Relationship between State and Civil Society

Question: Discuss about the Relationship Between State and Civil Society. Answer: Introduction: In this paper we state the importance of state society synergy, and also state the ways through which we can bridge the differences between government bodies and local communities. It is better to identify relationship between government involvement and private cooperative efforts instead of assuming that there is no relationship between the two. It is clear that active government and local communities can enhance the development efforts of each other if they work together. Civil society has power to leave positive effect on state institutions, and they also have power to influence the decision of the government on public policy, and in this paper we state the relationship between civil society and state. We state the role of no government organizations and how they monitor the activities of state institutions and also state the accountability of state institutions towards government. We also state different ways which can improve the relation between these two important organizations (NCBI, n.d.). In this essay we identify different forms and sources of state- society synergy. First we state the theoretical concept of state-civil society, and then focus on ways which can bridge the gap between these two. There are some other aspects also which need to discussed in this paper. At lat essay is concluded with brief conclusion. State-Civil Society: In political sociology, relationship between state and civil society is the key issue, and in this part of the essay we discuss three theoretical concepts of political sociology for the purpose of analyzing this relationship that is Marxism theory, elite theory, and pluralism. These theories are developed from the perspective of liberalism. Therefore, first we state the brief overview of the liberal perspective on state-civil relationship. From liberal perspective state serves civil society and they are accountable towards the citizens of the state through political representation. The main functions of the state are to maintain social order in the society and protect the society from external threats. As per liberals state is defined as neutral arbiter between conflicting interests and no section of society can dominate the state, but they can pursue policy which maximizes the liberty of individual (Khan, n.d.). According to DFID state-society relationship means communication related to negotiation on public authority and how this authority is influenced by people between state bodies, local communities which represent society and other societal groups. These communications mainly focus on those issues which define both rights and obligations of the state institutions and society, and also discuss on allocation of public resources and various methods of representation of facts and accountability of the institution (DFID, 2010). The actual focus is not on some specific forms of institution but it is on relationship between the government institutions and civil institutions. It is clear neither state nor civil society acting in isolates and they both need support of each other for better development in the country. State can derive its legitimacy by interacting with citizens and participation of civil institutions. As per Citizenship Development Research Centre, citizen is defined as an individual who has various rights against other persons and responsibilities which he own to others persons in the civil institutions and state institutions also. This definition states the relationship between not only citizen and state but with those also who are living within the borders of the state (Benequista, 2010, p. 4). Citizens have number of benefits such as they have right to live their nationality, to cast vote in the state, and they can also participate in process related to politics. They have right to access education, health, and other facilities provided by state such as access to labor market, own business, own land and other properties, and right of basic necessities. There is great impact of political settlements on the relation between state and civil society. For example, there are many states which are affected by conflicts and inn these states relations are affected by patronage as well as lack of accountability. There are many political personalities whose source of income are natural resources and some kind of criminal activities, and they have very less benefit to involve with the citizens of the state and established public authority which is effective. Such concentration of power in few hands limits the citizen participation in development of country. There are some situations in which citizens are excluded from public life because of violence and state repression. This reflects weak relation between state and society. It is clear from above theories that efforts made to promote right political settlement can re-shape the relations and also helps in positive transformation of politics and society. Usually, government focusing on state building by building the capacity of institutions working on central and state level, but it is necessary to pay equal attention on civil society and also increase the engagement of citizens in system so that they are able to make the state accountable and responsive towards society. In case of both donations and other funding, money is directed to both the institutions that are state and civil society institutions then these interventions are compartmentalized and based on state civil divide which is tradition in the state. Strategies and policies framed for this purpose clearly need focus on the communication between state institutions and civil society at all stages (GSDRC, n.d.). Structure of Synergistic Relations: Generally, building of relations between groups of civil society and governments include various forms such as simple dichotomy which is used to define the synergy between government and civil society and also difference between complementarily and embeddings. These two words not only define different forms of synergy but also state the connections between the idea of synergyand previous theories related to relations between public and private institutions. Complementarilyis a way which is conventional in nature and conceptualize the mutually supportive relation between state and civil society. It states the importance of division of labor based on the properties of state and society institutions. Governments are delivering number of goods which complement inputs delivered by private sectors, and putting these both inputs with each other will definitely result in best outcome which isbetter than the outcome delivered by public and private sectors separately. This concept suited to the current situation of institutions and encourages the collaboration of public and private sectors. On the other hand, synergy based on embeddednessstates that it is novel to connect citizens and public officials on divide of public and private level (Evans, n.d.). Bridge gap between state-civil societies: The main aim of peace lovers or peace builders is to mobilize the support from politics for the purpose of constructive actions to address some specific conflicts and their causes. Civil institutions like NGOs play important role by sharing information, make arguments, and contribute energy for the purpose of influencing decision making process. These institutions directly communicate with the policy makers or with those who influence the policy making process. These institutions are very important because they identify the problems and policy gaps, analyzing issues and also recommend solutions. In short, they identify the main problems which can be result in conflict and need to be identified for the purpose of solving these issues in peaceful manner (Manor, 1999). Civil groups analyze the current situation of the society, and on the basis of their findings they formulate recommendations, develop different options for policy, and also communicate with policy makers for the purpose of avoiding conflicts. They are able to mobilize advocacy campaigns under which they generate political will against the policy makers and also implement different strategies for achieving the desired results. These capacities are used to influenced both policy framed by governments and national legislation. While civil societies canalso force parliament and government for introducing new laws that may be address the causes of conflict or create new strategies for solving the issues in peaceful manner, and also it is common for them to engage in processes with government for the better development of the country. The gap between government officials and civil society can be fulfilled by various methods and for bridging this gap both institutions work together for deve loping frameworks related to policy and developing action plans to implement them: 1. Exchange necessary information with each other, analyze the issues which lead to conflicts, and find possible solutions for them.2. Formulating the directions of complete policy, and also specify the objectives related to policy.3. Make strategies and formulate different procedures for the effective implementation of policy.4.Raise awareness and arrange advocacy campaigns to generate political will for the purpose of adoption of new policy or agenda which is beneficial for public (Tosun Tosun, n.d.). Policy development in any developing country is complex process and civil societies play important role in identifying policy challenges. They generate awareness in public for creating pressure on government to get accurate response, and they also communicate with government officials, parliament members, and other civil servants for raising issues with public and these institutions also recommend various steps to solve these issues. There are number of departments in government which already consult civil institutions before making any policy, and also send draft papers for public consultation before these papers are adopted by the government as official policy (Barnes, 2006). In past, gap between citizens and state is reduced in different ways such as attention was given on strengthening the process of participation. In this method poor people communicate with government and present their points through new inclusions, consultation, and mobilization which are designed to inform and influence the government institutions. On other side, institutions pay attention on strengthen the accountability or responsiveness of government institutions and also on policies to change the design of institution. Each perspective make other perspective inadequate because consultation without political power is like voice which has no influence and other perspective is inadequate because changing the design on government institution without consultation will only lead to status quo (Cornwall Gaventa, n.d.). Policy development in Bangladesh: NGO activities in the Bangladesh are on highest concentrations and they have rich history. In other words we can also say that this country is the home of NGO activities in the world. History of civil society in this country is very important because activities conducted by civil organizations have deep relation with the history. In Bangladesh, Civil Society and its activities are originated from the time of independence, and there are number of civil organizations were formed for the purpose of conducted struggle against Pakistan. From last two decades, NGO in Bangladesh is working in the favor of service delivery programs and they abandoned many efforts which are conducting earlier for social mobilization and community activism. Therefore, it is seen by number of people that many represent the depoliticisation of NGO will result in erosion of democracy (Ahmed, n.d.). There is strong influence of countrys turbulent political history on relations between civil society and government. In previous time repression from government play important role in framing the policies related to NGO in Bangladesh, and now there are many contends who state that civil society in country lacks the autonomous oppositional character which must need to deal with the state institutions and other political elite. There are two major political parties who unofficially control the unions of workers, business associations, and groups of students. They also control the newspapers and because of this Civil society is not able to exert the strength which is necessary to influence the decision of state institutions