Riordan Compliance Plan Law 531 Final

Corporate Compliance Plan for Riordan Manufacturing University of Phoenix Riordan Manufacturing is a profitable plastics manufacturer with annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 company with revenues over $1 billion. The following are some of the products produced by Riordan Industries: plastic bottles, fans, heart valves, medial stents, and custom plastic parts (Virtual Organization, 2009). This compliance plan will state the company’s legal responsibilities and regulations necessary to continue earning a profit.

The plan will address the laws affecting the plastic industry and guidelines to ensure management and employees understand and obey the laws. The focus of the compliance plan will be on managing the legal liabilities of Riordan officers and directors. Riordan Manufacturing was started and founded by Dr. Riordan, a professor of chemistry. The company focused on research and development of plastic substrates. In 1992 the company purchased a fan manufacturing plant in Pontiac, Michigan. In the year 2000, the fan operation was moved to China. The corporate headquarters that include research and development is located in San Jose, California.

Plastic beverage containers are produced in Albany, Georgia and custom plastic parts are produced in Pontiac, Michigan (Virtual Organization, 2009). The compliance plan will include an Alternative Dispute Resolution (ADR) to resolve a dispute, product liability to address risks against defective product claims, international laws regarding the plant in China, tangible and intellectual property laws, laws regarding the corporate form of business and protection to the interests of public and private investors through a Corporate Governance Plan. Alternative Dispute Resolution (ADR)

The definition of an alternative dispute resolution (ADR) according to the book Business: Its Legal Ethical and Global Environment written by Marianne Moody Jennings is, “Alternative dispute resolution (ADR) offers parties alternative means of resolving their differences outside actual courtroom litigation and the costly aspects of preparation for it. ADRs range from very informal options, such as a negotiated settlement between the CEOs of companies, to the formal, written processes of the American Arbitration Association. These processes may be used along with litigation or in lieu of litigation (Jennings, 2006). There are two major disadvantages of solving problems through litigation, it is very expensive, and it can take years before a decision is reached. The most popular ADR method is arbitration, other methods include mediation, mediation arbitration, mini-trial, rent-a-judge, summary jury trials, early neutral evaluation, and peer review (Jennings, 2006). Riordan’s mission statement states the company will maintain an innovative working environment. Employees will be well informed and properly supported. Furthermore, the company will provide a climate focused on keeping employees long term (Virtual Organization, 2009).

The Peer Review process will be used to resolve disputes between the company and employees. When an employer-employee dispute arises, a panel of three people will resolve the problem. The panel consists of fellow employees, one chosen by management, one chosen by the employee, and one chosen randomly. The panel will interview, review documents, and make the final decision which can include a monetary award of damages. Peer Review is a new process that has beenvery successful. Only 10% of peered reviewed cases proceed to litigation, saving the company time and money (Jennings, 2006).

Riordan’s mission statement states they will provide solutions for their customers and not be part of their customers challenges. Riordan will strive for long-term relationships with customers (Virtual Organizations, 2009). For external disputes the mediation process will be used. Mediation is a process where both parties meet with a neutral person who listens to both sides. The neutral person does not issue a decision, they help the parties find an agreeable solution. According to the National Law Journal, 88% of lawyers prefer mediation as a way of resolving disputes.

Mediation is a popular process to resolve conflicts between businesses (Jennings, 2006). Enterprise and product liability Riordan Industries wholly owns Riordan Manufacturing. Because of enterprise liability, when Riordan Manufacturing does not comply with laws and regulations,both Riordan Manufacturing and Riordan Industries are liable. Riordan Industries must ensure that Riordan Manufacturing does not create corporate liability for itself. Enterprise liability is mainly concerned with criminal acts, thus the compliance plan must address criminal law.

The best way to limit the liability to Riordan Industries is to have a panel of managers between the two companies evaluate the risks of Riordan Manufacturing committing criminal acts. The panel should evaluate each step of the manufacturing process to verify compliance to laws, regulations, and criminal acts. An example of criminal activity would be illegal dumping of hazardous waste. The panel should also evaluate work performed by subcontractor’s. All subcontractors contracts will be evaluated by the panel. Subcontractor’s will be evaluated for possible risks and any past criminal infractions.

Federal law states subcontractors are to be monitored by the prime contractor. Understanding the possible criminal risks of subcontractors is vital to the continued success of Riordan Industries. The panel will provide a report each month to the Board of Directors of Riordan Industries regarding their activities and findings. Riordan Manufacturing produces plastic bottles that are used by many consumers. These products could cause harm or injury to consumers. Under section 402A of the Restatement of Torts, Riordan Manufacturing is liable for damages to the consumer (Jennings, 2006).

The compliance plan will address the possible ways of limiting product liability. Riordan Manufacturing will have an in house product test department. The department will test each new product under different conditions. The tests will include both normal, and misuse of the product. For each problem, or finding, the department will provide an action plan to resolve the problem. The department will also send the new products to an independent outside test laboratory for evaluation. The department will provide an action plan for any issues found by the independent lab.

Once a year, the department will complete tests on all products and provide an action plan for any found deficiencies. The department will furthermore provide directions and warnings on the product. The directions and warnings must be accurate and complete to legally protect the company. International Law Tangible and Intellectual Property Riordan Manufacturing has a strong balance sheet because of their physical assets. The company’s physical assets include equipment, inventory and buildings. The physical assets need to be safeguarded and protected.

The corporate compliance plan dictates the company keeps a current inventory of all assets. The inventory will include the purchase price less depreciation, proof of ownership, location of asset, warranties and service agreements. All assets will be insured for current market value. All new assets will be added to the inventory list. Each month the assets will be visually inspected. Each year the insurance on the assets will be evaluated. Intellectual property is defined as creations of the mind such as inventions, literary and artistic works, and symbols, names, images, and designs used in commerce (Jennings, 2006).

Riordan Manufacturing intellectual property includes trademarks, trade secrets, patents, software, and copyrights. Patents should be secured for the following products produced by Riordan Manufacturing: plastic bottles, fans, heart valves, automotive parts, and custom plastic parts. All patents and trademarks will be examined monthly to verify they are current and up to date. To protect new products, employees in the design department will sign disclosure statements not to release information to other companies. Rick Ethridge is Riordan Manufacturing patent specialist (Virtual Organization, 2009).

He will be oversee the registering and tracking of all intellectual property. Legal Forms of Business Riordan Manufacturing is aprofit corporation with unlimited duration, free transferability of interest, limited liability for shareholder and owners, continuity, and centralized management (Jennings, 2006). The company will comply with the Model Business Corporation Act and comply with all state and federals laws and regulations where plants are established. Corporations are governed by the Board of Directors, Officers, and Executive Committees (Jennings, 2006). A summary of corporate laws will be included the employee handbook.

Riordan Manufacturing is a public company responsible for complying with the Sarbanes-Oxley Act of 2002. The act includes additional corporate board responsibilities to criminal penalties. It also includes enhanced accounting standards. Riordan Manufacturing will file all necessary financial statements on a timely basis. The officers and directors will verify the accuracy of the financial statements. External auditors will verify compliance with the Sarbanes-Oxley Act. Governance Riordan Manufacturing will elect a board of directors to protect the interests of the company’s shareholders.

To be in compliance with Sarbanes-Oxley, the board of directors will consist of a majority of members who are independent (Jennings, 2006). Corporate governance principles include: examination of compensation paid to executives, accounting internal controls, verifying accuracy of financial statements, and control over management risk (Jennings, 2006). Corporate governance must go beyond the laws and strive to accomplish the goals and mission of the corporation. The most important function of corporate governance is to ensure financial statements comply with statutory and ethical rules.

The Board of Directors will verify accountants and auditors are honest and competent. Enterprise Risk Management-COSO The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a private organization, in the United States, providing guidance on organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting (Landsittel, 2009). According to COSO (2004), “Enterprise risk management consists of eight interrelated components. These are derived from the way management runs an enterprise and are integrated with the management process.

These components are: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication and monitoring. ” COSO recommends using Enterprise Risk Management (ERM) as an approach to identify and mange uncertain risks to the corporation. These risks are managed through strong and reliable internal controls. Riordan Executives and Directors will implement ERM to include: perform risk assessments, identify risk responses, educate and train all employees on risk results (Applegate, 1999).

Specific Laws Pertaining to Riordan Manufacturing Riordan must comply with all federal, state, and local laws, rules, and regulations. The following are some of the laws, rules, and regulations that pertain to Riordan Manufacturing: Clean Air and Water Act- Many manufacturing companies throughout the world use plastics. There are many different laws and regulations that affect plastic production (Murner, 2009). Riordan plants are located in the United States and China, a knowledge of each counties laws regarding air and water must be obtained.

Riordan must be in full compliance with the Clean Air and Water Act by taking immediate actions to any violations. Riordan will assign a Director to be responsible for compliance to federal, state, and local laws. The Director will review all laws and communicate all information obtained to all employees to ensure full compliance. Occupational Safety and Health Administration (OSHA)- The Director each month will conduct a safety inspection to verify compliance with all OSHA regulations. Compliance to OSHA regulations will reduce work-related accidents, injuries, illnesses and death.

OSHA information will be posted on all employee bulletin boards. The company will have a mandatory safety meeting each month for all employees. OSHA regulations will be discussed. The Director will ask employees for feedback on any known OSHA non-compliances. Federal Trade Commission Act- All products produced by Riordan must comply with the Uniform Commercial Code to eliminate the possibility of intentional tort, negligence, and strict tort liability (Jennings, 2006). Riordan will ensure current and accurate information is clearly printed on all products.

Legal actions will be reported to Riordan’s Corporate Compliance Officer and the Chief Legal Counsel. Procedures when laws are violated Riordan will comply with federal, state, and local laws, rules, and regulations. The Riordan employee hand book states, “As an organization, Riordan will comply with all applicable laws and regulations, and we expect our directors, officers and employees to conduct business in accordance with the letter, spirit and intent of all relevant laws and to refrain from any illegal, dishonest or unethical conduct (Virtual Organization, 2009). Riordan employees are required to report any violations of applicable laws, regulations, Corporate Compliance requirements, and Code of Business Conduct and Ethics. Riordan encourages employee suggestions and input. Any possible violations that could result in litigation against Riordan shall be immediately reported to senior management. The Corporate Compliance Officer will oversee the Compliance Plan and any violations to laws. Violations will be investigated and reported with an action plan. The Corporate Compliance Officer will communicate with the President/CEO during the investigative process.

After the investigation, a corrective plan will be formulated. Quick and immediate action will be taken to any violations including discipline, dismissal and legal action. Conclusion The above Corporate Compliance Plan was formulated to insure Riordan complies with applicable rules, laws, and regulations. The Corporate Compliance Plan stresses the importance of good strong internal controls to minimize corporate risks by applying recommendations of the Committee of Sponsoring Organization of the Treadway Commission (COSO).

Riordan will establish internal controls to identify, prevent, limit, and correct violations. References Applegate, D. (1999). Struggling to incorporate the COSO recommendations into your audit process? The Institute of Internal Auditors. Retrieved January 9, 2010, from http://www. cosco. org/audit_shop. htm COSO-Committee of Sponsoring Organizations of the Treadway Commission home page. Retrieved January 9, 2010, from http://www. coso. org/default. htm Jennings, M. (2006).

Business: Its legal, ethical, and global environment (7th ed. ). Stamford, Connecticut: Cengage Learning Murner, C. (2009). Plastics, Electronics and the Environment: How New global Regulations Affect Material Choices. Plastics Technology. Retrieved January 9, 2010, from http://www. ptonline. com/articles/200610fa2. html Virtual Organization: Riordan Manufacturing. (2009). Retrieved January 9, 2010, from University of Phoenix, Law/531 Web site: https://ecampus. phoenix. edu/secure/aapd/cist/VO _ _

Management Planning

Coca- Cola Company is one of United States based company founded in 1886. This company began in a small Atlanta pharmacy, founded by Pemberton. During that time only 9 glasses of Coca-Cola were sold per day. Nearly two centuries later this company is one of the world’s leading manufacturer, and distributor of cola type’s products. This company has over 92,400 worldwide employees, 47 consecutive years with increased dividends, 200+ countries where their beverages are sold; 3,000+ beverages, and 123 years in business.

Coca-Cola as with every major organization has a planning function of management. One can analyze the impact that legal issues, ethics, and corporate social responsibility have had on management planning. Therefore, finding influences the company’s strategic, tactical, operational, and contingency planning. Management leading functions are planning, organizing leading and controlling. Coca-Cola Strategic Planning function is responsible for leading the development of the overall corporate strategy of the Company along with the global planning process (The Coca-Cola Company, 2006-2009).

This planning function is ran by Vice President John M. Farell. This consist of a team of members which are all in charge of different departments. Therefore, each department is ran by a Vice President, for example, Eddie R. Hays, PhD. is V. P. of science, he ensures supply and quality of faqvors used by Coca-Cola Company. Coca-Cola has had it share of legal issues that have impact management planning. In January 15,2009 a class action lawsuit was filed by CSPI (Center for Science in the Public Interest) requiring one of Coca-Cola’s product glaceau vitaminwater.

The CSPI was stating that this product had no nutritional value to it. In fact, according to CSPI nutritionists, the 33 grams of sugar in each bottle of VitaminWater do more to promote obesity, diabetes, and other health problems than the vitamins in the drinks do to perform the advertised benefits listed on the bottles (CSPI, 2009). Coca-Cola response that the success of glaceau vitaminwater is due in large part to consumers looking for a product like this to help support their healthy, active and on-the-go lifestyle.

Therefore, this could have impact management if things weren’t stated correctly on the bottle. Coca-Cola isn’t telling customers that this product will make you lose weight, but can be a healthier way to try to cut down on bad things your daily intake. Ethics can impact management planning. Coca-Cola is a huge company that has customers and consumers throughout the world. Globalization plays a major rule for this company. The Coca-Cola Company follows their Code of Business Conduct. These codes consist of integrity, honesty in all matters.

