Puerto Azul, a tourists’ paradise in the outskirts of Ternate town in Cavite, boasts of flowery bushes, verdant hills and forests, blue sea, and fine sand beaches. Here, one can imagine one’s self in the Biblical Garden of Eden (a little bit in the modern era, though). The resort complex, which nestles within a 3,300-hectare nature reserve, houses two entities: the Puerto Azul Beach Hotel and the Puerto Azul Beach and Country Club. The club manages a world-class golf course designed by Gary Player and Ron Kirby and completed in 1978. It is now a popular venue for many prestigious championship tournaments.

Though Puerto Azul has always been synonymous with golf and the beach, now there are other things that one can do within the complex. Puerto Azul Beach Hotel has, in fact, prepared 30 fun-filled activities which can be done on one’s own or with family. Camiguin Island Camiguin Island, known for its lanzones festival, offers white-sand beaches, spring resorts and magnificent caves untouched by industrial development. The island lies off the north coast of Mindanao. Aside from its beaches, Camiguin boasts of spring resorts and waterfalls.

The 62-square kilometer island-province has more volcanoes per square kilometer than any other island on Earth. Most famous of the island’s seven volcanoes is Mt. Hibok-Hibok whose last eruption was recorded in 1951. Among its popular attractions are the Ardent Spring Resort run by the Philippine Tourism Authority (PTA), the Mt. Hibok-Hibok itself, Santo Nino Cold Spring, Medano Islet, Mantigue Island and the lanzones festival. There are local flights to Camuigin island. Cool Mountains Witness the vast expanse of nature’s splendor under the spell of cool mountain breeze.

A perfect setting for romance or nature tripping, the country’s mountain villages serve as a perfect hideaway from the lowlands’ summer heat. Baguio City Rising 1,500 meters above the sea, Baguio City enjoys a relatively cool weather throughout the year. On the average, Baguio is at least eight degrees cooler than any place in the lowlands. Not surprisingly, Baguio has become the “summer capital” of the country. It is awarded with a variety of cultural, historical and scenic attractions which make it an important and interesting destination. As early as March, tourists and locals take the six-hour trek up the zigzagging Kennon Road.

Within a mile of the city, the sweet scent of pine trees and flowers already permeate the air. Designed by Daniel Burnham during the American occupation, Baguio City is situated in the midst of pine-covered hills and valleys at the southern end of the Cordillera. Among its popular attractions are the well-manicured lawns of Club John Hay, the Mansion House and the Burnham Park. From Baguio City, one can proceed to the Banaue Rice Terraces, also considered as the eighth wonder of the world. An engineering marvel, this “Stairways to the Sky” was constructed by hand by the Ifugaos.

Tagaytay With an altitude of 2,250 feet above sea level, Tagaytay City enjoys a cool climate all year round. This city perched on a ridge is located in the province of Cavite, some 56 kilometers south of Manila. It overlooks Manila Bay on the north, Taal Lake and Taal Volcano on the south, Laguna Bay on the east and the China Sea on the west. The city is linked to the Metropolitan Manila and the province of Batangas by the Aguinaldo Highway. Among its attractions is the Tagaytay Picnic Grove where one can get an unobstructed view of Taal Volcano, which lies within a lake.

Taal Volcano, which rises 406 meters from the lake, is reputedly the world’s smallest volcano. Taal Lake itself is an immense body of water formed when the old crater collapsed and the walls of the larger volcano caved in and sank. A visit to the Volcano Island can be arranged through the Philippine Institute of Volcanology and Seismology in Quezon City which maintains a monitoring station on the island. For visiting tourists, support facilities are readily available in this idyllic city. Tagaytay is the “sister” city of Las Vegas and Nevada, U. S.

A; Tainan City, Taiwan; and Bankstown City, New South Wales, Australia. Sagada This Mountain Province town, situated west of Bontoc, boasts of its cool weather and spectacular sceneries. A pastoral upland valley, Sagada provides an endless expanse of mountain ranges which are clothed by fogs in the early morning. Among its attractions are towering limestone cliffs, subterranean caves and unexplored forests. Some of Sagada’s caves remain unconquered. Because of their length and depth, Sagada’s natives believe that these caves lead to the center of the Earth.

Other sites to visit in Sagada are the Kitongan bottomless pit and underground river, Calvary Hill, Bukong Falls and Alipine Lake Banao. Sagada has accommodation facilities and can be reached by public buses from Banaue in Ifugao province or from Baguio City. Banahaw Another popular destination, specially during the Lent period, is Mount Banahaw, an extinct volcano which rises 2,100 meters above sea level. Banahaw towers over the southeastern towns of Laguna and Quezon. Revered as a mystical mountain, Banahaw has become a sanctuary for different religious cults.

Up on Banahaw’s leafy slopes live members of various religious sects who adhere to what seems to be a mixture of Catholicism, Buddhism, the cabala, animism and other forms of pagan worship. Down below, in the foothill towns, dwell amulet-makers, soothsayers, faith healers, diviners and dedicated UFO watchers. Banahaw comes alive during the Lent when various religious sects re-enact the passion of Jesus Christ. People ascend to Mount Banahaw to experience its cool weather, bathe in its hot springs or simply stand amazed at the sight of nature’s beauty.

Mount Banahaw can be reached from both east and west. From the east, the ascent starts in Lucban, Quezon, while from the west, in Dolores, Laguna. For both climbs, it is advisable to have a guide to ensure a safe trip. Urban Wonders Enchanted Kingdom Thousands of people head south of Manila to spend a day of fun-filled relaxation and adventurous excitement within the American-style walls of Enchanted Kingdom, a 17-hectare world class theme park conveniently located in the outskirts of Sta. Rosa, Laguna. Enchanted Kingdom, a short five-minute ride from the Sta.

Rosa Tollgate of South Luzon Expressway, brings the closest version of Disney-type leisure in the country. The theme park, managed and operated by Amtrust Leisure Corporation (ALC), offers educational entertainment tours to students and “gastronomic treats” to families. The P1. 2-billion park, which has been operating since July 28, 1995 was conceptualized by Landmark Entertainment Group and designed after the Knott’s Berry Farm, America’s first amusement theme park located in Buena Park, California. It is a member of the International Association of Amusement Parks and Attractions (IAAPA).

As such, it provides visitors with thrilling rides, stunning sights, and wondrous experience. In the words of the Enchanted Kingdom operators, “the place is an active mix of thrills, attractions, entertainment, food service, celebrations and shopping set amidst an enthralling place that presents the past and the future, the quaint and the sophisticated, the picturesque and the dazzling in one unique package. ” Enchanted Kingdom is an aggregate of seven theme zones: Victoria Park, Portabello, Brooklyn Place, Spaceport, Jungle Outpost, Midway Boardwalk, and Boulderville.

These zones serve as enclaves to 21 thrilling rides and attractions meant to provide daring visitors with a sense of flight, twist, twirl, and other acrobatic stunts. The rides include the Grand Carousel, Flying Fiesta, Rialto, Space Shuttle, Log Jam, Wheel of Fate, Condor, Up Up and Away, Roller Coaster, Anchors Away, Dodgem, Stone Eggs, Air Pterodactyl, Swan boats, and Bump n Splash. In the near future, the park is set to introduce other exciting rides such as the Kiddie Train Ride and the Rio Loco River Rapid Ride.

Aside from the rides, Enchanted Kingdom also charms its visitors with various treats such as the fireworks show every weekend, dance presentation by the park’s in-house talents, theater shows, seasonal shows, well-manicured gardens, classic American brownstone facades and establishments, and a variety of characters and mascots led by the Wizard. Manila Rediscover Manila like you’ve never seen it before. Be charmed by the city’s glorious past mirrored by its century-old churches, gallant forts, classic plazas, ancestral edifices, stately museums, and historic monuments.

At the same time, relish the beauty of a modern city rising from the ruins of yesteryears. Beyond Manila’s busy streets and crowded commercial centers lie festive joints that celebrate life. The Old City Manila, which was named after a white-flowered mangrove plant called nilad, was a tiny Malay settlement along the Pasig River ruled by Rajah Sulayman in the 16th century. The Spanish colonizers moved the capital of the Philippines from Cebu to Manila in 1571. They built the walled city of Intramuros, which for the next 300 years, was to become the nerve center of the Spanish rule.

Intramuros was the political and commercial center of the Spanish regime. From this walled city, the Spaniards extended their cultural and religious influences to the different parts of the country. They built churches, Catholic-run schools and universities, government buildings, and magnificent artifices, which reflect the Castilian architecture. At the turn of the century, the Americans came and ruled the Philippines for 50 years. They introduced their own architecture, language, education and system of governance. During this period, Manila underwent a facelift.

A blend of American and Spanish influences gave way to a new Manila, which was to evolve into a giant urban area known as Metro Manila. Today, Metro Manila is an aggregate of 10 cities and seven municipalities. Intramuros Among the popular attractions in Metro Manila are Intramuros, Rizal Park, Binondo, Malacanang, Malate, the CCP Complex, Nayong Pilipino, Ayala Avenue, the Fort, Ortigas Center, Quezon Memorial Circle, and countless bars and restaurants scattered around the metropolis. Traces of the Spanish influence still loom in Intramuros. A tour of this landmark will provide the visitors a deeper understanding of Manila’s rich heritage.

Intramuros protects within its walls a number of national treasures like the Fort Santiago (once a prison for revolutionary Filipinos, now a peaceful park-cum-museum), San Agustin Church (the oldest structure in the country with its Baroque interiors and trompe l’oeil murals), Manila Cathedral (a magnificent architectural feat with its intricate stone carvings, stained glass mosaics, and rosette windows), Casa Manila (a former colonial house and now a museum of national relics), and San Juan de Letran school. Intramuros has been restored for the tourists.

Today, it houses a museum, art galleries, an open-air theatre, fine restaurants, craft shops and souvenir stalls. It also keeps a park lush with tropical flora and homing pigeons. The park, Puerto Real, is the venue of Saturday musical performances during dry months. Rizal Park Just beside Intramuros is Rizal Park, a 60-hectare conglomerate of gardens, historical markers, plazas, an artist’s sanctuary, a 1913 bronze monument of Jose Rizal, a grand stadium, an observatory, an open-air concert hall, a light-and-sound theatre, restaurants, food kiosks and playgrounds, with dozens of fountains.

