Wk2 Essay Example | Topics and Well Written Essays - 750 words

Wk2 - Essay Example A case of Zimbabwe, a Southern African country will be used to illustrate how international organizations can continue operating in foreign countries that seemingly have hostile environments. There are certain incidences that may take place in other countries such as socio-political instability but these may not impact negatively on the operations of international business. For instance, Zimbabwe is one of the countries that has experienced social my hem over the past decade due to government policies that have been widely viewed as oppressive to the citizens by different sectors of the whole world. This has impacted on the operations of many businesses but research has shown that this country is not that bad for investment by foreign companies. As such, in 2013, â€Å"the IMF agreed to place Zimbabwe onto a Staff Monitored Programme to help place the economy back onto a recovery path,† (Robertson Economics, 2014). On its own, it seems that the country is still finding it difficult to revive its economy thereby improving the morale as well as social welfare of the majority of the citizens. The situation obtaining on the ground cannot be seen as very bad such that international businesses cannot thrive. The conduct of international businesses is often governed by international law that is specifically concerned with dealing with legal interactions between governments. According to HG.org (2015), â€Å"There are both national laws and international agreements which govern/regulate international business transactions, which include investments, offshore banking, contracts, imports/exports, tariffs, dumping, trade and more.† As such, international organizations are often protected in whatever country they would be operating in such that there is no need for panicking with regards to safety of their businesses. Two examples are discussed below to illustrate how international law can be used to protect international organizations

Philosophy Essay Example | Topics and Well Written Essays - 500 words - 61

Philosophy - Essay Example As for Robin Penslar and Aaron Ridley, utilitarianism is teleological moral theory which asserts that the correct action is a function of its consequences ("the greatest good for the greatest number") which can be predicted. The consequences of the good must be distributed as widely as possible; the person making moral choice should look not only for personal good or for whom they care about, but also for welfare. The choice made is provided by the rationale and logical argument and a person can use it on an individual basis. According to this ethical theory, the correctness of behavior is determined by its final use. The supporters of the theory say the utilitarian principle is the only moral criterion of human acts, and this principle is to ensure that we should always seek to maximize the predominance of good over evil. The ethics of utilitarianism defines natural process in a person coming into antagonism with itself in consciousness. According to the utilitarism morality is based upon the common good (happiness for most people) which Bentham called the common benefit, of course, distinguishing it from self-interest, or personal benefit. Under the principle of common benefit he understood the principle of action selection and evaluation of acts, which focuses on the greatest possible benefit. If the act concerns the interests of the community, we are talking about the benefits (happiness) of community, if it is about the interests of the individual, so, the benefits of the individual is a predominant thing. Utilitarism is also a theory directed against selfishness. The admissibility of pleasure or profit made in each case is determined by whether they contribute to a higher purpose. The definition (assessment) of phenomena and events either good or bad is also based on that principle. And according to the theory a person should (bearing in mind the supreme moral principle) strive to provide at

Nation of Islam Essay Example for Free

Nation of Islam Essay Malcolm X was born Malcolm Little in Omaha, Nebraska in 1925. He was born to a minister father that was a supporter of Black Nationalist Movement leader Marcus Garvey, which resulted in Malcolm experiencing discrimination and racial hatred from an early age. His father was killed and his home burned when Malcolm was young, and Malcolm was jailed in his early twenties after several run-ins with the law following his father’s death. He joined the Nation of Islam in while in prison, and when he was paroled in 1952 he was named the national spokesman for the Nation of Islam. Malcolm X was an outspoken, articulate, charismatic man that used television, radio, and every other form of media available to convey the Nation’s message. He preached for militant stance in the black community and for equal rights for African Americans, â€Å"by any means necessary†. This unwavering stance and militant attitude made some see Malcolm as a threat and he was followed under FBI surveillance until he was assassinated in 1965. He used his charisma and his steadfast beliefs to make the message of the Nation of Islam well known in America and to bring the issue of African American rights to the forefront of American consciousness. His mission later transformed from fighting for African American rights to fighting for equal human rights for every race, and he enforced the same militant stance with his new message. Mahatma Gandhi was a human rights leader like Malcolm X but he delivered his message in a very different way. Born Mohandas Karamchand Gandhi, he was given the name Mahatma because it means, â€Å"great soul†. He was born in British-ruled India and practiced law in South Africa which was also ruled by Britain. While in South Africa he began a twenty-year campaign for Indian freedom. Instead of X’s militant, unmoving approach, Gandhi practiced and taught the principles of non-violent resistance. He believed it was more honourable to be jailed for one’s cause than to create violence. He also practiced fasting as a way of conveying his message of peace and non-violence. He returned to India after twenty years and became the leader of the Indian Nationalist Movement. After India was declared independent in 1947, it was divided into India and Pakistan and the two countries rioted against one another. Gandhi began a fast to encourage the leaders to stop fighting. After he fasted for five days, the fighting stopped and the countries were at peace until Gandhi was assassinated shortly after. Until his death, Gandhi epitomized his message to, â€Å"Be the change you want to see in the world†. He saw no value in violence, and thought that the message of non-violence as a way of protest could bring tolerance, peace and unity more effectively than any violent act could. Despite the change in his place of residence and the political climate of his country he stayed true to his message of peace and unity.

Implementation of New Procurement Methods in India

Implementation of New Procurement Methods in India The construction industry in India is complex, challenging and unique. Selecting appropriate procurement method is a critical feature. In India even today traditional procurement methods are used. The options of adapting new procurement methods are open but there are various challenges in implementing them. This study will identify the barriers and difficulties which restrict the implementation of new procurement methods in India. The literature review investigated characteristics of new procurement methods. It highlighted the nature and types of projects in India. It emphasizes on structures and trends in the Indian construction Industry. It gives an insight on procurement methods used in developed economies. The chapter on characterization focuses on issues specific to Indian construction Industry such as demographics, socio-economic concerns, economical advantages, rapid growth of the industry etc. It highlights the typical procurement methods used for different types of projects in India and the regulations and administration within the construction Industry. This study gives us the nature and character of the Indian Construction Industry. Further, the study analyzes various issues, and draws attention to challenges in implementing new procurement methods. In the light of the characterization, issues and challenges this study identifies and concludes with the barriers and difficulties which restrict the implementation of new procurement methods. The worldwide construction industry includes projects of dramatically different types, size and complexity and requires extensive professional and trade skills (Groak, 1994). A construction project can refer to any building activity that includes building, repair, erection, demolition, maintenance, land clearing, earth moving, excavating, trenching, digging, boring, drilling, blasting, concreting, installation etc. (Housing Grants, Construction and Regeneration Act, 1996). All these activities involve a considerable number of goods and services as well as large number of transactions to support a project. Most significantly, goods and services should be procured at the best possible cost to meet the needs in terms of quality, quantity, time and location (Weeley, 2010). However, construction industry is a significant contributor to a nations economy. Internationally, construction industry accounts for approximately 8-10 percent of gross domestic product GDP. Currently, in India construction industry accounts 8 percent of GDP. Furthermore, main construction sectors in India are Infrastructure, housing and commercial developments. In India by 2014 the second phase of infrastructure development will be started. This will provide additional boost to the construction industry. Owing to numerous projects the significance of procurement will be very important. Considerably, a well procured construction project is completed in time with desirable quality and within estimated cost. Internationally, plentiful construction procurement methods are practiced. Worldwide effectively used, key procurement methods are Design and Build, Management Contracting, Construction Management, Build Operate Transfer, Public Private Partnerships, Strategic Partnership, Joint ventures etc. Generally, in developed economies procurement methods such as Design and Build, Construction Management and Management Contracting are widely used, due to the maturity of the industry. However, in India mainly traditional construction procurement methods are practiced. Construction industry consists of large number of scattered small firms. The professionals prefer to operate within their silos. As a result, they remain in their comfort zone of using traditional methods. Nowadays trends are changing particularly in infrastructure and large scale projects management. This is due to the increased number, size of projects and capital invested in the projects. Mainly the upcoming procurement methods are Build Operate and Transfer and Public Private Partnerships. However, these are restricted to only a few projects. Still a large number of projects are carried out in a traditional manner. Major obstacle to implement new procurement methods are large population (1.2 billion approximately) large inclusive demand, large demand spread across the country, many small projects, traditional outlook of construction professionals, segregated industry, numerous small firms, enormous unskilled work force. Other barriers include considerable number of regional languages, excess availability of skilled professionals in one part of the country and scarcity in the other parts, no standard terms of contracts, different legislation in different states, local suppliers, mon opoly of manufactures in a region etc. As a consequence it is increasingly important to explore the reasons why new procurement methods cannot be implemented in India. Some key interdependent and inter-linked issues to be investigated are economic issues, management issues, technical issues, legal issues and cultural issues. Research outcomes will be inferred by careful observation of challenges and study of difficulties for implementation of new procurement methods. 