In the past, Coca-Cola has faced lawsuit from former employees stating discrimination. In 1999, a class action lawsuit was filed against the Coca Cola Company by four current and former African-American employees for racial discrimination under the US Civil Rights Act (Business & Human Rights Resource Centre, 2009). The plaintiffs alleged suffered discrimination pay, promotions and performance evaluations. The case was settled in 2000, Coca-Cola agreed to a $192 million settlement. Coca-Cola denied all allegations, management making rapid changes in personnel policies and procedures.

Corporate social responsibility is managed through the Public Policy and Corporate Reputation Council, a cross-functional group of senior managers from our Company and bottling partners. The Council identifies risks and opportunities faced by our business and communities and recommends strategies to address these challenges (The Coca-Cola Company, 2006-2009). In November 19, 2009, Coca-Cola was awarded CSR at the Fifth Annual AmCham Shanghai CSR Conference and Awards Ceremony. This award is for Coca-Cola outstanding CSR (Corporate Social Responsibility) in China Beverages Ltd.

This is a great impact for Coca-Cola management. Coca-Cola Company recognizes their business is only as strong and sustainable as the communities in which they operate. They aspire to promote and facilitate sustainable development and conduct our business in a socially responsible way. Coca-Cola continues to improve and succeed. The strategic planning, contains new ways to they can create and improve their taste and types of beverages. These also include market increasing, improving profitability and boosting return on investment.

In 2008, it is Coca-Cola 47 consecutive year of increased dividends. Innovation is what drives Coca- Cola to grow. In strategic planning is where they set goals of how much productions need to be produce in order to meet quota and how long it will that to meet this quotas. Tactical and Operational planning is where the strategic goals and plans are identified. Coca-Cola’s tactical planners are constantly trying to determine what new markets the company should enter, how to steal market share from competitors and how to encourage more consumers to use Coca-Cola’s products (eHow, 1999-2009).

The first step is to determine the size of various markets around the world. This will help the company prioritize what markets should be aimed first. For example, suppose Coca-Cola was considering whether or not to attempt expansion into Argentina. Using international census data, Coca-Cola’s tactical planners determine that the country’s population is 41 million. Coca-Cola would then hire a local marketing agency to conduct detailed customer surveys to determine what percentage of the population consumes Coca-Cola’s soda on a regular basis (eHow, 1999-2009).

The next step after choosing the market place to target, Coca-Cola would decide upon what the appropriate strategy would be to achieve this goal. Operational planning is the process of identifying the specific procedures and process required. Once the tactical planning in decide, Coca-Cola will have work on how many freights will need to go out for each locations. How much product is need to be produced, inventory needed to complete this goals. Advertising is a key role to this part; marketing will help consumers want to go try the new beverage do to what they have seen in commercials, ads, store fronts and coupons.

Appearance plays a role as well, if products are in new bottles or different colors this would draw the eye of a consumer. Cola-Cola future is still bright. This company will continue to starve with new innovations. Coca-Cola will continue to follow the four planning of management. This company will to be impacted by legal, ethical, and corporate social responsibility through the years to come, and some they will win and some they will lose. Strategic, tactical, operational planning is a key element to getting goals and plans achieve at Coca-Cola. Coca- Cola is a worldwide organization filled with diversity, integrity, and success.

References: Business & Human Rights Resource Centre. (2009). Case profile: Coca-Cola lawsuit (re racial discrimination in USA). Retrieved December 11, 2009, from Business & Human Rights Resource Centre: http://www. business-humanrights. org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/Coca-ColalawsuitreracialdiscriminationinUSA CSPI. (2009, January 15). Coke Sued for Fraudulent Claims on Obesity-Promoting “VitaminWater”. Retrieved December 11, 2009, from CSPI Newsroom: http://www. cspinet. org/new/200901151. html eHow, I. (1999-2009).

Child Witness

The Bar Vocational Course Full-Time 2002/2003 ________________________ EVIDENCE LG 10 ________________________ THE EVIDENCE OF CHILDREN ____________________________________________________________ _________ Bristol Institute of Legal Practice Bristol Institute of Legal Practice The Bar Vocational Course ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 2 Version No: 1 Author: Liz © Bristol Institute of Legal Practice

Bristol Institute of Legal Practice EVIDENCE LG 10 The Bar Vocational Course COMPETENCE AND COMPELLABLITY OF WITNESSES THE EVIDENCE OF CHILDREN The purpose of this handout is to combine in one document all the provisions relating to children, whether the child is a witness or an offender. CRIMINAL CASES You should bear in mind a number of things: 1. doli incapax a) children aged under 10: it is irrebuttably presumed that a child under the age of 10 is incapable of committing a crime. ) children between the ages of 10 and under 14: until 1998, there was a rebuttable presumption that a child over 10 but not yet 14 was incapable of committing a crime, and the crime could only be established if the prosecution could prove, in addition to establishing the actus reus and mens rea of the offence, that the child had a “mischievous discretion”. This presumption was abolished by the Crime and Disorder Act 1998 s34, which provides as follows: “The rebuttable presumption of criminal law that a child aged 10 or over is incapable of committing an offence is hereby abolished. 2. Competence In relation to children, two issues of competence are raised i. e. (a) competence to give evidence at all; (b) competence to give evidence on oath; and (c) competence to give evidence unsworn. (a) competence to give evidence In relation to the child’s competence to give evidence at all, the general rule applies i. e. that all witnesses are competent. See Youth Justice and Criminal Evidence Act 1999 [YJCEA] s53(1): “At every stage in criminal proceedings all persons are (whatever their age) competent to give evidence. This is subject to s53(3): “A person is not competent to give evidence in criminal proceedings if it appears to the court that he is not a person who is able to ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 3 Version No: 1 Author: Liz © Bristol Institute of Legal Practice Bristol Institute of Legal Practice The Bar Vocational Course (a) (b) Note: 1 understand questions put to him as a witness , and give answers to them which can be understood. the issue of competence may be raised by either party or the court and determined by the court: s54(1) 2 the party calling the witness must prove to the court on a balance of probabilities that the witness is competent: s54 (2) 3 4 (b) any proceedings to determine competence takes place in the presence of the parties but the absence of the jury: s54(6) and s54(4) Expert evidence may be received: s54(5) competence to give evidence on oath. Competence to give sworn evidence is dealt with in s55.

The test is whether the child is aged 14 or over and appreciates the solemnity of the occasion and the particular responsibility to tell the truth. His appreciation of those matters is presumed if he is able to give intelligible testimony, and he is able to give intelligible testimony if he is able to understand questions put to him as a witness, and give answers which can be understood. See S55: “(2) the witness may not be sworn for that purpose [i. e. giving evidence] unless (a) the he has attained the age of 14, and b) he has a sufficient appreciation of the solemnity of the occasion and of particular responsibility to tell the truth which is involved in taking an oath. (3) The witness shall, if he is able to give intelligible testimony, be presumed to have a sufficient appreciation of those matters if no evidence tending to show the contrary is adduced (by any party). (8) For the purpose of this section a person is able to give intelligible testimony if he is able to (a) understand questions put to him as a witness, and (b) Notes: give answers to them which can be understood. ” ___________________________________________________________ _________________________________________ A:LG10CHDN. DOC 4 Version No: 1 Author: Liz © Bristol Institute of Legal Practice Bristol Institute of Legal Practice 1 2 3 4 5 The Bar Vocational Course The issue may be raised either by a party to the proceedings or by the court of its own motion: s55(1). It is a matter for the judge, in the absence of the jury, if there is one: s55(5). The burden of proving competence lies on the party seeking to call the witness that proof being on a balance of probabilities: s55(4).

Expert evidence may be received: s55(6). Any necessary questioning of the witness shall be done by the court in the presence of the parties: s55(7). competence to give evidence unsworn (c) Where the witness is not sworn under s55(2) he shall give evidence unsworn: s56(1) and (2): (1) Subsection (2) and (3) apply to a person (of any age) who (a) is competent to give evidence in criminal proceedings, but (b) (by virtue of section 55(2)) is not permitted to be sworn for the purpose of giving evidence on oath in such proceedings. 2) The evidence in criminal proceedings of a person to whom this subsection applies shall be given unsworn. ” Notes: 1 As to whether unsworn evidence should be received from the child witness, the test is the general test of competency in s53(3); “A person is not competent to give evidence in criminal proceedings if it appears to the court that he is not a person who is able to (a) (b) 2 understand questions put to him as a witness , and give answers to them which can be understood. ” No appeal shall be founded on the basis that a person giving unsworn evidence should, in fact, have been sworn: s56(5).

Special measures 3. ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 5 Version No: 1 Author: Liz © Bristol Institute of Legal Practice Bristol Institute of Legal Practice The Bar Vocational Course YJCEA 1999 Part II, ss16-33, provide for a series of special measures which the court can order in respect of vulnerable witnesses of which child witnesses would constitute an important category. A child witness is one who is under the age of 17 at the time of the hearing: s21(1)(a).

The primary rule in relation to child witnesses is set out in s21(3): “The primary rule in the case of a child witness is that the court must give a special measures direction in relation to the witness which complies with the following requirements – (a) it must provide for any relevant recoding to be admitted under s27 (video recorded evidence in chief: and (b) it must provide for any evidence given by the witness in the proceedings which is not given by means of a video recording (whether in chief or otherwise) to be given by means of a live link in accordance with s24. Under s24, the primary rule is subject to certain limitations, the most important of which are: (i) (ii) the application of the special measures are subject to availability: s21(4)(a) the rule does not apply to the extent that the court is satisfied that compliance with it would not maximise the quality of the witness’s evidence: s21(4)(); unless the witness is a child in need of special protection: s21(5) iii) other limitations are explained in relation to the special measure as listed below: The special measures are: (a) (b) screening the witness from the accused: s23; giving evidence by a live TV link: s24 In addition to s24, s32(1) and s1(A) CJA 1988 provides for the reception of evidence by live TV link, in the Crown Court, the Youth Court and appeals arising out of such proceedings, where the witness is outside the UK: (c) excluding from court during the giving of the witness’s evidence persons of any description other than the accused, his legal representatives, and any interpreter appointed to assist the witness: s25 ordering the removal of wigs and gowns while the witness is giving evidence: s26 admitting a video recording of an interview with the witness to be admitted as the evidence in chief of the witness: s27; unless the court is of the opinion that, having regard to all the circumstances that in the interests of justice the recording ought not to be admitted: s27(2). (d) (e) ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 6 Version No: 1 Author: Liz © Bristol Institute of Legal Practice Bristol Institute of Legal Practice (f) The Bar Vocational Course here an order is made under s27, the order may include admitting a video recording of the cross-examination and re-examination where the evidence in chief of the witness has been video recorded: s28; examination though an interpreter (known as an “intermediary”) of a young or incapacitated witness: s29; provisions of aids to communication for a young or incapacitated witness: s30 (g) (h) A child witness “in need of special protection” is one where the offence (or any of them) is a sexual offence or one involving kidnapping, assaults etc: s21(b). Where the child witness is in need of special protection, the court, in addition to any other special measure, must direct that s28 applies, unless that measure is not available or the witness indicates that that he does not want the special measure to apply to him: s21(6) and (7). 4. Corroboration Prior to 1988, the evidence of an unsworn child had to be corroborated as a matter of law.

The evidence of sworn children had to be corroborated as a matter of practice, and the jury had to be warned about the dangers of acting on the uncorroborated evidence of a sworn child. These corroboration requirements were abolished by s34 CJA 1988, as amended by CJPOA 1994, which provides as follows: “(1) The proviso to subsection (1) of section 38 of the Children and Young Persons Act 1933 (under which, where the unsworn evidence of a child of tender years admitted by virtue of that section is given on behalf of the prosecution, the accused is not liable to be convicted unless that evidence is corroborated by some other material evidence in support thereof implicating him) shall cease to have effect. 2) Any requirement whereby at a trial on indictment it is obligatory for the court to give the jury abrogated. ” See R v Pryce [1991] Crim LR 379: a direction to treat the evidence of a 6 year old with caution was not required as it amounted to a re-introduction of the rule. However, some judges continue to give a warning, in the exercise of their discretion, but there is no rule of law to that effect. ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 7 Version No: 1 Author: Liz © Bristol Institute of Legal Practice Bristol Institute of Legal Practice CIVIL CASES The Bar Vocational Course

In civil cases the Children Act 1989 s96 provides that the child may give unsworn evidence if not understanding he nature of the oath, he understand the duty to tell the truth and has sufficient understanding to justify his evidence being heard: “(1) Subsection (2) applies where a child who is called as a witness in any civil proceedings does not, in the opinion of the court, understand the nature of an oath. (2) The child’s evidence may be heard by the court if, in its opinion(a) he understands that it is his duty to speak the truth and (b) he has sufficient understanding to justify his evidence being heard. ” This test was that laid down in criminal cases, before it was changed by s33 CJA 1988. The test is therefore in the criminal case of R v Hayes [1977] 1 WLR 238: Bridge LJ “It is unrealistic not to recognise that, in the present state of society, amongst the adult population the divine sanction of an oath is probably not generally recognised.