related to public policy. There are very few civil organizations which are actively engaged in working with the poorest (Interactions, n.d.). State versus Civil Society: Contribution of Civil Society to good governance and development of state is analyzed with the interest taken by civil institutions in government process for the purpose of influence the policy made by state institutions. While doing these things they try to develop the relation of trust between public servants that is member of state institutions and ordinary citizens. As we already stated above not all the civil institutions are connected with state institutions for encouraging better governance. Some civil institutions are achieving their self-centered goals in the veil of good governance or by organizing violent events against the state and other organized groups, and other groups try to evade themselves from the formal structures of state through different forms of collective action in the informal economy. Therefore we summarize the contribution of civil society in good governance in four categories that is public policy and decision making, enhancing state performance, transpa rency and information, and social justice and the rule of law (IDSFORD, n.d.).Following are some issues stated in brief between state and Civil: Democratization:In recent years, there is hype of the concept of democratization which result in dramatic change in both political as well as institutional environment in which society operates. There are number of cases in which civil societies are used by opposition parties against the authoritarian governments, and in some other cases civil societies was not participated actively in politics and kept distance with political issues. Civil societies are there in which values of societies and democratic engagement are not there and these groups only use their status for achieving their self-centered goals. These groups even arise unnecessary conflicts with government (Demarco, 2008). Reforms of political structures: democratization also change the reform structure of civil institutions or also create many new structures which represent democracy. These changes includes constitutional re-design, decentralization of power under local government, and also create many formal procedures through which general public can access policy making structure of government and also influence it. These activities can provide space for civil society organizations to e into new activities, improve their relations with government officials and political representatives (Kopstein Chambers, 2009). Conclusion: There at last we conclude that these changes stated above are only small part of the story which describe the concept briefly. The main aim of state and civil synergy was to develop fair and good governance in the state and also build relation of trust between the government and citizens of the state. These institutions not only create the accountability of the state but also influence the policy making of government. References: Khan, Z. Relationship between State and Civil Society. Retrieved on 16th February 2017 from: https://www.yourarticlelibrary.com/political-science/relationship-between-state-and-civil-society/45261/. DFID, (2010). Building Peaceful States and Societies: A DFID Practice Paper, Department for International Development, London. Benequista, N. (2010). Putting Citizens at the Centre: Linking States and Societies for Responsive Governance. Sunningdale, UK. GSDRC. State-society relations: overview. Retrieved on 16th February 2017 from: https://www.gsdrc.org/topic-guides/state-society-relations-and-citizenship/state-society-relations-overview/. Evans, P. Government action, social capital anddevelopment: reviewing the evidence onsynergy. Retrieved on 16th February 2017 from: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.599.6830rep=rep1type=pdf. Cornwall, A. Gaventa, J. Bridging the gap: citizenship,participation and accountability. Retrieved on 16th February 2017 from:https://pubs.iied.org/pdfs/G01307.pdf. Barnes, C. (2006). Governments CivilSociety Organisations:Issues in Working Together Towards Peace. Retrieved on 16th February 2017 from:https://www.cries.org/filemanager/fileuser/25.pdf. Manor, J. (1999). Civil Society and Governance. Retrieved on 16th February 2017 from:https://www.alternativasycapacidades.org/sites/default/files/biblioteca_file/IDSFORD.pdf. Tosun, T. Tosun, g. E. Bridging the gap between local governments and citizens: do web sites matter for creating governance? Some observations on turkish local governments. Retrieved on 16th February 2017 from:https://unpan1.un.org/intradoc/groups/public/documents/nispacee/unpan027503.pdf. IDSFORD. Civil Society And Governance. Retrieved on 16th February 2017 from: https://www.alternativasycapacidades.org/sites/default/files/biblioteca_file/IDSFORD.pdf. Kopstein, J. Chambers, S. (2009). Civil Society and the State. Retrieved on 16th February 2017 from:https://individual.utoronto.ca/kopstein/publications/civil_society_and_the_state.pdf. Demarco, L. (2008). The difference between civil and civic. Retrieved on 16th February 2017 from:https://www.senscot.net/view_art.php?viewid=7318. Ahmed, S. The Civil Society of Bangladesh: Depoliticized in working Agenda but politicized in power relation. Retrieved on 16th February 2017 from: https://journal.hass.tsukuba.ac.jp/interfaculty/article/viewFile/16/64. Interations. Social, economic and political context in Bangladesh. Retrieved on 16th February 2017 from: https://interactions.eldis.org/node/135. NCBI, (2009). Civil Society, Health, and Social Exclusion in Bangladesh. Retrieved on 16th February 2017 from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2928100/.

Management Skills and Entrepreneurship

Business Description The business has developed out of the need to create employment for young people in Amman who happen to be gifted in calligraphy. The idea is a personal product that has been in existence since childhood. The following is therefore a description of the business from its inception, structure, and ownership.Advertising We will write a custom essay sample on Management Skills and Entrepreneurship specifically for you for only $16.05 $11/page Learn More The company that is to be established will be under the name H.T, which is derived from the initials of the partnership. The source of the capital is from a local bank in Amman coupled with savings of the partners. The main product of the business will be male jewellery. This decision is based on the market need for this product since business environment in the UK has much of female jewelleries and less of the male jewelleries (Bean 2007, p.17). The available outlets for the jewelleries are also rather expensive and monotonous since the trade is dominated by a handful of companies offering similar products. When established, this business will provide the population with a choice when shopping for jewellery besides creating a sense of satisfaction since each product will be unique. The bulk of shoppers in the UK has also changed with more and more men being involved in shopping and making financial decisions. With the well performing economy, the population will have more money at its disposal. The company to be set up aims to put in place an effective marketing strategy to attract buyers of all ages and ethnicities. Amman was chosen to serve as the headquarters for the business and as a source of labour raw material and resources required (Government in Jordan 1978 p.13) because it provides a good centre for the trade. Amman is known globally for her beautiful handmade ornaments, which have mostly been women’s ornaments (Jordan 1989, p.28). The population i s largely gifted in making the ornaments. This makes the marketing strategy for the capital and the country in general (Skinner 2003, p.15: South 2008, p. 12). Calligraphy is an art that dates back in the country to the Middle Ages as evidenced by the discovery of ancient works of art in the prehistoric sites in the country (Herr 1983, p.45).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The works of art have however been marketed in the country alone without exploitation of the international market. The jewellery will be made from different raw materials for start. Clients will be given the choice of selecting the kind of jewellery they want. Traditionally, the jewellery has been made from metals such as gold, silver, and bronze. This decision made the pricing high for the common market. This business enterprise targets to make cheap jewellery for the low income markets in the UK, as wel l as the upper class market thus creating a room for choice between the materials used. The capital required is estimated at a hundred thousand US dollars distributed in terms of equipment, labour, and export price. The three costs represent the largest financial requirements of the company. Buildings The company intends to start the trade by using an old warehouse that has been renovated. The warehouse is big enough to house the offices of the company in one section and the manufacturing area in one part. The floor size is also enough for storage. There are also plans to purchase more offices in some of the office blocks in downtown Amman with other plans being in the advanced stage to acquire a warehouse in the outskirts of London. This will constitute the main buildings owned by the company. The rest will be acquired depending on the demand, market, and quantity produced. Assets The assets that the company intends to acquire and own include tools used for the moulding of the meta llic jewellery, engraving tools, brushes, cameras, protective clothing, land for setting up the business, and a warehouse for storage of the goods waiting to be exported to the UK. The company also intends to acquire a van to transport the products to the airport. With time, more will be acquired to facilitate the movement of the staff and the trade equipment. Some of the other assets that the company intends to acquire include cranes to move the large boxes, forklifts, and advertisement assets.Advertising We will write a custom essay sample on Management Skills and Entrepreneurship specifically for you for only $16.05 $11/page Learn More Goals and Objectives The company has come up with goals and objectives to guide it in the future developments. These have been described as long-term and short term with the time period to be achieved defining the two. In the long-term goals, the company targets to be the leading export company in Jordan dealing with c alligraphy. The other goal includes increasing the net worth to a billion dollar company with branches all over the UK and elsewhere in Europe. The company also targets to be the leader in research and development in the country of Jordan creating employment to a mere thousand people both here and in the UK. The short term goals for the company are those to be achieved within a period of a year. The first short-term goal is to double the gross sales every two months. Secondly, the company targets to double the profit margins within the same period. The sales of jewellery is the third short-term goal. The company targets to make more than a thousand sales within the first two months of its inception in the UK. The fourth short term goal is to control a large market share of the male jewellery within the first year. The last short-term goal involves the introduction of new products into the market with the company targeting to introduce women’s jewellery in the market by the en d of the same year. Philosophy The company’s philosophy is based on the need to create employment for the youth in Amman by providing cheap and quality jewellery for the UK market. The current image of the company is that of a small firm with the desire to expand in the UK. The image the firm intends to create is that of a large company and a market leader in jewellery and supply of ornaments in the UK. The company is focused on achieving its set goals and objectives as governed by the laws formulated by the partners.