1.2 Research Aim The aim of the research is to identify the barriers and difficulties that restrict the implementation of new procurement methods in India. 1.3 Research Objectives The research objectives will include the following 1) To investigate the issues, namely economic issues, management issues, legal issues and cultural issues which act as barriers for the implementation of new procurement methods in India. 2) To investigate procurement methods such as Design and Build, Management Contracting and Construction Management and relate it to the traditional Indian procurement method, to understand the challenges of the implementation of new procurement methods in India. 3) Identifying the barriers which act as hindrances for implementation of new procurement methods in the Indian construction industry. 1.4 Scope of Study This study of identification of barriers and difficulties that restrict the implementation of new procurement methods is confined to the Indian construction industry. The data is collected from secondary sources. The main sources were U.N views on India, U.K Trade and Investment and other secondary data. It outlines various difficulties and barriers which are already present in the Indian construction industry which in turn affects the implementation of new procurement methods. This study restricts itself in identifying difficulties and barriers from the nature and character of the Indian Construction Industry. As moving into detail of all issues was not possible, it explores largely economic issues, management issues, legal issues and cultural issues and finds the barriers which prevent the implementation of new procurement methods. This study will also mainly look into procurement methods such as Design and Build, Management Contracting and Construction Management and compare it with the traditional Indian procurement method to find the challenges in implementation of new procurement methods. 1.5 Structure of Dissertation Chapter 1) This chapter gives an introduction to the topic and gives the idea about how the study will be carried out. It gives an idea of a fast developing Indian construction Industry and the need to adapt new procurement methods. It states the research aim, objectives and scope of study and also discusses the structure of the dissertation Chapter 2) This chapter reviews the literature associated with the study. It looks into new procurement methods, projects in India, Indian construction industry and important factors affecting the construction industry in India. Chapter 3) This chapter describes the research methodology adapted within the scope of the dissertation. Secondary data, semi-structured interviews with the experts and academicians were employed to address the objectives. Chapter 4) This chapter characterizes India. It describes the nature and the character of the Indian construction industry. It gives an insight into the Indian construction Industry and its approaches. Chapter 5) This chapter looks at the barriers and the difficulties that restrict implementation of new procurement methods in India. It identifies various issues and challenges in implementation of new procurement methods in India. It looks at the present construction Industry in India and its characterization and identifies the barriers and difficulties that restrict implementation of new procurement methods in India. Chapter 6) This chapter presents the conclusions and direction for further research in this area. CHAPTER 2:Â  LITERATURE REVIEW 2.0 Procurement Methods Introduction Around the world procurement methods are developed through the years as per needs. The selection of the most appropriate procurement method is critical for both the client and other project participants as it is an important factor that contributes to the overall clients satisfaction and project success. This selection will be dependent upon a number of factors such as cost, time and quality which are widely considered as being the most fundamental criteria for clients seeking to achieve their end product at the highest quality, at the lowest cost and in the shortest time (Hackett et al. 2007). The type of procurement method adopted mainly depends upon the type of project, type of ownership, nature of construction industry in that particular country and the maturity of the industry. The selection of the procurement path is much more than simply establishing a contractual relationship (Newcombe, 1992), inspite of the continuing search for maximum value for money. In the developed economies such as USA, UK, Australia, Sweden etc. procurement methods such as Design and Build, Management Contracting and Construction Management are used from a long time. This is because the construction industry is developed, the projects are needed to be delivered efficiently and the clients demand the delivery of projects within budget and in least possible time. In this dissertation the study is limited to procurement methods such as Design and Build, Management Contracting and Construction Management. 2.1 Design and Build Design-build is a method to deliver a project in which the design and construction services are contracted by a single entity known as the design-builder or design-build contractor. Design-build relies on a single point of responsibility contract and is used to minimize risks for the project owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Design and Build with its single point responsibility carries the clearest contractual remedies for the clients because the DB contractor will be responsible for all of the work on the project, regardless of the nature of the fault (John Murdoch and Will Hughes 2007). The Design-Build Institute of America (DBIA) takes the position that design-build can be led by a contractor, a designer, a developer or a joint venture, as long as a the design-build entity holds a single contract for both design and construction. The main contractor takes responsibility for both design and construction and will use either in-house designers or employ consultants to carry out the design. Most of the construction work will be carried out by specialist or sub-contractors. The contractor tenders against a client brief and will often follow an initial concept design prepared by consultants appointed to advise the client. The design will be developed by the contractor and the works will be completed, usually for a fixed price. Tendering is more expensive so it carries more risk for the contractor than the traditional approach. This is because the contractor has to develop an outline design and a detailed price. Tender lists will probably be shorter than for traditional contracts. However, the client commits to the cost of construction, as well as the cost of design, much earlier than with the traditional approach. Changes made by the client during design can be expensive, because they affect the whole of the Design-Build contract, rather than just the design team costs. This strategy is a low-risk option for clients who wish to minimize their exposure to the risks of overspend delays or design failure. However, the exposure to risk will increase where the design phase is rushed, where unreasonable time targets are set or where the tender documents are not fully completed. 2.1.1 Characteristics of Design and Build It provides single point of responsibility so that in event of a failure the contractor is solely responsible. There is no ambiguity between the designer and the contractor. The clients interests are safeguarded in this respect. When the client adopts Design and Build method he knows his total financial commitment early in a project. The client has direct contact with the contractor. This improves the lines of communication and enables the contractor to respond and adapt to the clients needs more promptly. In Design and Build contractor is responsible for design, planning and control. This gives him a better control over the activities and can concurrently carry out the activities which are not generally possible using traditional procurement methods. The contractor can purchase, obtain planning permission and arrange his finance simultaneously which helps him to give a better deal to the client. He can also benefit himself and the client by making use of proprietary modular designs which reduces design time and time required for approval. The contractor can start the work as soon as the approvals are obtained and sufficient information regarding the site operations is available. The design does not need to be finalized before some, at least, of the work may be commenced. The Design and Build proposals ensure economical tenders and alternate design concepts which can benefit the client. The nature of Design and Build procurement system promotes the creation of integrated design and construction team. In some countries using Design and Build system relaxes the architects code of practice, which encourages them to become full partners in design and build firms. The closer involvement of architects leads to more aesthetically pleasing buildings and leads to designs which have a greater appreciation. By using Design and Build method time and cost savings are achieved, which benefits the client. The total project completion period is also reduced. Design and Build reduces the employers financing charges, inflation has less effect and the building is operational sooner which commercially produces an early return on the capital invested. The Design and Build method facilitates novation of design with the consultants to the contractor which provides advantages to the client. The advantage of Design and Build is that the contractor has some control over the design and is able to introduce components, materials and systems which are beneficial and which he knows are more economical to construct. 