The important consideration, we think, when a judge has to decide whether a child should properly be sworn, is whether the child has a sufficient appreciation of the solemnity of the occasion and the added responsibility to tell the truth, which is involved in taking an oath, over and above the duty to tell the truth which is an ordinary duty of normal social conduct”. Notes: 1 The question of competency is a matter for the judge, depending on the particular child who is before him. 2 As a general rule, if he child is aged 14 or over, the judge will allow him to be sworn without question. If the child is below the aged of 14, the judge will hold an enquiry as to his competence to take the oath. ____________________________________________________________ _________________________________________ A:LG10CHDN. DOC 8 Version No: 1 Author: Liz © Bristol Institute of Legal Practice

Environmental Management

ENVIRONMENTAL MANAGEMENT ASSIGNMENT – 1 1) Relevance of Environmental Management course in Management curriculum. Environmental management course is very much required in the B-school curriculum. Environmental management can be so important because our environment gives a part of what we are whether our culture are dirty people or clean, it is also nice to live in a nice, clean place which is not polluted. It is also important to get people live in that place if a certain city, country is polluted no one will think of living there and visitors will have a negative point of view on that place.

Environmental management is not, as the phrase could suggest the management of the environment as such, but rather the management of interaction by the modern human societies with, and impact upon the environment. The three main issues that affect managers are those involving politics (networking), programs (projects) and resources (money, facilities, etc. ). The need for environmental management can be viewed from a variety of perspectives. A more common philosophy and impetus behind environmental management is the concept of carrying capacity.

Simply put, carrying capacity refers to the maximum number of organisms a particular resource can sustain. Environmental management is therefore not the conservation of the environment solely for the environment’s sake, but rather the conservation of the environment for humankind’s sake. Environmental management involves the management of all components of the bio-physical environment, both living (biotic) and non-living (abiotic). This is due to the interconnected and network of relationships amongst all living species and their habitats.

The environment also involves the relationships of the human environment, such as the social, cultural and economic environment with the bio-physical environment. As with all management functions, effective management tools, standards and systems are required. An ‘environmental management standard or system or protocol attempts to reduce environmental impact as measured by some objective criteria. The ISO 14001 standard is the most widely used standard for environmental risk management and is closely aligned to the European Eco-Management and Audit Scheme (EMAS).

As a common auditing standard, the ISO 19011 standard explains how to combine this with quality management. The environmental damage already inflicted due to alarming on-going population explosion, rapid movement towards urbanization and industrialization, increasing needs of energy and fast scientific and technological advancement cannot be reversed unless there is collective thinking, will and effort. These call for public awareness and participation for bringing about an attitudinal change and finally restricting further damage to the environment.

Effective implementation of environmental management and conservation programmes depends on education, awareness raising and training in the relevant areas. Without an understanding of how to conserve natural resources and the compelling need to do so, few people would be motivated to participate actively in programmes on environmental conservation, Environment education and awareness thus assume critical importance. (2) Why do managers need to study Environmental Management?

During the past five to ten years, increased public and government attention has been drawn to the harmful effects on the environment of business and industry. Consequently, legislation and encouragement in the form of incentives have acted to pressurize industry to review its practices and processes in connection with their effects on the environment. As a result, environmental technology as a specialist area of knowledge and skill has emerged. National capacities, particularly in scientific education and training, need to be strengthened.

This will enable governments, employers and workers to attain their environmental and development objectives by facilitating the transfer and assimilation of new environmentally sound, socially acceptable and appropriate technology and know-how. With this development there is an increasing need for specialists in this field, for technologists in other areas to be able to put into practice environmental applications, for assessors of the environmental impacts of specific technological developments and for general managers with a knowledge and understanding of environmental management.

Thus, there is now an increasing need for environmental education and training in clean production to be applied to a vast array of industrial processes and applications. Managers need to learn environmental management in order to be aware of the hazards that are created by the various industries. Managers need to be aware of their surroundings so that they can make environment friendly products in order to sustain in the market. It is very essential for managers to know about our environmental conditions especially now when the world is at a danger of global warming.

Managers can collectively help our earth get over the harmful effects or prolong the harmful effects thus making our lives considerably safer. 3) Why Copenhagen submits acquired so much importance? The 2009 United Nations Climate Change Conference, commonly known as the Copenhagen Summit, was held at the Bella Center in Copenhagen, Denmark, between 7 December and 18 December. The conference was preceded by the Climate Change: Global Risks, Challenges and Decisions scientific conference, which took place in March 2009 and was also held at the Bella Center.

The negotiations began to take a new format when in May 2009 UN Secretary General Ban Ki-moon attended the World Business Summit on Climate Change in Copenhagen, organized by the Copenhagen Climate Council (COC), where he requested that COC councilors attend New York’s Climate Week at the Summit on Climate Change on 22 September and engage with heads of government on the topic of the climate problem. The Copenhagen Accord was drafted by the US, China, India, Brazil and South Africa on December 18, and judged a “meaningful agreement” by the United States government.

It was “recognized”, but not “agreed upon”, in a debate of all the participating countries the next day, and it was not passed unanimously. The document recognized that climate change is one of the greatest challenges of the present and that actions should be taken to keep any temperature increases to below 2°C. The document is not legally binding and does not contain any legally binding commitments for reducing CO2 emissions. Leaders of industrialized countries, including Barack Obama and Gordon Brown, were pleased with this agreement but many leaders of other countries and non-governmental organizations were opposed to it.

During the conference some countries stated what actions they were proposing to take if a binding agreement was achieved. In the end, no such agreement was reached and the actions will instead be debated in 2010. Listing by country or political union. Sections in alphabetic order, table according to higher objectives. Australia To cut carbon emissions by 25% below 2000 levels by 2020 if the world agrees to an ambitious global deal to stabilize levels of CO2 to 450 ppm or lower. Canada To cut carbon emissions by 20% below 2006 levels by 2020.

This is equivalent to 3% below 1990 levels by 2020. China To cut CO2 emissions intensity by 40–45% below 2005 levels by 2020. European Union To cut greenhouse gas emissions by 30% below 1990 levels by 2020 if an international agreement is reached committing other developed countries and the more advanced developing nations to comparable emission reduction. India To cut carbon emissions intensity by 20–25% below 2005 levels by 2020. Japan To cut greenhouse gas emissions by 25% below 1990 levels by 2020. New Zealand

To reduce emissions between 10% to 20% below 1990 levels by 2020 if a global agreement is secured that limits carbon dioxide equivalent (CO2-e) to 450 ppm and temperature increases to 2°C, effective rules on forestry, and New Zealand having access to international carbon markets. Norway To reduce carbon emissions by 30% below 1990 levels by 2020. On December 18 after a day of frantic negotiations between heads of state, it was announced that a “meaningful agreement” had been reached between the United States, China, India, South Africa, and Brazil.

It was reported that it was not yet clear whether the motion was unanimous, or what its legal implications are. The UN Secretary General Ban Ki-moon welcomed the US-backed climate deal as an “essential beginning”. It was unclear whether all 192 countries in attendance would also adopt the deal. The Copenhagen Accord recognizes the scientific case for keeping temperature rises below 2°C, but does not contain commitments for reduced emissions that would be necessary to achieve that aim.

One part of the agreement pledges US$ 30 billion to the developing world over the next three years, rising to US$ 100 billion per year by 2020, to help poor countries adapt to climate change. Earlier proposals that would have aimed to limit temperature rises to 1. 5°C and cut CO2 emissions by 80% by 2050 were dropped. An agreement was also reached that would set up a deal to reduce deforestation in return for cash from developed countries. The agreement made was non-binding but U. S. President Obama said that countries could show the world their achievements.

He said that if they had waited for a binding agreement, no progress would have been made. Analysis and aftermath Despite widely held expectations that the Copenhagen summit would produce a legally binding treaty, the conference was plagued by negotiating deadlock and the “Copenhagen Accord” is not legally enforceable. BBC environment analyst Roger Harrabin attributed the failure of the summit to live up to expectations to a number of factors including the recent global recession and conservative domestic pressure in the US and China.

In the week following the end of the Copenhagen summit, carbon prices in the EU dropped to a six month low. However, some commentators consider that “the future of the UN’s role in international climate deals is now in doubt. What will be the impact if a deal is not made? • Believability: The Sustainability movement will have lost credibility. Maybe even beyond repair. • Encouraging the Skeptics: Climate Change skeptics and denouncers will feel encouraged and get an even larger audience despite the damning facts and science about Climate Change. An Uncertain Future: We are in deep trouble because we have lost the biggest and best chance to change our ways of limiting our carbon emissions. Just imagine how long and how much work it took to get everyone to the COP15 and this close to agreeing a common goal. The future will be very uncertain going forwards. This is OUR opportunity to change the way we take care of our planet and make smart climate decisions for a change. Will we choose to evolve in order to make smarter decisions for the future of our children or are we going to be the old selfish short term sighted humans that we currently are?

We have a decision to make and the time is now. And in my view this is not only about Climate Change but Sustainability as a whole. (4) Difference between weather and climate. The difference between weather and climate is a measure of time. Weather is what conditions of the atmosphere are over a short period of time, and climate is how the atmosphere “behaves” over relatively long periods of time. Weather is the day-to-day state of the atmosphere, and its short-term (minutes to weeks) variation. Popularly, weather is thought of as the combination of temperature, humidity, recipitation, cloudiness, visibility, and wind. We talk about the weather in terms of “What will it be like today? “, “How hot is it right now? “, and “When will that storm hit our section of the country? ” Climate is defined as statistical weather information that describes the variation of weather at a given place for a specified interval. In popular usage, it represents the synthesis of weather; more formally it is the weather of a locality averaged over some period (usually 30 years) plus statistics of weather extremes.

We talk about climate change in terms of years, decades or even centuries. Scientists study climate to look for trends or cycles of variability (such as the changes in wind patterns, ocean surface temperatures and precipitation over the equatorial Pacific that result in El Nino and La Nina), and also to place cycles or other phenomena into the bigger picture of possible longer term or more permanent climate changes. (5) Meaning of orography , topography Orography is the study of the formation and relief of mountains, and can more broadly include hills, and any part of a region’s elevated terrain.

Orography falls within the broader discipline of geomorphology. Orography has a major impact on global climate, for instance the orography of East Africa substantially determines the strength of the Indian monsoon. In geo-scientific models, such as general circulation model, orography defines the lower boundary of the model over land. When a river’s tributaries or settlements by the river are listed in ‘orographic sequence’, they are in order from the highest (nearest the source of the river) to the lowest or mainstem (nearest the mouth).

This method of listing tributaries is similar to the Strahler Stream Order where the headwater tributaries are listed as category = 1 Topography is the study of Earth’s surface shape and features or those of planets, moons, and asteroids. It is also the description of such surface shapes and features (especially their depiction in maps). The topography of an area can also mean the surface shape and features themselves. In a broader sense, topography is concerned with local detail in general, including not only relief but also vegetative and human-made features, and even local history and culture.

This meaning is less common in America, where topographic maps with elevation contours have made “topography” synonymous with relief. The older sense of topography as the study of place still has currency in Europe. For the purposes of this article, topography specifically involves the recording of relief or terrain, the three-dimensional quality of the surface, and the identification of specific landforms. This is also known as geomorphometry. In modern usage, this involves generation of elevation data in electronic form.

It is often considered to include the graphic representation of the landform on a map by a variety of techniques, including contour lines, Hypsometric tints, and relief shading. (6) What is meant by eco system and ecology? The term ecosystems refer to the combined chemical and biological components of an environment. An ecosystem is generally an area within the natural environment in which physical (abiotic) factors of the environment, such as rocks and soil, function together along with interdependent (biotic) organisms, such as plants and animals, within the same habitat.

Ecosystems can be permanent or temporary. Ecosystems usually form a number of food webs. Ecology is the interdisciplinary scientific study of the interactions between organisms and their environment. Ecology is also the study of ecosystems. Ecosystems describe the web or network of relations among organisms at different scales of organization. Since ecology refers to any form of biodiversity, ecologists can conduct research on the smallest bacteria to the global flux of atmospheric gases that are regulated by photosynthesis and respiration as organisms breath in and out of the biosphere.

Ecology is a recent discipline that emerged from the natural sciences in the late 19th century. Ecology is not synonymous with environment, environmentalism, or environmental science. (7) What is meant by Latitude, Longitude and mention the latitudinal / longitudinal boundary of India. Latitude values indicate the angular distance between the Equator and points north or south of it on the surface of the Earth A line connecting all the points with the same latitude value is called a line of latitude.

This term is usually used to refer to the lines that represent values in whole degrees. All lines of latitude are parallel to the Equator, and they are sometimes also referred to as parallels. Parallels are equally spaced. There are 90 degrees of latitude going north from the Equator, and the North Pole is at 90 degrees N. There are 90 degrees to the south of the Equator, and the South Pole is at 90 degrees S. When the directional designators are omitted, northern latitudes are given positive values and southern latitudes are given negative values.

Lines of longitude, called meridians, run perpendicular to lines of latitude, and all pass through both poles. Each longitude line is part of a great circle. There is no obvious 0-degree point for longitude, as there is for latitude. By international agreement, the meridian line through Greenwich, England, is currently given the value of 0 degrees of longitude; this meridian is referred to as the Prime Meridian. Longitude values are indicate the angular distance between the Prime Meridian and points east or west of it on the surface of the Earth. The Earth is divided equally into 360 degrees of longitude.

There are 180 degrees of longitude to the east of the Prime Meridian; when the directional designator is omitted these longitudes are given positive values. There are also 180 degrees of longitude to the west of the Prime Meridian; when the directional designator is omitted these longitudes are given negative values. The 180-degree longitude line is opposite the Prime Meridian on the globe, and is the same going either east or west India lies to the north of the equator between 8°4′ and 37°6′ north latitude and 68°7′ and 97°25′ east longitude (8) What is meant by sustainable development?

Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations The term was used by the Brundtland Commission which coined what has become the most often-quoted definition of sustainable development as development that “meets the needs of the present without compromising the ability of future generations to meet their own need Sustainable development ties together concern for the carrying capacity of natural systems with the social challenges facing humanity.

