Benefits of international trade and economic integration in Sri Lanka

Benefits of supranational treat and economic integration in Sri LankaIntroductionEach plain has its make natural resources, natural endowments and its benefits. Also countries be having limited resources and unlimited necessitate and wants. Different Country has different resources at different limit to fulfill their needs and wants. T here(predicate)fore counties do try to overcome from these problems and do businesses with other countries through international trade and economic integration. afternoon afternoon teatime leaf industriousness in Sri Lanka is one of the primary(prenominal)(prenominal) business in which the acres gets foreign bills and is similarly the main drink of ordinary Sri Lankans. The demand for tea crossings atomic number 18 increasing in the domain merchandise.So the article is about the Sri Lankan tea products, and the current providence of the country. Since the country is having mixed economy and also the economic system is playing vital office staff in the egression of the country. Also establishment discourse in the business is also included in the article. Government also has policies to happen upon its objectives.Moreover this leave behind include the merchandiseplace structure and market force as well as international trade and economic integration. tea ProductsOur country Sri Lanka is one of the underdeveloped countries in Asia. The main businesses of our country include tourism, tea merchandise, app arl, textile, rice production and other clownish products. The main industries from which our country gains foreign currency argon Tea business and Tourism industry. Recently, our country has become one of the countries exporting fair trade tea to the UK and other countries. Tea is one of the main drinks of ordinary people. And the demands for tea products are increasing day by day. There are many different tea products in market.Current Economy of Sri LankaOur country has most unattackable growth rat e of economy in recent years. inflation has been high but declining, averaging 9.2 percent between 2007 and 2009. The government beguiles outlays through regulations, state-owned enterprises, and subsidies for a wide crop of goods.The inflation rate of consumer prices has been reduced in 2010. And the country is having high growth after the end of civil war.INFLATION RATEFigure 1 Inflation rate (consumer prices) http//www.indexmundi.com/sri_lanka/inflation_rate_%28consumer_prices%29.htmlOur government is trying to reduce the unemployment and append the foreign enthronisation for the economic growth of the country. Our Sri Lankas tea plantation provides lots of job opportunity to Sri Lankans. Tea plantations consist of approximately 220,000 workers and dependent population. So it shows the tea industry consist the huge number of job opportunity and get under ones skin reduced the unemployment for some extent. agree to the GDP real growth rate it shows that 2002 the GDP of th e country was declined and after that the economy has grown.http//www.indexmundi.com/g/g.aspx?c=cev=66Economic system and government interventionWe are having mixed economic system where the government allows and table services privet businesses to grow in the market and also to open new businesses. Mixed economy is one of the main reasons for the proper use of resource available in the country and the government rules and regulation plays vital role. Since Economic policy has been a key topic of literary argument among the people who are interested in growth and increment, the country claim economic policies which consists distinct sections such as development strategy and, macroeconomic policy, agriculture, industry and technology development, employment and labour, institutional and governance issues, and social welfare and many others polices are for the benefit of the country or for the development of the country. And these policies help oneself the country to have clear idea of the country position and are plans to achieve the aims of the country.Last year government has promised to provide loans for the Agricultural development of country. It also includes improvement and favorableness to marginal tea land. And expect new land entrust come under Tea aided by these loan facilities. The main aim is to raise small business entrepreneurship. As result households and individuals get out be benefited and also it bequeath increase the living standard and employment ordure be increased.The main aim of our government is to raising the standards of living and take in a higher quality of life by increasing income, employment level, and through the increase of total production of country, thereby actively contributing to the overall economic growth of our country.http//lankagazette.com/topstories/us-25mn-loan-for-tea-small-holders-to-develop-3500-hectares-of-new-land/The policies decide about the budget of the country and how they are going achieve the objective. The governmental organization and institution helped to promote of tea industry in our country Sri Lanka in order to evaluate their role and contribution to the economic development of the country. During slash fall of the industry, various government institutions were established to help and developed the industry,Also our government has considered the problem of a lack of skilled workers in the tea industry, and plans are underway to start a program to train the workers in necessary job categories. According to the discussion held with the minister of professional and technical training, who utter that under the program, skilled workers would be trained in the categories such as field officers, production officers, technical officers, electricians and tea plantation workers. It shows that government helps the businesses to overcome from market failure through stability of the economy and through promotion of positive externalities, provision of public goods and servic es (financed through taxation) and through expeditious resource allocation.http//goliath.ecnext.com/coms2/gi_0199-7072587/Sri-Lanka-government-to-train.htmlour government has range of policies at its disposal in order to achieve its objectives of low inflation, high economic growth, high employment level and so many other goals. Therefore there are policies such as fiscal policy, monetary policy, exchange rate policy, income policy and supply side policy which can profess the businesses in many ways.Fiscal policyFiscal policy is the policy of central government to influence the economy of the country. Therefore fiscal policy will help our government to achieve its macro objectives. And there are two types of fiscal policy Expansionary and Contractionary fiscal policy. Our country government is trying to have near employment and also the spending of the government is high so that our standard of living will be high at the same time economy will grow. So we can say that our governm ent is towards