2.1.2 Critique of Design and Build Design and Build is not suitable for complex projects. The traditional method of construction procurement dissociates the designers from the contractors interests, design-build does not. The contractor decides on the design issues as well as issues related to cost, profits and time exigencies, which may be the matter of concern in some situations. The client is required to commit to a concept design at an early stage and often before the detailed designs is completed. There is no design overview unless separate consultants are appointed. And there is no one appointed from clients side to manage the works or act as clients agent. If client changes the scope of the project, this can be expensive. Design-build does not make use of competitive bidding where prospective builders bid on the same design. In Design and Build the criteria to select contractor is subjective and difficult to evaluate and to justify later. 2.2 Management Contracting In management contracting the client appoints the designers and a management contractor separately and pays the contractor a fee for managing the construction works. Payment to the management contractor is done on the basis of cost of the works packages plus agreed fees. The main benefits of management contracting are the time required for design and construction is shorter. There is an early involvement of managing contractor during design phase, in which his expertise can be used. The management contractor has the responsibility to manage the project. The sub-contractors are appointed by the management contractor, thus reducing the day to day administrative responsibilities of the client. The management contractor has major role in directing the project. The lines of communications are improved. As there is a direct relation between the management contractor and the client changes and variations can be done in a project. The main advantage is that the project is completed in time as the management contractor manages the works. Because of this the client gets possession quickly and the return on investment starts. The client normally appoints the management contractor to take an active role in the project at an early stage and the client can benefit from the contractors expertise. The overall design is the responsibility of the clients consultants, but the management contractor is normally responsible for defining packages of work and then for managing the carrying out of those work packages through separate trades or works contracts. The management contractor can sometimes not be employed to undertake the work but is employed to manage the process. All the work is subcontracted to works contractors who are directly employed by the management contractor. The client usually needs to be given the opportunity to approve the terms and conditions of the trades or works contracts before the packages are subcontracted. The management contract will usually include both a pre-construction phase and the construction phase. The management contractor is responsible for the administration and operation of the works contractors. However, the management contractor is not liable for the consequences of any default by a works contractor so long as the management contractor has complied with the particular requirements of the management contract. 2.2.1 Characteristics of Management Contracting Clients and contractors adapt this system once they gain experience, which suggests that it has merits. It is generally recognized that its adoption requires mutual trust. The management contractor is appointed much earlier. He is able to become a member of design team and contribute his expertise and mainly his management expertise. Management Contracting is an effective method for the client retaining control of the design whilst drawing on the experience of a construction specialist as part of the Professional Team. The Management Contractor is paid a fee for its services as well as enters into contract with the client for work packages, generally separate works contractors are appointed to carry out work packages under the management contractor. This type of arrangement tends to be used on complex projects where early input from a construction specialist is required. Decisions regarding appointment of subcontractors are made jointly by designers and management contractor thus making use of wider experience. Specialists contractors and subcontractors compete at second stage ensuring economical tenders which benefits the client. Lines of communication are shorter between management contractor and client than with the traditional procurement method. The client has direct control over the management contractor, who is the main contractor, so that the project is completed in a better way and in shorter time. The total project completion period is reduced by parallel working. A reduced project completion period produces a corresponding reduction in financing charges and interim payments to the contractors. Inflation has less effect. The client takes the delivery of the building more quickly and obtains returns on his investment more quickly. The main functions of the management contractor may include acting as principal contractor, cost planning and cost control, consenting for works contracts, coordinating and managing works contracts, coordinating commissioning, collating pre construction information and construction phase plan, monitoring key performances and managing the site. 2.2.2 Critique of Management Contracting The client is usually given an approximate estimate of the final project cost by the management contractor early in the project life but the client does not know the final project cost until the last sub contract is entered into. On other projects he is given a guaranteed maximum cost. The architect may have less time to develop the design because he is under greater pressure from the client and contractor. The design may suffer as a result. The client should provide a good design brief as the design will not be completed until the client has committed significant resources to the project. The strategy relies on quality committed team or it may just become a mere reporting system in some cases. Management contracting is not suitable for inexperienced clients. It is less suitable for clients wanting to pass the complete risk to the contractors. Specialist contractors frequently prefer to be in contract with client rather than the management contractor appointed by the client because interim payments are usually made promptly when paid directly. 2.3 Construction Management In construction management the client appoints a construction manager for a fee to manage, programme and coordinate the design and construction activities. The client does not allocate risk and responsibility to a single main contractor. Construction work is carried out by trade contractors through direct contracts with the client for various packages. The client takes the risk. The construction manager supervises the construction process and coordinates the design team. The construction manager has no contractual links with the design team and contractors. He only provides professional expertise without assuming financial risks. On appointment the construction manager takes over any preliminary scheduling and costing information and draw up detail programme accordingly. In this method the client should have administrative or project management staff with the ability to assess the recommendation of construction manager and take actions. Adapting construction management reduces the time required for the project. This occurs because the contract strategy, construction and design can overlap. A construction manager should have a good track record in cost forecasting and cost management, as the time can be reduced but the price certainty is not achieved unless the design and construction have advanced to the extent that all the work packages have been let. This method puts so much emphasis on the role of client, if the client is experienced, with the help of construction manager he can control the project effectively. The clients continue to use construction management to their advantage, for example, the cultivation of direct, long-term relationships with trade contractors helps to secure many of the benefits more often associated with partnering. Furthermore, by employing a construction manager who is able to focus on the interests of the project, rather than on its own risk management, the client can be confident that its project objectives will be shared by the rest of the team. Construction management is distinguished by the influence of the clients and construction managers management and leadership skills on the success of the project. By adapting construction management method the client can have greater influence over the project and can have more flexibility over the contractor selection and so on. 2.3.1 Characteristics of Construction Management Construction management offers relative time saving potential for overall project duration due to overlapping of various activities. The roles, risks and relationships are clear for all the participants during most of the situations. In some situations changes in design can be accommodated later than some other strategies, without paying a premium. In construction management method the client has direct contracts with the contractors and pays them directly. This helps the contractors as they are paid promptly and there is evidence that this results in lower prices because of improved cash flow certainty. The client has direct involvement in the project as compared to most of the traditional methods. As the client is directly involved he is enabled to make prompt decisions which can be implemented without delay. This also makes possible a prompt response by the client to unforeseen site problems and also makes possible a prompt response by the contractor to changes required by the client. In this type the construction manager acts as an agent of the contractor. This benefits the contractor in managing the works. This also excludes the client for keeping his own staff for overlooking the issues which are looked by the construction manager. The central role of the construction manager is managing the project and providing administrative support to the employer. In this there is no single point of responsibility related to the delivery of the project. 