The field of sustainable development can be conceptually broken into three constituent parts: environmental sustainability, economic sustainability and sociopolitical sustainability (9) What are the non-renewable and renewable energy resources ? A renewable resource is something that is being continually replaced faster than we use it up. • Solar energy is considered a renewable source of energy • Wind Power • Water Power (Hydro-electricity from dammed rivers, tidal streams and ocean waves) • Thermal Power from the earth (Geothermal: Using the earth’s heat to generate electricity) • Thermal Power from the ocean Biomass, the burning of plant material, is a renewable resource. Even though the burning puts carbon dioxide into the atmosphere, it also prevents a much greater amount of methane being released by the decomposing vegetation, so it is rated as positive. A non-renewable resource is something that is not being replaced as we consume it. • Oil is a good example of a non-renewable resource. It is used to make gasoline and other fuels, as well as plastics, such as grocery bags. We are using billions of gallons of oil every year, but it takes millions of years to be replace.

We are using up oil much much faster than it is being produced. Once we use up oil from the earth, it’s gone. We can’t wait millions of years for some more. • Coal is non-renewable. • Peat is non-renewable. • Uranium is non-renewable. • Trees are often considered a renewable resource, but that is only true in certain circumstances. If a forest is well managed, than the trees can grow back faster than we cut them down. However, in many parts of the world (including in the US), forests are being cut much much faster than they regrow, and this is therefore not considered renewable. 10) Greenhouse gases and its importance in Global warming • Greenhouse gases are gases in an atmosphere that absorb and emit radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The main greenhouse gases in the Earth’s atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone. Greenhouse gases greatly affect the temperature of the Earth; without them, Earth’s surface would be on average about 33 °C (59 °F) colder than at present.

In addition to the main greenhouse gases listed above, other greenhouse gases include sulphur hexafluoride, hydro fluorocarbons and per fluorocarbons. Some greenhouse gases are not often listed. For example, nitrogen trifluoride has a high global warming potential (GWP) but is only present in very small quantities. • Its importance in Global warming is that while many greenhouse gases occur naturally and are needed to create the greenhouse effect that keeps the Earth warm enough to support life, human use of fossil fuels is the main source of excess greenhouse gases.

By driving cars, using electricity from coal-fired power plants, or heating our homes with oil or natural gas, we release carbon dioxide and other heat-trapping gases into the atmosphere. Deforestation is another significant source of greenhouse gases, because fewer trees means less carbon dioxide conversion to oxygen. • During the 150 years of the industrial age, the atmospheric concentration of carbon dioxide has increased by 31 percent. Over the same period, the level of atmospheric methane has risen by 151 percent, mostly from agricultural activities such as raising cattle and growing rice also. As the concentration of greenhouse gases grows, more heat is trapped in the atmosphere and less escapes back into space. This increase in trapped heat changes the climate and alters weather patterns, which may hasten species extinction, influence the length of seasons, cause coastal flooding, and lead to more frequent and severe storms. Thus due to all these consequences global warming occurs. (11) Glacial melting and its relevance to climate change • A glacier can be described as a huge block of ice that has formed from falling snow. Glaciers contain almost all of the fresh water present on earth.

Since 1850, glaciers around the world have been slowly melting, affecting the viability of fresh water in a variety of ways, so the phenomenon of melting glaciers is not a new one. Every glacier melts, the level of melting depending on the surrounding temperature. In most places containing glaciers across the globe, snow falls during the cold seasons and will get compressed into ice with further snowing. When the temperature does get a bit warmer the upper fresh layers of snow partly formed ice begin melting and flowing down into streams and rivers. Many places on earth depend on this melted fresh water for survival.

The melted snow provides fresh and pure drinking water, water for agriculture, and in many nations this flow of water is converted into electricity without polluting the atmosphere. • However, since 1980 a significant global warming has led to a dramatic increase in the speed of glacial retreat. Many glaciers have completely vanished, and the existence of a great number of the remaining glaciers in the world is severely threatened. The disappearance of glaciers in the Andes of South America and the Himalayas in Asia will eventually have disastrous effects on the water supplies.

An acceleration in the rate of retreat since 1995 may foreshadow a rise in sea level, which could have a potentially dramatic effect on coastal regions worldwide. The loss of glaciers not only directly causes landslides, flash floods and glacial lake overflow, but also increases annual variation in water flows in rivers. Glacier runoff declines in the summer as glaciers decrease in size, this decline is already observable in several regions. Glaciers retain water on mountains in high precipitation years, since the snow cover accumulating on glaciers protects the ice from melting.

In warmer and drier years, glaciers offset the lower precipitation amounts with a higher melt water input. • Global melting relevance to climate change is that glaciers and ice sheets are archives of climate-change data. Each winter, new snow falls on the surface of the glacier. Whatever snow does not melt during the following summer will be buried by more snow the next winter. This “old snow” is called firn. The frozen water molecules and air trapped in the firn record the chemistry and temperature of the water vapor from which the snow formed and the atmosphere from which it fell.

As each year’s firn layer is buried, that climate record is buried as well. The firn layers move down from the surface and are compressed as new layers pile on top. Eventually, the firn becomes dense, glacier ice. Most of the air has been squeezed out of the ice, but a few bubbles remain. When glaciologists drill down through the ice, they are drilling backward in time; consequently, ice cores drilled from glaciers and ice sheets reveal both regional and global climate trends. The ice core reveals that global atmospheric carbon dioxide (CO 2 ), methane (CH 4 ), and dust content rise and fall as global temperature and ice volume change. When the climate is warm, atmospheric CO 2 and CH 4 concentrations are large, and when climate is cool, those gases are less abundant. Atmospheric dust concentration changes in an opposite sense, indicating that warm, interglacial atmospheres are relatively moist, whereas in glacial times, the global atmosphere is relatively dry. These records also show that the present-day CO 2 level is larger than it was in the past warm times between glaciations.

A tropical glacier are melting fast as climate warms, and as that happens, their contribution to water resources decreases, their contribution to global sea level increases, and a valuable climate archive is lost. • 13. Vertical density profile of atmosphere and its impact on various processes • The vertical distribution of air density in the atmosphere follows from the distribution of the pressure and temperature. Indeed since pressure varies so strongly in the vertical, whereas temperature variations are quite modest on the absolute scale, the vertical profiles of air density and pressure must be very similar.

In fact the density profile shows a nearly exponential decay of density with increasing height which is never very far from 16 km throughout the troposphere. (12) Vertical Thermal Structure of the Atmosphere and its relevance to atmospherical processes The atmosphere has a vertical thermal structure as well as a vertical pressure structure. A. The atmosphere has been divided into layers according to the behavior of temperatures in their relationship to altitude. [pic] B. The lowest layer is the troposphere, the layer in which we live and in which our weather is experienced.

In fact, “troposphere” means the realm of mixing, because air is vigorously mixed and stirred here by storms, convection, and wind systems. 1. It extends up roughly 10 km 2. It is characterized by an inverse relationship between air temperatures and altitude: Temperatures drop as you climb up in the troposphere. 3. The tropopause is the top of the troposphere: The troposphere stops here. 4. At the tropopause, temperatures stop dropping with gains in altitude. C. The stratosphere is the next major division. 1. It extends from the tropopause up to about 50 km. 2.

It is characterized by a direct relationship between temperatures and altitude. a. The top of the stratosphere is called the stratopause, another isothermal belt. b. By the time you get to the stratopause, temperatures have warmed up to freezing or close to it c. This warming with altitude has to do with the presence of the ozone layer in the stratosphere. D. The mesosphere is the layer above the stratopause. 1. It extends up from the stratopause to about 80 km. 2. It is characterized by resumption of an inverse relationship between temperature and altitude:

Temperatures drop as you climb. 3. That low temperature is attained at the mesopause, which tops the mesosphere. E. The thermosphere is the last thermally defined layer of the atmosphere. 1. It is characterized by a direct relationship between temperature and altitude. 2. The thermosphere can be further subdivided: a. The lower thermosphere is called the ionosphere. i. The ionosphere extends from roughly 80 km (50 mi. ) to somewhere around 300 to 600 km out (~185 – 375 mi. ). ii. It is the first line of defense for Earth against extremely short wave radiation.

These particles are ionized atoms, that is, atoms with missing electrons, including isolated protons and alpha-particles (two protons with two neutrons and no electrons). iii. These rays and really high energy, fast-moving particles smash into the few molecules of the ionosphere with such force that they strip them of electrons, turning them into ions, or electrically-imbalanced atoms, too. iv. The ions, with their electrical imbalances, are drawn by the earth’s magnetic field and align themselves with that field’s lines of force. b.

The exosphere is the second, outer layer of the thermosphere i. The exosphere lies beyond about 500-1,000 km ii. It is characterized by increasing hydrogen and helium content. (14) Water holding capacity of air and its relation to atmospheric temperature The water-holding capacity of air is determined by temperature. As seen in the diagram, the capacity increases dramatically with increasing temperature. [pic] The water holding capacity increases by about 8% per degree Celsius increase in temperature. The moisture holding capacity of air varies with temperature.

If there is no change in the total moisture content during a 24 hour period, relative humidity will increase at night. The highest readings occur about sunrise which explains damp lawns and fogged car windows. Relative humidity decreases as the day heats up because warm air has a greater capacity to contain moisture than cold air. The ability of the air to hold moisture is dependent upon the temperature. As the temperature of the air increases, its moisture holding capacity also rises; more moisture must be added to reach saturation at a higher temperature. Moisture in the air is typically expressed in terms of relative humidity.

This is simply a ratio of the actual moisture in the air to the total amount of moisture the air can hold at a given temperature. Warmer air has greater moisture holding capacity than cooler air. (15) Role of inversion in the stagnation of pollution in a locality When air movement ceases, stagnation can occur, with a resultant build up of atmospheric pollutants in localized regions. Although the temperature of air relatively near the earth’s surface normally decreases with increasing altitude, certain atmospheric conditions can result in the opposite condition- increasing temperature with increasing altitude.

Such conditions are characterized by high atmospheric stability and are known as temperature inversions. Because they limit the vertical circulation of air, temperature inversions result in air stagnation and the trapping of air pollutants in localized areas. Inversions can occur in several ways. In a sense, the whole atmosphere is inverted by the warm stratosphere, which floats atop the troposphere with relatively little mixing. An inversion can form from the collision of a warm air mass (warm front) with a cold air mass (or cold front).

The warm air mass overrides the cold air mass in the frontal area, producing the inversion. Radiation inversions are likely to form in still air at night when the earth is no longer receiving solar radiations. The air closest to the earth cools faster than the air higher in the atmosphere, which remains warm, thus less dense. Furthermore, cooler surface air tends to flow into the valleys at night, where it is overlain by warmer, less dense air. Subsidence Inversions, often accompanied by radiation inversions, can become very widespread.

These inversions can form in the vicinity of a surface high pressure area when high-level air subsides to take the place of surface air blowing out of the high pressure zone. The subsiding air is warmed as it compresses and can remain as a warm layer several hundred meters above ground level. A marine inversion is produced during the summer months when cool air laden with moisture from the ocean blows onshore and under warm, dry inland air. Hence, inversions contribute significantly to the effects of air pollution because they prevent the mixing of air pollutants, thus keeping the pollutants in one area.

This not only prevents the pollutants from escaping, but also acts like a container in which additional pollutants accumulate. Furthermore, in the case of secondary pollutants formed by atmospheric chemical processes, such as photochemical smog, the pollutants may be kept together such that they react with each other and with sunlight to produce even more noxious products. 16. How economic growth becomes environmental concern ? Economies are driven by energy, and energy extraction and use are currently having disastrous effects upon the environment.

Without agreements that limit the use of fossil fuels or control their emissions, the environmental degradation that has defined the twentieth century will continue into the twenty-first. If we limit fossil fuels without a transition to cleaner energy sources, the global economy will will not have enough power to keep growth curves positive. While President Obama stated, “Our generation’s response to this challenge will be judged by history, for if we fail to meet it, boldly, swiftly, and together, we risk consigning future generations to an irreversible catastrophe”.

Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations. Environmental sustainability is the process of making sure current processes of interaction with the environment are pursued with the idea of keeping the environment as pristine as naturally possible based on ideal-seeking behavior. Consumption of renewable resources |State of environment |Sustainability | |More than nature’s ability to replenish |Environmental degradation |Not sustainable | |Equal to nature’s ability to replenish |Environmental equilibrium |Steady state economy | |Less than nature’s ability to replenish |Environmental renewal |Environmentally sustainable |

An “unsustainable situation” occurs when natural capital (the sum total of nature’s resources) is used up faster than it can be replenished. Sustainability requires that human activity only uses nature’s resources at a rate at which they can be replenished naturally. Inherently the concept of sustainable development is intertwined with the concept of carrying capacity. Theoretically, the long-term result of environmental degradation is the inability to sustain human life. Such degradation on a global scale could imply extinction for humanity. 17.

Why we say that mushrooming of high-raised buildings and influx of automobile boom in our roads are adding the global warming impact to our region. .Global warming is real. It is not the result of a natural climatic adjustment. It is a quantifiable set of environmental results that are in addition to any normal changes in climate. That is why the effects of global warming have catastrophic potential. The primary cause of global warming is Carbon Dioxide emissions. CO2 is being pumped into our atmosphere at an insane pace; 8 billion tons of CO2 entered the air last year.

Of course some of this is due to natural activity such as volcanic eruptions and people breathing. But the Earth is equipped to easily absorb those into the normal regenerative process. No, the beginning of global warming was caused by fossil fuels being burned and emitting plenty of CO2. 12% of all CO2 released into the atmosphere is related to buildings. This figure varies from one source to the next. Some place the percentage of emissions from buildings as high as 33%. What most of these figures do not address is the actual cause of the CO2 emissions.

In newly constructed buildings, production of materials used in building and energy used during construction are sited as the cause of carbon dioxide emissions. In existing buildings the CO2 created by the energy upkeep of the building is the root of the emissions quotient. The general comparison is that buildings consume energy in the way that cars burn fuel. But the pollutants created in providing power for heating, air-conditioning, lights and other usage in buildings has already been factored.