Fronting the northwest side of the park is Manila Hotel, whose lobby is one of the most imposing in the world. Along the park’s bayside, tourists can have an unobstructed view of the fabled Manila Bay sunset. A five-minute walk from Rizal Park is the National Museum, the official keeper and guardian of the country’s cultural, historical and natural heritage. It houses the representative works of the National Artists, as well as the renowned paintings of Felix Resurreccion Hidalgo and Juan Luna.

It puts on display some prehistoric finds, including the Tabon skullcap, pottery, ceramics and other artifacts from China and Indochina and remnants of pre-Hispanic boats that brought Malay immigrants to the Philippines dating to about 1250. Other establishments worth visiting in the area are the Metropolitan Theater and the National Library. Binondo Area Across the Pasig River from Intramuros is the Binondo area, home of Chinatown. The district is filled with all things Chinese from Peking duck and Buddhist temples to gold watches, snake soup, and wonder herbs.

The high chords of Chinese songs and the permeating smell of incense complete the uniquely Chinese ambiance. It is said that this quaint district was already a hub of Chinese commerce even before the Spaniards came in 1571. In particular, Ongpin offers a lot of variety: restaurants, pet shops, bakeries, grocery stores, jewelers, traditional medicine shops, acupuncture clinics, kung-fu schools, and mahjong parlors. Ongpin leads to Plaza Santa Cruz, which is where Rizal Avenue curves to meet the MacArthur Bridge. Escolta, now a shadow of its former self, leads off from here.

The plaza is dominated by Santa Cruz Church. Malacanang From Escolta, one can proceed to the San Miguel district, known for its Spanish-style houses and the Malacanang Palace, seat of the Philippine government. This ornate Spanish colonial palace, with its arches and balconies, was built as a private country house in the late 18th century and purchased by the government in 1825. At first the governor-general’s summer residence, it became his permanent residence in 1863, after the Palacio Real in Intramuros was destroyed by an earthquake.

In 1986, the palace museum was opened for the public. Visitors are advised to call first. The telephone number is 521-2307. The CCP Complex The Cultural Center of the Philippines (CCP) Complex is the arts center of the country. Located along Roxas Boulevard in Pasay City, this is the premier venue for ballet presentations, concerts, stage plays, performances, exhibits and trade fairs. Inaugurated in 1969, the CCP comprises a fine concert hall seating 2,000 plus an intimate 400-seat theater as well as a library, museum, art gallery, and an upscale restaurant.

The lobby is opulent, with marble floors, curving staircases, and glass and kapis-shell chandeliers. Also within the complex is the Coconut Palace, an architectural wonder made from the coconut tree mixed with other indigenous material. The Philippine International Convention Center (PICC), the Product Design and Development Center, the Folk Arts Theater, Philippine Center for International Trade and Exhibitions (PHILCITE), Westin Philippine Plaza Hotel and Manila Film Center are also found here.

Beside the CCP Complex is the World Trade Center, while fronting it is the Bangko Sentral ng Pilipinas (BSP) building. The BSP houses two museums: the Money Museum, which showcases excavated antique gold jewelry and the Metropolitan Museum, a repository of classic Filipino paintings and a host of rotating international art exhibitions. Roxas Boulevard is also lined up by de-luxe and standard hotels, lively nightclubs, and the Cuneta Sport Center, home of the Philippine Basketball Association (PBA). Parks and Zoos

From the CCP complex, one can proceed to Nayong Pilipino. This 32-acre theme park is also just a 10-minute drive from the Ninoy Aquino International Airport (NAIA). The park features scaled-down replicas of the country’s top tourist destinations such as Mayon Volcano, the Banaue Rice Terraces and the Chocolate Hills. A smaller park, which offers a venue for relaxation is also within close distance. The Paco Park, which was built as a cemetery in 1820, is now a frequent site of mini-concerts and musical performance by the country’s finest artists.

The park is surrounded by trees and plants, which are properly identified. Behind the park is the Paco Hong Giarn Taoist Temple. Nearby are the New Swiss Inn, with bar, restaurant, and delicatessen, and the Park Hotel, with lounge, restaurant, and swimming pool. Not far from the area is the Manila Zoo on Adriatico street. Manila Zoo, the country’s largest and oldest, hosts international and indigenous animal species such as the Tamaraw and Philippine crocodile. It is open everyday from 8 a. m. to 6 p. m.

The northern part of Metro Manila takes pride in maintaining two animal sanctuaries, Parks and Wildlife Nature Center and the Malabon Zoo. The former, located at the corner of Quezon Ave. and the Elliptical Road in Quezon City serves as the protection center for exotic animals confiscated from smugglers and illegal collectors. A stone’s throw away is the Quezon Memorial Circle, a park noted for its 30-meter-high monument of former President Manuel Quezon. Its underground chambers house the Quezon City Museum and Art Gallery.

The Malabon Zoo and Aquarium, located along Gov. Pascual Avenue in Potrero, Malabon also has a collection of interesting fish and animals. It is open everyday from 8 a. m. to 5:30 p. m. In Makati City, an air-conditioned zoo at the Glorietta mall is frequently visited by parents and their small children. The area also has a small playground. Commercial Districts South of Manila is Makati City, considered as the financial capital of the country. Along Ayala Avenue rise modern skyscrapers, which are home to multinational companies, foreign embassies and local banks.

The trendiest leisure spots – hotels, restaurants, bars, music lounges, fashion boutiques and department stores – converge around the sleek Ayala Center. Across EDSA is the posh subdivision of Forbes Park, home of the country’s rich and famous. One area that now competes with Makati in terms of its modern architectural landscape is the Ortigas Center between Mandaluyong City and Pasig City. Home to the Asian Development Bank (ADB), it is also the site of three of the country’s richest shopping malls – SM Megamall, Robinson’s Galleria, and Shangri-la EDSA Plaza.

Also within Ortigas is the striking leisure enclave, Saint Francis Square, with its fine restaurants and fashionable music lounges. Suburbs The town of San Juan, just next to Manila, boasts of its large mansions and modern houses. It is home to some of the richest Filipinos, including the present president. Quezon City is the site of many government installations, leading universities, and television stations. Marikina City, on the other hand, is considered as the shoe capital of the Philippines. It takes pride in having maintained a clean river, planked by greens.

Las Pinas City in the southern part of Metro Manila has retained much of its provincial appeal. Its main attraction, however, is the world-famous bamboo organ, found in the town’s picturesque Catholic church. The centuries-old musical instrument was constructed between 1792 and 1819. It has 174 bamboo pipes, 122 horizontal reeds of soft metal, a five-octave keyboard, and 22 stops arranged in vertical rows. The church is open daily except Sunday morning. Best Buys As a shopping haven, Metro Manila offers almost all kinds of products, from the most fashionable to the rarest items.

And they can be found almost anywhere, in the most luxurious department stores as well as in small bargain shops. Depending on the traveler’s budget, there is always a place where one can find the best buys. The giant shopping malls, SM, Robinson’s, Glorietta, Shangri-la, and Rustan’s, carry most of the well-known international labels. They also have stores, which sell the best of Filipino products. Unique souvenirs are being sold at Silahis in Intramuros, and SM Department Store, Makati Commercial Center and Landmark in Makati City.

The best place to search for Philippine handicrafts are “Ilalim ng Tulay Market” on Carlos Palanca Street, and the handicraft stalls at Nayong Pilipino. For antique collectors, the best spots to visit are Padre Paura, Ermita and Intramuros. Attractive buys are also available in the metro’s flea markets, such as Quiapo, Tutuban and Divisoria in Manila and Baclaran in Paranaque. Bargain-hunters will surely have a feast while picking from the widest collection of fabrics, RTWs, home furnishings, bags, shoes, watches, handicrafts, office supplies and other interesting items.

Road Construction

International Infrastructure Project Cost Estimating Work Breakdown Paul Hewitt, International Project Estimating Limited Introduction Construction Cost Estimating Work Breakdown Structure (WBS) The term WBS has become a common term in all fields related to Cost Engineering including Construction Cost Estimating, Scheduling and Project Cost Control. A well defined WBS is the backbone of good Construction Estimating Software and can take several forms including the breakdown of items within an estimate, the layout of groups within a schedule or the rollup of accounts within a cost report.

It usually starts with a client’s desire to breakdown a tender into definable pay items, followed by the project manager’s wish to schedule activities of work in a logically and efficient manner and the contract cost control engineer’s goal to track and forecast costs. In each case a properly organized WBS is required. The Phases of a Civil & Infrastructure Project The cycle of developing, designing, constructing and maintaining Civil & Infrastructure projects includes many phases and participants. The projects usually originate with a developer or government body who formulate a concept design and budget.

If the project is approved it then moves on to preliminary design and a more detailed budget is estimated. Depending on the financing options available, the project may go out as a traditional Detailed Design and Bid Build project or proposals may be solicited for Design Build or Design Build and Finance options. Participants within the Project Cycle The life of a major international infrastructure project can involve many participants and span across many years. These projects involve developers, government agencies, engineers, contractors, operators, environmentalists and community stake holders.

It is essential for the success of a project that all participants within the project cycle communicate and transfer data efficiently and consistently. Lack of a Standard Industry Wide Work Breakdown Structure (WBS) The dilemma that the international construction industry faces today is that there has been no common work breakdown upon which to communicate and transfer data between project participants. Traditional agencies like state and provincial highway authorities have all developed their own tender breakdowns, many of which that have been around long before the creation of electronic data transfer.

Construction estimators have tended to follow the layout of the bids as provided by the government agencies. The scheduler commonly ignores the estimate breakdown because it does not logically adapt well to the sequence of work activities. The cost control engineer has to rollup the project costs into a corporate chart of accounts that even creates more inconsistency. Current Standard Work Breakdown Structures Many standard project work breakdown structures have been created over the years.

The CSI (Construction Specifications Institute) format in North America and the SMM7 (Standard Method of Measurement) format in Great Britain are the most common and have been in existence for over 40 years. These originated as breakdowns for commercial building construction and quantity survey but both have evolved over the years to include other forms of construction. The State of California USA (DOT) Department of Transportation and the Province of Ontario Canada (MTO) Ministry of Transportation are examples of transportation government agencies whom have standardized tender breakdowns.