Expansionary since taxation had been reduced and the spending of government is high in recent years. (Appendix 1)Monitory policy by monitory policy the government controls the supply of money, the availability of money, and rate of interest in order to attain a set of objectives oriented towards the growth and sustainability of the economy. i of the core objectives of our country is economic and price stability. For 2011 country have decided to reduce the tax and tax reduction are aimed at boosting economic growth as it increase consumption which will help increase revenue. Our country Sri Lanka is one of the largest tea exporters through which the country gains income. The income through this export will help the government allocate the budget in the monitory and fiscal policy. We can say there is no wide fluctuation in the general price level in the economy which is helping to achieve sustainable economic growth and also the price fluctuation at low rate would non have any major influence on our economic decision regarding what to produce and how to produce, whence enabling efficient allocation of resources in the economic atomic number 82 to economic stability. (Appendix 2)Market StructureThe tea industry in the Sri Lanka market is having a monopolistic market since there are lots of tea businesses baffling in lead astraying and buying. Sri Lanka is having large number of relatively competing firms in tea industry. There are fewer barriers to entry, so that it is fairly easy for firms to set up and to leave these markets. Each firm is having different products and it is highly differentiated from others.In tea industry in Sri Lanka is not a monopoly market, as there are many firms and not only one business has total control over a market and is not only one seller in the market. Also we cant say it is perfect competition since there are lots of competitors in the Sri Lankan market.Our Government and tea board provides full support and h elp many people to start their business in tea industry since it is one of the main export of country in which country gains foreign currency and also the demand for tea product is inelastic and demand is increasing.Considering the creative activity market, Sri Lanka has an oligopolistic competition referable to the tea producers being of less number. The entry barriers for tea are high in the world market due to the lack of natural endowment in different countries. Tight competition exists among the tea producers in the world and this makes Sri Lanka have an oligopoly in tea globally. And the products are highly differentiated one product to another.Market forceThe demand for our tea in the world market has increased. According to the Minister of Plantation Industries says that there is a special demand for local tea in Russia. Our country exported the largest metre of tea in 2010 and highest quantity had been exported to Russia. Also now there are high demands for tea in the wo rld market. So the country should get ready to produce sufficient tea to meet this demand. The main aim of our country is to become the worlds leading supplier of tea. http//www.itnnews.lk/?p=22477ProductsBulk TeaPacketed TeaTea BagsGreen Tea second TeaOther Tea-Silver Tips Tea Golden Tips TeaSri Lankan praised as the best tea in the world.Considering the world market we are practice investment strategies since the tea industry in Sri Lanka is having high market attractiveness and high business strength compare to international competitors in the world market. Therefore the country was practicing differentiation strategies. Also the tea products of Sri Lanka are having high differentiation. More over most of the tea products in our country are in the star leg of BCG matrix. Therefore the industry is towards product development as it will increase core competitiveness and high competitive advantages of the business in the international market and also increase the foreign currency i nflow as well.International tradeInternational trade is very important for or country as it helps in many ways for country to overcome from different problems. Our country is not self-sufficient and international trade helps our county to import the resources or goods needed. Also helps to export the products to other country which is bringing foreign currency to the country. International trade has contributed immensely development of our nation. International trade has been a platform for globalization also it reduces inequalities and facilitated growth in economy of our country. International trade is helping the country to introduce global competitiveness as most of the domestic business units have a tendency to become very efficient being exposed international competition. Also the businesses can easily access to technological innovation and will be able to utilize the latest technology to boost their productivity. There is high price for Sri Lankan tea products from countries such as Turkey, Iran, Russia, UAE and Kuwait, therefore we can sell our products to the foreign counties through international trade and can increase country income. Also we can import the products which our country is in need through international trade.Benefits of economic integrationsEconomic integration helps to reduce or deduct customs work within the integrated area, so it helps to reduce the prices for both distributor and the customers. through this our country can increase profit by increasing demand as we can acquire goods and services at much low woo due to removal of trade barriers and tariffs completely. It also helps to have freedom and helps to have market expansion and more than foreign investment into the country and great airing of technology. It also will increase the employment opportunities in the country as well.Our country integration with World Trading Organization helps to reduce customs duty or trade barriers and tariffs with in the integrated area. Th ere are 153 countries in the World Trading Organization (WTO) and have general agreement on tariffs and trade. Our country Sri Lanka is one the country in WTO. And the rules of this integration covers trade in all goods and helps international trade flow as smoothly and freely as contingent and reduce risk in doing oversea businesses.So our country can export products with low price since our country is part of WTO and through integration the trade barriers around the world are start than they have been before. So the terms of product can be reduced and we can sell our products much more less price. And also imported products we can get at low price.ConclusionAs I am planning to start up a business in selling tea products to the ordinary Sri Lankans the facts spoken above could be taken into consideration.As our county tea products are high quality and tastiest tea products due to the natural endowments or the climate and whether of the country allows the tea firms to harvest the best quality tea products. Also the demands for tea products are