Honestly this double billing accounting is more the product of auto manufacturers looking to point the blame for global warming away from gas guzzling cars. The United States. Though Americans make up just 4 percent of the world’s population produce 25 percent of the carbon dioxide pollution from fossil-fuel burning — by far the largest share of any country. In fact, the United States emits more carbon dioxide than China, India and Japan, combined. 18. What is the role of forest in the rainfall activity in a region?

Forests covering Mediterranean surface play a vital role in the regulation of water cycle and they provide quality water to the society. However, forests are great consumers of water as well, even though some of the water returns to the atmosphere. It is therefore necessary to understand the relationship between both of these natural resources in order to optimize the water management through an appropriate forest management, ensuring their sustainability Rainfall is generally believed to be a result of monsoonal effects.

International evidence and simulation models suggest two conditions under which forests generate rainfall. First, montane forests in very high altitudes (2000 m+) can harvest clouds. Second, deforestation of vast tracts of land, i. e. , more than 250,000 km2 could reduce the probability of rainfall from water cycling. An investigation of the influence of forests on rainfall in depleted forest areas in Thailand was carried out by Tangtham and Sutthipibul (1988). They compared the changes in average regional rainfall with changes in forest cover in the northeast between 1951 and 1984.

The periods indicate that rainfall has tended to decrease significantly as forest areas decrease, while the number of rainy days significantly increased. Rainfall is also affected when forest-clearing fires create air pollution and release tiny particles, known as aerosols, into the atmosphere. While aerosols can both heat and cool the air, depending on their size, shape, and color, high concentrations of biomass-burning aerosols directly impact local climate by increasing cloud formation but decreasing rainfall.

Sherman Computer Repair

Running Head: SHERMAN COMPUTER REPAIR NEW DIRECTION Sherman Computer Repair New Direction Erica L Shupp University of Phoenix Sherman Computer Repair New Direction Sherman Computer Repair, a small computer repair company, has the opportunity to move from a computer repair company to a computer assembly company through the use of creativity and innovation (University of Phoenix, 2009, n. p. ). Innovation is the process by which organizations use their resources and competences to develop new or improved goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers” (Jones, 2004, p. 403). Since change requires innovation to be successful, Sherman Computer Repair must assess and restructure the company, allowing for the introduction of new processes, technologies, and services for the organizational to move toward this new strategy and way of business.

Sherman Computer Repair must plan accordingly and establish the steps they must take in order for the new direction to be of any success. Within this paper Sherman Computer Repairs new organizational design as well as any barriers that may exist will be discussed. Also an evaluation of the company’s external environment including strengths and weaknesses and an assessment of the company’s current talent and skill sets needed for change will be presented. Sherman Computer Repair Organizational Design

Sherman Computer Repair currently has three locations where customers can bring computer hardware in for repairs and each location is staffed with a manager, three computer technicians, and a receptionist (University of Phoenix, 2009, n. p. ). The company also employs 12 mobile technicians for customers in home service calls. The current organizational structure of Sherman Computer Repair is one of a functional structure. According to Jones (2004), the functional design is a subunit made up of a group or departments working together but independently of one another, each that ossess like skills, and use the same knowledge, tools, or techniques to perform their positions (p. 99). The functional organizational design is structured with a hierarchy based on subordination and departments acting independently of one another but still working towards a common goal. Several barriers exist that have a direct correlation to the functional structure that Sherman Computer Repair utilizes. These specific barriers could possibly prevent the company from continuing to move towards their new goals and developing new technologies and innovations.

The first would be that of communication and coordination, organizations making use of a functional structure struggle with communication between the subunits or functional group. These issues can range from the organizational progress becoming slower and inflexibility to anything that may not be planned. “To avoid communication problems that can surface organizations try to find new or better ways to integrate the functions of the organization – to promote cooperation, coordination, and communication among separate subunits” (Jones, 2004, p. 103).

Another barrier that could prevent the comp any from initiating new technologies is differentiation problems. Currently the company is very small and the division of labor is quite simple and very few problems are encountered but with the new direction consisting of a growth in the company the division of labor will become much more complex. “Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals” (Jones, 2004, p. 95).

With Sherman Computer Repair growing the managers must make the appropriate decisions regarding the balance of vertical and horizontal differentiation for there to be success. Sherman Computer Repair may also struggle with balancing centralization and decentralization within the company. Currently the company’s managers possess centralized power but with the expansion of the company they will become overloaded with work. The responsibility to make day to day decisions may rely on additional employees due to decision makers being tied up with the general operations of the company.

Many times employees are weary about taking on responsibility due to the risks being involved in decision making. “When nobody is willing to take responsibility, decision making becomes slow and the organization becomes inflexible – that is, unable to change and adapt to new development” (Jones, 2004, p. 108). To mitigate this barrier Sherman Computer Repair could decentralize authority and power and allow employees at multiple levels to make important decisions, keeping them accountable for their actions.

While expanding and incorporating computer assembly into their organizational plan, Sherman Computer Repair must be aware of these barriers and adjust their strategies, design, and their direction to continue moving forward. Each of these barriers can inhibit the progress or even initiation of new technologies, innovations, and processes. The organization must also take into account the external environment to continue to successfully complete their transition. Sherman Computer Repair External Environment “Organizations have always had and will continue to have boundaries” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. ). The external environment consists of suppliers, customers, and any other outside entity that functions is different and separate from the company they do business with. For there to be continued success through the company transition Sherman Computer Repair must recognize these external boundaries and reshape them to meet and exceed their expectations. “External boundaries are barriers between firms and the outside world – principally suppliers and customers but also government agencies, special interest groups, and communities” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 1). These boundaries are a boundary or an imaginary line drawn between the organization and any outsider. These barriers can be legal, psychological or cultural and establish a we-they relationship between the company and the external entity. “When there are several customers or suppliers, one may be played off against another” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). Since Sherman Computer Repair will most likely have multiple suppliers and customers, they have the opportunity to play them against one another. External boundaries do provide positive identity for insiders, they also diffuse effectiveness” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). Each stakeholder in the organization (whether it is internal or external) wants Sherman Computer Repair to achieve success both in their current and future organizational direction and design. The customers can aid in the resolution of problems to help an organization succeed and the suppliers want to see their customers succeed because their success means a greater success and sales for their company.

Geographic boundaries are another external boundary that Sherman Computer Repair will need to pay extra attention to. “Geographic, or global, boundaries exist when firms operate in different markets or countries” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). With Sherman Computer Repair tackling the industry share that Synergetic Solution Inc. left, they must learn to develop relationships geographically to continue to succeed, making decisions that foster those relationships is key.

Often stemming from national pride, cultural differences, market peculiarities, or world-wide logistics, geographic boundaries may isolate innovative practices and good ideas Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). In not being astute to the geographic boundaries Sherman Computer Repair may halt success of the organization. The strengths and weaknesses of the external environment must be considered in order for Sherman Computer Repair to make changes to their current organizational structure.

They company as a whole must understand their clients want and needs and must be able to address their concerns or complaints expeditiously. They must pay close attention to customers and suppliers as they are their key to success and process and organization improvement. Sherman Computer Repair must also address each of the external boundaries in order to transform their organizational structure. The geographical boundaries are important to the viability of the company as they transform their organization and move into other countries markets.

Each of these external boundaries must be assessed and the talent and skills of the organization must be evaluated to determine the future success of their contributions. Sherman Computer Repair Talent Recognition In order for innovation to be successful in an organization a culture must be adapted where creativity and innovative thought processes are fostered and supported. “One of the main approaches to ensure that innovation is successful in the organization is to develop an internal marketplace where the ideas and functions of innovation can flourish in a supply-and-demand environment” (Davila, Epstein & Shelton, 2006, p. 8). Sherman Computer Repair is lacking the talent needed to take Synergetic, Inc place in the computer assembly market. Sherman must take a look at the talent they possess and expand on the skills of its current employees in order to succeed. Obviously they will have to expand on their workforce but in placing an emphasis on the talent they currently have a greater impact will be made on the organization as a whole. By expanding on the talent that Sherman Computer Repair currently possesses a motivation will be instilled in the employees.

This strategy is crucial in the success of the company’s transition and Sherman must motivate their employees to understand and be an active part in the future progress and success of the organization. “Performance management, including rewards and incentives, are some of the most powerful management tools available to a company” (Davila, Epstein, & Shelton, 2006, p. 179). Sherman Computer Repair currently lacks a reward or incentive program and the development of a system may be crucial in their new direction.

Through careful consideration, Sherman Computer Repair must develop a plan that not only motivates employee behavior and performance but also fosters growth and innovation within the company. This reward and incentive plan would steer employees towards more productive and innovative tendencies and allow for a more accountable work environment. In creating a plan for a reward and incentive program, Sherman Computer Repair must set goals, on both an individual basis and team or departmental basis, and directly relate those goals to pay for performance.

Employees at any level are more likely to actively participate in the achieving goals in an organization if incentives are given. Sherman Computer Repair, through the development of a reward and incentive program, will not only motivate employees but also allow them to expand on their current skill sets by thinking out of the box to create innovative processes that will further advance the company towards its goals. With the expansion of the Sherman Computer repair into a new market there is the need for a larger workforce, bringing people into the organization with experience in innovation. Research into hiring for innovation suggests that a more effective strategy may be to sometimes hire the wrong people, the people who make some people feel uncomfortable during interviews, the people perceived not to fit perfectly into the organization’s culture” (Davila, Epstein & Shelton, 2006, p. 254). In making use of this strategy Sherman Computer Repair can increase creativity and innovative thought all across the board. In addition to adding innovative people to their labor force Sherman should also hire on people with the skill sets necessary to help accomplish their new direction.

With a combination of innovative, creative, and highly skilled people Sherman Computer Repair can overcome any challenge regarding innovation and succeed. Sherman Computer Repair Barriers to Change There are several barriers to change that exist within the company ranging from the manner in which management responds to new ideas, allowing ideas to be expressed freely without the fear of criticism, and the lack of support for innovators by management. “Organizing for innovation continues to be a challenge for many companies” (Davila, Epstein & Shelton, 2006, p. 7). Sherman Computer repair must create a culture where ideas can be free flowing and can be supported at all levels of the organization. With the company growing and there being several levels of management the company must concentrate on developing new products and services and fostering a creative environment. Sherman Computer Repair could also make use of external resources for instance outsourcing their innovative processes or the seeking out of qualified candidates for the innovative positions developed within the company.

Through the decentralization of management there will be go to people at multiple levels to create arenas for innovative thought processes. Innovation platforms cut across the business unit silos and provide an honest perspective on the value of the innovations, rather than one limited by the perception of a single business unit (Davila, Epstein & Shelton, 2006, p. 98). Each of these platforms would contain innovative personnel hired to inspire and promote creativity, risk taking, and innovative thinking in others.

Each level would have their own projects but all working towards the same goal; this is where management would align these projects. As Sherman Computer Repair enters a new direction they must treat innovation as a normal daily activity in the workplace. In treating this as part of everyone’s position and rewarding and compensating risk taking and innovation could prevent organizational antibodies. Rejuvenating the innovation process requires a significant change in mindset, requires support from top management, and a reallocation of resources (Davila, Epstein & Shelton, 2006, p. 9). In being committed to innovation the organization creates a welcomed environment for idea sharing and the development of its employee’s skills. Conclusion Change is a part of life and is necessary in every organization. With Sherman Computer Repair moving from computer repair to computer assembly the need for change is evident and there is always resistance from some regarding this change. In designing an organizational structure and developing a culture that supports innovation and creativity that change can be supported.

Sherman Computer Repair must make changes and additions to its labor force, its organizational structure, hierarchy of control, and technology. They as a company must also support creativity and innovation at all levels through the implementation of motivational incentives. Sherman Computer Repair can succeed by effectively and efficiently managing the barriers to change, gaining the talent they need to become a successful computer assembly company. References Ashkenas, Ulrich, Jick and Kerr (2002).

The Boundaryless Organization: Breaking the Chains of Organizational Structure, 2ed. Retrieved March 14, 2009 from University of Phoenix rEsource MMPBL 550- Creativity, Innovation and Organizational Design Course Website. Davila, Tony. , Epstein, Marc. , and Shelton, Robert. (2006). Making innovation work: How to manage it, measure it, and profit from it. , New Jersey: Pearson Education, Inc.. Retrieved March 08, 2009 from University of Phoenix rEsource MMPBL-550 – Creativity, Innovation and Organizational Design Course Website.

Jones, G. (2004). Organizational Theory, Design, and Change. New Jersey: Pearson-Prentice Hall. Retrieved October 23, 2009, from University of Phoenix, rEsource, MMPBL 550- Creativity, Innovation and Organizational Design Course Website. University of Phoenix. (2009). Human Relations and Organizational Behavior: Organization Structure, Synergetic Solutions Scenario. Retrieved October 23, 2009 from University of Phoenix, MMPBL550- Creativity, Innovation and Organizational Design.

Global Advertising

SYNOPSIS – Global Advertising Advertisements are globally used to bring in the product before the people and publicise and market it. Any brand or product has to have advertisements to grow and establish itself. Different products have different target groups. At times one product can also have a varied target group. The target audience differs according to the age limit, generation or place. Thus an international product can have the audience of the same age and generation, yet there will be a difference in their taste. An audience approach on a certain product or a brand will differ from place to place.

This exactly is my topic of research. How one product can have a different approach in different parts of the world, and thus different advertisements. The two brands I am going to talk about are McDonalds and Pizza Hut. Both are famous fast food places started in USA. Both are popular worldwide and have numerous chains in various countries across the world. They serve the same food all over the world. McDonalds is famous for its burgers, french fries and basically American fast food while Pizza Hut is a renowned pizza place.