The CSI (Construction Specifications Institute), the most popular Work Breakdown in North America, recently introduced an expanded version of their MasterFormat ™ in 2004 [1]. This work breakdown was expanded from the tradition 16 divisions of work covering building construction to include 50 divisions of work covering civil site work as well as process equipment. A Proposed Standard for an International Infrastructure Project Work Breakdown None of the current breakdowns, including CSI, fully cover the complete civil infrastructure project cycle including; development, engineering, construction, operations, maintenance and risk mitigation.

The current CSI MasterFormat ™ 2004 Edition [1] comes closest to covering all the scope of work found in the construction of Building Facilities and Site Work. It falls short in addressing the unique requirements of estimators, schedulers and cost engineers in identifying all phases of work included in major Infrastructure work such as Build Own and Transfer (BOT) projects. This Standard Work Breakdown attempts to format the project into a multi-level WBS suited to estimate, schedule, track cost and measure performance on international infrastructure projects.

The breakdown is also designed to facilitate the data transfer of a standard work breakdown between common estimating, scheduling and cost control software applications. The International Infrastructure Project Work Breakdown Structure (WBS) The following paragraphs outline the various sub-projects and phases within the Civil Infrastructure WBS. The Sub-Projects within a Civil Infrastructure Project Life Cycle Traditional work breakdown structures in the past have only identified the Construction Divisions within a project.

This proposed work breakdown includes all phases within the life span of the project cycle, including Development, Engineering, Operations, Maintenance, Transfer and Risk. 1 Project Capital Cost 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 2. 1 2. 2 2. 3 2. 4 2. 5 3. 1 3. 2 3. 3 3. 4 3. 5 Overhead Construction Equipment Engineering & Design Capital Cost Escalation Capital Cost Risk Proposal Financial Close Development Overhead Development Escalation Development Risk Operations Maintenance Transfer O & M Escalation O&M Risk 2 Project Development 3

Operations & Maintenance Project Capital Cost The Project Capital Costs are normally the initial cost of the project, also referred to as the initial investment for the project. It is within this phase that the project is designed and built. Traditional work breakdowns have only included direct construction divisions. This WBS includes Site & Head Office Overheads, Construction Equipment as well as Rolling Stock and Engineering. 1. 1 Overhead 1. 1. 1 1. 1. 2 1. 1. 3 1. 1. 4 1. 2. 1 1. 2. 2 1. 2. 3 1. 3. 1 1. 3. 2 1. 3. 3 1. 4. 1 1. 4. 2 1. 4. Site Indirect Costs Head Office Overhead Unallocated Costs Bonding & Insurance Facilities Site Work Infrastructure Construction Equipment Operations Vehicles Transit Vehicles Site Investigation Engineering Design Resident Engineering 1. 2 Construction 1. 3 Equipment 1. 4 Engineering & Design Project Development With the advent of the Build Own procurement model the activities and costs associated with the financial development of the project also have to be accounted for and tracked. On major Civil Infrastructure projects, separate entities called “Concessionaires” have evolved to take on this responsibility.

The concessionaire is often a joint venture company comprised of the contractors involved with the project or can be a separate entity on their own. The activities performed by the concessionaire have to be defined within the work breakdown structure. These activities are split into 3 distinct phases; the Proposal Phase during which time the proposal and financial models are prepared, the Financial Close phase, where the concessionaire negotiates with banks and financial institutions to procure financing for the project and the Operations phase, where the concessionaire manages or oversees the operation of the facility.

On some international projects it may take several years to finalize all the legal agreements in order to get to financial close. 2. 1 Proposal 61. 10. 00 61. 20. 00 61. 30. 00 61. 40. 00 61. 50. 00 63. 10. 00 63. 10. 00 63. 10. 00 63. 10. 00 63. 10. 00 63. 10. 00 63. 10. 00 Proposal Preparation Financial Modeling Legal Due Diligence Financial Due Diligence Success Fees Management Salaries General Expenses Office Facilities Office Services Public Relations Travel & Subsistence Municipal Taxes 2. 2 Financial Close 2. 3

Concessionaire Overhead Operations and Maintenance In addition to building and owning infrastructure facilities the concessionaire (developer) is normally required to operate and maintain the facility over an extended period of time. The concession period can extend for 20 to 30 years. At the end of the period that facility is then transferred back to the municipality or government agency. The WBS must include the ability to estimate, schedule and track these operations & maintenance activities over the concession period.

The staff involved with operating infrastructure facilities can include Management, Supervisors, System Controllers, Fare Collectors and Vehicle Operators. Energy Consumption can include electric power consumption for transit vehicles and fuel for buses. Consumables include tickets. Maintenance can include such things as the cost of maintaining and cleaning buildings, repairing highway pavements, cutting and watering grass, replacing bridge bearings and maintaining ticket vending machines. Maintenance can also include the labor and parts required to operate transit vehicles over the concession period.

Transferring the facility back to the government includes demobilization costs such as cleanup costs, staff severance as well as audit fees required to transfer the assets. 3. 1 Operations 3. 1. 1 3. 1. 2 3. 1. 3 Staff Salaries Overhead Energy 3. 1. 4 3. 1. 5 3. 2 Maintenance 3. 2. 1 3. 2. 2 3. 2. 3 3. 2. 4 3. 2. 5 3. 3. 1 3. 3. 2 Consumables Insurance & Bonding Facility Maintenance Road & Site Work Maintenance Infrastructure Maintenance Rolling Stock Maintenance Service Vehicle Maintenance Demobilization Legal & Audit 3. 3 Transfer

The Construction Phase of Work Breakdown Structure The Construction phase of the Capital Cost portion of the project is still where most of the detailed scheduling and cost control tasks are required. Most current WBS layouts have addressed the direct construction costs in detail. The following paragraphs describe how current breakdown structures have been adapted and revised to form part of the proposed Civil Infrastructure WBS. Summary Levels within the Construction Cost Breakdown The cost of construction has been summarized into definable levels that can be estimated, scheduled and procured.

These sections are structured to help the estimator, scheduler or cost control engineer group the project into definable work packages. These work packages can also serve as subcontract procurement packages. The following table lists the main summary levels within the Construction Phase of an Infrastructure Project. 1. 2. 1 Facilities 1. 2. 1. 1 1. 2. 1. 2 1. 2. 2. 1 1. 2. 2. 2 1. 2. 2. 3 1. 2. 2. 4 1. 2. 2. 5 1. 2. 2. 6 1. 2. 2. 7 1. 2. 3. 1 1. 2. 3. 2 1. 2. 3. 3 1. 2. 3. 4 1. 2. 3. 5 1. 2. 3. 6 1. 2. 3. 7

Buildings Building Services Existing Conditions Earthwork Paving Landscaping Site Improvements Utilities Traffic Control Walls Bridges Tunnels Rail Airfield Marine Dams 1. 2. 2 Site Work 1. 2. 3 Infrastructure CSI MasterFormat ™ 2004 Divisions of Work It is under construction summary levels that the author has followed the basic divisions of work as defined by CSI MasterFormat ™ 2004 [1]. In the 2004 version, the term “Building” construction was replaced with “Facilities” construction. Building Services that used to be classified under division 15 for Mechanical and division 16 for Electrical were shifted to divisions 20 through 29.

New divisions were created covering Civil and Infrastructure from divisions 30 through 39. There are over 3,000 lines within this section of the WBS. We have included sample breakdowns of two of the main CSI divisions here for illustrative purposes. The Building divisions, that remained the same from the original CSI breakdown, and a new breakdown for the Earthworks level, included with the new CSI divisions for Site Work. 1. 2. 1. 1 Buildings 02. 00. 00 03. 00. 00 04. 00. 00 05. 00. 00 06. 00. 00 07. 00. 00 08. 00. 00 09. 00. 00 10. 00. 00 11. 00. 00 12. 00. 00 13. 00. 0 14. 00. 00 31. 21. 00 31. 22. 00 31. 23. 00 31. 24. 00 31. 25. 00 31. 26. 00 31. 27. 00 31. 28. 00 31. 33. 00 31. 38. 00 31. 39. 00 31. 40. 00 Building Site Work Building Concrete Masonry Metals Wood & Plastics Thermal & Moisture Protection Openings Finishes Specialties Permanent Equipment Furnishings Special Construction Conveying Systems Dewatering Grading Earth Earth Excavation Embankment Construction Erosion Control Sub-grade Preparation Structural Excavation Structural Backfill Rock Stabilization Soil Stabilization Rock Excavation Shoring 1. 2. 2. 2 Earthwork

New Infrastructure Items and Activities For Infrastructure work, where similar activities can be included in multiple items, the traditional CSI breakdown does not work for estimating and scheduling purposes. For example; if a Retaining Wall and a Bridge are to be constructed on the same project, they have to be estimated and scheduled separately, yet they both include similar CSI divisions of work such as excavation, setting and stripping formwork, and placing concrete. For this reason, the work breakdown structure must include different WBS codes for these similar activities in the various infrastructure summary levels.

The proposed Infrastructure Break down includes the following classifications: Walls, Bridges, Tunnels, Rail, Airfield, Marine, Dams The following table illustrates the different breakdown required for a Wall as opposed to a Bridge, although each are performing essentially the same activities. 1. 2. 3. 1. 2 Cast in Place Walls 03. 11. 01 03. 11. 02 03. 11. 03 03. 12. 01 03. 12. 02 03. 12. 03 03. 12. 04 03. 13. 01 03. 13. 03 03. 21. 01 03. 21. 02 03. 21. 03 03. 22. 01 03. 22. 02 03. 22. 03 03. 22. 05 03. 22. 06 03. 22. 07 03. 22. 08 03. 2. 09 03. 23. 01 03. 23. 02 03. 23. 03 03. 23. 04 03. 24. 04 03. 24. 05 Foundation Preparation Footing Excavation Wall Backfill Mud Slab Concrete Mass Concrete Footing Concrete Wall Concrete Reinforcing Steel Dowels Foundation Preparation Footing Excavation Abutment Backfill Mud Slab Concrete Mass Concrete Footing Concrete Substructure Concrete Deck Concrete Approach Slab Concrete Barrier Wall Concrete Concrete Slope Paving Reinforcing Steel Welded Wire Fabric Dowels Stressing Systems Pre-cast Concrete Girders Structural Grouting . 2. 3. 2. 1 Bridges Conclusion A comprehensive Work Breakdown Structure is essential for the proper communication of construction cost estimating and scheduling data between all participants in an International Infrastructure Project. The Work Breakdown must include all phases of the project life cycle, from conception, through development, engineering, construction, operations, maintenance and transfer.