rapidly increasing, and due to increase in demand a high supply could be generated through starting a tea business.Moreover countries economy is rapidly growth and lot of development projects are been done. Government also trying to reduce tax and the spending of government on infrastructure is increasing which shows the macroeconomic aims are to have economic growth, full employment, and also high living standard with the control of the balance of payment situation. In 2010 the government pledged loan facilities for agricultural development and is designed to the benefit of Tea small holders, small producers, women, landless householders and young people in rural area. These facts and natural endowments and government support therefore it initiated me to start a tea business in Sri Lanka.Our business visionTo be the leader in tea industry in Sri Lanka, and also public exposure our presence in all key economic geogr aphies in Sri LankaTo be the best quality tea product producer to the nation and the most efficient and affordable price provider in tea product.Our missionWe will lead the way through quality of our products and enthusiasm of our employees and customers. We will serve all our communities to the best of our ability, try always to listen to their needs and so build total customer confidence and satisfaction.Key objectivesGet profit $ 20000 within 1 year through introducing a new product and increasing sales and also through cost cuts and providing with affordable price to customersIncrease customer prospect 10% or brand name 10% through increasing brand awareness, through promotions and value added services within 2 years.Stakeholders of the businessCustomers Customers are one of the key stakeholders of the business as they are vital to the survival of the business. We will try to provide excellent services to its customers while selling the product and has excellent relationship t hrough respects, friendly services and so on.Investors We will try to give maximum benefits to investors and also have good relationship with them. by dint of website or through other communication method we will provide information about the business performance.Employees Employees are the other key stake holders of the business. We will provide training programs to employees to familiarize them companys policy and working practice. Also will provide many packages and development opportunity to its employees.Government Government can influence and affect business in number of ways. We have to follow the rule and regulation that is made by the government.Competitive strategyFor the growth of our business we can practice Diversification strategy since it is going for new market with new product. Even though this involves high risk, because the market is new in which the business has no experience and also it will take a business outside its area of expertise. Also we can practice cost leadership as here our business can tries to reduce the price or attempt to produce goods or service at lower cost than the competitors in the market. This is to charge lower prices than the rivals and to compete in price wars that may take place. This strategy high light passing on the cost advantages to the customer through cutting down cost in every junction of the value chain or emphasizing on economies of scale in order to give customer cost benefits.Implementation

Different Types Of Diversification Strategies Marketing Essay

assorted Types Of Diversification Strategies Marketing EssayExpanding a trade can be quite hard so concern owners and their teams tend to use a variegation schema to be subject to increase their sales and be successful in their expansion.The business variegation outline is what companies do (increasing the sales volume) in order to increase their moolah.The increase in the volume of sales can be through with(p) by developing sore products and targeting raw grocery store. The diversification strategy can be used at the unit level of a business as well as in their corporate level. In a company expansion in unit level of a business, the strategy can be a new segment idea that is think exactly to the subsisting business. For the corporate level, the new business can be without relation to the brisk business.Different Types of Diversification StrategiesThere ar triad basic types of diversification strategies that whitethorn composed of several plans that range from the designed and development of new products to the licensing of these new technologies. They may excessively be a combination of these plans with two or much of it included. They argon the concentric diversification where the technology stays the aforesaid(prenominal) while its market plan alters satisfyingly. The technical noesis is an edge when it comes to this type of strategy.The next wizard is called horizontal diversification. In this type, the technology used is somehow far from the existing business. though the new products argon non related to the existing angiotensin-converting enzymes, the customers who are loyal unbosom patronized the products. This is truly effective when a business break some(prenominal) loyal customers. Last but not the least is the askant diversification. This strategy is almost similar to the horizontal diversification. The only thing that divers(prenominal)iates it from horizontal diversification is that squinty strategy targets new customers instead of targeting their existing loyal customers.Diversifications Advantages and DisadvantagesWhen employ the business diversification strategy, you must consider some things to succeed. Diversification can really second businesses achieve its full potential in the market. It helps the company increase their customers by attracting new ones and retaining loyal ones. Furthermore, it enhances the product portfolio of the business by launching products which compliments their existing products in the market. Nevertheless, the company must hire or have sufficient cognition about diversification so that no problem can break in the future. The management team of the company must be well trained and educated about the processes that must be followed. Lack of culture and knowledge about the latest trend in the market can really be upsetting in your business goals. You must ensure that all are taken care of and you have the world power and capability of handling those thing s. If not, hire someone who is a professional in this kind of situation.Types of DiversificationThe disparate types of diversification strategies include the modernization and development of new products, updating the market, new technology licensing, distribution of products by some other company and even the alliance with the said company.The three types of diversification strategies include the concentric, horizontal and confused.Diversification is a method of risk management that involves the change and implementation of different investments stated in a specialized portfolio. This is practices