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Legal structure The business is a partnership with members being drawn from the Capital, Amman, and having the common interest of making money and being self-sufficient. The partners include H.K and T. A from whom the business name is derived. Each member bases the sharing of the profits and other running costs on the contributions. The members however own business in equal proportions. Therefore, the sharing of the profits is on a 50-50 basis. The legal structure is not fixed. However, the company welcomes any likeminded shareholders and partners. The contributions they make will define the proportion of the profits they get after each sale. This will benefit the company by increasing its market share and capital base besides enabling it to expand to other markets. Location The business is to be set up in the outskirts of Amman, with an outlet in the capital of the UK. These locations were selected for several reasons. Amman was selected, as described above for its cost in terms of labour and human resource. The cost of the building, and other things needed to set up the location were relatively cheap compared to the prices elsewhere. The building location is on a lease from the previous owner, and plans are underway to fully process it. The neighbourhood is friendly and sparsely populated. This will provide an adequate environment for business. The floor space will consist mainly of the manufacturing area, and will therefore mostly house the labourers. The transportation facilities in place include pulleys for hauling large boxes, which will contain the raw materials and the completed works. The site also has ample space for parking, which will accommodate the vehicles transporting the Jewellery to the airport. It is also close to the airport. Thus, security in the area is also adequate. There are other businesses in the same location though they are mainly involved in the pottery business. The site is advantageous because the raw materials are just in the n eighbourhood. A smelting plant is located in the vicinity to provide raw materials for the metallic jewellery. The second site in London was chosen because of the strategic position to enable and facilitate in the marketing of the jewellery. This will however be changed with time to the centre of London where there are more customers and distribution outlets for the company products. Production Plan and Quality Control The production plan for the company from delivery of the raw material to the final product is short because most of the products will be handmade thus requiring no sophisticated process. The raw materials will depend on the particular product. For the bracelets, the raw material will mainly be silver and gold with iron being a major component. They will be moulded into shapes and cut using simple tools. Coating the resulting materials will then be made using the desired metals or alloys. The accessories to make them appear beautiful will then be added by the artisans followed by engraving of the ornaments by the use of calligraphy. This process will be followed for most of the jewelleries except for those requiring special processes. Quality control will be assured by ensuring that there is a quality control department in the company for checking the quality of products besides ensuring that only those that meet the set standards make it to the market. The quality assurance in the company will also work in collaboration with the quality assurance departments in both countries involved in the field of the jewellery trade. Management and Organisational Plan The management framework for the company will include the manager, sales representatives, and other key officials in the management. The finance section will have to be manned by one of the members. To begin the company, few numbers of the staff will be involved in management since this will be expensive for the company to maintain. The full time personnel will be the labourers involved in maki ng the jewellery. They will constitute the largest number of employees. Part-time workers will be utilised in the finance section. Personal responsibilities and those of the other partners will involve making the jewellery though this plan will later change to management functions after getting adequate labourers. Business Opportunities The business has a variety of opportunities in the region where it will be opened. The following is a description of the potential customers, the geographical area, and the competition. Potential Customers The population of the UK and London in particular is very large. Thus, it will provide the market needed by the jeweller. The purchasing power of the UK citizens is larger than that of Jordan as presented by the GDPs of both counties (Riley 2002, p.13: Sant 2004, p.76). The market also has a large appetite for handmade jewellery. It therefore suits the perfect consumer group. The choice to market the jewellery for the male sex is based on the theor y that the male sex also has a higher purchasing power compared to its female counterparts in this country. The average male also considers owning a piece of handmade jewellery from Amman to be prestigious and in fashion. Amman’s items and generally those from tm the Middle East are also fast moving here with stocks running out in the few centres offering them. There are varieties of customers in the business having different requirements in the way they prefer their jewellery to appear. Most of the customers prefer golden and silver jewellery. For those who cannot afford them, the company hopes to create gold-coated and silver-coated versions of the ornaments that it will produce. Geographical Area The company targets to conquer the market in London before proceeding to other markets within the UK. These are the long-term goals in the company’s framework. The plan is to establish outlets across London in the shortest time possible. This will involve a lot of strategic planning and re-investment back to the company. Other cities planned for expansion include the financial centres around the country. Business Competitors The business faces stiff competition from other companies in the region providing the market with similar products (Campedelli 2010, p.43). These are more established in the market. Their prices are competitive. To deal with competition, the company intends to lower the running costs by operating from Amman and exporting the jewellery to the UK using cheap cargo flights. Since the innovation uses labourers without the use of machines, the operating costs are set to be lower in relation to those for other companies thus maintaining the lower prices (Duhigg 2012, p.29). The other criteria of dealing with the competition will involve the limitation of the number of administrative employees and establishment of a strong marketing policy (Steingold Bray 2001, p.32). Marketing Strategy As indicated above, due to high competition in the industry, the business will have to adopt an elaborate marketing strategy to ensure success in the market (Marketing handbook 2006, p. 19). The strategy will be implemented in the pricing, costing, sales projection, and marketing plan. In developing the company, a research into the unmet need of handmade male jewellery in the UK preceded. This established that the products offered in the market were monotonous with fewer than ten companies offering handmade products. The market, though not significantly large now, had a chance for expansion with the shares meant to rise (Blythe 2006, p.18). The company has embarked on an ambitious project to open up new markets in the UK by approaching market partners and evaluating the need for mergers and added partners. The market stands to be affected by the invasion of newer products from china, which are selling at a considerably cheaper price based on China’s cheaper technology. This could however be overcome by the use of cheaper raw materials and production of more attractive jewellery with the option of having most of them custom-made to meet the needs of each client. National Economic Trends in the UK The UK’s market is experiencing a growth. This means that more and more men will be able to spend on accessories such as jewellery. This will increase the market to a greater size besides reducing competition (ICC financial survey 1979, p.12). The population is also shifting with the aged in the populace contributing a large number. The economy is also noted to be stabilising after the effect inflicted by the global crisis a few years ago (Book 2009, p.29: McLean Nocera 2010, p.13: Shiller 2008, p.19). Employment rate is also reported to be improving. Thus, more and more people are able to earn a living. The economy of Jordan is also reported to be performing well. The unique characteristic is the high unemployment in the country especially around Amman. This project therefore will exploit the existing economic conditions in both countries to produce a well performing business leader in the male jewellery section. In the year 2011 alone, the British economy improved from the previous years after being facilitated by the increase in the production and manufacturing sectors. The value of imports to this country has risen over the years. Jordan continues to be a major source of imported handmade jewellery to the UK (Amman et al 1996, p.32). The projected growth rate for the Jewellery market in the UK is 2% every year. This is a positive thing for the company (Amman et al 1996, p.32). As it stands, the jewellery market has a total size of over 4.5 billion pounds (Harrison 2010, p.29). This means that the market is performing well and is set to improve. The largest share of the jewellery section is made up of precious metals such as silver and gold. Even in the tough economic times in the UK, the jewellery market is described as growing at a fast rate, which is also encouraging. After precious metals, other categories with recorded growth include watches and costume jewellery (Amman et al 1996, p.32). The marketing plan will be as indicated above. This will involve commercials, adverts, and personalised marketing strategies. Salespeople will also be included in the marketing of the company. Their role will be to sell the company to the large public. There will also be competitions on the streets where the winner walks away with prizes as a way to promote the company. Business Operations The business will operate based on the written-down operations schedule. Each employee will have a designated task in the company. The operations will be organised in the form of the functioning of the company. Operational Function For the business to be operational, an elaborate structure will be provided with the inclusion of all employees and the supporting staff. In the manufacturing area, the personnel will consist of the labourers involved in the making of the jewellery. The y will be housed in the warehouse in the company grounds. Their day will start at 8 am to 5pm. The company will start with a handful of employees before proceeding to employ more in the manufacturing section within the next years. The service to be offered will mainly be the provision of the jewellery. In some special cases, delivery will be made at a fee. The other services to be offered to the clients will be shipping to the desired places. This will however start once the appropriate marketing procedures are in place. To increase the company’s market share, other services to be offered will include the engagement of personal information on the jewellery. The other significant service that the clients will receive includes the provision of accessories that match their taste and fashion. This will be initiated through the marketing strategy that will be set up in the company’s agenda. For the personnel, the company plans to ensure that they are provided with adequate payments to retain them. This will be met through aggressive marketing to ensure that the company has a large profit margin. Housing will be provided to them after the company establishes market control. For those without this provision, the company will embark on the payment of house allowances. Workers will initially work on a contract that will be renewed every six months. Based on the success of the company, most will be retained as permanent employees. The other incentives that the company will use to lure and maintain gifted artisans will be the use of gifts and special payments in the form of commissions for goods sold. This means that each employee will be paid in commission as a percentage of goods sold and made in addition to the regular salary. The employees will also work for five days a week with the weekend and extra hours worked being paid as overtime. A working schedule will also be made for the workers who will be consulted before the timetable is set up. Technology In this section, the technology and application to be used in the company and its operations will be discussed. Since the company will mainly provide handmade materials to market, the technology to be used is simple and readily