2.3.2 Critique of Construction Management In construction management price certainty is not achieved until the last works packages have been let. Budgeting primarily depends heavily on design team estimates. The client should be pro-active and must provide a quality design brief to the design team in order to complete the design. The strategy relies upon the client selecting a good quality and committed team. In construction management the client has to manage and administer many contracts as there is no single contractor, all the works contracts are directly between the works contractors and the client. The client has to manage coordinate with the design team appropriately or else there increased likelihood of design change. There is a high degree of client ownership of risks associated with design including impacts of late or incomplete and uncoordinated design. In construction management the client has exposure to performance risk and exposure to consequential loss associated with trade contractor default. In construction management method there is increased administration role for the client. Construction manager owes duty of care liability only. The client is at the center of management and requires decision making capabilities. The client has to rely on management capability of construction manager. 2.4 Indian Construction Industry and Economy Indian economy has been growing from last two decades at an unprecedented rate. This is mainly because of industrialization and service sector growth. The main reason for Indias growth is its huge internal demand. In recent years particularly after the global recession in 2008 the Indian economy has shown signs of slowing down. In 2011-12 due to the current global economic scenario India found itself in the heart of managing growth and stabilizing prices. The Indian economy is grown by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. This indicates a slowdown compared not just to the previous two years but 2003 to 2011 (except 2008-09). At the same time, sight must not be lost of the fact that, by any cross country comparison, India remains among the front-runners. The Gross Domestic Product (nominal) of India is $ 1.848 trillion (Indiabudget, 2011). The Gross Domestic Product (Purchasing power parity) of India is $ 4.457 trillion (Indiabudget, 2011). The annual expenditure budget of India is Rs.1490925.29 Crores (Indiabudget, 2011). Over the years, more than half of the expenditure budget is spent on civil engineering, construction and related activities. The construction industry sets in motion the process of economical growth in the country, investment in this sector contributes 6.5% of Gross Domestic Product (GDP) growth. The construction industry in India is large and scattered. Today in India there is a massive demand in housing and infrastructure. The construction industry is the second largest industry of the country after agriculture. It makes a significant contribution to the national economy and provides employment to large number of people. The use of various new technologies and deployment of project management strategies have started to gain importance. In its path of advancement, the industry has to overcome a number of challenges. However, the industry is still faced with some major challenges, including housing, disaster resistant construction, water management and mass transportation. Recent experiences of several new mega-projects and large demand are clear indicators that the industry is poised for a bright future. It is the second homecoming of the construction profession to the forefront amongst all professions in the country. Every Re.1 investment in the construction industry causes an Rs.0.80 increment in GDP as against Rs.0.20 and Rs.0.14 in the fields of agriculture and manufacturing industry, respectively. Statistics over the period have shown that compared to other sectors, this sector of economic activity generally creates 4.7 times increase in incomes and 7.76 times increase in employment generation potentiality (Economicsurvey, 2011). Despite of the challenges in the construction industry there will be a continuous rise of the construction sector in the country, with over 4 Crore persons employed in it. 2.5 Projects in India The construction industry in India is large and diverse. In India majority of the projects are procured locally and are small in size. In recent years there is a demand for large projects such as large housing schemes, rural and urban and infrastructure projects but still there are large numbers of small projects. The projects include residential complexes, shopping centers, industrial development projects, urban roads, rural roads, water supply systems, sewerage systems and infrastructure projects such as highways, power stations, rapid mass transport systems, airports up gradation and new and ports. These projects are not concentrated in one part of the country, they are spread over the length and the breadth of the country. Except some few high profile and prestigious projects majority of the projects are due to local needs and demands. In India the metropolitan cities are experiencing a rapid growth of 25-30% in residential construction activity every year and the other non-major cities are experiencing 15-25%. The top 15 cities in India account for 18% of the total construction activity in India with Mumbai and Bangalore leading the pack. In India cities are classified as Tier I, Tier II, Tier III and Tier IV cities. Tier I cities consist of Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai. Tier II cities consist of comparatively smaller cities as Ahmedabad, Jaipur, Kanpur, Pune, Surat etc. Tier III cities consists of even smaller cities and large towns such as Indore, Cochin, Jamshedpur etc. Tier IV consist of smaller towns. Approximately there are 35 cities in India with a po

Contaminated Motives Essay -- essays research papers fc

Contaminated Motives The very essence of money creates an urge of human nature to obtain it, and have an excess of it. Fame and money go hand in hand; if you have one, you have the other. One also must understand that money equals power; people aspire to money. When people come into wealth and begin rising to the top of the social ladder, history dictates they usually become corrupted, and sometimes compromise their personal values. Do they believe this is for the common good, or merely for personal benefit? In the novels Great Expectations and The Great Gatsby, the protagonists, Pip and Jay Gatsby respectively, believe their prospers are used for the common good, but in reality many values are being compromised. The clichà ©, “Money cannot buy happiness'; exemplifies the opposite of what Pip and Gatsby believe, in that both utilize their money in what they believe to be a valiant attempt to bring the women they love into their lives. Along the way to achieving this “goal';, they violated et hics, which in turn changed them as people. Although money serves as a driving force for individuals, it does not counter the negative effects that are induced during the process. Therefore, money is the root of all evil.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Despite the two novels possessing slight differences, they coincide in many aspects. When Pip acquires the money from the unknown benefactor, he moves away under Jaggers guidance and barely ever returns to his hometown. In the beginning, his reasons for coming back were to visit Joe, Biddy, and Miss Havisham, but eventually he changes and seeing the people previously so important to him appears to become a chore. This is ironic because not even a year ago he looked up to Joe, and regarded him as a father, now he refuses to see him on account of Joe being a common blacksmith. This is one of the first changes that we see in Pip after his knowledge that he will have “great expectations'; and become educated. Pip’s entire reason for becoming a gentleman is to attract Estella, and make her return the feelings of love that he holds for her. Ultimately, it appears that Pip is willing to cast away his old life and friends, to become a gentleman and, in essence , obtain Estella. This perfectly illustrates an immense change in Pip when he compromises his beliefs to... ...scholarships from all over the country. Today, we see his persistent acts to be different via tattoos, hair dyes, and many antics. The point is that Dennis Rodman strived to be uncommon just like Pip. The only difference is, they achieved their goals in vastly different ways and the results were extremely different.   Ã‚  Ã‚  Ã‚  Ã‚  In both cases, money appeared to be a catalyst in order to achieve public stature. Pip and Gatsby utilized money and prestige as a means of obtaining the women they desired. Everybody wishes to be rich and famous at one point in life, but few actually achieve it. History imparts us with evidence that money cannot buy happiness, but rather can corrupt peoples morals, and ethics. In conclusion, happiness that lies within is far greater than any superficial, temporary happiness that money can purchase. 1228 words Works Cited Dickens, Charles. “Great Expectations'; Penguin Classics, 1996 Fitzgerald, F. Scott. “The Great Gatsby'; Matthew J. Brucolli and Samuel J. Lanahan, 1991 Downey Jr., Robert. http://mrshowbiz.go.com/people/robertdowneyjr/index.html Rodman, Dennis. http://mrshowbiz.go.com/people/dennisrodman/index.html

Diffusion of Technology in Society Essay -- essays research papers

Successful and Inappropriate Diffusion In Thermador The Thermadorian society had been isolated from the world for hundreds of years. The successful diffusion of farming technology failed for a number of reasons. Based on our information, there were several components missing. Components such as no research or plans to sustain a long-term solution to the problem. The United Nations presented modern farming technology not taking into consideration the educational level of the society in a modern world. Technology changes society, however it is gradual and consistent. It could be assumed that the Thermadorians had no concept of the change and had no understanding of the role of the technology provided. The United Nations provided the Thermadorians with tractors and other heavy vehicles to assist the farmers in the planting of the seeds and harvesting crops. It appears the United Nations did not research or even attempt to understand the Thermadorian culture, customs, or addressing their economy or governmental structure. There is no information on the social status and who had control of the land. Did the would-be farmers have standing in their societal structure? Were they poor/rich? Small farms as opposed to large? Nothing is noted so assuming they are simple people with little education and no experience relating to the farming technology provided. No representative living amongst the Thermadorians. Without taking into consideration thei...