be execute of the rationale that a portfolio containing a variety of investments can yield higher(prenominal) gain and serve as a lower risk to the independent investments in the same portfolio. It is only through investing more securely that the benefits of diversification may be fully reaped. Investment through foreign securities may also reap benefits because of the decreased co rrelation between local investments.The concentric diversifications specify that there exists similarities between the industries in terms of the technological standpoint. It is through this that the unassailable may compare and apply its technological know how to an advantage. This is through a careful change or alteration in the marketing strategy performed by the business. This strategy aims to increase the market value of a particular product and therefore gain a higher profit.The horizontal diversification tackles products or services that are in a sense, not related technologically to certain products but still pique the interest of real customers. This strategy is more effective is the current clientele is loyal to the existing products or services, and if the new additions are well priced and adequately promoted. The newest additions are marketed in the same way that the previous ones were which may cause instability. This is because the strategy increases the new products dependence on an existing one. This integration normally descends when a new business is introduced, however unrelated to the existing.Conglomerate or lateral diversification is where the company or business promotes products or services with no relation commercially or technologically to the existing products or services, however still interest a number of customers. This type of diversification is unique to the current business and may prove quite risky. However, it may also prove very successful since it independently aims to improve on the profit the company accumulates with regards to the new product or service.At times there are certain antisubmarine actions that may promote to the risk of contraction deep down the market, or that the current product market seems to have no more growth opportunities. This must also be considered before initiating a certain type of diversification strategy. Another factor is the outcome of the chosen diversification strategy. The expected effect is expected to chip in a profitability growth that will complement the ongoing activities within the company.Diversification strategies are used to expand firms operations by adding markets, products, services, or stages of labor to the existing business. The purpose of diversification is to allow the company to enrol lines of business that are different from current operations. When the new venture is strategically related to the existing lines of business, it is called concentric diversification. Conglomerate diversification occurs when there is no reciprocal thread of strategic fit or relationship between the new and old lines of business the new and old businesses are unrelated.DIVERSIFICATION IN THE CONTEXT OF GROWTH STRATEGIESDiversification is a form of growth strategy. reaping strategies involve a significant increase in execution objectives ( ordinarily sales or market share) beyond past levels of performance. Many musical arrangements pursue one or more type s of growth strategies. unrivaled of the primary reasons is the view held by numerous investors and executives that bigger is better. Growth in sales is a great deal used as a measure of performance. Even if profits remain stable or decline, an increase in sales satisfies many people. The assumption is often made that if sales increase, profits will eventually follow.Rewards for managers are usually greater when a firm is pursuing a growth strategy. Managers are often paid a commission based on sales. The higher the sales level, the larger the compensation received. Recognition and power also accrue to managers of growing companies. They are more frequently invited to speak to professional groups and are more often interviewed and written about by the press than are managers of companies with greater rates of return but slower rates of growth. Thus, growth companies also blend better known and may be better able, to attract tonicity managers.Growth may also improve the effectiv eness of the organization. Larger companies have a number of advantages over smaller firms operating in more limited markets.Large size or large market share can go through to economies of scale. Marketing or output synergies may result from more efficient use of sales calls, reduced travel time, reduced changeover time, and longer return runs.Learning and experience curve effects may produce lower cost as the firm gains experience in producing and distributing its product or service. make love and large size may also lead to improved layout, gains in labor efficiency, redesign of products or production processes, or larger and more restricted staff departments (e.g., marketing research or research and development).Lower average unit costs may result from a firms ability to spread administrative expenses and other overhead costs over a larger unit volume. The more capital intensive a business is, the more important its ability to spread costs across a large volume becomes.Impro ved linkages with other stages of production can also result from large size. Better colligate with suppliers may be attained through large orders, which may produce lower costs (quantity discounts), improved delivery, or custom-made products that would be unaffordable for smaller operations. link up with distribution channels may lower costs by better location of warehouses, more efficient advert, and shipping efficiencies. The size of the organization relative to its customers or suppliers influences its bargaining power and its ability to influence price and services provided.Sharing of information between units of a large firm allows knowledge gained in one business unit to be applied to problems being experienced in another unit. Especially for companies relying heavily on technology, the reduction of RD costs and the time mandatory to develop new technology may give larger firms an advantage over smaller, more specialized firms. The more similar the activities are among uni ts, the easier the transfer of information becomes.Taking advantage of geographic differences is possible for large firms. Especially for multinational firms, differences in wage rates, taxes, energy costs, shipping and freight charges, and trade restrictions influence the costs of business. A large firm can sometimes lower its cost of business by placing multiple plants in locations providing the lowest cost. Smaller firms with only one location must operate within the strengths and weaknesses of its single location.CONCENTRIC DIVERSIFICATIONConcentric diversification occurs when a firm adds related products or markets. The goal of