available. The most important of this will include electric drills and engraving equipment. Since most of the calligraphy will be handmade, electrical appliances will have a limited use thus cutting down power consumption and or saving on the much-needed capital. The other tools to be used include hammers and chisels. They will be used to give the jewellery the required shapes by making the engravings. The other technology to be used include the transport pulleys and forklifts that will be utilised during transportation and packaging of the finished products. Mechanisation will be needed in the packaging of the jewellery, moulding the shapes, and coating the alloys. Electric saws will be utilised during the initial manufacture of jewellery from the raw mater ials to make the metallic frames on which to engrave and attach any added ornaments. The company will also utilise computers and office ware to keep track of finances, processes of manufacturing, as well as distribution. Finances This section covers the financial structure in the company in the present, past, and the expected financial situations. Capitalisation Plan This summarises the financial need of the company including the capital and any added expenses in the running of the business. The main means of raising the required capital in the business is through acquisition of a loan from a local bank here in Amman (Forstater Forstater 2007, p.31). This will fund 95% of the project with the rest of the money coming from the pockets of the partners. A bank loan provides the best opportunity to fund a business (Allman 2006, p.23: Banks 2011, p.13). The bank will be paid in a schedule that will be agreed upon based on the company’s returns and the loan size. The estimated tim e for payment of the loan is projected to be five years when the company is projected to have stabilised to become self-sufficient. The capital gathered will be split between paying labourers, buying raw materials and new equipment, as well as acquiring the new warehouse. To begin with, the company will lease the warehouse and obtain the raw materials from the smelting plant. This will cost around 50,000 dollars with the bulk of it being the raw materials. The rest of the money will cater for the shipping costs, the distribution, as well as the marketing of the products. Personal contribution to the business will be 20,000 dollars from personal savings. The rest of the money will be gotten from partners and the profits made in the first sales. The partners will make the products in the first few months. When the company has established itself, more labourers will be added on to provide their services. The estimated cost of materials is at 20,000 dollars. Advertisements and other mar keting strategies are estimated at 5,000 dollars including offers, sale prices, and payment for the sales officers involved in the process of selling the brand to the male customers in the UK. In the purchase of fixed assets, the building and land on which it stands will be valued with the company willing to spend about 20,000 dollars for the same. This is however not fixed, as the company is still in the process of working out the final price with the original owners of the asset. The money will also be used to purchase the technology to be used in the manufacturing process with the main utility being the electrical equipment. The purchase of the initial gold and silver raw materials will be made using capital from the loan because it serves the biggest proportion of the money being spent. Transport costs and tax levied on the final products to the market will also be included in the loan though this is estimated not to be over 10,000 dollars. The company’s vehicle to be use d to transport the final products to the airport to get raw materials is no included in the budget. Raw materials and jewellery will be transported using the locally available means of public transport. Cabs and rental cars will be used in doing this and in the transport of personnel to and from the airport. In the UK, transport to the outlets will also be via public means. This will continue until the company makes enough money to buy a van and other modes of transporting the jewellery. Security is a major component of capital. Jewellery is expensive and a target for theft. To avoid this, some of the money will go towards hiring guards during the transit of the precious metals and in the transport of the jewels to the final destination in the UK. The purchase of insurance for the company and employees will also be a significant step needed to cover any loss of the raw material, the jewellery, and other assets both in the production and in marketing processes because any loss will b e a setback for the company. The company will also set on a risk-reducing plan by ensuring that the market is evaluated adequately before entry and production of little jewellery to test the market. Contingency plans for the company will also be made should the company fail to make the targeted profits for the first year. This will involve laying off any employed on a contract basis and using the amount of money spared to pay any remaining part of the loan. The table below shows the source and cost of assets. Asset Cost (US$) Source of Funds Raw materials 20,000 Bank loan Pickup truck 6000 Bank loan Packaging machine 12,000 Bank loan Office desk and chair 600 Currently owned Warehouse 30,000 Bank loan Recurrent expenditure for the first year (salaries and overhead costs) 50,000 Bank loan and profits Personal computer 1000 Personal savings Financial Projections (USD) Expected profit in the first year 10, 000 Profit in the second year 50, 000 Profit in the thi rd year 100, 000 References Ali, W Bisharat, S 1989, Contemporary art from the Islamic world, on behalf of the Royal Society of Fine Arts, Amman, Scorpion Pub., London. Allman, B 2006, Banking, MN: Lerner Publications Co., Minneapolis. Amman, H, Kendrick, D, Rust, J, Tesfatsion, L, Judd, K 1996, Handbook of computational economics, Elsevier, Amsterdam. Amman, J 1968, 293 Renaissance woodcuts for artists and illustrators, Dover Publications, New York. Ballantyne, J 1844, Principles of Persian calligraphy, Madden and Co, London. Banks, E 2011, Finance, Routledge, New York, NY. Batt, R 1995, Amman, Maqbul Academy, Lahore. Bean, R 2007, United Kingdom, National Geographic, Washington, D.C. Bienkowski, P 1991, Treasures from an ancient land: the art of Jordan, Stroud, A. Sutton Pub, Gloucestershire. Blythe, J 2006, Marketing, SAGE Publications, London. Book, I 2009, Economics, World Book, Chicago. Campedelli, M 2010, Appliedcaligraphy graphic design, Links International, Barcelona. Duhigg, C 2012, The power of habit: why we do what we do in life and business, Random House, New York. Forstater, M, Forstater, M 2007, Economics, Chicago Review Press, Chicago. Government in Jordan 1978, Ministry of Information, Amann, DTI. Harrison, B 2010, Finding a role?: the United Kingdom 1970-1990, Clarendon, Oxford. Herr, L 1983, The Amman Airport excavations, 1976. Mich, American Schools of Oriental Research, Ann Arbor. ICC financial survey 1979, Knitwear manufacturers – turnover, profit, assets, liabilities, Company, London. Jordan 1989, Economy, Amman, DTI. Keman, H 1987, Coping with the economic crisis: alternative responses to economic recession in advanced industrial societies, Sage Publications, London. Marketing Handbook 2006, Writing to win more customers, Hollis Pub, S.l. McLean, B Nocera, J 2010, All the devils are here: the hidden history of the financial crisis, Portfolio/Penguin, New York. Product n.d., Analysis, Notes From the Rabbit Hole | Biiwii.co m’s Unique Market Perspective Notes From the Rabbit Hole | Biiwii.com’s Unique Market, Perspective, http://www.biiwii.com/. Riley, P 2002, The one-page proposal: how to get your business pitch onto one persuasive page, Regan Books, New York. Sant, T 2004, Persuasive business proposals: writing to win more customers, clients, and contracts, AMACOM, New York. Shiller, R 2008, The subprime solution: how today’s global financial crisis happened and what to do about it, Princeton University Press, Princeton, N.J. Skinner, P 2003, Jordan, Gareth Stevens Pub, Milwaukee, Wis. South, C 2008, Jordan, Marshall Cavendish Benchmark, Tarrytown, NY. Steingold, F Bray, I 2001, Legal guide for starting running a small business, Nolo, Berkeley, Calif. Watkins, D 1999, Jewellery, New Holland, London. This essay on Management Skills and Entrepreneurship was written and submitted by user Miranda Delaney to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Free Essays on Rosa Parks And Ella Baker

Rosa Parks and Ella Baker were two of the most important women during the Civil Rights Movement. Through their many achievements and great involvement in African American committees and institutions against segregation, they were able to change the way society is for African Americans today. Always using non-violent tactics within their committees and on the streets during protests they were still successful in making life better for colored people. The Mother of the Civil Rights Movement, Rosa Parks, established her involvement in defending African American rights when the President of NAACP (National Association of the Advancement of Colored People), Edgar Daniel Nixon, hired her as Advisor of the Montgomery office. Here she began to fight for African Americans to have the right of taking out books from the library, helping in getting blacks registered to vote, and also would keep track of cases concerning discrimination against African Americans. She was also a strong supporter of the Scottsbore defendants, who were nine African Americans charged with raping two white women. Parks’ biggest incident or moment in the Civil Rights Movement was in early December of 1955, when Rosa Parks refused to give up her seat to a white person. She was soon arrested for not obeying the Montgomery segregation laws which demanded that she had to give her seat up. â€Å"Our mistreatment was just not right, and I was tired of it,† she quoted in her book Quiet Strength. A lot of researchers and historians believe that this was the beginning mark of the Civil Rights Movement. Rosa, was also a member of the MIA or (Montgomery Improvement Agency), which Reverend Martin Luther King Jr. was appointed the leader of. The Agency was created as a result of Rosa Parks being arrested. Almost immediately Parks and King along with other members of the agency made three demands to the government; the demand for courteous treatment on buses, first come f... Free Essays on Rosa Parks And Ella Baker Free Essays on Rosa Parks And Ella Baker Rosa Parks and Ella Baker were two of the most important women during the Civil Rights Movement. Through their many achievements and great involvement in African American committees and institutions against segregation, they were able to change the way society is for African Americans today. Always using non-violent tactics within their committees and on the streets during protests they were still successful in making life better for colored people. The Mother of the Civil Rights Movement, Rosa Parks, established her involvement in defending African American rights when the President of NAACP (National Association of the Advancement of Colored People), Edgar Daniel Nixon, hired her as Advisor of the Montgomery office. Here she began to fight for African Americans to have the right of taking out books from the library, helping in getting blacks registered to vote, and also would keep track of cases concerning discrimination against African Americans. She was also a strong supporter of the Scottsbore defendants, who were nine African Americans charged with raping two white women. Parks’ biggest incident or moment in the Civil Rights Movement was in early December of 1955, when Rosa Parks refused to give up her seat to a white person. She was soon arrested for not obeying the Montgomery segregation laws which demanded that she had to give her seat up. â€Å"Our mistreatment was just not right, and I was tired of it,† she quoted in her book Quiet Strength. A lot of researchers and historians believe that this was the beginning mark of the Civil Rights Movement. Rosa, was also a member of the MIA or (Montgomery Improvement Agency), which Reverend Martin Luther King Jr. was appointed the leader of. The Agency was created as a result of Rosa Parks being arrested. Almost immediately Parks and King along with other members of the agency made three demands to the government; the demand for courteous treatment on buses, first come f...