In order to accomplish this task, the WBS must also be available in formats compatible with the common software applications used to manage these projects. References 1. MasterFormat ™ 2004 Edition Numbers & Titles Construction Specifications Institute (CSI) 99 Canal Center Plaza, Suite 300, Alexandria, VA USA 22314

Cross Cultural Management and Organizations Performance

Human Resource Management Study on “Cross Cultural Management And Organizational Performance” Group Members: Dhrumit Punmiya (101312)Manan Pamani (10132) Nikita Goyal (101330) Acknowledgement Index Introduction: The world has become an integrated place- a person driving a BMW to his office in Hyderabad wearing an Italian suit, a Swiss watch, working for a client in U. S. This is a common trend that is now observed across majority of the organizations.

Many multinational companies providing high quality products and services need dynamic workforce to manage the activities of the organization. So, people from different cultures, backgrounds, interests, behaviour and values as proposed by their culture interact with each other and form a part of the organization. This has resulted into many multi-cultural challenges faced by the international organizations at employee level. So, it results into the need for management of such diverse workforce in the organization which gives rise to the concept of Cross Cultural Management.

Cross Cultural Management refers to the management practice of managing the cultural differences between the different people of the organization in order to ensure smooth communication for achievement of the organizational objectives. There are many strategic alliances in today’s global economy of the world which gives rise to the need of establishing intercultural competencies to form strong working relationships with subordinates, business associates and clients. There is a need for individuals of different cultures and nationalities work together as a team and share their knowledge and do not entangle themselves with cultural isputes and differences. For this, there has to be a harmony between them as well as understanding of and respect for each other’s culture and values. The organizational performance could be enhanced greatly if the varied knowledge pool of resources from people with different backgrounds could be integrated effectively by managing the differences between them. Literature Review In an interview on Global HR issues by Martin Moehrle, working as a Chief Learning Officer, he found the major challenge is bringing about the cultural integration in a multinational organization.

Further, he elaborated on the importance of culture across a global organization and its implications on its performance. He said that behaviour in the organization is guided by a strong culture which attracts and retains talent that fits with the organizational culture and thus drives performance. According to him, it is important for the successful performance of the organization to turn the cultural diversity into a source of inspiration by added ideas, approaches and perspectives by managing it well so that it does not become a source of conflict as conflict,[] if constructively handled, does not pose a problem. ] according to a research on cross cultural management in China, …… Again, one of the important criteria for organizational performance is the choice of an appropriate mode of entry in different countries as a part of its strategic decision. So, the organization has to take into consideration the risk assosiated with the cultural difference between the host and the target country, thus emphasizing the importance of creatively managing this cross cultural issue. [] Research Gap and Questions

Though considerable amount of study has been done in the subject of Cross Cultural Management, but there is a still a need to understand the importance of linkage between effective cross cultural management and the organizational performance, as not much study has been done in this context. Also, there is a need to identify some techniques which can lead to a model that can be applied, with some variations if needed, to multinational organizations for enhancing their performance. Thus, in the wake of the above identified gap, we would like to examine the following research questions: 1.

Can effective Cross Cultural Management lead to better performance of an organization? 2. Can some specific set of measures be defined for effective cross cultural management? 3. What are the implications for the managers for formulating the strategies for the organization? Conclusions and Learnings: On the basis of the above study, we conclude that managers should understand the importance of effectively and creatively managing the issues arising due to the differences in the culture of the various stakeholders of the organization, especially the employees.

Inditex: Scm Strategy

I. The textile industry Inditex is a textile group, which owns the famous brand Zara. It has published its last figures testifying of its growing share value on the market. The group is leader in the European textile market and owns more than 4000 stores around the world and generates more than 85 000 jobs. Its headquarters are located in Arteixo in the North of Spain where most of the production is done. The group owns 8 brands: Zara, Bershka, Massimo Dutti, Pull & Bear, Stradivarius, Oysho, Zara Home and Uterque.

For each of these brands the group designs and produces most of the collections, and the clothes are shipped twice a week in the stores. One of the key factors of success of Zara is its adaptability to the market. Indeed the strategy developed by its creator Amancio Ortega wants the shelves to be renewed once every two weeks, that is why controlling the supply chain is very important for the group. 1. The unique context and characteristics of textile industry Textile industry is highly competitive. Competition has hardened with globalisation trend.

Thus, outsourcing became recurrent question in the eighties especially when it came to cost management issues. In addition to that, fashion industry has to come up with solutions regarding its own characteristics: oscillating and erratic demand, complex forecast process, fluctuating customer’s expectations, short lifecycle of items, complexity to manage portfolio. These are not impossible to handle, but fashion industry has to manage its own issues and monitor a flexible structure to be efficient, profitable and be able to respond to customers demand in a very short time.

Indeed what matters when it comes to supply chain management is to use all resources to satisfy customers’ demand: delivering in quantity, matching quality standards required by customers, reducing lead time between batches in stores, offering a reasonable price. Still the fashion industry is not different from others in a sense that it has to remain viable, able to compete and grow on the market. Thus, whoever wants to survive in the fashion market industry has to innovate, whether with product innovation or with strategic innovation processes. The textile industry embodies more than 70 producers. Therefore there is plenty of choice for companies willing to produce at a very low cost, which leads to an outsourcing trend, especially as such a production doesn’t need skilled workers. The textile industry is so competitive that it has been protected from the 1st January 1995 by what we call “the Agreement on Textiles and Clothing”. The ATC are quotas limiting importation in Europe, Canada and the United States on textile from the rest of the world. This agreement was abolished in 2005, and Europe started to fear the consequences of the rising importation of Chinese textile.

In addition to that China has entered WTO in 2001 and is currently issuing 30% of the European importation on textile products. At a worldwide level Inditex is leader on the market. To remain best in class manage to adapt to theses threats, producing not only in China, but also by selling on this growing market. Indeed the group has opened more than 20 Zara stores and 4 Massimo Dutti stores. 2. The textile industry affected by the crisis Spain remains the first market for Zara. Nevertheless Spain is currently hit by the crisis.

Indeed Spain economy has been decreasing for more than 2 years now and could predict difficulties for the company on its country market. In France activities forecast are not good either. The recession in the textile industry is happening in France as well. The sector forecasts show a decrease of 9% on the total volume of sales in the textile industry. This figure is mainly due to the massive movements of outsourcing to the low cost producing countries. Though, worldwide Zara and its main competitors as Gap and H to quote but them manage to back off.

They chose a low price segment and are already on growing markets such as China and India for instance. That is why Zara decided recently to create a joint venture with the Indian Giant Tata. Inditex has opened its first stores in India in the first quarter of 2010. These growing markets are indeed much less affected by the crisis than European countries. The Spanish fashion retailer has grown so fast it has become the largest fashion retailer in world. It has overtaken GAP, its main American competitor in the market. American customers seem to be more reluctant to Zara’s concept even if one can notice he notable decrease of Gap due to problems linked to the American market itself. Thus in the US, whereas on the old continent, market is highly concentrate. Entering and stay on the market is quite challenging. Another main point of the competition context in the textile industry is the fact that new ‘low cost’ competitors have arrived on the market such as Primark. In 2006, the brand has established in Spain, main market of Zara and in November 2008 its leaders announced store openings in Germany and in Netherlands. Primark was created in Dublin in 1969 and is producing in India.

The bran has already 200 stores. The turnover is growing on a regular basis of 4%, even during the crisis. Prices are much lower than what Zara or H&M can offer. So much so that customers do not consider the price as a decision maker. This could be considered a snag for Zara. 3. How come the specificities of the textile industry influence the strategy of Zara? When understanding its context and specific characteristics, but also considering cost and productivity risks, one can easily understand why monitoring the supply chain process is at stake for textile industry’s actors.

Indeed, the main issue is to coordinate each and every component of the chain, as well as enable a flexible response to customers’ demand. Quick response is a business strategy, which seems to match the constraints of fashion business in terms of flexibility, ability to supply, reactivity and inventory costs. Thanks to the implementation of information systems performance, the reduction of all kinds of waste throughout the chain, QR monitors the key success factor and conciliates complexity and effectiveness. To that extend QR is especially signi? ant for fashion industry supply chains with high demand volatility and short lifecycle products. Hence, QR enables to manage sourcing regarding the “fashion level” of each item family. QR can be seen as a strategy in which collaboration between actors of the chain is improved. It increases flexibility, monitors an accurate level of stock and brings transparency at a corporate level. Thanks to its supply chain unique model Zara has come up with innovative solutions to respond to customers’ demand. Having the control on the production process using integration of the suppliers Zara holds its major key factor of success.

The other key factor of success of Zara is its corporate commitment. In the hierarchy, each and every employee is directly improving the system. The top management is involved as a real entrepreneur and impulses this philosophy throughout the pyramid. For example in the stores, employees are responsible of the customers’ feedback directly to manufacturing and replenishment departments. This decisional structure creates a real commitment from the employees, who feels responsible for the well being of the company.

The supply chain functioning will be detailed in the following part of the report. II. Inditex: Competitive advantages through an efficient & unique Supply Chain Strategy in Textile 1. Inditex’s recipe of success: a. A “Best in Class” Lead Time: Inditex chose a strategy of owning capital-intensive manufacturing facilities in Spain. In fact, it is a vertically integrated group, with up-to-date equipment for fabric dyeing and processing, cutting and garment finishing. The integrated production strategy is one of the key factors of Inditex success.