much(prenominal) diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Synergy may be achieved by have f irms with complementary color marketing, fiscal, operating, or management efforts. Breweries have been able to achieve marketing synergy through national advertising and distribution. By combining a number of regional breweries into a national network, beer producers have been able to produce and sell more beer than had independent regional breweries.Financial synergy may be obtained by combining a firm with strong financial resources but limited growth opportunities with a company having great market potential but weak financial resources. For example, debt-ridden companies may seek to acquire firms that are relatively debt-free to increase the lever-aged firms borrowing capacity. Similarly, firms sometimes attempt to stabilize earnings by diversifying into businesses with different seasonal or cyclical sales patterns.Strategic fit in operations could result in synergy by the combination of operating units to improve overall efficiency. corporate trust two units so that duplicate equipment or research and development are eliminated would improve overall efficiency. Quantity discounts through combined ordering would be another possible way to achieve operating synergy. Yet another way to improve efficiency is to diversify into an playing field that can use by-products from existing operations. For example, breweries have been able to convert grain, a by-product of the fermentation process, into feed for livestock.Management synergy can be achieved when management experience and expertise is applied to different situations. Perhaps a managers experience in working with unions in one company could be applied to labor management problems in another company. worry must be exercised, however, in assuming that management experience is universally transferable. Situations that appear similar may require significantly different management strategies. disposition clashes and other situational differences may make management synergy difficult to achieve. Although ma nagerial skills and experience can be transferred, individual managers may not be able to make the transfer effectively.CONGLOMERATE DIVERSIFICATIONConglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, bear upon is given to achieving marketing or production synergy with conglomerate diversification.One of the most common reasons for pursuing a conglomerate growth strategy is that opportunities in a firms current line of business are limited. Finding an attractive investment opportunity requires the firm to consider alternatives in other types of business. Philip Morriss acquisition of moth miller Brewing was a conglomerate move. Products, markets, and production technologies of the brewery were quite diff erent from those required to produce cigarettes.Firms may also pursue a conglomerate diversification strategy as a means of increasing the firms growth rate. As discussed earlier, growth in sales may make the company more attractive to investors. Growth may also increase the power and prestige of the firms executives. Conglomerate growth may be effective if the new area has growth opportunities greater than those operational in the existing line of business.Probably the biggest disadvantage of a conglomerate diversification strategy is the increase in administrative problems associated with operating unrelated businesses. Managers from different divisions may have different backgrounds and may be unable to work together effectively. Competition between strategic business units for resources may entail transmutation resources away from one division to another. Such a move may create rivalry and administrative problems between the units.Caution must also be exercised in entering bus inesses with seemingly promising opportunities, especially if the management team lacks experience or skill in the new line of business. Without some knowledge of the new industry, a firm may be unable to accurately evaluate the industrys potential. Even if the new business is initially successful, problems will eventually occur. Executives from the conglomerate will have to become involved in the operations of the new enterprise at some point. Without adequate experience or skills (Management Synergy) the new business may become a poor performer.Without some form of strategic fit, the combined performance of the individual units will probably not exceed the performance of the units operating independently. In fact, combined performance may deteriorate because of controls placed on the individual units by the parent conglomerate. Decision-making may become slower cod to longer review periods and complicated reporting systems.DIVERSIFICATION GROW OR BUY?Diversification efforts may b e either upcountry or external. inside diversification occurs when a firm enters a different, but usually related, line of business by developing the new line of business itself. Internal diversification frequently involves expanding a firms product or market base. External diversification may achieve the same result however, the company enters a new area of business by purchasing another company or business unit. Mergers and acquisitions are common forms of external diversification.INTERNAL DIVERSIFICATION.One form of internal diversification is to market existing products in new markets. A firm may elect to broaden its geographic base to include new customers, either within its home country or in international markets. A business could also pursue an internal diversification strategy by finding new users for its current product. For example, Arm Hammer marketed its baking soda as a refrigerator deodorizer. Finally, firms may attempt to change markets by increasing or fall the price of products to make them appeal to consumers of different income levels.Another form of internal diversification is to market new products in existing markets. Generally this strategy involves using existing channels of distribution to market new products. Retailers often change product lines to include new items that appear to have good market potential. Johnson Johnson added a line of baby toys to its existing line of items for infants. Packaged-food firms have added salt-free or low-calorie options to existing product lines.It is also possible to have conglomerate growth through internal diversification. This strategy would entail marketing new and unrelated products to new markets. This strategy is the least used among the internal diversification strategies, as it is the most risky. It requires the company to enter a new market where it is not established. The firm is also developing and introducing a new product. Research and development costs, as well as advertising co sts, will likely be higher than if existing products were marketed. In effect, the investment and the probability of failure are much greater when both the product and market are new.EXTERNAL DIVERSIFICATION.External diversification occurs