Study of Lg

[pic] In partial fulfillment Of BACHELOR OF BUSINESS ADMINISTRATION [pic] Submitted to: Submitted by: SWARNITA SRIVASTAVA bb Asst Professor BBA 4sem Roll no SUN INSTITUTE OF MANAGEMENT & TECHNOLOGY 7 Km,Milestone Bareilly Road NH-24, Haji Nagla,Shahjahanpur (U. P) [pic] DECLARATIONI, ANJU MISHRA , hereby declare that the work titled Comparative Analysis of Employee`s perspective towards â€Å"COMPARATIVE STUDY OF LG AND VIEDOCON AIR CONDITIONERS† embodied in this report has been carried out by me as an original work. I declare that no part of it has been submitted for any degree of any institution previously. Date: 30 APIRL, 2013 ACKNOWLEDGEMENT I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report a reality from many people.I would like to thank Mr. ABHIJEET MISHRA, SIMT,SHAHJAHANPUR whose endeavor for perfection, under fat igable zeal, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort. PREFACE This is the project about profiling the brand personality of air conditioner brands. The project involves the study of the whole Air Conditioner market. In this study we have studied the two of the major players in AC that is LG, Videocon.The report included the survey of the customer’s of these particular brands and then analyzing what kind of their customers are, the brand targets which segment of the customers, the customer’s age group, income group, their education level. Indian Consumer durables market used to be dominated by few domestic players like Godrej, Samsung, Hitachi Voltas and Kalvinator. But post liberalization much foreign company have entered into Indian market dethroning the Indian player and dominating Indian market the major categories in the market AIR CONDTION ERS CONTENT 1. INTRODUCTION †¢ COMPANY PROFILE KNOWLEDGE ABOUT COMPANY †¢ OBJECTIVE OF THE SURVEY 2. RESEARCH METHODOLOGY †¢ COLLECTION OF DATA †¢ QUESTIONNAIER 3. DATA ANALYSIS AND INTERPRETATION 4. CONCLUSION 5. FINDING AND SUGGESSION 6. BIBLIOGRAPHY RESEARCH OBJECTIVES ? To identify the two major player of AC market and their market share, products and the players within this segment. ? We Have taken the major competitors in AC segment as LG, Videocon, and did an in depth comparison of the same on certain parameters, which will be ? defined in the due course of the proposal. ? To ascertain potential market and competition. Ascertain the consumer preferences and satisfaction factor ? To highlight the perception of the consumers for the Air Conditioners. ? To do the brand profiling. ? To know the personality traits, likings of the customers for individual brands. ? To know which customer prefer which brand. ? Why do they purchase this brand only? ? How does this brand matches to their personality. ? Which brand targets or is liked by the customers of which age group ? Which brand is affordable by which income group. ? Do the customers want to repurchase this brand? If yes, then why so. What are the characteristics of the customer the brand targets? COMPANY PROFILE OF LG History [pic] When Willis Carrier invented the first system for â€Å"manufactured weather† in 1902, he sparked an industry that revolutionized the way in which we live, work and play. From that defining moment – and through to the present day – Carrier has been a company built on a legacy of innovation. For more than a century, our research, expertise and forethought have resulted in market-leading innovations and â€Å"firsts† that have shaped and defined the heating, air conditioning and refrigeration industry.Through our history of product excellence and committed customer service, we have evolved into a global company serving millions of peo ple and businesses in 172 countries on six continents around the world. [pic] Carrier India Vision: To be recognized as the leader in every segment we operate in by ? Being ‘customer focused’ in everything we do and following ACE diligently. Delivering ‘best in class’ quality in the product as well as aftermarket service. ? Being ‘environmentally conscious’ in areas of energy efficiency and pollution. Establishing a performance culture that respects human values & team work remain embedded in our core values of EH&S and ethics Thereby growing profitably and ahead of the market every year, making Carrier a destination of choice for all within HVAC&R industry. LG Electronics Is one of the leading companies in the field of electronics with a global presence in many countries. .Before briefing, I have divided the introduction part into three main sub parts. †¢ LG Global †¢ LG India †¢ LG Pune History of companyThe company was origina lly established in 1958 as Gold Star, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and Gold Star, from which the abbreviation of LG was derived. The current â€Å"Life's good† slogan is a backronym. Before the corporate Name change to LG, household products were sold under the Brand name of Lucky, while electronic products were sold under the brand name of Gold Star. The Gold Star brand is still perceived as a discount brand. In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics of the United States. pic] Global Operation LG Electronics is playing an active role in the world market with its assertive global business policy. As a result, LG Electronics controls 110 local subsidiaries in the world with around 82,000 executive and employees. LG Group †¢ LG. Philips LCD †¢ LG Chemical †¢ LG Telecom †¢ LG Powercom †¢ LG Twins †¢ LG Dacom Business areas and main products Mobile communications [pic] a) CDMA Handsets, b) GSM Handsets, c) 3G Handsets, d) Cellular Phones Digital appliance[pic] a) Air Conditioners, b) Refrigerators, c) Microwave Ovens, d) Washing Machines, e) Vacuum Cleaners, f) Home Net, ) Compressors for Air Conditioners and Refrigerators Digital display[pic] a) Plasma TVs, b) LCD TVs, c) Micro Display Panel TVs, d) Monitors, e) PDP Modules, f) OLED Panels, g) USB Memory, h) Flat Panel Computer Monitors Digital media a) Home Theater Systems, b) DVD Recorders, c) Super Multi DVD Rewriters, d) CD ±RW, e) Notebook PCs, f) Desktop PCs, g) PDAs, h) PDA Phones, i) MP3 Players, j) New Karaoke Systems, [pic] Vision Global Top 3 by 2010 Global Top 3 Electronic/Telecommunication company Growth strategy â€Å"Fast innovation, Fast growth† Core competency â€Å"Product leadership, Market leadership, People leadership†Corporate culture No excuse, â€Å"we† not â€Å"I†, Fun workplace TA G LINE â€Å"Life's Good† represents LG's determination to provide delightfully smart products that will make your life good. The LG Electronics Life's Good signature consists of the LG logo, seal, and the slogan, â€Å"Life's Good† set in Charlotte sans typeface curved around the LG symbol. The curving of the slogan reinforces LG's personality and uniqueness. The consistent usage of this signature clearly establishes the unique identity of the company and unifies every division and product from LG Electronics across the globe.The Symbol The symbol of LG is the face of future. The letter â€Å"L† and â€Å"G† in a circle symbolizes world, future, youth, humanity & technology . LG philosophy is based on humanity. [pic] It also represents LG’s efforts to keep close relationship with our customers around the world. The symbol consists of two elements. 1. The logo in LG gray 2. The stylized image of human face in the unique LG red color. Red color repr esents our friendliness and gives a strong impression of LG’s commitment to deliver the best. The circle symbolizes The Globe.The stylized image of a smiling face in the symbol conveys â€Å"Friendliness and Approachability†. The one eye on the symbol represents â€Å"Goal-oriented, Focused & Confident†. The slogan of LG is â€Å"Life’s Good†. It expresses â€Å"Brand’s Value, Promises, Benefits, Personality. The Partnership LG Electronics chooses to promote harmony and build constructively on a labor-management relationship rather than an employee-employer relationship. This illustrates that management and workers are not in a vertical relationship, but in a horizontal one.This culture is necessary for LG Electronics as it strives to become one of the world's top companies. Such a relationship is transformed into a value-creation relationship whereby both parties endeavor to address mutual problems and create new values together. Strategic alliance LG Electronics is making technical advances and identifying business opportunities through various associative relationships with some of the world's leading companies. LG Electronics is striving to become number one in the world by mingling in various business and technological fields and making strategic alliances with world famous companies. Strategic association between corporations,† In which companies with different infrastructures cooperate in the fast-developing 21st century business field, Is of key significance in terms of strengthening the existing industry and creating a new one. [pic] LG Electronics will do its best to create new products and services with an open mind, while developing new technologies and business fields through various associations with some of the world's most successful companies. 1. 