They target the same group of people. Yet there is a major difference in the way they market and advertise their products. There is a noticeable diversity in an advertisement of McDonalds in the USA, India and a Middle Eastern country. The advertisements have to be made and altered according to the culture of the region. My presentation will have a detailed view of why advertisements are changed according to the place. How a place affects the brand and its marketing strategy and thus the advertisements.

How culture plays an important role in the way the advertisements are showed. A series of ads of each product, McDonalds and Pizza Hut respectively, from different parts of the world will be shown, and then a direct comparison will be made. Why the ads are different and how they have to be altered will be mentioned. An entire overview of culture, ideas and notions and product advertisements will be shown and discussed. The basic question of how and why advertisements of same products are different in different places will be answered.

Orbital Engine Corporation Ltd: Case Study

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. ANALYSIS 1. Two marketing activities which were wise given OEC’s main objective 1. addressing credibility and performance issues, which is one of the primary concerns of car manufacturers 2. improved OCP engines to be readily applicable to current manufacturing practice 2. Reasons OEC failed to have engine adopted by any major car manufacturer 1. failed to understand the real wants of major car manufacturers 2. failed to formulate strategic market segmentation 3. poor competitive strategy execution 4. lack of branding activities . Marketing lessons from adoption of OEC’s technology by US marine outboard motors maker 3. CONCLUSION 1. 0 EXECUTIVE SUMMARY In this report we will be evaluating the recital of Orbital Engine Corporation Ltd. pertaining to car manufacture and outboard marines. Detail analysis has been carried out on marketing decision or activities in relation to OEC’s objective, identify the unsuccessful reasons behind the idea of engine adoption by OEC and explore the successful marketing lessons how OEC’s technology has been adopted by the marine makers outboard motor in the US.

Following the above studies we conclude by providing our recommendations to grow OEC in terms of revenue and market based assets. Introduction Orbital Engine Corporation Ltd (OEC) is an Australian engine technology company for automobiles, boats and motorcycles. The technology used is known as Orbital Combustion Process (OCP) whereby it reduce fuel consumption and emission output. Contribution from license and test engine sales generates the most revenue of OEC. In 1992 it contributed $40million to sales revenue but in same year dropped to $11million.

By next four years the pre-tax profits drop to an operating loss of $21million. | |1992 |1996 | |Sales |$ 47 million |$ 30 million | |Profit / (Loss) before tax |$ 33 million |$ (21) million | Table: summary of sales and profit / (loss) earned by OEC 2. ANALYSIS 2. 1 TWO MARKETING ACTIVITIES WHICH WERE WISE GIVEN OEC’S MAIN OBJECTIVE

Since its inception, OEC has been concentrating on lucrative automotive industry. In commercializing its innovative engine technology, OEC had implemented various marketing strategies to convince the big players in the market to adopt their system into car manufacturing. In the process of strategizing marketing activities, conducting market research and focusing on customers’ wants are very important. Based on the SWOT analysis, it is clear that OEC’s technologies are beyond current market offerings, which is a fantastically strong point. Their future looks bright with increasing demands for fuel efficient and low emission cars.

However, credibility concerns and economic costs had proven to be the barrier to acceptance in the automotive industry. OEC would have to concentrate on overcoming these objections in their pursuit to be successful in this category. SWOT Analysis for Orbital Engine (in relation to the Automotive Industry) The two wise marketing activities implemented by OEC to achieve their objectives were: 2. 1. 1 Addressing credibility and performance issues, which are the primary concerns of car manufacturers. The highly concentrated automotive industry places great demand on new engines’ durability and stability before making decision.

Understanding the targeted customers, addressing what they really want and concern is of top priority. Before 1995, OEC relied on in-house testing, which obviously did not convince their potential customers. From 1995, OEC engaged independent parties such as Porsche, California Air Resources Board (CARB), RWTYV Fahrzeug and Swiss Federal Laboratories to verify their claim about its engine’s capabilities. These tests confirmed the mechanical durability of the engine and significantly outperformed the stringent emission standards set by the regulators.

Acquiring external endorsements would certainly boost OEC’s credibility and trustworthiness in the pursuit to win over their customers. Besides, OEC presented real-life application of OCP engines to exhibit the viability of their engines in consumers market. To demonstrate the maturity and feasibility of their engine, OEC participated in the Genesis project to commercialize their engines into 100 Ford Festivas for Australian government. This was a key breakthrough as OCP-powered vehicles could be utilized by the consumers and substantiated the engine’s advantages.

After obtaining market utilization data, a more comprehensive proposal could be presented to car manufacturers. 2. Improved OCP engines to be readily applicable to current manufacturing practice. After understanding the fact that the major players in the automotive industry were reluctant to bear exorbitant retooling costs, OEC enhanced their technology to be readily fitted into conventional four-stroke engines. Instead of pursuing the potential customers to revamp their manufacturing facilities and practices, OEC reconfigured their own technology to present to meet the customers’ preference for a 4-stroke engines technology.

Car manufacturers had the choice to implement enhanced fuel efficiency and lower emission solution without the associated new product risk and mitigate the high retooling costs. 2. Reasons OEC failed to have engine adopted by any major car manufacturer In light with the declining profits, this report will explore the rationales major car manufacturers’ failure to move beyond the initial license option to full implementation. In addition we performed the SWOT Analysis, PESTLE external environment analysis of the automotive industry and Porter’s Five Forces to better understand the market forces surrounding the automotive industry.

PESTLE Analysis of OEC’s External Environment Porter’s Five Forces Model (Automotive Industry) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1. Fail to understand the real wants of major car manufacturers a. Car manufacturers’ high regard for reliability and performance b. Negative brand reputation of Two-stroke engines

Besides the needs of adopting a fuel efficient and low-emission engine, the manufacturers seeks for technology provider with excellent reputation and track record. They are quite unwilling to risk an association with the negative public perception of two-stroke engines (low-quality, noisy, dirty). c. Economic factor & extra effort to retool manufacturing plant The need of the car manufacturers are met initially, as majority of them signed license options. However, large scale production would require huge capital investments and expenses to re-orientate the current manufacturing line.

Even though this action may promise positive results but from the car manufacturers’ point of view, the cost of retooling greatly exceeded their potential benefits. d. Gradual improvements, but never radical innovation Throughout the history of automotive industry, it is practically impossible for a radically innovated product to be implemented and introduced to the market. They are very conservative in embracing a new technology. e. Emission is not their main concern, as they have the power to lobby government.

Although emission regulation for automotive is in progress, the major players had the power to lobby local governments in delaying their implementation. 1. Failed to formulate strategic market segmentation OEC targeted the entire car industry without giving due thought to market segmentation. OEC could have done more in-depth market research of cars categories which match their engines’ advantages. Merely “pushing” their engines to convince the manufacturers in adapting a broad-spectrum implementation was proved fruitless. 2.

Poor competitive strategy execution OEC tried to justify a “Price Differentiation” strategy based on the rationale that their engine will lower manufacturing costs as they involve fewer parts. However, the car manufacturers had a different viewpoint, as they are not convinced with the higher-than-market licence cost. 3. Fear of brands damage if new products failed in the current market Introducing a new engine carries risk associated with product reliability which can result in product recall and other liabilities issues.

Failed engines even with warranty services will portray a negative perception of the car makers. 3. Marketing lessons from adoption of OEC’s technology by US marine outboard motors maker Louis Pasteur once said “Chance favors the prepared mind”. This can be said of OEC’s success in the US marine outboard motors segment. When the opportunity came knocking in the form new legislations introduced on the back of an increasingly environmentally conscious society, OEC was prepared to capitalise on it. We learnt and concluded the following; 1.

OEC had a developed and superior well researched Product (technology) that can result in the production of motors with the following attributes. a. Fuel efficient b. Low emission c. Almost double the power to weight engine d. Fewer parts, lower production cost e. Fewer moving parts, durable and reliable resulting in lower maintenance cost 2. Market Research and Segmentation OEC had engaged the necessary market research to identify the segment that will welcome its new technology and happily in this case the US outboard motor manufacturers were also looking for alternatives arising from the changes in legislations.

Hence when OEC came along with the requisite enabling technology that will meet the needs (comply to legislations) and also wants (lesser re-tooling of plant, lesser perceived risk of a totally new category/segment), it is no wonder that the US outboard motor manufacturers embrace the technology and became early adopters of the technology. The key was OEC spotting and acting on the opportunity afforded by the change in the market place. 3. Incremental Innovation By moving into an existing 2 strokes engine segment, OEC mitigates the entry resistance associated with new products.

In this case it is seen as an incremental improvement rather than a radical innovation on the part of US outboard motor manufacturers which has vested interest in the 2 stroke technology. They may also dislike the idea of being a follower of a foreign competitor and in this case a Japanese competitor that had a head start in 4 stroke engines. By adopting the OCP technology, these US outboard motor manufacturers can claim leadership in clean and green marine outboard motors. The marketing principle applied here is providing what the customer need and want rather than trying to change their behaviour.

Secondly, it’s a case of incremental improvement rather than a radical change. 4. Independent Testing On top of the 3 points mentioned above, OEC emphasis on independently verifiable testing to back up its claims affords the technology the much needed credibility. This is crucial for early adopters who look for assurances that the technology is sound and that they are taking on acceptable business risk. The following Porter’s Five Forces and SWOT analysis provide a better understanding of the key considerations surrounding OEC Outboard Motor segment. Porter’s Five Forces Model (Outboard Motor) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SWOT Analysis for OEC (Outboard Motor) Conclusion and Recommendations: It is obvious that OEC’s leadership in the 2 stroke US marine outboard motor is well established. We recommend the following to • strengthen and consolidate OEC’s existing leadership position in this segment • position OEC as the leader in green technology • break into new market segments Market Based Asset

We recommend a comprehensive branding exercise encompassing the following to be undertaken to build OEC’s MBA. • Brand analysis o Based on existing extensive market done by OEC • Brand Identity o Re-position OEC as a leader in Green technology • Brand Strategy o Negotiate with the manufacturers to place a visible OEC logo onto all engines in the vein of “powered by Intel” on Personal Computers. • Brand Alignment o Re-alignment OEC as green technology provider instead of provider for 2 stroke engine and 4-stroke engine technology provider o Association of the brand should not be limited to marine automotive manufacturer only but appealing directly to the end-consumer who wields the real influence on technology adoption. • Brand Initiatives Champion and participate in environment consciousness programs organised by Governments, NGOs and other environmental pressure groups. o Engage the lawmakers as a environmentally responsible corporate citizen to pursue changes in legislation • Brand Communication o Create visibility by taking the lead in public forum and debates on the environmental issues o Publish white-papers on its environmentally responsible researches and invite news network to trumpet the responsibility of society in initiating change. • Brand Performance o Get feedback from customers to determine if the product meet their functional needs. Market Consolidation into the outboard motor segment

Contrary to convention to cash in on the near monopolistic grip on the US 2 stroke outboard motor market, we recommend a graduated tiered rebate in technology royalty be applied across all motors segments to further stimulate adoption of the technologies in the next 12 months. Market Development Pursue the pioneer advantage in the countries with high use of motorbikes and scooters such as Vietnam and Indonesia where stricter emission controls are likely to be introduced in the foreseeable future. A further detailed study of these emerging markets is necessary to develop a good marketing plan to break into these markets. While this is outside the present scope of our present review, one possible option that warrants further examination is for OEC to produce its own engines. While these involve significant investments its upside potential is very significant.

A separate evaluation of this is highly recommended. Government funding is possible given the strategic impact of the approach on the national economy and environmental benefits. Market Focus (Automotive Section) We recommend a strategic retreat from the 2-stroke engine for the automotive segment and focus on the lean burn stratified charge technology for 4-stroke engines on the basis of the following; • Focus on incremental innovation that is more acceptable to the automotive manufacturer rather than radical change. • Market segment sub-compact cars • The rise of global fuel price in the foreseeable future will place a premium on fuel efficient engines. Similar legislations to those for the outboard marine motors may be introduced in the foreseeable future as environmental issues become more pressing and OEC ought to be ready to capitalize on the opportunity when it presents itself. • Conserve (operating loss) and maximise efficient use of resource ———————– STRENGTHS • Meets the tough standards of the European Stage II emission legislation. • Fewer parts compared to a conventional 4-stroke engine, which will reduce manufacturing cost. • Smaller size, less wear, reduced weight, lower manufacturing cost • Have high number of patents to protect their innovative product • Backed up by endorsements from independent tests WEAKNESSES • High licensing cost. • Weak financial position Little knowledge about the excessive bureaucracy in car industry • Re-tooling cost & capital expenditures for manufacturing plants Low credibility and negative brand image (Australian investors & Two-stroke engines) OPPORTUNITIES • Increasing pressure for the automotive industry in terms of fuel efficiency and compliance with emission regulations. • Increasing market demand for cars with bigger passenger space, improved safety features and aerodynamics. THREATS • Preference by the automotive industry to improve the 4-stoke technology. • Market risks for new radically innovated products • Automotive industry to lobby the government to delay introduction of more stringent emission levels. Political • OEC have tacit support by the local government giving various grants and loans to research and promote its technology. In the target markets, the major players in the automotive industry have significant clout in lobbying the governments to delay introduction of more stringent emission regulations. Economic • Global competition had pressed manufacturers to reduce manufacturing costs, which is a favourable position for OEC. • Strong resistance for the automotive industry to adopt the orbital engine, which is a new technology, as it would result in high capital outlay (as it would involve re-tooling of the manufacturing plants), market risk, marketing and product liability risk. • The car manufacturers are concerned about possible product recall costs if this new product doesn’t deliver the desired level of customers’ satisfaction Social Market perception in the international market is that Australian inventors do not have the necessary expertise which is an echo of its own countrymen’s perception. • The negative perception of the society which associate two-stroke engines with dirty lawnmowers and scooters • Potential risks of failure of the new orbital engine would have a negative impact on the reputation of the leading automotive player. Technological • There is a demand for fuel efficient engines and systems • Automotive industry is very conservative about embracing new engine technology. • R&D departments in major car manufacturing are reluctant to embrace external technology and often execute reverse engineering to save royalty cost. Legal Although fuel emission regulation is predicted, leading automotive companies have massive lobby in governments to delay environmental legislations. Environmental • Increased pressure for the automotive industry to be more innovative in terms of fuel efficiency and compliance with emission regulations. Threat of New Entrants LOW • Automotive industry has strong resistance to new developments • High entry cost involved in R&D and rigorous product reliability testing needed Rivalry Among Existing Industry Competitors Very HIGH • From existing 4-stroke engine technologies. • None for 2 stroke engine technologies. Threat of Substitutes Low • Improved 4-stoke engine Bargaining Power of Suppliers LOW High acceptance barrier for OEC’s new technology Bargaining Power of Customers VERY HIGH • Very small number of customers (car manufacturers) • automotive industry reluctant to adopt new technology Bargaining Power of Customers Low given the lack of choice for the immediate future. Bargaining Power of Suppliers High as OCP monopolises the 2-stroke engine segment at least for the time being. (Room for reasonable price increase on the technology) Threat of Substitutes • 4-stroke engine used by some other motor manufacturers Rivalry Among Existing Industry Competitors No mentioned of competitors for 2-stoke engines that meet the new legislations.