when a firm looks outside of its current operations and buys access to new products or markets. Mergers are one common form of external diversification. Mergers occur when two or more firms combine operations to form one corporation, perhaps with a new name. These firms are usually of similar size. One goal of a merger is to achieve management synergy by creating a stronger management team. This can be achieved in a merger by combining the management teams from the merged firms.Acquisitions, a second form of external growth, occur when the purchased corporation loses its identity. The acquiring company absorbs it. The acquired company and its assets may be absorbed into an existing business unit or remain intact as an independent subsidiary within the parent company. Acquisitions usually occur when a larger firm purchases a smaller company. Acquisitions are called friendly if the firm being purchased is receptive to the acquisition. (Mergers are usually friendly.) Unfriendly mergers or antipathetic takeovers occur when the management of the firm targeted for acquisition resists being purchased.DIVERSIFICATION VERTICAL OR HORIZONTAL?Diversification strategies can also be classified by the direction of the diversification. Vertical integration occurs when firms undertake operations at different stages of production. Involvement in the different stages of production can be developed inside the company (internal diversification) or by acquiring another firm (external diversification). Horizontal integration or diversification involves the firm moving into operations at the same stage of production. Vertical integration is usually related to existing operations and would be considered concentric diversification. Horizontal integ ration can be either a concentric or a conglomerate form of diversification.VERTICAL INTEGRATION.The steps that a product goes through in being transformed from raw materials to a finished product in the possession of the customer constitute the various stages of production. When a firm diversifies closer to the sources of raw materials in the stages of production, it is following a returning(prenominal) vertical integration strategy. Avons primary line of business has been the selling of cosmetics door-to-door. Avon pursued a backward form of vertical integration by entering into the production of some of its cosmetics. Forward diversification occurs when firms move closer to the consumer in terms of the production stages. Levi Strauss Co., traditionally a manufacturer of clothing, has diversified forward by enterprise retail stores to market its textile products rather than producing them and selling them to another firm to retail.Backward integration allows the diversifying fi rm to exercise more control over the quality of the supplies being purchased. Backward integration also may be undertaken to provide a more dependable source of needed raw materials. Forward integration allows a manufacturing company to assure itself of an outlet for its products. Forward integration also allows a firm more control over how its products are sold and serviced. Furthermore, a company may be better able to differentiate its products from those of its competitors by forward integration. By opening its own retail outlets, a firm is often better able to control and train the personnel selling and servicing its equipment.Since servicing is an important part of many products, having an excellent service department may provide an integrated firm a competitive advantage over firms that are strictly manufacturers.Some firms employ vertical integration strategies to eliminate the profits of the middleman. Firms are sometimes able to efficiently execute the tasks being performed by the middleman (wholesalers, retailers) and receive additional profits. However, middlemen receive their income by being competent at providing a service. Unless a firm is equally efficient in providing that service, the firm will have a smaller profit margin than the middleman. If a firm is too inefficient, customers may refuse to work with the firm, resulting in lost sales.Vertical integration strategies have one major disadvantage. A vertically integrated firm places all of its eggs in one basket. If demand for the product falls, essential supplies are not available, or a substitute product displaces the product in the marketplace, the earnings of the entire organization may suffer.HORIZONTAL DIVERSIFICATION.Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations. For example, Avons move to market jewelry through its door-to-door sales force involved marketing new products through e xisting channels of distribution. An alternative form of horizontal integration that Avon has also undertaken is selling its products by mail order (e.g., clothing, plastic products) and through retail stores (e.g., Tiffanys). In both cases, Avon is still at the retail stage of the production process.DIVERSIFICATION STRATEGY AND MANAGEMENT TEAMSAs documented in a scan by Marlin, Lamont, and Geiger, ensuring a firms diversification strategy is well matched to the strengths of its top management team members factored into the success of that strategy. For example, the success of a merger may depend not only on how integrated the joining firms become, but also on how well suited top executives are to manage that effort. The study also suggests that different diversification strategies (concentric vs. conglomerate) require different skills on the part of a companys top managers, and that the factors should be taken into consideration before firms are joined.There are many reasons for p ursuing a diversification strategy, but most pertain to managements desire for the organization to grow. Companies must decide whether they want to diversify by going into related or unrelated businesses. They must then decide whether they want to expand by developing the new business or by buying an ongoing business. Finally, management must decide at what stage in the production process they wish to diversify.FURTHER READINGAmit, R., and J. Livnat. A Concept of Conglomerate Diversification. honorary society of Management diary 28 (1988) 59304.Homburg, C., H. Krohmer, and J. Workman. Strategic Consensus and Performance The Role of Strategy Type and Market-Related Dynamism. Strategic Management Journal 20, 33958.Luxenber, Stan. Diversification Strategy Raises Doubts. National reliable Estate Investor, February 2004.Lyon, D.W., and W.J. Ferrier. Enhancing Performance With Product-Market Innovation The Influence of the Top Management Team. Journal of Managerial Issues 14 (2002) 4526 9.Marlin, Dan, Bruce T. Lamont, and Scott W. Geiger. Diversification Strategy and Top Management Team Fit. Journal of Managerial Issues, Fall 2004, 361.Munk, N. How Levis Trashed a Great American Brand. Fortune, 12 April 1999, 830.St. John, C., and J. Harrison, Manufacturing-Based Relatedness, Synergy, and Coordination. Strategic Management Journal 20 (1999) 12945.