3M 2. SUN 3. YAHOO 4. PHILLIPS 5. TOYOTA 6. MICROSOFT 7. HP 8. GOOGLE 9. GE 10. INTEL 11.NORTEL 12. HITACHI 13. PRADA 14. RENESAS 15. TOSHIBA 16. BESTB UY And the number follows many more†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile services will be available from LG mobile. This service is targeting 10 million LG mobile phones in over 70 countries. In Mar. 2007 LG Electronics and Google formed a strategic alliance. Both companies will work together to release, market, and offer LG mobile phones with Google services (search engine, map, email, and blogs. ) LG BRAND IDENTITY:- The brand of LG is delightfully smart.LG strives to enhance the customer’s life and lifestyle with intelligent features, institutive functionality and exceptional performance. The brand platform:- The LG brand is composed of four basic elements – 1. Value 2. Promise 3. Benefits 4. Personality The Brands core Value that never changes. a. Trust, b. Innovation, c. People d. Passion The benefits that are consistently delivered to the customer in cludes Reliable products Simple design Ease of useExtraordinary Experience Personality describes the human characteristic that are expressed to the customer through Trustworthy, Considerate Practical, Friendly The Internal Culture of LG: LG practices four cultures 1. Learning Culture 2. Boundary less Environment 3. A Carrier 4. Growth According to LG, the Learning Culture continuously helps the employee to learn more and more to develop the habit of continuous learning. Boundary less Environment:- It means that there is no difference between the levels of employees.There is transparency between the work and mutual understanding between all the employees. A carrier is highly growing in LG and one who is the employee can develop their carrier largely. A new comer will feel fully comfortable in the company and for a new comer the company is very helpful in the overall growth of personality. Growth in LG is very high for those who are in the company and for those who want to join in LG. The company is growing with fast innovation and the BLUE Ocean strategy is one of the examples of growth. Mission The mission of LG is to provide the customers with utmost satisfaction through leadership.The fundamental policy of development is to secure product leadership that the Customers may have the utmost satisfaction. Product Leadership We are focusing on six development areas to become the product leader. 1. New Machine 2. Reliability 3. Conventional Installation 4. Environment Friendly Product 5. Low Noise & Vibration 6. Energy Saving Quality Innovation The policy of quality assurance is to provide customers with utmost satisfaction by supplying zero defects. [pic] LG proceeds in a hierarchal manner. It is named as â€Å"LG WAY†. From top to bottom: No. 1 LG – is the VISION Jeong-DO† Management is LG’s unique application to ethics. LG will succeed through fair management practices and constantly developing our business skill. A) Honest with our c ustomer b) Providing great values to customer through constant innovation & and development. c) Equal opportunities d) Equal Treatment e) Management Principle – Creating value for customer Code of conduct of LG: 1. Responsibility and obligations to customers : †¢ Respect for Customers †¢ Creating Value †¢ Providing Value 2. Fair competition: †¢ Pursuit of Free Competition †¢ Compliance with Laws and Regulations . Fair Transaction : †¢ Equal Opportunity †¢ Fair Transaction Procedure †¢ Support and Aid for Business Partners 4. Basic Ethics for Employees: †¢ Basic Ethics †¢ Completion of Duty †¢ Self Development †¢ Fairness in Performance †¢ Avoidance of conflict with company interest 5 Corporate Responsibilities to employees: †¢ Respect for human dignity †¢ Fair Treatment †¢ Promoting Creativity 6 Responsibilities to society and country: †¢ Rational Business Development †¢ Protection of st ock holder interest †¢ Contribution to social development †¢ Environmental Conservation LG INDIALG Electronics India Pvt. Ltd. , a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB). LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. LG corporate office is located at Plot no. 51, Udyog Vihar, Kasna Road, Greater Noida, India. This facility manufactured Color Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. †Company is setting up a chain of exclusive premium showrooms.LG plans to launch 60 premium Brand Shoppes by the end of the first quarter of this year. At present, LG has a total of 83 LG stores across the country, of which 45 are shoppes and 38 are exclusive stores. Brand shoppes will be placed in the premium segment and the target audience will comprise buyers intere sted in premium and high end products. LG Brand Shoppe goes beyond the concept of a normal exclusive store by having a more interactive environment and additional lifestyle orientation on display so that the customer can actually experience the LG products in his or her own home settings.LG Electronics India Ltd (LGEIL), consumer durables leader with 27% market share, is planning a brand new image. To attract inspirational and young consumers across India, company will roll out a new marketing strategy. The exercise will cost the company Rs 360 crore. LG Electronics India is the fastest growing company in the consumer electronics, home appliances, and computer peripherals industry today. LG Electronics is continually providing, superior technology products & value for money to more than 50 lakh households in India. LGEIL is celebrating the 11th anniversary this year.LG Soft India the innovation wing of LG Electronics in Bangalore is LG Electronics' largest R centre outside Korea. We at LGSI focus on niche technology areas such as mobile application development, digital video broadcast and biometrics software and support LG Electronics with our expertise. Motivated by a passion for technology, a strong work culture and loyalty to the organization, we are determined to see LG become one of the top three brands globally. Prominent consumer electronic company, LG Electronics Inc. has said that it expects the sale of its products in India to up by 15 per cent in 2008.Moon Bum Shin, managing director of LG Electronics India has said that the company has earmarked 4. 8 billion rupees for investment purpose in India this year. The said money will be used to market as well as manufacture new products. LG Electronics, which is originally a South Korean Company with branch in India, informed that its sales of GSM mobile phones, color televisions, air conditioners and other household goods in the Indian market was to the tune of 95 billion rupees ($2. 4 billion) in 2007. As per Shin's estimate, the sales in 2008 would be around 110 billion rupees.In order to achieve its target, Shin said LG Electronics will concentrate on catering to the high-end consumer market which will help boost sales this year. India churns out six (6) per cent of LG Electronics global revenues of $42 billion. The Indian branch of LG exports to 40 countries. India challenges The challenges faced by LG when entered in Indian market 1. Low brand awareness about LG in India. 2. One of the last MNCs entered in India (Samsung, Panasonic entered in 1995 in India). 3. High import duty 4. Compitition from local market players and other MNCs in consumer durable segment. 5. Price sensitiveness of the Indian consumerLGEI over comes these challenges to emerge as innovative marketing strategy:- 1. Launch new technologies in consumer electronic and home appliances. 2. LG was the first brand to enter in cricket in big way a way, by sponsoring the 1999 world cup followed it up in 2003 as well . 3. LG brought in four captains of the Indian cricket team to endorse its products. LG invested more then US$ 8 million on advertising and marketing in this sport. 4. LG has differentiated its product using technology and health benefits. 5. CTV has â€Å"Golden eye technology† Air conditioner has â€Å"Health air system† and microwave ovens have the â€Å"Health wave system†.Local and efficient manufacturing to reduce the cost. To overcome high import duties LG manufactures TV refrigerator in India at manufacturing facility at Noida and Pune. LGEI had already commissioned contract manufacturing at Mohali Kolkata and Bhopal for CTVs. This has helped LGEI to reduce cost. LGEI implementing the â€Å"Digital manufacturing system† (DMS) as the cost cutting innovation this system is follow-up to the six sigma exercise LGEI had initiate earlier. R&D potential LG has the research and development facilities in Bangalore and Pune.Both the unit carry out R&D depar tment for the domestic as well as the parent company it also dose customize R&D for the specific countries to which it export product. Regional channel and wide distribution network 1. LG has adopted the regional distribution channel in India. All the distributers work directly with the company. This has resulted in quicker rotation of the stock and better penetration into B, C, D, class market. 2. LG also follows the stock rotation policy rather then dumping stock on channel partners. 3. Product localization:- 1. Product localization is the key strategy used by the LG 2.LG came out with Hindi and regional language menus on its TVs. 3. Introduced the low-priced â€Å"Cineplus† and â€Å"sampooma† for the rural market. 