Indeed, while the main goal of its competitors is pushing down production costs and outsourcing as much as possible, the Spanish group’s priority is time. Its model is based on the Just in time, and a production lead time of two weeks. That enables the company to adapt its offer to its customers in a very short time, to have a good quality thanks to its local production, and gives it its main factors of success which are flexibility, reactivity and rarity. Lead Time of the creation of…ZARACompetitors A new Product5 weeks6 months An existing Product2 weeks3 months . Small production batches: The responsiveness of Zara can be explained by its policy of under supplying its warehouses and stores, only producing small and limited batches of its products and renewing its collections very often. Not only that enables the group to cut the potential costs of storage but above all it creates a notion of rarity for the customers, and encourages them to maximize their visits to the store. For instance, Zara has seventeen visits of its customers per year while the average of the industry is of three or four visits per year.

Also, the company’s strategy and the limited models production enable the group to avoid the fashion “Faux Pas” compared to its pears. The average rate of “Faux Pas” in the industry is of 10% while Inditex is under 1%, which leads the group to clear less than 18% of its production while its competitors need to clear the double. c. Ownership and Control of Production & Distribution Zara follows a structure that is more closely controlled than most other retailers, and pays further by having the various business elements in close proximity to each other, around its headquarters in Spain.

Indeed, the responsiveness and flexibility of the Zara’s model are achievable thanks to the vertical integration of the production & distribution system. Brand products are manufactured up to 85% internally. Internal production focuses primarily on the most popular items sold and those incorporating a greater creative component. These lasts are the most exposed products and illustrate the image of the Group. The group’s distribution strategy is consistent with its production one. Both are based on a centralization strategy, in Spain area.

Once the production done, the products are despatched in close distribution centers, depending on their future destination. Below a map with the different logistics hubs: 2. A highly efficient Product Development & information flow a. Product development: Thanks to its flexible business model, Inditex is capable of designing any models that respond to customer desires. A team of 300 designers, all brands combined, is mobilized to create the group’s products. The group refers to “trend hunters” whose job is to identify the latest trends.

The share of Creation at ZARA is minimal since the concept of launching the brand is selling copies of high fashion models but at low prices. Its sources of inspiration are the fashion experts but also information collected daily from various points of sale. There is a significant interaction between designers and the retail stores of the group that collect and trace all the remarks, wishes and complaints of customers through a reporting system. Inditex then tries to offer superior range of products meeting the desires of its customers. b. An efficient Information Technology Integration:

Information and communication technologies are at the heart of Zara’s business. Four critical information-related areas give Zara its speed: -Collecting information on consumer needs: trend into information flows daily, and is fed into a database at head office. Designers check the database for these dispatches as well as daily sales numbers, using the information to create new lines and modify existing ones thus, designers have access to real-time information when deciding with the commercial team on the fabric, cut, and price points of a new garment . Standardization of product information different or incomplete specifications and varying product information availability typically add several weeks to a typical retailer’s product design and approval process, but Zara “warehouses” the product information with common definitions, allowing it to quickly and accurately prepare designs, with clear cut manufacturing instructions. Product information and inventory management enable to manage thousands of fabric and trim specifications, design specifications as well as their physical inventory, and gives Zara’s team the capability to design a garment with available stocks, rather than having to order and wait for the material to come in. -Distribution management: its State-of-the-art distribution facility functions with minimal human intervention. Optical reading devices sort out and distribute more than 60,000 items of clothing an hour. Zara’s merchandise does not waste time waiting for human sorting. 3. Keeping the costs down:

Advertising costs: Further, in terms of marketing costs, Zara relies more on having prime retail locations than on advertising for attracting customers to its stores. It spends only 0. 3 per cent of sales on advertising compared to an average of 3. 5 per cent of competitors according to the company, choosing highly visible locations for its stores renders advertising unnecessary. Low inventory costs: Apart from designing to the fashion-of-the-day, Zara’s strategy of producing low volumes per style and changing products quickly in its stores enables it to cut down on the discounts as well.

Only about 18 percent of Zara clothing doesn’t work with its customers and must be discounted. That’s half the industry average of 35 percent. Zara also has two clearly time- limited sales a year rather than constant markdowns. Furthermore, Zara has a true just-in-time system. Most JIT system (even Toyota’s) focus on manufacturing but Zara managed to master it: • From customer to design, production and fabric manufacturing • Customer’s pull not designer’s push drives the system This helps Zara to have an edge over most of its competitor’s strategy by having very low Inventory to Sales Ratio.

Mass customization: Zara has actually developed its structure in such a way that it supports the methodology of Mass Customization (an in between situation of Mass Production and Customization). This Mass Customization is a combination of Job Shop and Continuous Flow of Production System with high efficiency and low volume, a scenario rare to find in real world. Labor costs: Even while manufacturing in Europe, Zara manages to keep its costs down.

None of its assembly workshops are owned by the company. Most of the informal economy workers the workshops employ are mothers, grandmothers and teenage girls looking to add to their household incomes in the small towns and villages where they live. III. Inditex’s global expansion strategy As the ready-to-wear retail market is becoming more and more competitive, the best way for Inditex to maintain its sustainable growth is to seek new opportunities on the global apparel market.

In 2010 the Spanish apparel retailer opened 437 new stores in 45 countries and entered into three new markets (India, Kazakhstan and Bulgaria) bringing the Group’s store network in January 2011 to 5,044 establishments in 77 countries. The company is expanding its store network in all areas of the world. One of the Inditex’s challenges is the expansion on the Asian apparel market. Indeed the Growth of the Inditex Group’s retail presence in Asia in the next years is one of the cornerstones of its expansion strategy. 1. Target markets & expansion strategy a.

The expansion on the Asian market: After a very positive 32 percent growth in 2010, the global retailer has confirmed that he will target the emerging markets like China and India in order to maintain its growth. In total, around 500 Inditex outlets will open. Half of them will be Zara stores located in Asia. Sales by geographic area: Europe represents the largest share of Group sales, 45% in 2010. However we can also underline a significant increase in sales in Asia, which in 2010 accounted for 15% of total sales, vs. 12% the previous year. 20102009 Europe ex-Spain45%46%

Spain28%32% Asia15%12% America12%10% Indeed Asia saw one of the most rapid expansions in 2010. Openings there totalized 160, bringing the Group’s retail presence in Asia to 645 stores. In China, the Group opened 75 stores, expanding its stores map to 30 cities. It is expected to increase to 42 by January 2012, with all of its fashion brands represented there. The strong expansion in the country should also continue beyond 2012. Indeed Consumer spending is on the rise, their buying power is steadily growing and the Chinese Youth has an especially acute interest in fashion.

This expansion is also founded on the growth of the Group’s brands in the region. In addition to Zara, consumers in Asia can find Pull and Bear, Massimo Dutti, Bershka and Stradivarius stores. As regard to the Indian apparel market, Zara made its first appearance in 2010. It received an extraordinary welcome from customers. Zara’s arrival in India, the world’s second most populous country, with 1. 1 billion inhabitants, represents a new milestone in the Inditex Group’s expansion in Asia. For its expansion into India, Inditex has formed a joint venture with the Tata Group, one of the country’s top industrial conglomerates.

India’s economy has grown quickly in recent years, and the country has a large population of shoppers who are, like Chinese people, keen on fashion and up to date on international trends. The country has a dozen cities whose populations exceed three million people in each city, and the Indian market promises substantial growth potential for Zara’s fashion offering. Other launches are planned for 2011 in Delhi, Mumbai, Bangalore and other Indian cities. Retail markets in China and India are Inditex’s priority targets for expansion in Asia because when we combined them, these countries represent the world’s No. market by population. In addition to its focus on the Asian market Inditex is also targeting the American apparel market. b. The expansion on the American market Zara has had difficulties entering the American clothing market. This might have been a consequence due to the Americans tastes that differ from the European ones. Moreover Zara has failed to develop a strong supply chain strategy in the U. S. like they have in Europe. Their European strategy includes having a strong production and distribution facility in their home country in order to have short production and lead times.

Zara has not invested in distribution facilities in the Americas yet, which is a threat to their U. S. selling abilities since the U. S represent 29% of the total apparel market. This may make them subject to diseconomies of scale which means that though they are aware of how quickly supply 1000 stores; they may not be able to supply more retail location due to their centralized logistics model. However with changing consumer behaviors as a result of globalization, there are growth options available for specialty retailers like Inditex.

Inditex has the opportunity to be one of the trendiest and low prices retailers Group that America has recently seen. Zara should most likely develop a second central distribution center in the Americas to decrease logistics in order to deliver fashionable goods in a faster way. Their second central distribution facility should be an expansion of one of their smaller distribution centers located in Argentina, Brazil or Mexico. The close proximity of the distribution center to the American market would allow them to effectively understand the particular American fashion.

The distribution center would also allow them to have additional funds to spend in other areas of business such as advertisement: a necessary element to break through the American market. c. New market entries planned for 2011 : The company will also move into new markets such as Australia and South Africa this year, and is supposed to open stores in Sydney and Melbourne in April 2011. Australia is emerging as a popular target for international expansion. Indeed Inditex’s rivals are also looking to enter the market. Gap plans to open an Australian branch in 2011, while Forever 21 of the US has lso stated its intentions to enter Australia. Inditex will therefore find itself in closer competition with other international retailers as well as domestic players such as Witchery and Country Road. Retailers are attracted to the Australian market due to its similarities to the US and the UK markets, in terms of consumer tastes and the absence of language barriers. The clothing market in Australia is less developed than the US and the UK with a distinct lack of variety when it comes to fast fashion. Furthermore, the Australian clothing and footwear market is expected to grow.

It has been forecasted that the market would worth $18. 78m by 2013. These factors, combined with high levels of consumer awareness about Inditex brands create a strong business case for expansion in this country. South Africa, the other focus for Inditex’s expansion plans, has been by now relatively untouched by European retailers. However, companies are starting to see its potential and are attracted by its expected growth rates. The South African clothing and footwear market grew 8. 1% from 2004 to 2008. This growth is projected to continue until 2013.

Inditex will be able to gain insight into the market by looking at the performance of the few previous entrants, such as Monsoon Accessorize and Mango. Inditex’s rapid expansion has successfully allowed it to stay one of the world’s largest clothing and footwear retailers. But it still remains threat to Inditex’s expansion. Another market opportunity for Inditex is to invest in Internet retailing especially directed toward the U. S and Japanese market. 2. The development on the E-tailing Market : E-tailing refers to retailing over the Internet. Since 2000 online retail sales have been growing considerably.