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The benefits and risks of Outsourcing

The benefits and risks of Outsourcing In this chapter, an introduction of research background is given and the objectives and scope of the research are described. In addition, a general overview of research methodology will be introduced. Finally, a brief overview of the dissertation structure is given in order to present an overall picture of the research undertaken. Background of research: Outsourcing is one of the fast growing aspects with a spending of US$ 3.7 trillion worldwide in 2001 (Clott, 2004). The latest survey conducted by Cap Gemini, Georgia institute of technology, SAP and DHL, it is clear that the usage of third party logistics (3pl) services continues to grow in Latin America, North America, Western Europe and Asia-pacific (Cap Gemini, 2006). Due to globalisation and rapid growth in information technology organisations are eager to develop competitiveness and responsiveness to customers (Matteo, 2003). Lieb and Randall (1996) defined 3pl to a more detailed extent; in particular, the term third-party has been explained more clearly. The third party logistics is defined here as: A company which supplies/coordinates logistics functions across multiple links in the logistics supply chain. The company thus acts as a third-party facilitator between the seller/manufacturer (the first-party) and the buyer/user (the second-party)à ¢Ã¢â€š ¬Ã‚ ¦. The functions the functions performed by the third-party can encompass the entire logistics process or selected activities with in that process. (p.51). Today many international logistics providers, including freight forwarders, customhouse brokers, ocean and air carriers, promoting themselves as third party logistics providers as they can provide more services for the movement of international freight. Liebs survey clearly tells that one third of large manufacturing companies in us use third party logistics services and over 60 percent of these firms used these services for above five years (Lieb, 2007). The close relationship between shippers and carriers could be a benefit for third party providers. One thing is confirmed that, nearly all large multinational companies make use of third party logistics providers (Maltz, 2004). Research problem: From many researchers point of view (Lee, 2004), Indian 3pl providers are still in an undeveloped state. So it might be difficult for them to survive in the Indian market competing with the foreign players. This research will review the traditional Indian distribution system and analyze the contemporary situations of both Indian and foreign companies like Pantaloons, Reliance, Subhiksha and Wal-Mart. In 2005, India was forecasted as the greatest consumer market opportunity, receiving highest foreign direct investment (FDI) (Mitra, 2005). The third party logistics in India accounts nearly a quarter of its transportation industry and expected to grow over $ 125 billion by 2015 (Srinath, 2006). Currently India sits atop the global retail opportunity. Indias retail industry, the 9th largest globally and valued at $ 330 billion (Kilgore et al. 2007). Reliance, a $ 12 billion giant enterprise run by Mukesh Ambani, plans to open an additional 4000 stores and hypermarkets with a target of $ 22.3 billion in sales by 2012. Wal-mart currently sources goods of worth over $ 1.5billion from India, yet to gain access to sell those products in India. So Wal-Marts joint ventures with Bharti will open doors for multi brand hypermarkets and shopping villages. One of the best approaches to gain competitiveness and improve customer service levels is the firms logistical capability. To be competitive, the companies have to deliver the products quickly and for lower cost. Logistics service providers gain momentum after the successful and efficient distribution network of Wal-Mart (Maltz, 2004). On the other hand, pantaloon is currently Indias largest retailer with more than 140 stores. Its also planning to spend $ 1 billion to open 100 big bazaar stores country wide. The Tata group, which runs lifestyle stores and star India bazaar, also opened an electronic goods shop in Mumbai last year. Tata group is planning to open 30 stores by the next year (Sahey and Mohan, 2006). Behind this growth, logistics infrastructure is the main backdrop of the countrys growth. Logistics costs in India are 13 percent of GDP compared with 8 percent in the U.S. Indian logistics is combination of road transport companies, railways, air freight companies, ports and shipping companies, as well as 3pl companies. 3pl market in India is least developed and its growth is about 20% per annum. If the logistics costs can be reduced from 13% of GDP to 8% of GDP, then the savings would be approximately $ 20 billion. This change will reduces the prices of Indian goods by 4.3% making them more competitive globally. The 3pl revenue and cargo handling volume registered growth rates of 18.25% and 20.33% respectively in 2003-2004 (Mitra, 2005). Retail opportunity opens the doors to reach Indian customers more effectively. Hindustan lever, a subsidiary of Unilever and the coca cola company are extremely successful penetrating in India. The rural population in India is almost 60%. Deliverin g products to those rural people is most difficult task due to the poor transportation and infrastructure facilities. In this situation both the companies above mentioned are successful with their distribution system through logistics service providers to reach each and every part of the country. So all the issues related to transportation infrastructure have badly affected the logistics network in India specifically in terms of lead time and costs. Anyway, a host of policy changes underway is expected to bring some positive revolution in the Indian transportation environment. In the past few years Indian government focussed on the infrastructure development. The main initiative under this project is the national high way development programme. It will connect all the metros and act as east-west and north-south corridor. So this will boost road transportation in India and good news for the logistics services providers in the country and also for the organisations to reduce costs by using 3pl providers (Mitra, 2005). Aim and objectives: The purpose of the research is to understand how third party logistics service providers can develop competitive advantage and improves the service levels of supply chains in Indian retail industry. The objectives of the study can be summarized as: To understand the current situations of Indian domestic 3pl providers To develop the competitive strategies pursued by the Indian 3pl providers To find out the impact of the use of the 3pl services on costs, customer satisfaction. On the other hand, the following research questions are designed for the achievement of the above research objectives. What kind of distribution systems do the Indian 3pl providers have? What kinds of logistics services are Indian 3pl providers providing? What competitive situation are the Indian 3pl providers facing? What kinds of competitive strategies are the Indian 3pl providers pursuing to achieve competitive advantages? Literature review: The supply chain: The process which integrates coordinates and controls the movement of goods, materials and information from a supplier to the end customer through a series of intermediate customers is called the supply chain. It bridges the gap between core business aspects of supply and demand. So the supply chain management is the management of buying/sourcing, making, moving and selling activities in a timely manner. Supply chains today are very slow, costly and do not deliver particularly good value to the end customer. Todays markets are much more demanding and information driven with small product cycles, more choice for customers and consumers and increased competition. Costs need to be cut down out of the supply chain and efficiencies increased, as business relationships within the chain shift and competitive advantage becomes harder to come by. The process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information flow from point of origin to point of consumption for the purpose of conforming to customer requirements. Third party logistics (TPL): The growth of high competition and complex business conditions force organizations to pursue competitive advantages and re-engine their business constantly. Outsourcing logistics to a 3pl provider has been considered as an effective strategy for companies to high service performance and lower operating cost. Lieb and Randall (1996) defined 3pl to a more detailed extent; in particular, the term third-party has been explained more clearly. The third party logistics is defined here as: A company which supplies/coordinates logistics functions across multiple links in the logistics supply chain. The company thus acts as a third-party facilitator between the seller/manufacturer (the first-party) and the buyer/user (the second-party)à ¢Ã¢â€š ¬Ã‚ ¦. The functions the functions performed by the third-party can encompass the entire logistics process or selected activities with in that process. (p.51). The basic characteristics of 3pls are to provide customised services and to handle multiple activities, which involve warehousing, distribution, transportation, inventory control, material handling, packaging and inspection (Bolumole, 2001). Here are some of the services offered by 3pls in the present market, according to Sowinski (2005): Dedicated contract transportation and transportation procurement. Inventory management Logistics management and consulting Freight audit and consulting Shipment tracking and tracing Reverse logistics and value added services TPL providers are nothing but supportive supply chain members. Lambert (1998) defined these supportive members as companies that simply provide resources, knowledge, utilities or assets for the primary members of the supply chain. The new level of usage of 3pl has been defined as logistics alliances. Bagchi and Virum (1998) define logistics alliances as: A long-term formal or informal relationship between shippers and logistics providers to render all or a considerable number of logistics activities for the shipper. (p.193). Under this alliance, 3pl users and providers treat each other as long-term partners. By identifying the characteristics of 3pl providers in various stages, Berglund et al. (1999) suggest that there have been three phases of development of the 3pl participants. The first phase started from 1980s, with the presence of traditional logistics providers, with the activities involved only transportation or warehousing. The second phase started from 1990s, when a number of network players such as DHL, TNT and FedEx started their logistics services. The third phase started from late 1990s, when a number of players from other areas like information technology, started working with the original logistics providers. In recent years with the dynamic changing and development of supply chain management 3pl providers have moved their focus to strategy development (Hertz Alfredson, 2003). 