However, motors using 4 stroke engines are definitely a threat. (brand extension strategy for OEC) Threat of New Entrants Low as a dedicated patent management team is in place. Threat of new technologies is there but likely only over the medium and longer term. THREATS • Near term improvements in 4-stroke technology. • Longer term maturing of alternative green technologies such as electric motor or hybrids. • Lobby Groups of other technologies • Loss of key personnel • Loss of financial backing • Economic Downturn • OPPORTUNITIES • Similar legislations may be introduced to other motorized segments. • High motorbikes markets (high pollution as well) in developing countries such as Vietnam, Indonesia etc. Position OEC as a leader in Green Technology. Create a strong Green Tech Brand. WEAKNESSES • Funding • Not known widely accepted for bigger engine capacity • Cross-roads (Diversity vs. Focus) STRENGTHS • Superior fuel efficiency and emission over engine of its class. • Independently verified to exceed EU II, ULEV, ECE99, USEPA standards. • Almost doubled the engine power to weight ratio (exhibit 3) – lighter • Lower number of parts / production cost • Well accepted by Out-board motor makers • Fuel efficiency and emission level is well accepted by the end-users. • Established R&D team • Patent technology • Strategic Alliances with major names such as Siemens.

Fuel Hedging by Southwest Airlines

Southwest Airlines Fuel Hedging and Relations to Profitability Abstract In order to stay airborne, a passenger airline has to consistently generate profits. Profits come only from paying passengers, hence all stratagems must be customer oriented. In a scenario where there are many airlines competing with each other, one way of attracting passengers is to keep the cost of flying low, while providing value for money. On the other hand, expenses must tightly controlled to reach and stay at the lowest possible.

Certain expenses are unavoidable; however, one variable that can be kept low through decisive planning and foresight is the cost of fuel, which, at best, can be called volatile. A good way to achieve this is by hedging fuel cost, which is a complex, but rewarding process, as this Case Study of Southwest Airlines proves beyond doubt. Southwest Airlines Company: A Case Study in Managing the Cost of Aviation Fuel Southwest Airlines Company, an American low-cost airline is the third largest airline in the world as well as the U. S. A. by the number of passenger aircraft among all of the world’s commercial airlines (Arlene Fleming, About. om Guide; www. nationsonline. org), operating more than 540 Boeing 737 aircraft today between 67 cities in the U. S. A. (Southwest Airlines Fact Sheet of 2008). Today, Southwest operates approximately 3,300 flights daily and boasts of being the only major airline to post profits every year for the last thirty six years. It justifiably claims to be the United States’ most successful low-fare, high frequency, point-to-point carrier (www. southwest. com). Given the fact that it is a no-frills airline, it is still streets ahead of other low-cost carriers the world over and, in an atmosphere darkened by virtually global recession? here almost every airline is cutting back on staff, leased aircraft, number of sorties per day and skipping low or loss-making sectors? the fact that it has been rarely gone into the red is most impressive. It would be worthwhile examining its modus operandi and strategies employed to stay profitable every year, though it did suffer a minor hiccup when its nose just dipped under the waterline in two quarters in 2008. Southwest keeps its aircraft in flight for more than twelve hours a day, with carefully selected destinations that could be called secondary airfields ( www. southwest. om), which facilitate fast turnaround averaging less than fifteen minutes from switching off and which charge low administrative fees. Using the same logic, they use only one aircraft type, the Boeing 737 which has a reasonable passenger capacity of around one hundred and twenty five to one hundred and fifty. These are fitted with the most fuel efficient engines and aerodynamically lowest drag wet wings available. ( www. simviation. com). Strategies for Cost Control Some facts need to be listed prior to studying Southwest Airlines’ strategy in terms of cost cutting on fuel consumption.

These are taken from its Factsheet 2008 ( www. southwest. com): • The Company’s fleet has an average age of approximately 10 years. • Southwest’s average passenger airfare is $113. 97. • The average aircraft trip length is 635 miles with an average duration of one hour and 55 minutes. It must be noted that such large averages are possible in North America only. • Southwest aircraft fly an average of 6. 2 flights per day, or almost 12 hours and 9 minutes per day. • It has the lowest turnaround time after switching off, post flight, averaging fifteen minutes.

Holding time on the ground is thus minimized. • In 2008, Forbes magazine ranked the dependability of U. S. A. ’s 10 major carriers and Southwest Airlines topped the list as the number one Most Reliable Airline. • After soliciting feedback from almost 10,000 travelers, SmarterTravel recognized Southwest Airlines as ‘Best Airfare Prices’ in its Readers’ Choice Awards in fall 2008. This meant that more and more passengers flew with Southwest. Hedging Fuel Jet fuel represents a critical expense category for any airline that bears its own fuel costs and most airlines bear at least 80% of its fuel osts. Fuel has consistently been one of the largest expense categories for domestic airlines, ranking second only to personnel expenses. During 2003, fuel costs represented, on average, over 16% of the total operating expenses for all U. S. domestic airlines studied by Richard Cobbs and Alex Wolf (2004). Moreover, airlines are generally unable to increase fares to offset any significant increase in fuel costs. From 2001 to 2003, these same airlines experienced a 25. 9% compound annual increase in jet fuel costs while average airline pricing decreased by 0. %, as measured by revenue per available seat mile (Cobbs and Wolf, 2004). Jet fuel costs have substantially risen over the past several years putting consistent pressure on airlines to maintain positive cash flows. Any saving in fuel costs works out to profit earned. In fuel-intensive arenas such as the Airlines Industry, high and volatile fuel prices can have a significant impact on the bottom line, not to mention adding to the difficult task of budgeting for future fuel expenditures. If fuel costs are not actively managed, they can lead a company into losses.

Airlines can mitigate their exposure to volatile and potentially rising fuel costs, as well as natural gas and electricity costs, through hedging. Hedging allows the fuel market participants (companies that consume large quantities of fuel and other energy commodities, like airlines) to lock in prices and margins in advance, while reducing the potential impact of volatile fuel prices. (Corley, Rock Products, 2008). ‘Hedging’ items is a standard practice in almost every field that involves finance, including market players in precious metals like Gold, Silver and Platinum.

Other terms like ‘futures’, ‘derivatives’, etc. in the Stock Market have a similar connotation. Richard Cobbs and Alex Wolf, in their White Paper, ‘Jet Fuel Hedging Strategies: Options Available for Airlines and a Survey of Industry Practices (2004)’, say that while fuel costs may be hedged, there is no perfect hedge available in either the over-the-counter or exchange traded derivatives markets. Over-the-counter derivatives on jet fuel are very illiquid which makes them rather expensive and not available in quantities sufficient to hedge all of an airlines’ jet fuel consumption.

Exchange-traded derivatives are not available in the United States for jet fuel, so airlines must use futures contracts on commodities that are highly correlated with jet fuel, such as crude and heating oil. As such, airlines employ a variety of strategies ranging from not hedging to fully hedging using a combination of products. Domestic airlines have a variety of hedging strategies available to them. These include using both over-the-counter and exchange-traded derivatives and remaining unhedged. Options, including collar structures and swaps are the primary derivatives used by airlines.

Many airlines, including Southwest, stated that they prefer over-the-counter derivatives (OTC) to exchange traded futures because they were more customizable. (Presentation by Southwest, Dallas, U. S. A. , 2003). OTC derivatives are traded directly between the airlines and investment banks, and as such have counterparty risk that must be considered. Therefore, airlines like Southwest prefer to trade with three or four different banks to diversify this risk and also to get the best pricing possible (ibid).

Southwest Airlines evidently kept their ears close to the ground by going in for very high levels of futures before Iraq and Desert Storm drove oil prices upwards. The Airline went in for even more hedging in 2004, 2005 and early 2006 in anticipation of oil prices surging to unprecedented levels ( http://buck. com). Study of Annual Reports (K-10) 1999-2008 The annual report of Southwest Airlines was studied for every year from 1999 to 2008. Not much data is available for 2009, for evident reasons. Aviation Fuel 2000: The cost of fuel impacts the Company’s operating results significantly.

The Company’s average cost of jet fuel per gallon for scheduled carrier service over the preceding five years was as follows: 1995 $. 55 1996 $. 65 1997 $. 62 1998 $. 46 1999 $. 53 2000 $. 79 Prior to 1999, the Company’s principal hedging program utilized the purchase of crude oil call options at a nominal premium and at volumes of up to 30 percent of its quarterly fuel requirements.

However, in order to provide greater protection against increasing fuel costs, the Company significantly increased its hedging activities during the first half of 1999. During the second half of 1999, the Company did not have a significant portion of its fuel purchases hedged. As of February 24, 2000, the Company had hedged its exposure to fuel price increases for approximately 57 percent and 85 percent for first and second quarter 2000, respectively, and 100 percent for the third and fourth quarters (www. sec. gov/edgar. shtml, 2001). More details became available with each passing year and are reflected in the table below.

Table 1: Expenses, Operating Costs and Cost of Fuel |Year |Cost($ Millions) |Average Cost per Gallon |Percentage of Operating Costs | |1998 |$388. 3 |$. 46 |11. 2 | |1999 |$492. 4 |$. 53 |12. 5 | |2000 |$804. 4 |$. 79 |17. 4 | |2001 |$770. |$. 71 |15. 6 | |2002 |$762. 1 |$. 68 |14. 9 | |2003 |$830 |$. 72 |15. 2 | |2004 |$1,106 |$. 92 |18. 1 | |2005 |$1,470 |$1. 3 |21. 4 | |2006 |$2,284 |$1. 64 |28. 0 | |2007 |$2,690 |$1. 80 |29. 7 | Sources: www. sec. gov/edgar. shtml (2008), http://buck. com Note: 1. Average cost of jet fuel is net of hedging gains and includes fuel taxes 2. From October 1, 2001 to December 31, 2001, the average price per gallon was $. 6030. 3.

From October 1, 2002 to December 31, 2002, average cost per gallon was $. 71. 4. From October 1, 2003 to December 31, 2003, average cost per gallon was $. 74 5. Southwest reclassified fuel sales and excise taxes for the years 2004 through 2007 from “Other operating expenses” to “Fuel and oil expense” in order to conform to the current year presentation. Average fuel cost per gallon figures, as well as percentage of operating expenses, have also been recalculated based on the restated information. Southwest reported a profit of $235 million and saved approximately $351 million during the first six months of 2005.

If Southwest hadn’t hedged, that profit would have been a $116 million loss and the first time in 57 consecutive quarters that the company did not report a profit according to Andrew Samwick, writing at http://voxbaby. blogspot. com/2005/09/should-airlines-hedge-fuel-costs. html (Grossman in USA Today, July 2005). Fuel Price Impact in 2008 During 2008, the cost of fuel fluctuated greatly, as the price of a barrel of crude oil soared from near $100 in January 2008 to almost $150 in July 2008, then plummeted to below $35 at one point during the fourth quarter of 2008, (www. ec. gov/edgar. shtml). The table below shows Southwest’s average cost of jet fuel, net of hedging gains and including fuel taxes, over the past five years and during each quarter of 2008: Table 2: Expenses, Operating Costs and Cost of Fuel per Quarter of 2008 |Qtr |Cost($ Millions) |Average Cost per Gallon |Percentage of Operating Costs |1 |$800 |$2. 13 |32. |2 |$944 |$2. 42 |35. 5 |3 |$1,051 |$2. 73 |37. 5 |4 |$918 |$2. 49 |34. 5 Sources: www. sec. gov/edgar. shtml, http://buck. com 2008 was a bad year for the airline industry in general, but not too bad for Southwest.

Mercurial fuel costs and the downward spiraling domestic economy had industry-wide ramifications. The pogo-stick price variations of a barrel of crude oil from almost $100 to $150 per barrel between January and July 2008 to below $35 in the fourth quarter of 2008 hurt Southwest but the Airline’s foresight kept it chin-high with cash savings of almost $1. 3 billion during 2008. 2009 is proving to be a tricky year for Southwest as fuel costs have dropped sharply; the Company had decided to reduce its hedging considerably, but full effects will only be seen early next year.