However the online fashion shopping still constitutes a small part of the total online retail sales and doesn’t weigh a lot in the total revenue of the fashion sector yet. Indeed people are still reluctant to buy fashion goods because of the risk of purchasing unfitted items. Currently the most successful online channels are those which involve the purchase of “functional goods” such as travel and vacation packages or theatre and concert tickets. Despite the fact that the fashion online market doesn’t constitute today a huge market it is expected to boom in the future.

Inditex started selling Zara clothing online in late 2010. The giant Inditex didn’t see before 2010 the point to enter the online market as its revenues were steadily increasing each year. Now that the online market is experiencing a massive growth Zara couldn’t avoid anymore this potential high benefits market. The Spanish retail concept depends on the regular creation and rapid replenishment of small batches of new goods. Zara’s designers create approximately 20 000 new designs annually. Two new collections are launched each week in all its stores worldwide located.

Therefore the big issue for Inditex was being able to keep its offline fast fashion branding position and supply chain while implementing it to its online distribution channel. As said before, Zara’s online store went live in September 2010 and is now available to e-shoppers in 16 European countries. The other Inditex’s chains – Pull, Massimo Dutti, Bershka, Stradivarius, Oysho and Uterque – will begin online sales during the fall/winter 2011 campaign. Zara is also expected to expand Internet sales to the United States and Japan during the fall/winter 2011 season.

Americans like to be able to purchase all goods including apparel from the comfort from their own homes at any time they choose. That form of direct marketing could reach more consumers faster and easier. Though it may be difficult to display all of Zara’s fast fashions online, it might be to put online a limited quantity of trendy basic Zara pieces. 3. The global expansion of Inditex : the Threats a. Inditex’s direct competitors Inditex’s direct competitors may be its largest threat, especially when expanding into new geographic territory.

Almost any retailer can be a threat to Zara due to their wide range of merchandise categories. Zara offers clothing and accessories for men, women maternity, children and baby. Many other retailers also offer goods to one or all of these merchandise grouping. Gap is one of these competitors because it is also international and sells the same range of merchandise with a less trendy style. H is probably Zara’s most similar and threatening competitor. Gap has been able to internationalize its brand which allowed him to gain sales in areas outside its country of origin.

Also, H builds distribution centers in their international locations in order to cut down lead times and potential logistical costs. Another threat to Zara is that H carries trendy clothing choices that they have designs based on the mixing of international apparel tastes. In addition to that, H offers these styles at a cheaper rate than Zara. H also uses more advertising than Zara. Another threat to the Inditex expansion could paradoxically be its centralized logistic and its fast fashion model. b. The centralized logistic and fast fashion strategy

The centralized structure of Inditex constitute their core strategy: should they change it to better succeed in their global expansion? Indeed Zara’s strategy can also creates some weaknesses. Their vertical integration has admittedly more advantages than drawbacks but it is important to recognize its limitations. Vertical Integration often leads to the inability to acquire economies of scales, which means they cannot gain the advantages of producing large quantities of goods for a discounted rate. Higher costs are then incurred for the Inditex Corporation.

Inditex also has to support its own high capital investments for the chains. Zara’s speedy and recurrent introduction of new products generates increased costs as well. They have higher research and development costs. They have also elevated costs due to the constant exchange of production techniques to create their different clothing lines. That also means that employees must be trained in order to use the new manufacturing techniques, which again leads to increased costs. Traditional retailers do not experience higher costs in all of these areas. c. Cannibalization A final threat to Zara is the issue of cannibalization.

Zara’s extensive location strategy involves putting multiple Zara stores that carry the same merchandise in the same cities. That means Zara is trying to sell the same exact merchandise to the same people that reside in that city. For example, the 225 Zara stores in Spain can cannibalize sales from each other especially if multiples locations are within the same city. Also the other 544 Inditex stores located in Spain can cannibalize Zara’s sales since the majority of the chains have a similar target market to Zara. This is similar to the challenges faced by the Gap versus Old Navy: Gap’s sales were cannibalized by Old Navy’s lower prices.

In order to prevent Inditex from its cannibalization, it should offer specialized products for different geographic locations within the same city. Zara is to offer specialized products for different international preferences but more specialization will increase consumer demand and will motivate them to visit more Zara locations within their own region. In some cities the company is possibly experiencing cannibalization because there are too many Zara stores that carry the same product within one city. Zara could differentiate its products from location to location to increase shopper traffic.

This would work because shoppers would hear about different products that another Zara store is carrying across the city and they would be intrigued to pay a visit. That way sales wouldn’t be stolen from their own Zara stores, decreasing cannibalization for the chain. In conclusion, Inditex has the potential for sustainable growth due to its competitive advantages and its ability to face challenges of the apparel industry. Today many companies are looking to Inditex as the new industry standard for how to run a retail business, which shows that Inditex’s business model is becoming the wave of the future.

However the company must still continue to re-invent and innovate itself in order to stay fresh in the apparel industry. BIBLIOGRAPHY Article Zara is now bigger than Gap – By James Hall http://www. telegraph. co. uk/finance/newsbysector/retailandconsumer/2794912/Zara-is-now-bigger-than-Gap. htmll Academic article Supply chain management in the textile industry: a supplier selection model with the Analytical Hierarchy Process Book: Logistic concept for the future, chapter 9 QR in the textile-apparel industry – by Alexandre Boukria Legrand Web site http://www. inditex. com/en

Building a Hedge Fund in Australia with Exposure to the Chinese Economy

In 2010, China was Australia’s main trading partner for goods and services accounting for 19. 1% of total trades . This Sinodependance enables on average an Australian balanced superfund to have an exposure of 11% of its net assets to the Chinese economy mostly due to the impact of mining giants such as BHP and Rio Tinto (more than 10% of the All Ordinaries Index). The first part of this assignment tries to identify companies and selection rules in order to set up a fund (named Super China Exposure) that invests in Australian listed companies with exposure to the Chinese economy.

The second part gives details about weights of selected companies, then a pure-play strategy is established and finally the performance of this fund is discussed. portfolio selection Investment objective Exposure to the Chinese economy Super China Exposure is designed to invest in companies that have an exposure to the Chinese economy with an active management strategy. The Fund is limited to Australian companies which reduces two major risks: political and exchange risks (Super China Exposure currency is AUD since it is designed for the Australian market).

In order to minimise political risk and attract concerned investors about China’s political situation Super China Exposure invests in companies that do not have strategic subsidiaries in China (eg: BHP Billiton business in China is reduced to marketing and Mineral exploration ). According to this constraint, the fund aims at: minimizing the risk/return ratio of stocks with positive alphas beat its benchmark (ASX small cap- refer to Portfolio evaluation section) Security number and asset mix

In order to limit transaction costs and based on Meir Statman’s research, Super China Exposure fund invests in a moderate number of securities with exposure to the Chinese economy so that the risk/return ratio is minimized. This number is set at 15. Based on China’s 12th five-year plan release in March 2011 and analyst’s growth expectations Super China Exposure fund investment manager believes that Chinese growth will remain strong over the next years and share prices of Australian companies with exposure to the Chinese economy will continue to expand.

To benefit from this expansion Super China Exposure fund invests 100% of its assets in equity securities. Sector selection A pure-play strategy (discussed in part 3) allows hedging against markets movements so diversification does not play a significant role in Super China Exposure strategy. Table 1 (please refer to appendix) summarises Australia’s exports per sector in 2010. Goods represent around 90. 75% (AUD 58,402 million) of Australia’s total exports to China (AUD 64,356 million). In 2010, more than half of Australian exports to China are composed of Iron, ores and concentrate (AUD 34,681 millions).

Companies within this industry will definitely belong to Super China Exposure fund but the fund manager also takes into account other sectors relying on the Chinese economy that would allow some diversification. China might continue to experience a high growth over the next years, all companies within sectors in Table 3 (please refer to appendix) are considered such as other crude material mining companies (ie copper) or mineral and fuel companies (ie crude petroleum). Table 2 shows the importance of education-related sector to China being the third biggest sector.

For the time horizon 2011-2015, priority is though given to companies in table 3 (primary and manufactured product companies). The release of China’s 12th 5-year plan in March 2011 estimates a 7% GDP growth that might largely involve Australian companies in the development of transportations, urbanization or construction and renovation of 36 million apartments for low-income families. Service companies might be included in the future as their proportion of exports to China increases. Security selection

As at 14 July 2011, 2321 companies were listed on the ASX and 994 belong to the Material and Energy sectors . Each of them can have a high exposure to the Chinese economy so security selection is not only based on sector analysis and includes: First : the “Size effect” In the late 80’s Fama and French found that even after adjusting for risk, small firms could deliver “abnormal returns “which became known as the size effect. In Australia Chee Seng Cheong Fin and Justin Steiner (winter 2007) study revealed a strong “size effect” on listed companies from 1991 to 2006.

Second: a Fundamental analysis As requested by its main constraint Super China exposure selected companies shall have an exposure to the Chinese economy. The assessment of the growth perspective and percentage of profit coming from China is part of the selection process. Super China exposure investment manager also bases her choice on the assessment of the companies’ management such as the debt level, cost management, return on investment. To lower the risk, she finally selects liquid assets that have a “trading history” on the ASX (ie: more than a year). Portfolio weight

Size effect 100% of portfolio weight relies on companies whose profit is coming from China with a small to medium market capitalization. Fundamental analysis The Australian market is composed of a few very big companies and many very small companies. Since Super China Exposure fund seeks to take advantage of the size effect it does not make sense to invest within companies as a percentage of their market capitalisation. As Siegel pointed out in the Wall Street Journal in 2006”prices of securities are not always the best estimates of the true underlying value of the firm”.

He suggests that “fundamental indexation is a simple way to capture these mispricing”. This strategy perfectly suits Super China Exposure Fund since: it is an alternative to market capitalisation weighting. Weights are decided based on fundamental metrics such as aggregate profit from China. it allows the fund to capture positive alphas: buy undervalued shares sell them when price increases. Market capitalization weighting tends to overweight overvalued stocks Based on this analysis, the portfolio is rebalanced on a regular basis which incurs transaction costs.