4. LG was the first brand to introduce gaming in TVs in continuations of its association with cricket LG introduce cricket game in CTVs MAJOR KEY SUCCESS FACTORS Innovative marketing – LG was the first brand to enter cricket in a big way, by sponso ring the 1999 World Cup and followed it up in 2003 as well. 1. Local and efficient manufacturing to reduce cost – To overcome high import duties, LG manufactures PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. . Commissioned contract manufacturing at Mohali, Kolkata and Bhopal for CTVs. 3. Product localization – Product localization is a key strategy used by LG. It came out with Hindi and regional language menus on its TV. 4. Regional distribution model – This has resulted in quicker rotation of stocks and better penetration into the B, C and D class markets. 5. Leveraging India’s IT advantage – LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The project involves development and support for ERP, SCM, CRM and IT-enabled services for LG.Strategies adopted by the organization LG follows 10 commandments which are as follows. 1. Foster working environment-5S Environment 2. Fast execution is key to success 3. Transparent and fast communication-open communication 4. Update market -knowledge –Demographics 5. Win –Win relationship with the trade partners 6. Customer is the king 7. Even Billing –Road to ach supplier A 8. Be in touch with the market (70% Market, 30% Office). 9. Plan and Execute annual marketing Calendar-Time to market 10. Display share of 50% -to get 50% consumer share.AIRCONDITIONERS FROM LG |INVERTER |[pic] | | |ART COOL | |Technology that delivers | | |precise cooling or heating power as per your choice. Where art meets intelligence | |It works faster and saves energy while ensuring uniform temperature. |. Fine art is no longer confined to museums. Grace your interiors | | |with the finest in technology and choicest of paintings.Decorate | |[pic] |your rooms with your mood and | | |sense of style | | | | | | |[pic] [pic] | |FLOOR STANDING |MULTI SPLIT | | | | |Air Throw that reaches every corner. Time to move on to cooling two rooms with a single outdoor unit. | |Get the advantage of mobility and the purest of air. | | |Ideal for homes and small offices and most effective in saving power. | | |The powerful motor can give a reach upto 21 ft too. | | | | | | |[pic] |[pic] | |HOT AND COLD AC |SPLIT AC | | | | |Optimum indoor weather management 365 days a year. Presenting the wide | | |range of Star Rated Split | | |Air Conditioner which not only | | |save power but also provide faster cooling, | | | | WINDOW AC [pic] Presenting the wide range of Star Rated Window Air Conditioner which not only save power but also provide faster cooling [pic] COMPANY PROFILE OF VIDEOCON Videocon is an industrial conglomerate with interests all over the world and based in India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. Corporate profile The Videocon group has an annual turnove r of US$ 4. 1 billion, making it one of the largest consumer electronic and home appliance companies in India.Since 1998, it has expanded its operations globally, especially in the Middle East. Today the group operates through three key sectors: Consumer electronics In India the group sells consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Videocon Group brands include Sansui, Toshiba, Electrolux, Kenstar, Next etc. Colour picture tube glass Videocon is one of the largest CPT Glass manufacturers in the world, operating in Mexico, Italy, Poland and China. Oil and GasAn important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. Acquisition of Thomson SA Videocon through its Wholly Owned Offshore Subsidiary acquire d the Color Picture Tube (CPT) businesses from Thomson S. A having manufacturing facilities in Poland, Italy, Mexico and China along with support research and development facilities. Videocon in its pursuit of mission to become a global major in consumer electronics and home appliances with large scale and low cost base for critical components, made its first footprint in acquiring global sized color picture tube manufacturing facilities across the world from Thomson SA.It had already formulated a â€Å"2010 road map† which outlines the group's strategy of being one among the top five in both branded consumer electronics and contract manufacturing in the world by 2010. Acquisition Rationale The acquisition came at a time when Thomson was facing a fall in demand in developed markets for television with CPTs and was moving more towards Flat-screen and Plasma Television. However, Videocon saw an opportunity in the emerging countries for CPTs and hence pursued with the acquisitio n. Besides, the acquisition gave Videocon, the access to advanced technology giving the company control over an R facility in Agnani, Italy. The major reasons behind this acquisition were:- Cost cuttingVideocon was better positioned to shift the activities to low-cost locations and also it could integrate the operations with the glass panel facility in India with the CPT manufacturing facilities acquired from Thomson S. A Videocon wanted to leverage its position in the existing parts of the business and this acquisition would give it a strong negotiation position and could reduce impact of glass pricing volatility. Videocon could also reduce the costs by upgrading and improving the existing production lines. Vertical Integration The acquisition helped Videocon in vertically integrating its existing glass-shell business where it had been enjoying substantially high margins. Videocon’s glass division had the largest glass shell plant in a single location.This gave the company a n unrivalled advantage in terms of economies of scale and a leadership position in the glass shell industry. The acquisition also gave Videocon a ready-market for its glass business and it was part of Videocon’s long-term strategy to have a global vertically-integrated manufacturing facility. Rationalization of Product Profile Videocon modified its product profile to cater to the changing market needs like moving away from very large size picture tubes to smaller ones. [6] Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to improve the setup for the production line and line speed post-merger.Its focus was to increase sales while reducing the costs and thereby improving the productivity of the existing line. The company also wanted to foray in a big way into LCD panels back-end assembly On the sales front the company wanted to leverage on the existing clients of Thomson and build relation as a preferred supplier to maximise sales. Also, Videocon could benefit from OEM CTV business with the help of Videocon’s CTV division, invest for new models and introduction of new technologies. Thomson’s perspective In 2004 Thomson planned entry into the high-growth digital media and technology business. Also, Thomson wanted to exit consumer and electronics businesses as they were incurring significant losses.After sale of its TV business to Chinese group TCL, and Tubes to Videocon, Thomson divested from the audio/video accessories business which was the last unit of its consumer electronics business. The need to divest are quite evident from the losses that it incurred in these businesses particularly that the unit that it sold off to Videocon, the Optical Modules activity, and the Audio/Video & Accessories businesses which totalled around â‚ ¬749 million for 2005. Moreover Thomson had done some acquisitions that were in line with boosting their revenues in the following years. Other Competitors for the A cquisition When Videocon entered the race for the colour picture tubes manufacturing capacity of Thomson SA in November 2004, there were 16 other bidders.Videocon stood slim chances given the fact that it had to battle it out with players like LG,Philips, Samsung and Matsushita, Daewoo and several Chinese manufacturers but finally managed to close the deal. The deal catapulted Videocon into the No. 3 slot in the global pecking order for CPTs. An official of Videocon said on the deal † The word is out in the world that India and Indian companies are not just a good bet by themselves, but also a hedge against China. â€Å" Pre-merger negotiations The price that Thomson wanted for the deal was euro 240 million (Rs 1,248 Crore) and Videocon agreed to the same without much negotiations (Under the deal the debt continued to be of Thomson’s). A special purpose vehicle, Eagle Electronics was used to complete the acquisition. As a part of the acquisition, Thomson also agreed to acquire 13.   % stake in Videocon for 1250 Crore in which 10% was locked for the first three years. Thomson SA has divested the 3. 