Moreover, reading between the lines, it is less protected against future increases (www. sec. gov/edgar. shtml). The net income of the Airline for the period 1999-2008 is shown in Table 3 below. Net Income of Southwest Airlines 1999-2008 |Year |Net Income $ Millions | |1999 |0. 474,378 | |2000 |0. 25,224 | |2001 |511 | |2002 |241 | |2003 |442 | |2004 |313 | |2005 |548 | |2006 |499 | |2007 |645 | |2008 |178 | Sources: www. sec. gov/edgar. shtml, http://buck. com Table 4 on the next page will show exactly how much Southwest Airlines resorted to hedging. Airline Fuel Expense and Hedging Summary Airline Fuel Expense and Hedging Summary Fiscal 2003 Available Seat MilePer ASMFuel as % of Op. Expense Current Ratio-Years Fuel Hedged-Max Maturity of Hedged Fuel-Av. % of Fuel Hedged Company MillionsRevenueFuel Expense FY 04FY 05 Airtran Holdings1 0,046$0. 091$0. 018 21. 5%2. 61×1999-20052. 035. 0%12. 0% America West2 3,3730 . 0960. 016 16. 4%1. 21×1997-20041. 011. 0%0. 0% American1 65,2090 . 060. 01715. 2%0. 71×1993-20052. 012. 0%4. 0% Continental7 8,3850 . 1130. 01614. 5%0. 90×1996-20031. 0 0. 0%0. 0% Delta1 34,0000 . 0990. 01413. 8%0. 75×1996-20043. 032. 0%0. 0% Midwest Air2 ,9680 . 0730. 02719. 6%1. 38×1997-20031. 00. 0%0. 0% Northwest8 8,5930 . 1070. 01815. 9%0. 93×1997-20041. 50. 0%0. 0% Southwest7 1,7900 . 0830. 01215. 2%1. 34×1997-20074. 082. 0%60. 0% United1 36,6300 . 1000. 01513. 7%0. 66×1995-20032. 00. 0%0. 0% US Airways5 8,1060 . 1180. 014 11. 7%0. 80×94-97 00-052. 030. 0%5. 0% Source: Company SEC filings and Carter et al. (2002) The amount of hedging done by Southwest is clearly evident from the table above. Conclusion

With almost every airline left bleeding by vicious fluctuations in the price of fuel in 2008, only Southwest came out on the plus side, albeit with a reduced profit margin. Coupled with the analysis of its being the only airline in the world to stay out of the red for thirty-six years on the trot, re-enforced by a revised policy in the 1990s, it would be fair to say that its strategy of hedging fuel prices, to levels in sharp contrast with other airlines, contributed in no small measure to its continued success and profitability. References Cited Corley. M. , Hedging Fuel Prices, Rock Products, 2008, accessed on 25 November 2009. Cobbs. R. & Wolf. A. Jet Fuel Hedging Strategies: Options Available for Airlines and a Survey of Industry Practices, Finance 467, Spring 2004; accessed on 25 November 2009 at http://www. kellogg. northwestern. edu/research/fimrc/papers/jet_fuel. pdf . Cobbs. R & Wolf. A. , Company SEC filings and Carter et al. (2002), Finance 467, Spring 2004; accessed on 25 November 2009. Fleming. A. , About. com Guide: Air Travel-The World’s Biggest Airlines 2008, extracted from http://airtravel. about. com/od/airlines/a/bigair. htm on 25 November 2009. Samwick. A. , http://voxbaby. blogspot. com/2005/09/should-airlines-hedge-fuel-costs. html as reported by David Grossman in USA Today, July 2005, accessed on 25 November 2009. Major Airlines of the World, accessed from http://www. nationsonline. rg/oneworld/ major_airlines. htm, 24 July 2009 on 25 November 2009. Presentation by Southwest, Dallas, U. S. A. , 2003, http:// www. southwest. com, accessed on 25 November 2009. Southwest Airlines Factsheet 2008, extracted from http://www. southwest. com/about_swa/press/factsheet. html#Financial%20Statistics on 25 November 2009. UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Washington, D. C. 20549 http://www. sec. gov/edgar. shtml, accessed on 25 November 2009. http://buck. com/annual_report? idx=s&nam=DEMO&pw=DEMO, accessed on 25 November 2009. http://www. simviation. com/rinfo737. htm accessed on 25 November 2009.

Discuss How the Concepts of ‘Race’ and ‘Ethnicity’ Perpetuate Inequality in Australian Society.

Australia is known for its multicultural society, but race and ethnicity are a huge factor of persistent racism and inequality in this country. The driving force behind this is the strong belief that some of the population still hold against people who appear different to themselves. To gain a clear understanding of this sensitive topic one must look at the origins, forms and effects of racism. This essay will look at how the concepts of ‘race’ and ‘ethnicity’ perpetuate inequality in our society, a brief history of Australia in relation to racism and how people experience these inequalities today in a society that we call multicultural.

Modern Australia was established as a ‘region of recent settlement’ in 1788 which was a small part of a larger process of European colonisation (Bessant & Watts, 2002, p. 219). They had a set of ideas, values and beliefs and assumed that aborigines had no system of land ownership, agriculture, animal husbandry. Indigenous people have been in Australia for more than 100,000 years (Bessant & Watts, 2002, p. 222). The White Australia Policy in the 20th century encouraged immigration only from Britain, but didn’t allow ‘Asians’ and ‘Non-whites (Economou N, 1998, p. 63). By 1950’s people from all countries were allowed to migrate into Australia to help post war reconstruction. The colonial immigration saw a mass migration of European people mostly from Britain to Australia. It is said that between 1788 and 1852 approximately 170,000 people moved to Australia, and the gold rush era after 1851 made it a highly desirable country for migrating (Bessant & Watts, 2002, p. 231). By end of World War two, as war forced Australia to get closer to other countries, which resulted in the first significant weakening of the policy in 1951.

Later in the 1950s and 1960s other parts of the White Australia Policy were gradually dismantled. By the 1970s the federal government had removed all racial restrictions from its immigration law (Bessant & Watts, 2002). Various writers have contradictory approaches and ways of looking at racism, making it a complex topic. It takes many different forms, ranging from physical violence to derogatory language. A person or group’s belief that their race is superior or inferior, or their moral and social traits are predetermined, based on biological differences can be termed ’racism’. A roup of people sharing the same skin colour, same values, coming from the similar backgrounds may constitute as ’race’. One of the most common forms of racism found today is Institutional Racism, which stems from established corporations, and other powerful forces in society, thus making it hard to question and faces less public condemnation. Examples include housing, employment, businesses, education, religion and media (Healey, 2002). Typically, the basis of this type of discrimination is from irrational fear of people at the receiving end who belong to a different culture or ‘race’.

Although, there have been ongoing debates about racism all around us for centuries, it is an assault on human rights as it methodically refuses people of different caste, colour, race, sex or their country of origin basic values underlined by Universal Declaration of Human Rights (UDHR) which states that human rights are everyone’s birthright and apply to all without difference (Healey, 2002). Common perception of shared origins, culture, lifestyle and traditions amongst a group of people or society is the universal definition of ethnicity (Bessant & Watts, 2002).

People can share the same nationality but have different ethnicities. A few writers have put forward fascinating explanations of ethnicity. Edward Shils in his ‘primordial approach’ argues that he believes everyone has a primordial attachment to their motherland, people and religion which brings out strong emotional ties by socialising, which further gives rise to the need to have a separate identity and belonging. Then the ‘Mobilisationist Approach’ suggests that nothing is predictable or normal about ethnicity.

Rather, ethnic identities come into sight and are toughened in political contexts where groups struggle to get access to inadequate and valued resources (Van Krieken et al, 2000, p. 519). The basis of ethnocentrism is a conscious or unconscious belief that one’s ethnic group, culture, religion, custom or behaviour is superior to another ethnic group. Politicians boast that Australia is a multicultural, open and classless society. Despite the well known image of Australia’s everyone have “a fair go”, the country is still full of both institutional and popular racism.

Education has always been very important when it comes to moving up in class and has been very liberating in Australian society. However, indigenous and ethnic groups have been somewhat disadvantaged in opportunities to acquire education. According to the Australian Bureau of Statistics only five Indigenous Australians per 1,000 obtain tertiary qualification, compared to 70-80 per 1,000 for Anglo Australians. In the 1990s welfare, health care and education support for Aborigines accounted only to 2% of total budget outlay (ABS 2000:21).

In order to receive an education a person requires an income, but to get an income one needs a job, and a job is challenging to find without an appropriate level of education. Therefore an individual’s chance of education is influenced by the socio-economic status of one’s parents which is a cyclic social inequality hard to break. Migrants and their children often find it challenging to adjust to the Australian school system as they often come from countries that have a poor education system, and even if they have tertiary qualifications they mostly are not recognised, resulting in them taking lower paid and lower status jobs.

Working class children often attend schools in working class suburbs where pupils are directed into working-class jobs. A high number of students leave school early and the expectation that they will attend university is low. In comparison, upper-class children attend private schools, and the expectation that they will attend university is high. Migrants and ethnic groups are often at a lower end of the socioeconomic scale (Aspin, 1996, p. 87) Migrants arrive with little money and few skills.

Already at a disadvantage with language barriers, migrants and ethnic groups are also faced with racism and discrimination in their search for employment. In 1996, One Nation political party leader Pauline Hanson made a speech that claimed that Australia was being overwhelmed by ‘Asians’ and feared that Asians were taking over jobs. The fact is that Asians at the time only accounted for 5% of total population and ‘there is little evidence to support the claim that high rates of immigration ‘cause’ unemployment or ‘cause’ Australians to lose their jobs’ (Bessant, 2002, p. 219).

Indigenous people had a 24. 3% unemployment rate according to 1996 census (ABS 2000:23). Indigenous people are usually poorer than most non-indigenous Australians and receive a lower income on average than the total population. The household income for Aborigines in 1994 was $158 compared to $310 for white Australians (ABS 2000C:23) This also reflects the fact the there is a higher reliance by the Aboriginal population on social security payments (ABS 1996b: 122-4) Socioeconomic status is a major determinant of inequality as it influences access an individual has to the economic resources of a society.

L. J. Aspin (1996) explains that white Australian-born males have a better chance of obtaining access to the resources of society. Inequality is also reflected in the differential access to housing and health services. For people who are paying rent and on a low income, it is almost impossible to save for a deposit on a house at the same time. Aborigines and migrants suffer discrimination in rental accommodation, where landlords preferring a two-parent, white, Anglo-Saxon families. Only 10% of Aborigines own housing compared to 70% of white Australia population (Aspin, 1996, p. 7). Most Aborigines live in rural and provincial Australia (Bessant, 2002, p. 226) far from big cities where there are more jobs, higher paid jobs, better education, better housing, good water and sanitation services, hospital medical services and other community amenities. Some ethnic backgrounds are still not accepted in our society and are treated differently and unequally. We see and hear about them on a day to day basis. In recent months the Indian community in Australia, especially students have become a vulnerable target for attacks, whether racist or not.

On 31 May 2009 in Melbourne, about 5000 students marched through the streets of Melbourne protesting against these attacks on Indian, Pakistani and Bangladeshi students. 25-year-old Sravan Kumar Theerthala was in a serious condition in intensive care after being stabbed in the head with a screwdriver one week earlier (Bolton & Peterson, 2009). In an article in The Age newspaper on February 19 Victorian police claimed that these attacks are not racially motivated, but opportunistic where Indian students are “over representing themselves as victims” and can be looked upon as soft targets.

The police also advised them “not to speak in their native language loudly” or display signs of wealth. Attacks on Indians aren’t the only allegation Australia has faced over the years. It seems that anyone in power, including police, politicians or the media has had the tendency to somehow flare these attacks. In the Herald Sun on 11 June 2009, 3AW’s Neil Mitchell said: “Australians are also bashed and die in India, which does not provoke parades of chanting ocker backpackers in the streets of Mumbai”.

In 2007, the then immigration minister Kevin Andrews referred to the Sudanese community when he said “Some groups don’t seem to be settling and adjusting into the Australian way of life as quickly as we would hope. ” A spate of violent attacks were then unleashed against Sudanese migrants, and one was bashed to death by a group of white men (Bolton & Peterson, 2009). As Australia continues to argue that it is a just, tolerant, open and classless society, there is still evidence of race and inequality among us and affecting the many lives of migrants and Indigenous people.

It is interesting to note that the very determinants of class – power, money, education, family background, occupation, health and general way of life are also the same factors where others experience inequalities. Race and ethnicity perpetuate inequality, and in any country including Australia, one would find that there are always some people with very strong values of racism, and media outlets which help in manipulating the views of general public. There still needs to be a massive drive by communities and governments on racism and inequality and it will be long before we will be a “happy multicultural Australia”.

Bibliography Aspin, L J 1996, ‘Social stratification and inequality’, Focus on Australian society, 2nd edn, Longman, Melbourne. Australian Bureau of Statistics 2009, Australian Bureau of Statistics, viewed 28 November 2009, ; http://www. abs. gov. au/ ;. Bessant, J & Watts, R 2002, ‘Neighbours and nations: ethnic identity and multiculturalism’, Sociology Australia, 2nd edn, Allen & Unwin, St Leonards, NSW. Bolton, S & Peterson, C 2009, Indian students speak: Stop the racist attacks! , viewed 28 November 2009, ; http://www. reenleft. org. au/2009/798/41083;. Economou, N 1998, ‘The Politics of Citizenship: identity, ethnicity and race’, in Alan Fenna, Introduction to Australian Public Policy, Vol 1, Addison Wesley Longman, Melbourne. Healey, J 2002, ‘Racism: Beyond Tolerance, A Fair Go’, Racism in Australia, Vol 180, The Spinney Press, Rozelle, NSW. Van Krieken, R, Smith, P, Hobbis, D & McDonald, K 2000, ‘Migration, ethnicity and Australian Aboriginality’, Sociology: themes and perspectives, 2nd edn, Pearson Education, Frenchs Forest, NSW.