Pure Play Based on weights and stock selection, Super China exposure fund buy undervalued securities so the alpha of the fund is positive. However it invests in Australian securities and its sensitivity to the Australian market is positive. To hedge against factors other than the Chinese economy that affect Australian equities, the fund sets up a pure play strategy. Systematic risk of the portfolio can be hedged by selling future ASX SPI 200TM contracts. The number of contracts is defined as below:

C= (number if shares*value of each share)/(ASX future position*beta of the fund) Portfolio performance The performance of Super China Exposure fund can be compared to an appropriate Benchmark that will assess the fund manager’s ability to identify positive alphas within small- mid cap stocks with exposure to the Chinese economy. The ASX small ordinaries might be an appropriate benchmark since: It emphasises the size effect (Mining Giants such as BHP or Rio Tinto or other major companies are not included in the index)

Nearly 50% of companies within ASX small ordinaries belong to Material and energy sector. ? Appendix Source of charts and tables: Australian government, department of Foreign Affairs and Trade (2010), composition of Trade report. Chart 1Chart 2 Table 1 Table 2 Table 3 Australia’s trade of goods with China Table 4 Australia’s trade of services with China ? References Australian government, department of Foreign Affairs and Trade (2010), composition of Trade report, from http://www. dfat. gov. au/publications/stats-pubs/composition_trade. tml The Economist online (28 October 2010), Sinodependency [Electronic version], The Economist, from http://www. economist. com/blogs/dailychart/2010/10/dependence_china James Dunn (21 april 2010), How to tame your portfolio Dragon [Electronic version],The Australian, from http://www. theaustralian. com. au/business/wealth/how-to-tame-your-portfolio-dragon-china/story-e6frgac6-1225854673743 BHP Billiton (2011), http://www. bhpbilliton. com/home/businesses/Pages/GlobalOperationsMap. aspx Deng Shasha, (5 March 2011), Key targets of China’s 12th five-year plan, English. ews. cn, from http://news. xinhuanet. com/english2010/china/2011-03/05/c_13762230. htm Australian Stock exchange (2011), http://www. asx. com. au/asx/research/listedCompanies. do Fin, Chee Seng Cheong and Steinert, justin (Winter 20007), The size effect: Australian Evidence, JASSA, 9-11 Siegel, J. (14 june 2006), The Noisy Market Hypothesis, Wall Street Journal, p. A. 14 Siegel, M. (1 june 2011), Australia’s Mining Boom Is Pied Piper for Workers, The International Herald Tribune retrieved from http://www. nytimes. com/2011/06/01/business/global/01ozecon. html

Centra Software

Eureka Centra Software Catalogue ? ? ? BACKGROUND ANALYSIS ALTERNATIVE PLANS ? COMMENTS ? PLAN IMPLEMENTATION ? Background Centra is a pioneer in software eLearning in the fast-growth market. However it faces the threat from WebEx, who sells exclusively over the phone. Now, It is debating how to modify its go-to-market strategy and how to add telesales to improve sales force productivity. Should Centra concentrate on the enterprise customer and exclude small and mid-size corporations ? OR Should Centra ‘fish where the fish are biting’ ? ANALYSIS The market for Corporate eLearning and eMeeting the market for eLearning and eMeeting 11 12 10 8 6 4 2 0 1. 1 1999? 2004? The number of Delivery Platforms Vendors the number of Delivery platforms vendors The one that wins the broadest installed customer base in the least time, 20 20 15 10 5 0 3 survive! ANALYSIS (Continued) Competitors The competition among 20 vendors is very fierce. Comparison between three typical companies is as follows. revenue($’000) sales spending 25000 51000 revenue per customer($’000) technology sales process ustomers simple telesales 3300 7. 58 WebEx field sales, telesales and enterprise sales sophisticated 23000 4673 440 52. 27 Centra enterprise sales; single-source vendors sophisticated 2200 20 110. 00 Lotus Not available ANALYSIS (Continued) technology Positioning sophisticated simple revenue per customer ANALYSIS (Continued) Straightforward strategy Market leader in sophisticated end Products from simple to sophisticated R&D capability Rapid growth markets Merger waves The friction between telesales and field sales Bad financial situation

Penetration rather than dissemination Limited experience in enterprise deal Success of new competitor, WebEx Compared with LMS vendors, lack the support from SIs. ? Alternative Plans A Target customers: All types of customers Part of telesales integrated with field sales being responsible for Global 2000;other telesales responsible for non-Global 2000 customers. B Target customers: Global 2000 Telesales responsible for EMeeting and Conference; Field sales responsible for Symposium. C Target customers: Global 2000 Telesales commence Initial contact and try to sell big-ticket products.

They would deliver the transaction to field sales when necessary. ? Comment on Plan A Advantages: • Economical efficiency; • Clear classification of responsibilities; • Expansion of telesales to Global 2000 brings better penetration and dissemination. million $ 30 25 20 15 10 5 0 1996 Disadvantages: • Decentralization of target market; • Reduced chance to become a leader in a particular market segment. “Shot gun” Sales force are used like Sales SG&A expense 1998 2000 a shot gun to cover over a large spectrum of customers. Sales may be satisfactory but leadership of any market segment may be lost thereof.

Reducing this cost item is vital for financial improvement of the company. For every million dollar of sales, telesales saves $100,000 compared with field sales. So telesales is a possible solution to this problem. Comment on Plan B Advantages: • Concentration on one single market segment; • Economic efficiency; • Clear classification of responsibilities. Disadvantages: • Potential conflicts of interest between telesales and field sales personnel; • Possible loss of business opportunities. “Automatic pistol” 2% Revenue from products 17% 66% 15% Symposium Conference EMeeting Other services

Although faced with some loss of small and mid-sized midcustomers, all the sales force can cooperate to help the company achieve the leadership in the mainstream market segment. Telesales people may try to sell EMeeting to customers instead of more profitable Symposium or Conference in the best interest of themselves. It is also a hidden trouble of invasion by competitors when customers ask for multi-functional products. multi- Comment on Plan C Advantages: • Elimination of harmful competition between telesales and field sales; • Market focusing as Plan B; • Both sales teams focus on promotion of big-ticket products.

Disadvantages: • Unpredictable obstacles in the combination of telesales and field sales. 12% 12% Performance Evaluation Field Sales Enterprise Sales Telesales 76% Predicted Revenue Structure in 2001 The diagram above implies that large corporations on which field sales focus are the most significant source of revenue. As a result, the company should pay more attention to this group of customers. Fluent process In sales process Prioritization of Sales of profitable products Choice of plans In 2001 the eLearning and eMeeting Industries were in their infancy. Most corporations are potential customers.

Mutual reference among customers are key to successful high-tech highMarketing. 45. 5% of the company’s customers company’ are Global 2000 with great purchase power while others are not. The critical issue of Centra is to cross the chasm between Early Adopters (Visionaries) and Early (Visionaries) Majority (Pragmatists). Conclusions Marketing is to work the curse above from left to right, winning each Group using “captured” captured” group as reference for the next. Target on Global Target on Global 2000; 2000; Prioritization Prioritization of the big-ticket of the big-ticket

Choice of plans (Continued) Comparison •Visionaries (Early Adopters) treat high-tech products as short-cuts to their business objective and it is easy to sell to them; •However, the market share of them is not large enough. Visionary divisions and enterprises are what we call Early Adopters here. •Pragmatists (Early Majority) value reference from other users of the product and they only choose the market leader to be the provider; •They account for the largest present market share because of their loyalty to the product brand and great purchasing power.

Other divisions and enterprises beyond Early adopters are Early Majority. Majority. Centra should utilize existing reputation in Visionaries to attract Early Majority Choice of plans (Continued) Market oriented Sales oriented Focusing on one market segment lead Centra towards market leader in this segment Sales promotion in all segments may create rapid growth of sales Plan C is the be st Resistance “We can’t afford to focus can’ on only one market Segment. Let’s fish where Let’ the fish are biting! ” biting! ” Sales to all customers Leadership in one segment

Leadership in entire market ? PLAN IMPLEMENTATION Strategy 1 Set the industry standard Be the industry standard for eLearning 2 Capture a dominant position with Global 2000 Target market: Global 2000 Primary product: High-end product Tactics: Dissemination Pricing: a free support contract that covered bug fixes and upgrades to maintain customers loyalty Short Term 3 Harmonize the Telesales with Field Sales Take full advantage of telesales Long Term 4 Be a single-source vendor in the future Integrate the business and the customer resources of LMS PLAN IMPLEMENTATION The Goal: 1.

Broaden market coverage 2. Close sales with lowest cost Confliction of internal sales force Telesales and Field sales: Harmony and Complementary Duties of Telesales Customers Means The target companies are mainly Global 2000. A transaction is encouraged to made solely by Telesales. Products Partners Besides the eMeeting Product, telesales are expected to sell Symposium and Conference as well, further, they are encouraged to sell the highend products, which attribute more commission rewards. Take advantage of Telesales Collaborate with Field sales, in order to close a deal. ontinued Duties of Field sales Customer Means The target customers are made up of Global 2000 companies. Sellers operate the business, manage the sales cycle and negotiate with the top-tier of the target companies. Products Partners High-end Products, like Symposium and Conference, are the main products Field sale should launch. Take advantage of Field sales Telesales and Alliance Partners Constitute an ‘ecosystem’ of partners Duties of Alliance Partners Maximize revenues from enterprise level Infrastructure Partners System Integrator Partners LMS Vendor Partners

Sales process Customers TELESALES FIELD SALES TELEPHONE EARLY ADOPTERS MAJORITY EMAIL FAX One department Departments in the same company En te rp r Le ve ise l CLOSE SALES SALE PROCESS T e le s a le s C lo s e s a le Yes A llia n c e P a rn te rs S y m p o s iu m q u o te Yes D ire c t S a le No No C lo s e s a le Yes E n te rp ris e S trik e F o rc e No No F ie ld S a le s C o n fe re n c e q u o te Yes D ire c t S a le No C lo s e s a le Yes e M e e tin g q u o te Yes D ire c t S a le C lie n t d is s e m in a tio n End Performance Evaluation Target: a. ncourage high-end products sales like Symposium b. support dissemination strategy c. benefit staff with differential commission Practice: The Sales Strategy follows the essence of penetration and dissemination. The majority of first sales happen in a division of a company, then the sales are encouragement to make the transaction to other divisions of the same company, aiming to accomplish the sale on an ENTERPRISE BASIS finally. In accord with the strategy, the commission is added in the process of dissemination. Sales to ONE department of a company