3pl providers have started to support logistics operations through value-added services and supply chain solution service, which creates abundant opportunities for companies to reduce costs and improve customer satisfaction (Knemeyer et al., 2003; Lieb, 2005). In addition to the services mentioned above, other services offered by 3pl providers, are known as value-added services. These are the services that add a lot of additional value to the products being distributed (Rushton et al. 2000). The major value added services has been summarized by the authors as follows. Specialist or niche service, where the operation is specifically designed for a particular products. Time reliable services, which are setup to support the just-in-time (JIT) operations of major manufacturers. Assembly, which is fulfilled by third-party distributor. Repacking, this is another area of value-added development, like a torch together with battery. Refurbishment: in the light if current environmental legislation many manufacturers have endeavoured to re-engineer their products so that parts from some used products can be reused in new products. Packaging return: collect packaging for reuses or disposal. (p.62). A research conducted recently by Hertz and Alfredson presented the strategic development of 3pl providers (Hertz Alfredson, 2003). According to Lai (2004): There are four types of 3pl providers from the resource based view of the firm. Each type of provider exhibiting different service capabilities and service performance. Also different types of logistics service providers adopt different service strategies to respond to different market segments Logistics outsourcing is simply a make-or-buy decision based on cost efficiency by increasing competitiveness and complexity (Christopher, 2005). A company may pursue logistics outsourcing for the following reasons, Own lack of logistics experience Desire to focus on core competency Difficulty in maintaining communication and information technology up to date Sahay and Mohan (2006). Outsourcing can give a company proper access to resources, equipment and management expertise which may count a worth of billion dollars (Clott, 2004). Outsourcing not only allows an organisation to achieve goals like cutting delivery times and ensuring accurate shipments, but also promotes competition among service providers and motivating them to continue renewing their services. Currently a growing interest on outsourcing has been mentioned by massive writings in scholarly journals and popular magazines. The terms outsourcing, third party logistics and contract logistics sounds the same. Traditional logistics activities such as transportation, distribution, warehousing, inventory management, order processing and material handling have been given less importance (Mitra, 2005). There is a need to develop competitive advantage and providing better customer service effectively and efficiently. This can be possible only through contract logistics (Razzaque and Sheng, 1998, updated reference). Third party logistics and customer service: Sadler (2007) defined logistics customer service as: the process of providing goods, information and services to customers in a way that both creates customer satisfaction and is cost-effective to the shipper (p.71). Customer service has been treated as essential factor in marketing strategy and it creates added value for both their companies and customers (Christopher, 2005). Customer service is a key way to gain competitive advantage. To compete in this corporate world, companies must provide high levels of logistics services to their customers. Based on a survey conducted by Bolumole (2001) identifies the nine most important aspects of customer service as follows. On-time delivery Order accuracy Price No product damage Ease of order placement Customer enquiry handling Quality Availability Order status information Regarding the high levels of customer service, Sadler (2007) suggest that: the economic aim point of customer service level is a little below 100%, beyond this level, the extra benefit to customers is vastly outweighed by the huge extra cost of inventory, hours of opening, staff training and salary, etc (p.72). Gaining competitive advantage through 3pl: Third party logistics (3pl) can be an effective way helping companies to achieve competitive advantages. The main objective of logistics management is to drive the companies in achieving sustainable competitive advantages through improved customer service and lower costs. Overall 3pl providers can provide a major source of competitive advantages. In other words, a position of gaining superiority over competitors (Christopher, 2005, p.6). Rushton et al. (2000) proposed that companies can achieve competitive advantages through 3pl providers. First, companies may compete as a service leader, which means to gain an advantage over their competitors by providing a number of key logistics service elements to differentiate itself. Meanwhile, the companies may compete as a cost leader where it is trying to utilize its logistics resources to offer the service or product at lowest possible price. Some logistics leverages for pursuing the two competitive advantages have been summarized as follows. To achieve value/differential advantage To achieve cost/productivity advantage The logistics leverage Tailored service Distribution channel strategy Reliability Responsiveness Information Flexibility The logistics leverage Capacity utilization Asset turn Co-makership/schedule integration Low inventory Low waste Table: The two different approaches to gain competitive advantages. Source: Rushton et al. (2000, p.33). Christopher (2005) summarizes that: The source of competitive advantages is found firstly in the ability of the organization to differentiate itself, in the eye of the customer, from its competition and secondly by operating at lowest cost (p.6). Competition is always at the core of the success and failure of the firm. A companys competitiveness can be derived from achieving either a cost advantage or a value advantage, or both of them. The relationship of cost and value between a company, its competitor and its customers, named the Three Cs relationship is illustrated below. Customers Assets and utilization Cost differentials Assets and utilization Value Needs seeking benefits at acceptable prices Value Company Competitor Figure: competitive advantage and the Three Cs Source: Christopher (2005, p.6). However, a most successful company would seek a competitive position depending on attaining both costs and differentiation advantages. Christopher emphasizes the last step that how to take the company to the top right of the matrix can be the biggest challenge to logistics providers. The occupation of the position of cost and service leader means the company has achieved both service and cost advantages. Service leader Cost and service leader High Commodity market Cost leader Value advantage Low Low High Cost advantage Figure: logistics and competitive advantage Source: Christopher (2005, p.10). The three possible ways for companies to accomplish their competitive strategies are internal activities, acquisitions and strategic alliances. On the other hand through mergers and acquisitions of other possible business may meet their competitive strategy requirements. The major participants in the logistics alliances are manufacturers, retailers and logistics service providers or third party logistics providers. A strategic alliance allows a company to take advantage of what it does well and enables it to seek partners who have strengths in other areas (Bagchi Virum, 1998). Supply chain integration with third party logistics providers: The present trend of most of the modern companies is to outsource their logistics activities to third party providers. This is a type of alliance, many of the firms implementing to achieve competitive advantage in the market place (Ratten, 2004). In the recent years just-in-time (JIT) process has gained momentum, which promoted outsourcing. The term integration refers to the degree to which individual parties work together in a cooperative manner to achieve acceptable outcomes (Ratten, 2004). Approaching the third party logistics providers comes under the wider arc integration. 3pl providers encompass a wide range of supply chain services including firms outsourcing, material management and distribution responsibilities (Frohlich and Westbrook, 2001). Nowadays 3pl companies are playing more number of roles in extended supply chains such as after-sales support, customer service and reverse logistics (Srinath, 2006). 3pl providers have transformed the roles of distribution centres from storage facilities to channel assemblies by taking care of some repair jobs that do not have sent back to manufacturers (Maltz, 2004). Relationships among TPL providers and members of supply chains: Nowadays the relationship between supply chain management and third party logistics service providers has gained some momentum. Here its necessary to discuss how to fill the gaps in understanding of how third party logistics providers should offer their services more effectively to their assigned supply chains. The supply chain is, The network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customers. -Christopher (2005). The supply chain is a chain consists of networked companies from raw material producers for the consumption of end users. According to Jarzemskis (2006), a TPL provider is An agent middleman in the logistics channel who enters into a temporary or longer term relationship with some other entity in the logistics channel Most of the logistics services are purchased on a contract basis (Maltz, 2004). Based on the research by Bhatnagar and Viswanathan (2000), successful partnerships in logistics can be achieved by triadic relationships. Order lead time of grocery retailers in the Indian markets: in a survey of Indian retail industries, Chandra and Sastry (2004) found that 98% of the firms dispatch their goods through a contract with trucking companies, while 11% of them only have their own fleet of trucks and 36% of these firms use third party logistics(3pl) service providers for transportation. The economy is expected to grow at 10% over the next 10 years in the sectors like chemicals, pharmaceuticals, textile, retail and fast moving consumer goods. The Indian retail giants Reliance and Bharti announced large retail projects in collaboration with Wal-Mart. Also Reliance considering establishing large warehouses in Thailand to take advantage of low cost sourcing from Southeast Asia. On the other hand food and grocery retail players like Subhiksha established more than 600 new retail stores in India (Chandra Jain, 2009) Logistics is an important process that minimises costs and improves customer satisfaction (Christopher, 2005). The Indian retail industry is worlds fifth largest one. All retail sectors in India are not purely organised. Especially the retail sector is growing very fastly at a pace of 25-30% annually. This sector is projected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the end of 2010 (Mitra,2005). Here the author is going to examine the retail operational efficiency at the secondary distribution level by measuring the performance of Indian food retailers logistics operations in terms of order lead time. Order lead time is the time between the customers placing an order and receiving the goods (Srinath, 2006). Here both the suppliers and logistics service providers need to understand two certain types of lead times. The first one, inbound lead time is the time between the orders placed by the depot and the delivery of goods by the suppliers. On the other hand out bound lead time refers to the time depot and the company stores (Maltz, 2004). According to smith and sparks (2004), logistics has been facing many major changes in the Indian food retail sector including increase in the average size of stores, introduction of new retail store formats (petrol station shops) and the increase in the range of own brand food products 3pl operations in India: The greater utilization of third party logistics (3pl) in Indian companies is expected to rule the retail markets in the future years. Its predicted to rise from US $ 1.5 billion in 2008 to US $ 4 billion in 2012. Strategic