Superconductivity Essay -- essays research papers fc

SUPERCONDUCTIVITYDEFINITION OF SUPERCONDUCTIVITYSuperconductivity is a phenomenon displayed by certain conductors that show no resistance to the flow of electric topical. Conductors are materials in which the electron current goes through. There are 4 different kinds of conductors. Insulators, like glass or wood, have a very high resistance to electron current season semi-conductors, such as silicon, have a medium resistance. Conductors, like copper and other metals, have very low resistance, and superconductors, comprised of certain metals such as hydrargyrum and ceramics such as lanthanum-barium-copper-oxide, have no resistance. Resistance is an obstacle in the flow of electricity. Superconductors also have strong diamagnetism. In other words, they are repelled by magnetic fields. Due to these special characteristics of superconductors, no electrical energy is lost while flowing and since magnetic levitation above a superconductor is possible. This principle is employed in high- speed trains that travel at 483 km/h (300 mph) while levitating on a cushion of air.MAKING OF THE SUPERCONDUCTORWhen superconductivity was first discovered, it was established that the compounds needed to be cooled to inwardly several degrees Kelvin to absolute zero (zero Kelvin). The large amount of change was done by putting the compound in liquid helium. Helium, which is usually a gas, liquefies when its temperature drops to 4 K. Once the material had cooled to that temperature, it became a superconductor. However, using liquid helium to cool down material has been a problem. Liquid helium is very expensive, and the cooling equipment is very large. In the past, there was no economic incentive to replace ordinary conductors with superconductors because the cooling costs for superconductors were so high. Scientists have found two commissions to overcome the cooling problems. The first is to find a way to cool the material using something less expensive and less bulky than liqui d helium. The southward way is to raise the temperatures that are necessary to cause superconductivity in the metals, or the critical temperatures. By combining materials into superconducting alloys, the temperature was raised slightly. By 1933, the critical temperature was at 10 K, and it wasnt until 1969 when the critical temperature was raised to 23 K and scientists tried, unsuccessfully, to raise it again. The... ...ving atoms wandered out of the field, while the coldest atoms stayed in the center. Very few atoms could escape the coldness at the center, and the center is what became the modernistic state of matter.Future DevelopmentsIn the future, many scientists expect to have many new things due to superconductivity. Room temperature superconductivity would totally revolutionize the electrical power constancy by making copper wires obsolete. Superconductivity would also improve transportation by changing the way trains, cars, and ships run. Magnetically levitated trains ha ve the advantages of speed and quiet operation and the akin magnetic levitation could be used with cars. Drivers would travel as fast as 150 mph on a highway and they would never have to disturbance about collisions. Ships propelled by superconducting motors would weigh less and would be more maneuverable. In conclusion, superconductivity will have a tremendous impact on our future, totally revolutionizing our way of life.Works CitedSeeber, Bernd Handbook of Applied Superconductivity University of GenevaSwitzerland, 1998Kresin, Vladimir. and Wolf, Stuart Fundamentals of Superconductivity New York and London Plunum Press., 1990

Touch: The Foundation of Infant Growth and Bonding Essay examples -- P

Touch The Foundation of Infant Growth and BondingA premature child is be by Whaley & Wongs breast feeding Care of Infants and Children as any infant born before completion of 37 weeks of gestation, regardless of birth weight. (Wong, p. 1999, p.392) Many premature infants are also considered high risk neonates because the major activities of life, including thermoregulation, respiration and digestion, cannot fully function at their time of birth. This poses a problem for both the wellness professionals and the parents of the infant. The health professionals must closely monitor this vulnerable infant and, in most situations, assist the infant in thermoregulation, respiration, and feeding while the cautious, nervous parents look on, interested about their childs progress. The parent or parents often feel removed from their childs care as another adult cares for their childs every need. Infant stimulation can be as subtle and slight as touch of the infants arm or as much as skin to skin contact through holding. Touch actively involves the parents in the their childs care and has proven to be beneficial for improving the vulnerable, tiny infants condition. Parents, as well as medical professionals, should be encouraged to touch these vulnerable tiny infants as much as, if not more than, they would touch a full destination infant. Despite their low birth weight, tiny size and vulnerable condition, these infants should be held, caressed and cuddled with as often as possible.The experience of birth for a mother of a premature infant varies drastically from the birth of a normal full term infant because of the lack of infant stimulation or even sight of her newly born child. Peggy, a mother of newly born premature infant states ... ...tion and interaction, medical professionals need to calm the parents and encourage interaction with their child. What better way is there for interaction than touch? ReferencesManginello M.D., Frank P., & Foy DiGeronimo M.D., There sa. (1991). Your Premature Baby New York tush Wiley & Sons, Inc.Gorski M.D., Peter, & Huntington Ph.D., Lee & Lewkowicz Ph.D., David J. (1987). Handling Preterm Infants in Hospitals Stimulating Controversy about Timing Stimulation. In Infant Stimulation For Whom, What Kind, When and How Much? (pp. 43-51) (no place of publication) Johnson & Johnson Baby Products. Co.Wong, Donna L. (1999). Whaley and Wongs Nursing Care of Infants and Children. St. Louis Mosby, Inc.Ludington-Hoe Ph.D., Susan M., & Golant, Susan K. (1993). Kangaroo Care The Best You Can Do to Help Your Preterm Infant. New York Bantam Books, Inc.