THE OTHER departments Of the company Sales on an ENRERPRISE BASIS Performance Evaluation (Continued) Telesales Field Sale First sale 1% commission First sale Second sale 1. 5% commission Second sale Continuous sale 0. 5% commission added forward Continuous sale C e n tr a O r g a n iz a tio n C EO P r e s id e n t, C O O V P , S tr a te g ic A llia n c e s C TO V P , C o r p o r a te M a r k e tin g V P , E u rop e, M id d le E a s t a n d A fr ic a V P , B u s in e s s D e v e lo p m e n t V P , e B u s in e s s O p e r a tio n s R e g io n a l M a n a g e r , S o u th e r n U S

S V P , P r o fe s s io n a l S e r v ic e V P , W o r ld w id e S a le s D ir e c to r , D e v e lo p m e n t R e g io n a l M a n a g e r , E a ster n U S R e g io n a l M a n a g e r , W e ster n U S V P , C o r p o r a te S tr a te g y M anager, T e le s a le s , T e le m a r k e tin g D ir e c to r , A s ia P a c ific C FO Income Statement Based on the plan we adopt, there is a remarkable improvement in Centra’s income statement, showed as follows 2000 Total Sales Cost of goods sold SG&A expense R&D Other operating expense Net Income before tax & Interest 23. 0 3. 70 27. 50 8. 50 0. 90 2001E 50. 00 8. 00 44. 40 11. 40 1. 16 2002E 79. 00 12. 51 60. 04 14. 30 1. 49 2003E 124. 82 19. 64 93. 62 17. 20 1. 91 Explanations: The revenue refers to the anticipation of management whereas the continuous 2 years follows the expansion rate of the entire market. In accordance with past 5 years’ total expenses, sales expenses are reduced given the adoption of Telesales. (17. 60) (14. 95) (9. 34) (7. 55) Eureka Eureka ???? ??? ? ? ? ? ? ? ??? 07???? ??? 04???? ??? 07???? ??? 07????

Kenneth Slessor

Poem 1: Beach burial Kenneth Slessor wrote the poem Beach Burial whilst he completed his occupation as the official Australian Correspondent in the Middle East. Due to Slessors observations of the war at close quarters he soon learnt about the horrific horrors of war. During Slessor’s stay in El Alamein a small village found on the Egypt Mediterranean coast he wrote the poem to describe the realities of war and what realistically happens after heroes are killed.

Kenneth Slessor has used imagery and various poetic techniques to establish his purpose to the audience in his poem Beach Burial. Slessor has successfully conveyed his purpose to create a high depth of sympathy and pity for the soldiers who have washed up to the shore after being killed in action or died during the voyage at sea. the poem beach burial is not a typical war poem; there are no celebrations of heroics or patriotic notions.

It’s a somber recount slash tribute to soldiers of all nations whether friend or foe who where all united by the common enemy war and death. the poem reflects upon the loss of identity as the soldiers became part of a machine. Which relates to all Australians as at this time in history everyone was affected by the loss of lives fighting for what Slessor though an unnecessary occurrence, which is demonstrated in the poem.

The language used in the poem explores a soft tone of onomatopoeic sounds such as HUMBLY SWAYS SOFTLY lulling us into a false sense of calm as the poem continues and uses harsher strident tones such as CHOKE GHOSTLY BEWILDERED PITY to further illuminate the emotional impact the poem carries. Slessor uses Rhyme to create an intense emotional reaction from the audience through the use of the rhyming pattern ABCB as it creates a sense of flow for the audience.

Slessors use of half rhyme creates standstills in the poem where the audience are forced to stop and reflect on the realities of war and realize how many men are forgotten after they have served their time and fought humbly for their countries. The line “ wavers and fades, the purple drips the breath of the wet season washed their inscriptions as blue as drowned men’s lips” describes the way the men are forgotten after death. Slessor really tries to make the audience recognise.

Cell Phone Addiction

When you get in your car, you reach for it. When you’re at work, you take a break to have a moment alone with it. When you get into an elevator, you fondle it. Cigarettes? Cup of coffee? Nope, it’s the third most addictive substance in modern life, the cell phone. And experts say it is becoming more difficult for many people to curb their longing to hug it more tightly than most of their personal relationships. It may not come as a big surprise to everyone, but teenagers currently make up the majority of the world’s cell phone users.

And while their continued growth may not be surprising, some of the statistics might shock you. While roughly 71% of North American teens own a cell phone, about 96% of 16-17 year old students in Japan also own their own cell phones. If you ask some parents, they believe their teenaged offspring could very well be addicted to their phones. Some have noticed changes in the child’s behavior. They’ve seen their child become paranoid whenever they would miss a call or text message.

They’ve watched their sons and daughters show signs of depression and apprehensiveness when they are unable to locate their phone. Many teenagers encounter additional problems at their school, at their work, or at home. Excessive cell phone usage can lead to addiction, especially in teens, as well as time wasted on compulsive communication with peers via text messages and phone calls. Talking or sending SMS text messages on a cell phone while driving is proven to be as dangerous as driving under the influence of alcohol.

A study by the American Academy of Sleep Medicine found that excessive use of cell phones causes teens and young adults to experience restlessness, difficulty falling and staying asleep, and increased susceptibility to stress and fatigue. Cell phone usage is expensive and can hinder one’s socioeconomic progression, causing elevated stress levels. Improper disposal of cell phones and their batteries can release harmful, non-biodegradable chemicals into the environment.

Role of Youth

Role of youth in Transforming India ‘Youth is like a fire It crept forward. A Spark at first Growing into a flame The brightening into a Blaze’. Introduction: Martin Luther has said, “I have a Dream” and the dream come largely true. If he had not thought of that dream he would have accomplished nothing in his life. To climb high one has to think of climbing the Everest. One may not go higher than 10000 feet but even that will not be attained if you have no better dreams of going up to the top floor of your office in a life.

Youth is the spring of Life. It is the age of discovery and dreams. When they dream they dream not only for the good future of themselves but also for the good future for nation and entire humanity. Their dreams take them to stars and galaxies to the far corners of the unknown and some of them like our own Kalpana Chawla pursue their dream, till they realize it and die for it in process. We have saniya nehwal who is one of the top competitors in tennis. Then is our very own boxing champion- vijendra singh who won the prestigious medal in Olympics. e have many others like them. India is having the largest youth population in the world today. Role of Youth A. The youth can play a vital role in the implementation of elimination of terrorism. If the energy, intelligence and resources of youth are fully and properly utilized the country will prosper. B. The youth will have to compete with sporting spirit. Just look at the spirit of Internationalism that today prevails in the cricketing world. With the start of any cricket tournament, no matters which team wins, Cricket wins, Youthfulness will won.

The spirit of oneness will win. C. Young people are full of vibrant ideas. When properly motivated and sufficiently guided they want in their life. D. Young people have energy to try out things and the patience to learn from mistakes. Giving them opportunities to plan, to decide and to work prepares them to face harsher realities in life. E. Young participation is important because youth are the country’s power. Youth recognize problems and can solve them. Youth are strong forces in social movements. They educate children about their rights.

They help other young people attain a higher level of Intellectual ability and to become qualified adults In recent times Terrorism has emerged as one of the gravest threat to peace and democratic policy. Youth are drawn between acts of terrorism. In some cases it is not the terrorism, but a freedom struggle. This is how our neighbors are trying to justify its policy of cross border terrorism in Jammu and Kashmir. Youth organizations should carry out an awareness campaign to expose justification or condoning of terrorism anywhere and under whatever pretext.

Its time The youth, the students have to realize their power , their role, their duties and their responsibility and stand up for their rights. Now its time that instead of brain drain we should act like magnets and attract world to India. The Youth of a Nation are the trustees of posterity. -benjamin Disraeli Role Of Youth In Peace Mahatma Gandhi used the term “Satyagraha” to refer to a kind of active but absolutely non-violent resistance to oppression. In his words: “Truth (satya) implies love, and firmness (agraha) engenders and therefore serves as a synonym for force.

I thus began to call the Indian movement Satyagraha, that is to say, the Force which is born of Truth and Love or non-violence, and gave up the use of the phrase “passive resistance”, in connection with it, so much so that even in English writing we often avoided it and used instead the word “satyagraha”… [Satyagraha in South Africa, 1926 from Johnson, p. 73. , (found on Wikipedia, Satyagraha)] The nine rules of a satyagraha campaign are: 1. harbour no anger 2. suffer the anger of the opponent 3. never retaliate toassaults or punishment; but do not submit, out of fear f punishment or assault, to an order given in anger 4. voluntarily submit to arrest or confiscation of your own property 5. if you are a trustee of property, defend that property (non-violently) from confiscation with your life 6. do not curse or swear 7. do not insult the opponent 8. neither salute nor insult the flag of your opponent or your opponent’s leaders 9. if anyone attemp to insult or assault your opponent, defend your opponent (non-violently) with your life ROLE OF YOUTH IN POLITICS Politics is science to manage the country or state.

Youth is young blood of nation and active worker of nation. So, it is very necessary and demand of nation that he must take all the responsibility for managing whole country. Without entering in politics, he can not do any welfare activity at large scale because, after getting fund he can do any thing but who will give to him. But, If youth joins politics and make his own Govt. with help of democratic voting system. He can become prime minister of country after this he can make the India as the dream land of Swami Vivekananda.

Where there is no corruption, where there is no violence, where there is no black marketing, where there is no cheating, fraud or scam. But where there is only love, where there is only honesty, where there is only co-operation and co-ordination. So, Youth should join politics for improving our nation in all aspects…. Conclusion India can become a developed nation only if everyone contributes to the best of his or her capacity and ability. Youth is wholly experimental and with the full utilization of the talents of the Youth, India will become a complete Nation. Let us hope for the same


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