analysis of 3pl markets in Indian retail sector shows that the market earned US $ 28.1 million in 2005 and predicted to be US 89.8 in 2012 (Kaur, 2009). The Indian economic growth has recorded significant development during the past several years. According to the survey conducted by Lieb in 2007, six of the CEOs were asked to identify the best suitable industries which will offer good results for the future of 3pl services usage in India. Four of them suggested automotive industry and three of them rated high technology. On the other hand retailing and pharmaceutical industry were preferred by two of them. According to Lieb: Long trip times for relatively short transportation distances make a turnaround of vehicles impossible and increases the cost of domestic transportation. Congestion, toll road blocks and local tax make proper planning and timing, and central distribution structures impossible. Inwarding process: This process is to ensure smooth movement of stock and merchandise from warehouse, vendors and any other location to shop floor, updating the inventory and subsequently be available for sale. Goods are received according to the Stock Transfer Note (STN) issued by the warehouse. Every morning the Warehouse Incharge prints the mail from SCM support, which gives the details of the merchandise which is scheduled to reach the store (e.g. Goods in transit report). Based on the information the Warehouse incharge to allocate space for the in transit merchandise do all follow ups for goods in transit. Inform the respective Department Managers about the merchandise scheduled, so that floor space for the same can be created, if required. Delivery vehicle arrives at the store warehouse. Security personnel to receive the supporting documents and handover the same to the warehouse personnel undertaking the Inwarding. Document set is checked by warehouse personnel to ensure it contains a Stock Tra nsfer Note (STN) in duplicate and an outward gate pass issued by the dispatching warehouse. An authorised LR copy incase the goods delivery vehicle is a private transporter. Security at stores will sign the gate pass and write manual IRN (Inward Register Number) on gate pass. Security personnel to check the vehicle to ensure the seal on the cargo area are intact and secure. If any of the above documents are missing the staff should inform the Warehouse Manager, and the same should be entered in the discrepancy register. Warehouse Manager to inform the dispatching warehouse in charge and try to resolve the issue, and receive the missing documents by the next day. Under NO circumstances, the merchandise should be inwarded, in variance to the above. Outwarding: This process is to ensure smooth movement of stock and merchandise stores to warehouse, vendors and any other location and updating the inventory. This process starts when Front End Category / Category / store logistics creates a STO for the transfer of merchandise. This process ends when the Store receives goods receipts details from the receiving site. This process is triggered when the Front end Category/Store Logistic Person/Retail Category identifies products to be sent back to CDC or Vendor. Any returns from the Store should be process oriented. There may be various reasons for returns like Defects sent back to the warehouse, due to excess inventory, non- moving stocks, Interstore transfer, back to vendor, Products replaced completely for the customers having same defects or products partly replaced for the Customers, excess material in the Store received as Backup Stocks in Original Packing Condition and Materials might be received directly by the Warehouse from the Customers as replacement where the Warehouse should ensure that it is duly packed and bar coded in proper conditions. Returns to Vendors to be made as per the terms and conditions agreed with the Vendor. If delivery is going from the Store, the product needs to be properly packed in corrugated cartons, after doing a Pre Delivery Inspection (PDI) at Store level one day in advance and be certified by the DM/Warehouse Incharge. Any outwarding to be done only after the permission is given from the FEC and store manager and the supply chain team to be kept in the loop. (Vaidyanathan, 2005). Drivers for 3pl usage in India: Even though the reasons for outsourcing and the activities involved may vary from one company to another, the basic driving factors are the same. In India, Sahay and Mohan (2006) classify the reasons that drive Indian organizations to outsource logistics into three categories. The primary factor is the concern regarding cost that focuses on logistics cost reduction. The second one is focus on core competencies, access to unfamiliar markets and corporate restructuring. The third issue is associated with improving supply chain efficiency, which will cover improving customer services, increasing inventory, driving productivity improvements, achieving flexibility in operations and improving return on assets. The primary drivers in the beginning were to reduce costs and release capital. But nowadays its to increase market coverage, improve the customer service level or increase the flexibility towards the changing customer expectations (Skjoett-Larsen, 2000). Facilitate Re-engineering Strategic flexibility Outsourcing Concentrate on core business Reduce cost Figure: driving factors of outsourcing. Source: Taglisapietra et al (1999) p.4 It is one of the top reasons for outsourcing researched by the outsourcing institute (2000). According to Lankford Parsa (1999): Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (p.23). Outsourcing not only allows enterprises to grab the benefits of structural changes, but also allows them to take advantage of reengineered world-class providers. Elements for successful 3pl relationships: A successful partnership is like a successful marriage, which requires hard work from both the parties involved. Both the parties must understand each others needs and should be compatible with the values. Bagchi Virum (1998) identifies that information sharing is crucial for successful relationship between providers and users. The main elements of long-term successful relationships are compatibility, understanding of partners business needs, open communications, commitment, fairness, flexibility and trust. Based on case studies, Bagchi Virum (1998), identify six factors to the successful third-party relationships. Customer satisfaction is the key point of the relationship in all efforts. Customers need to clearly point out their needs and wants. Then its the turn for providers to understand these needs and acquire the capabilities. People are the important assets in an alliance. Also they should be well trained and motivated individuals

Explain why it is important for marketers to understand the concept of branding Essay

Introduction. It is imperative for marketers to understand the concept of branding as it is the process which will identify and differentiate a company’s product or service from the competition (Jobber, 2010). In our developed economy the competition and the offer is so intense that it is fundamental to build a close relationship with both consumers and customers. That is what a brand does. Jobber (2010) defines a brand as â€Å"a distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these intended to differentiate it from the competitors†. Brands affect consumer’s perceptions and preferences, a brand is a quality certification and it creates trust and loyalty. Trough this essay we will explore why brand is important for marketers but also why it is important for consumers, we will then take in consideration the components of a strong brand and how to assess it. Finally we will have a look at the brand stretching strategy and its benefits and disadvantages . This essay will draw upon example from the soda market. Content. The American Marketing Association (AMA) defines a brand as †name, team, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of seller and to differentiate them from the other sellers†. Firstly, brands are now recognised as a key asset for a company and having a strong brand will ultimately add value to it by giving a platform on which to build a reputation. For example, the stock market value of the Coca-Cola company was around $136 billion in the beginning of 2008 and by the end of the year, in spite of the global financial crisis, it remained close to 140 billion while the net asset value of the business was only $11,8 billion (Brands and Branding). A brand in addition, will help the company to attract more investors because the high value means the company is successful and reliable. Secondly, marketers should also try to understand consumer behaviour and therefore how a strong brand will affect consumer perceptions and preferences and ultimately the customer’s purchasing decision. To highlight this concept. The following consumer testing example is referenced: Two matched samples of consumers were asked to taste Diet Coke, the market leader in diet soda drinks, and Diet pepsi. The first group tasted the drinks blindfolded and were asked to state a preference. The procedure was repeated for the second group, except that the test was with the recognisable brand. (Jobber,2010). The findings from the test made for interesting results: Of the 100 or so test subjects who were blindfolded, 51 of them preferred the Diet Pepsi and 44 the Diet Coke ( 5 person did not find any difference) but for the group where the brand were identifiable, only 23 test subjects preferred the Diet Pepsi and 65 Diet Cola. This findings clearly demonstrated the level of influence a strong brand name could have on customer perception of a product and therefore the final purchasing decision. In order to succeed, marketers need to understand the concept of branding to face the competition (Marketing Theory). New entrants in a market such as the cola soda market would have to compete with the most famous red can in the world and the founder of the Cola drink, Coca-Cola. Besides, this is what happened to Virgin Coke who failed to break Coca-Cola’s domination (Jobber,2010),for the reason that Coca-Cola inspires trust and let the customer shop with confidence because he knows that a can of Coke will satisfy his desires. In addition, it will embraced the competition by making the distribution easier for the brand and more difficult for the entrants. Marketers have to recognise that a strong brand will directly and beneficially affect company profit, hence a heavy investment is often made into the branding process. A strong brand will achieve, distribution more readily and will realise economies of scale, decreasing the costs of production and distribution (Jobber,2010). In addition, a brand will generate customer loyalty to a product with customers returning to a brand they trust (Brands and Branding) and customers who trust a brand will be less price sensitive because of a faith that a particular brand offers an expected level of quality and results, in short a premium brand can charge at a premium price . Finally a strong brand not only lends to customer loyalty but it also lends as a platform for brand extension (Jobber,2010). A brand extension is a brand strategy that consist of using the established brand name to launch a new product (Journal of Marketing). Strong brands enjoyed having impact on customers perceptions and an extended product will benefit from it. For example, the Diet Coke, Coke Zero, Cherry coke have all stemmed from the strong Coca-Cola umbrella brand and all have successfully been launched in the soda drink marke as a result. Consequently branding is important for marketers because it will make easier for a company to introduce a new product on