5% stake that was outside the lock-in clause to overseas institutional investors. For the remaining 10% Dhoots retained a right of first refusal(recently this 10% has been sold to the Dhoots). During the process of negotiations Videocon was less affected by the capital cost component. Dhoot believed that Thomson CPT’s losses arising out from high capital cost of its Mexican Plant could be reduced once the television market in India moved to bigger screen sizes and slims .Videocon could import those from its global factories and hence cut on the losses of Thomson. Pre-merger scenario analysisCPT industry is affected by many competitive factors such as change in the consumer preferences ,the product offer strategy of retailers, the progress made by alternative technology manufacturers ,capacity adjustment facility of competitors etc. Based on all of these factors there were two scenarios that emerged from the 2005 budget of Videocon. The first scenario is a conservative one. It mainly assumes Price pressures similar to those in the past(-8 to -12%),capacity reduction over a period of two years, a gradual shift to newer technologies like True Flat and good amount of growth for LCD makers. [pic] The second scenario is a more aggressive one in term of trends predicted.It assumes that the switch to TrueFlat would be faster, more overcapacity, more competition from LCD manufacturers and rising price strategy pressures in general. The second scenario obviously requires an industrial strategy which is more adapted to the environment. However even if the second scenario arises,Videocon believes there is an opportunity in the CRT business. Though it is very obvious that in the developed markets of the western world the demand is shifting towards the flat panel side(FPD it is expected to contribute 70% of TV market in these regions), in the emerging markets like BRIC CRT still holds fort. CRT holds a dominant 70% share in these markets.When translated into number of units the demand is more than 100 million units. As Videocon is primarily based in these countries, it hopes to harness the value of the Thomson acquisition in the coming years. Post merger situation (2010) Videocon has not been able to turn the plant around in Italy still. However it is getting support from the local government(which want to prevent job cuts) in form of grants. The government is in fact trying to set up a Greenfield venture in form of a LCD manufacturing facility in partnership with Videocon. The banks are also supporting Videocon and with help from all these quarters Videocon expects to turn around the plant in Italy.The Thomson plant has not turned around in Mexixo as well and in fact production has been reduced over there. In Poland,the situation is more promising and Videocon hopes that plant over there will get in black in the very near future. However the surprise has been in the Chinese market . Despite of facing a highly competitive market Videocon has managed to turn a plant around while the other is on its way. In China Videocon is adopting a different strategy for manufacturing CTVs as the local players dominate the market . It plans to supply these players by taking advantage of low-cost nature of mainland(the number targeted by it about 6 million CPTs).Role of local government in the acquired units The LCD television segment is one of the fastest in terms of growth rate in Italy. The compounded growth rate is projected to be around 70% in the next few years. Videocon in partnership with the local government is going for a Greenfield venture in this segment. The Italian central government is giving a euro 180 million grant whereas the regional authorities are giving a 40 million grant. Videocon would itself pitch in with about euro 300 million whereas bank loans would provide a further 700 million. In the Thomson plant located in China the local Chinese Government is the minority shareholder.When Videocon acquired Thomson’s CPT business, it also gained control of Thomson’s Mexican plants. However Videocon Industries has a view that it would expand in the country only if the government gives it enough incentives. Videocon is demanding a 25-30% cash benefits from the authorities who are currently ready to give only about 20%. Thomson’s exit from Videocon Thomson is looking to sell out its stake in Videocon (a 10 percent stake via GDRs) and in most likelihood it would be bought by Videocon itself. Thomson would be exiting at a loss as it had acquired the stake at around Rs 400 per share (approximately equal to $10 per share). The deal is expected to happen at current market prices.Videocon’s GDR is currently traded at around $5. 06 on the Luxembourg Stock Exchange. On the Bombay stock exchange its trading around Rs 150 against the 52 week high of Rs 8 68 in Jan 2008. Another point to be noted is that this won’t attract the market regulator’s â€Å"creeping acquisition† norm which comes into force once they acquire more than 5% stake,as the deal would be an overseas one. Possible purchase of General Electric's Appliance division On May 23, 2008, Videocon announced that it is studying an invitation from General Electric (GE) to bid for its century-old appliances division, which it has put up for sale. [pic] PRODUCTS OF VIDEOCON | |[pic] | | |[pic] | | |[pic] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |[pic] | | |[pic] | | |[pic] | | | | | | | | | | | | | | | | | | | | | | | [pic] [pic] | | | | |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] | | | | | | |[pic] | | | | | |[pic] | | | |Split AC | |   | |[pic] |VS 2C-5233I / | | |VS C-7033B | | |INTEGRA | | |1. 5/2. TON | | |2 Star Power Saving | | |Ioniser | | |Turbo Speed | | |Sleep Mode | | |On/Off Timer | | |Self Diagnos is | | |Hydrophilic Coating – Evaporator | | |LCD Remote | | |4 Way Air Circulation | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | |[pic] | |   | |[pic] |VS 3C-2644/ VS 3C-3544 | | |INTEGRA | | |0. 8/1. TON | | |3 Star Power Saving | | |Deodorising Filter | | |Turbo Speed | | |Sleep Mode | | |On/Off Timer | | |Self Diagnosis | | |Hydrophilic Coating – Evaporator & Condenser | | |Auto Restart | | |4 Way Air Circulation | | |Buy now & get Exciting Offers. [pic] Request To Quote | | | |   | |[pic] | |   | |[pic] |VS 3R-3544/ VS R-5233 | | |GRACE | | |1. 0/1. TON | | |3 Star Power Saving | | |Catechin Filter | | |Sleep Mode | | |On/Off Timer | | |Self Diagnosis | | |Hydrophilic Coating – Evaporator | | |6 Step Air Swing | | |LCD Remote | | | | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | |[pic] | |   | |[pic] |VS G-5222/ VS G-7033 | | |GRACE | | |1. 5/2. TON | | |20 Micron Anti-Bacterial Fil ter | | |Sleep Mode | | |On/Off Timer | | |Auto Restart | | |Anti Freeze Sensor | | |LCD Remote | | | | | | | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | |[pic] | |   | |[pic] |VS T-2644/ VS T-3544 | | |SPLENDOUR | | |0. 8/1. 0/1. 5/1. 6 TON | | |20 Micron Anti-Bacterial Filter | |Turbo Speed | | |Sleep Mode | | |Self Diagnosis | | |Hydrophilic Coating – Condenser | | |Hydrophilic Coating – Evaporator | | |LCD Remote | | | | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | |[pic] | |   | |[pic] |VS T-5233M | | |VISTA | | |1. TON | | |20 Micron Anti-Bacterial Filter | | |Turbo Speed | | |Sleep Mode | | |Self Diagnosis | | |Hydrophilic Coating – Evaporator | | |6 Step Air Swing | | |LCD Remote | | | | | | |Window AC | |   | |[pic] |VW 1R-5244 | | |INTEGRA | | |1. TON | | |1 Star Power Saving | | |20 Micron Anti-Bacterial Filter | | |Turbo Speed | | |Sleep Mode | | |Real Time Clock in the Remote | | |LCD Remote | | |Hydrophilic Coating – Evaporator | | |On/Off Timer | | |Buy now & get Exciting Offers. [pic] Request To Quote | | | |   | | | |   | |[pic] |VW S-5223/ VW S-5222B | | |SPLENDOUR | | |1. 5 TON | | |20 Micron Anti-Bacterial Filter | | |24 Hrs.On/Off Timer | | |Sleep Mode | | |Auto Restart | | |Full Functional Remote(LCD Optional) | | |Fan Speed (Turbo/Quite) | | |Soft Touch Digital Panel | | |Auto Air Swing | | |2Ãâ€"3/2X2 Row Coil with 9. 5 c. u. mm Tube | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | | | |   | |[pic] |VW M-2644 | | |VISTA | | |0. TON | | |20 Micron Anti-Bacterial Filter | | |Sleep Mode | | |On/Off Timer | | |LCD Remote | | |Soft Touch Digital Panel | | |3 Min. Time Delay | | |Auto Restart | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | |[pic] | |   | |[pic] |VW F-2622/ VW F-3522 | | |VISTA | | |0. 8/1. 0/1. 6/2. 0 TON | | |20 Micron Anti-Bacterial Filter | | |Ioniser (VW F-5233I) | | |Sleep Mode | |LCD Remote(Optional) | | |On/Off Timer Auto Restart | | |Soft Touch Digital Panel (VW F-2622/VW F-3522/VW F-7034) | | |Anti Freeze Sensor (VW F-5233I/VW F-7034) | | |Auto Air Swing (VW F-2622/VW F-3522) | | |Other Available Models VW F-5233I/ VW F-7034 | | |Buy now & get Exciting Offers. pic] Request To Quote | | | | |   | | | |   | |[pic] |VW H-5222B | | |GRACE | | |1. TON | | |20 Micron Anti-Bacterial Filter | | |On/Off Timer | | |Sleep Mode | | |LCD Remote | | |Self Diagnosis | | |Hydrophilic Coating – Evaporator | | |Anti Freeze Sensor | RESEARCH METHODOLGY Meaning of Research-Research in common parlance refers to a search for knowledge. Research can also be defined as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. According to Redman & Mory research is a â€Å"systematized effort to gain new knowledge. † Objectives of research: †¢ To gain familiarity with the phenomenon or to achieve new insights into it. †¢ * To portray accurately the characteristics of a particular individual, situation or a group. †¢ To determine the frequency with which something occurs or with which it is associated with something else.To test a hypothesis of a casual relationship between variables. Type of Research: †¢ Descriptive Research It includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristic of this method is that the researcher has no control over th