Binding Arbitration Clauses :: essays research papers

First off, I do not think that binding arbitration clauses should ever restrict the arbitration to only one convocation of people (ex. Home builders association). If there ever is a situation in which a binding arbitration clause is acceptable, there should at least be a choice of who the arbitration is and the choices should be neutral parties (ex. In the BP credit card bill stuffer, it gave the option of the American Arbitration Association, JAMS, and the National Arbitration Forum). I do not think that binding arbitration clauses should be includable in usage contracts. There are too many laws and regulations regarding employers and the way businesses operate the I do not think an arbitrator would be anywhere near as knowledgeable in these matters as a court would be, even if it was their world of expertise. Between discrimination and work conditions, I feel that there is way too overmuch at stake to put in the hands of an arbitrator. I do think that binding arbitration claus es can (not should, but CAN) be includable in credit card agreements and cell phone agreements. I really do not think that binding arbitration clauses should be included in any kind of contract because the severity of charges can vary so much that the courts can decide which cases can be arbitrated. In both credit card and cell phone contracts, the majority of cases will only deal with teeny amounts of money. In contrast, there is so much at stake with home construction, that I do not think that construction contracts are an appropriate tell for such clauses. I consider myself a pretty compassionate person. Therefore, I do not think that there should be ANY prerequisite to obtaining medical checkup treatment, especially signing a contract with a binding arbitration clause. I believe that every contract should have the option to be enforced by the courts. Arbitration should be something that parties agree to, not something they are forced into. I think that including a binding ar bitration clause in an employment contract would produce undue influence. The applicant for employment may easily think that if they do not sign the contract that they will not doctor the job. In addition, since you would typically only sign an employment contract after you had been offered a job, it would be a bit harder to find another employer in a good amount of time.

Personal Narrative: My Favorite Noncompetitive Activities :: essays research papers

My Three Favorite Noncompetitive Activities The three different activities I like is bicycling, camping, and hiking. I got interested in camping because, you get to follow up the outdoors, and see the stars, and eat burnt marshmallows. This is very fun. Also, because this is a group activity. I likewise got interested in hiking because, it keeps you in shape, and its just plain fun and it is a bivalent activity. I got interested in bicycling because, you get to travel around in it, and it keeps you in shape, and it is very fun. And, because it is an individual activity. When I went to camp I got to fish, swim, and rate scary stories, and sleep in tents. It was a lot of fun. We got to pick our camp grounds. We got to make camp fires, so we can cook our food. We are also commensurate to see the stars at night. We can?t really see the stars in the cities, because there is too much light. But anyways we had a lot of fun camping. bike is also a lot of fun. You can travel an ywhere on a bicycle. It keeps you in shape, and it is fun. But you have to be careful of glass or nails, or else your tires might become flat. But other than that, it can be a lot of fun. You can get a really strong drill with a bicycle. You can have races against other people. You can take it with you camping and to the beach. Hiking is a lot of fun. It keeps you in good shape. It exercises your body. It helps your brain to think and learn. You can also race against other people. You can see the great out doors if you are hiking in the woods. You can see different kinds of birds and trees and people. Well I can come apart you this much, hiking is a lot of fun.

Essay --

Can political collapseies adequately perform their functions within the British political system now that their memberships are so littler?Within the British political system, there are three dominant political parties, Labour, Conservatives and Liberal Democrats. These political parties have become a vital part in carrying out the main functions of government. There are several factors, which can hinder political parties from performing their functions adequately. In this essay I will be focusing on the new-made decline in party membership and the effects it has had on each of the functions. I will be discussing why they get dressedt perform their functions as well because the decline in party membership (finish this off)The division created between Britains major political parties and the electorate in recent years has been enormous. An indication of this is seen at the turn out of elections. In 2005, only 61.5% of voters cast their votes. This was the second worst turn out si nce 1918. People dont associate themselves with political parties as much as they used to a few years ago. It seems as though the decline in turnout is referable political parties themselves. Citizens should be encouraged by parties to get involved with politics. There are other factors, which initiate people to vote such as the sociological characters class, religion and gender. However, it should be the parties that should address these issues in the first place. If particular political parties speak of an issue, which reflects the ideology of many, people are more likely interested and are more likely to participate and vote. However, because voters look at the ideologies of parties and if parties do not represent their ideologies, they are likely not to vote. Thi... ...r peers. You have a prime minister of religion who gets to appoint bishops of a creed he does not believe in or even respect.I could go on and on, but suffice to say, any(prenominal) conditions kept the U.K. floating no longer exist.Quite why a priest should think that declining political party memberships is a bad thing though I have no idea. I suppose being a U.K. resident, there is confusion in thinking that the state and the Church have the akin ends.If anything we should be happy that people - freed from party affiliation - will be more eager to the Gospel of the Church. Sadly, however, decreased party affiliation has come with an broad state, and its hard to see how well penetrate the wall of misinformation that all 3 major parties have managed to create through control of the school system, public broadcasters, and a flock of publicly-funded lobbying groups.