the back of an established one therefore securing and growing company profit in terms of strong sales forged through customer familiarity and trust. Thus, for the reason stated so far we have come to understand why it is imperative for marketers to understand the concept of branding but what are the components of a strong brand? How can we assess a brand? The Brand equity and brand positioning must be taken in consideration as well. It is important to know that branding is not only about attracting new customers, thanks to a recognisable logo or a great advertising campaign but it is also about being known as the ‘only and legitimate choice’. In the energy drink market for example, with a plethora of product on offer such as Monster, Relentless, Rockstars ,etc. Red Bull is seen as the only one that ‘give wings’, the starp-line is globaly recognised and Red Bull has been seen for years as the only vodka mixer for european teenagers (marketingmagazine. co. uk). Hence branding is important for a company because an established brand and the products that fall within it, will have enjoy a sustainable market extended product life cycle. The Coca-Cola soft drink has been sold since 1895 for example. (thecoca-colacompany. com) Brands needs customers but customers needs brands as well. In developed economies consumers, have a massive range of choice. Therefore, a good brand should in reality represents a cutting edge in design or technology, a high standard of quality which will be what consumers loyalty influenced by (Brands and Branding). The brand, with its recognisable name or packaging, is making a promise that consumer’s expectations will be satisfied (Brand and Branding) so it allows the consumer to shop with confidence and it acts as a guide through a intense variety of choice. Another facet to this, is consumer identity – consumers look to certain brands as a way of projecting a certain image to others in society and brands play an important role in this. Using brands in this way, consumers carve out an identity for themselves which differentiates them in some way to others around them. This behaviour is strongly recognised for example by the luxury goods market. This industry serves to satisfy a consumer desire to project a certain sense of taste, wealth or fashion savy. For example, people who want to identify themselves to a certain economical class may choose to purchase a car from a premium brand like Mercedes, Audi, BMW, etc. ) or perhaps consumers who wish to portray a certain environmental awareness may choose to purchase an hybrid car. Branding positioning is about creating a unique and distinctive niche in the market place (Jobber, 2010). For an existing brand, the brand position will be defined by the brands strengths and weaknesses from a customer perspective vis a vis the competition (Holmereport. com) but for a brand building it will be the process by which you will enter in peoples mind (brandstrategyinsider. com). In order to succeed in positioning, brands needs to show clarity, consistency, competitiveness and credibility. Rita Clifton argues in Brands and Branding (2009) that â€Å" in an over communicated world, lack of clarity will substantially reduce effectiveness and efficiency†. During the last decade Red bull suffered from a lack of clarity. ‘Red Bull give you wings’ certainly but is it good for me? Why? When should I drink it? (marketingmagazine. co. uk). Nevertheless, even if the beverage must have faced some serious criticises about the ingredients contained that have been followed sometimes by the radiation of the can in some countries ( France finally capitulated in 2008, Lexpansion. com) , Red Bull has successfully engendered credibility through different strategies such as stretching. The three times victory of Red Bull Racing in F1 and the more recent Red bull Stratos stunt has built a consequent reputation and credibility. We can assess the position of a brand trough six elements: the brand domain, the brand heritage, the brand values, the brand assets, the brand personality and the brand reflection (Jobber,2010). The examination of those six elements will ultimately help increase the brand performance. By examining the brand domain you will know if the brand is efficient in the market in which it competes . For example, Red bull has three strong position. The Energy drink for extreme sports people, the energy drink and the drink as a spirit mixer (marketingmagazine. co. uk). Then the Brand heritage and the following four element are about creating clear advantages for the target consumers (Jobber,2010). So brand heritage is about the historical background of a brand. a brand which has been aroun for a while shows sustainability, reliability and a guarantee quality. This can be used in advertisement (Jobber,2010) or on the packaging. On the other hand, brand values is what represent and characterise your brand. â€Å"Red bull give you wings†. It gives you wings because you will be awake all night and you won’t feel tired at all, giving you confidence to achieve what you have never done before. In analysing your brand asset you will notice what differentiate you from the competition. This can be a logo, a design, a symbol, an image, a philosophy or an event†¦ (Jobber,2010). At the moment someone speak about a can of Red Bull you will automatically think about two bulls on a silver and blue can or you will think about your previous party or at a man skydiving from the space. Red bull exceeded the competition by consolidating its image of a confident dynamic and innovative brand. An other element of the framework is the brand personality. If the brand Red bull was a person who would it be? Surely a dynamic and adventurous indivudual who wants to discover the world. Finally, the brand reflection is †how the brand relates to self identity† (jobber, 2010). As we have seen earlier some people would purchase a Toyota Prius to identify themselves as ecologically aware. By assessing your brand with those six elements, the brand manager will have an overlook of the situation and it will give him clues to face some issues or to repositioned the brand. The brand equity is the value of the brand from customers perceptions of it. There are two kind of brand equity: The customer-based brand equity and the proprietary-based brand equity. The first kind is entirely about the customers perception of the brand; and the brand awareness and the brand image are two effectors of it. Jobber ( 2010) assumes that awareness is a pre-condition of evaluating a brand. By raising this awareness customers will go shopping in favour of a brand, they won’t go shopping to get a denim pants but to purchase a Levi’s pants for example. Brand awareness is also useful for low-involvement purchasing situations – purchases becoming habitual after a first satisfied experience with no research of information about the product because a relationship is already established. By increasing brand image through the marketing mix (Jobber,2010) you will consolidate your customer-based brand equity. The most common way to do this is by advertisement. A great advert from a brand will stay in customer’s mind by touching him emotionally or by delivering a clear message. Ultimately an association is created between the brand and the customers that will affect the purchasing. Lets remember the test with Diet Pepsi and Diet Cola. We could say that Diet Cola (Coca Cola) profit of a better brand equity than Diet Pepsi (Pepsi) because when the brand was known a preference was made toward a particular brand. On the other hand, proprietary-based brand equity is more about the attributes of a company to deliver value to the brand (Jobber,2010). It can be by its aptitude to distribute the brand, for exemple Mc Donalds which is the fourth most powerful brand in the world (wallstcheatsheet. com) sell ‘official’ drinks from the Coca-Cola brand product line ( Fanta, Sprite, Minute Maid, Diet Coke, Coke). It can also be by the patents of a company. For example new technology (Dyson), new pharmaceutical products all have a strong proprietary based equity resulting from an original patent. Tom Blacket in Brand and Branding wrote: â€Å"Brands with strong equity embed themselves deeply in the hearts and mind of consumers†. Consequently, a strong customer-based brand equity or a strong proprietary-based brand equity will increase the brand equity so it will help the brand to keep its position in the market and new entrants will struggle to defeat it. Moreover, the value of the brand will attracting more investors,consumers and solicitations. To conclude this essay we could have a look at a brand strategy such as brand stretching. A brand stretching occurs when a brand is used on a unrelated market (Jobber,2010). In terms of brand stretching, the Red Bull company is probably one of the best in this strategy. From the energy drinks to Formule 1 with the acquisition of Jaguar racing in 2005 recalled Red Bull Racing, passing by the football world with the purchase of the New York MetroStars in 2006 (renamed New York Red Bull) and the SV Austria Salzburg in 2005 (FC Red Bull Salzburg) or with the creation of Red Bull Records in 2007. We will focused on the most recent and very successful stretching of the brand: Red Bull Stratos. If you have an internet connection and if you are living in our contemporary world you must have heard or seen it ( 8 million live views on Youtube). In rare interview that Mateschitz, founder of Red Bull, has accorded he stated : â€Å"We don’t bring the product to the people, we bring people to the product. We make it available and those who love our style come to us†(thedrum. co. uk). With Stratos, Red Bull has demonstrated the brand’s famous link with extreme sport and innovation but it has more importantly created â€Å"the† buzz of the last decade and revolutionized the purpose of a brand and the relation between it and the customers. Red Bull Stratos has become an †I was there moment†(campaignlive. com). With all those stretching strategies Red Bull could have lost in credibility, make itself a bad publicity or got cannibalized but its all the contrary that occurred. Its reputation has been consolidated and it has promoted its cans very well. It has also improved the trust toward the brand. Summary. A closed trusted relationship will be created only if there is quality. This relationship will consolidate customers perceptions about the brand increasing loyalty and then the revenues. It is imperative to position your brand efficiently in order to successfully reach your target market . Therefore you will need to deliver a clear and consistent message, be competitive and have credibility. You can assess the strength or weakness of your brand by analysing its domain, its heritage, its values, its assets, its personality and its reflection. In improving it you will raise some brand equity that can be customer-based or proprietary based. By increasing your brand equity you will stay in people’s mind for long time and be able to face efficiently the competition. Conclusion. The success of branding resides in the importance that you have for consumers and in the process of creating and managing a brand. Having a strong brand will help you to face the competition, to introduce new product and to make profit. A brand also help the customers to choice between a wide range of offers and to identify themselves. In order to success you must conquer consumers mind to gain their loyalty by promising that their desires will be satisfied. Branding is all about trust. Last but not least, companies need to understand that a brand should be taken such as an investment and not a cost. Red Bull spend 30 to 40% of its revenue in marketing (marketing magazine).