E-trading Case Essay Example for Free

E- commerce Case EssayIntroductionPerhaps straightawayhere else is the impact of the net profit felt as much as in the divine service sector. The network has collapseed new channels for service delivery, shortened turn almost limes and offered unprecedented convenience to consumers. The financial work turn over leveraged the Internet and exploited its many benefits. E- job is the financial service most accordant to E-enablement. It has already witnessed a meteoric growth in the United States and is present a similar show in other economies. E- concern offers wondrous benefits to the investors and will probably expand the market itself. This paper discusses issues of E-trading, its evolution and key characteristics. Then it examines sphere of E-trading, signifi set upt players and groups involved in. After that discussion virtually benefits of E-trading, either for make use ofrs or for brokers, technology and security issues related to this industry. And finally some i nsight in future of E-trading is presented.Evolution of the IndustryThe starting ever ECN, Instinet, founded in 1969, was a means for brokerages lo display bid and ask monetary values for stock in North America and abroad. It was commencement utilize by institutions to transact with all(prenominal) other, but today ii also includes a select group of smaller brokerages.However, e-brokerage, or offering Internet trans marchs to clients, was pi championered in the by E*Trade securities (FreeTrade), one of the firs of all-electronic brokerages, which first started operations and offered online investing services through America Online and CompuServe and launched its own website, www.etrade.com, in 1996. The first E-trade was conducted on E*trade on July 11, 1983 and since that time has changed the way the world invests. Charles Schwab, now the largest in the US with 7 million on-line accounts and $1 billion under management via the Internet, also launched its online trading ventur e in 1996. In January 2005, Charles Schwab clients executed an average of 300,000 electronic trades every running(a) day. (www.aboutschwab.com)There are now more(prenominal) than 130 millions on-line brokerage firms in the US (Exhibit 1) offering E-trading services to consumers, who can be physically located anywhere on Earth. Today, about half of dealingss made by US retail investors are done through the Internet. In fact, there is a range of websites on which one can non only trade stocks online but also buy and sell futures and options. According to International Data Corp the issue forth of US households development online brokerage to meet their financial needs has grown from the 2000 figure of over 7 million to 19 million in 2004, with over $2.5 trillion of assets managed online. (Tower host Research)Online brokerage in the US grew out of the discount brokerage industry and has fundamentally changed the retail brokerage industry. Online trading developed as a cheap se lf-service approach to fair-mindedness investing. Rather than compriseing high commissions that are typical of full service brokerage firms, investors could place trades directly at a fraction of the usual commission costs. In addition, online trading was more efficient and less costly than telephone trading a common channel used by discount firms. As a result, online brokers began competing on cost. (Colkin Cuneo)Exhibit 1Online commission prices that started at between US$25 and $30 per trade turn out been cut significantly over the years. Currently, average online commission price per trade hovers around $12-15, and some deep discount firms offer trades as commencement as $5. A few firmsAmerican Express, Free Trade, Com1 (a subsidiary of AmeriTrade), and most recently, thefinanciatcafe.comhave even introduced free online trading. (thefinancialcafe.com)The online commission pricing battle demonstrates the commoditization of online executions. Initially, price may have been a differentiating factor, but currently, price alone is not sufficient for attracting and retaining one-on-one investors (excluding the day-trading segment). Online brokerage firms must seek to permit greater services and support to clients. The number of US online brokerage accounts continues to grow consistently. After an initial period of astounding growth, the number of online brokerage accounts is still steadily increasing. (Tower Group Research)E-trading ScopeThe term E-trading stands for trading in equity or debt instruments on the exchange through an Electronic Communication Network (ECN). Although online trading strictly refers only to the electronic execution of trade, an eco system of rules of E-trading has trinity dimensionsElectronic execution of the tradePayment for the transaction through a payment gatewayTransfer of shares in electronic form.There have been terzetto distinct phases of development of E-trading. These arePhase 1 The open-outcry system with the transa ctions taking place manually in the ringPhase 2 The electronic system, enabling brokers to place orders onlinePhase 3 The E-trading system, empowering customers to transact online.The mechanics of the E-trading system begin with the user logging onto the ECN through the Internet. The user then access codees his E-trading account with the back up of a password. The user is now connected directly with the exchange and any transactions would be instantaneous and irrevocable.The user also has access to real-time price movements of various scrips and other contextual information to assist him in his decision. An integrated E-trading system consists of not only a transaction enabler but also a payment gateway for funds transfer and a d-mat account for transfer of stocks. Such a service enables smooth, convenient and transparent operations.E-trading model is based on the proposition that a service which does not require sophisticated skills, is standardized, has a wide geographic spread of clients and a high number (statistic) of clients who use the service very frequently (scope) and whose automatable processes account for a high proportion of costs (savings), offers the best potential for E-enablement. Using this framework, it becomes clear which financial services are amenable to E-enablement (Colkin Cuneo)Corporate banking The corporate banking industry involves understanding client needs, analysis of the project proposal, evaluation of various alternatives and finally recommendation of a desirable alternative. The task involves high-ranking skills, is not highly standardized and not amenable to automation. The number of clients per entity, i.e. the corporate customers, of a bank is limited, though the geographic spread may be diverse. The frequency of transactions is also limited. Thus, corporate banking does not seem to be amenable to E-enablement.Investment banking For the reasons cited above, investment banking, like corporate banking, does not appear a s uitable subject for E-enablement.Retail banking The retail banking industry comprising credit-cards, management of savings accounts etc. is characterized by a large number of clients spread geographically utilizing a simple, quotable and standardized service. For servicing the customer specialized-skills are not required and automatable processes comprise a significant proportion of the overall costs of service. Using the framework, it appears that retail banking would be highly amenable to E-enablement.Stock trading A stockbroker collates orders from various customers and executes the same through a trading terminal. Customers typically place orders through the telephone and a representative of the broker executes the order on behalf of the client on the trading terminal. The skill-set used by the representative is not highly specialized as the action being considered is only the execution of the order and not client advisory. While other processes such as risk monitor, exposure mo nitoring and client monitoring are also involved, they are typically automated for effectiveness.Thus, the broker acts purely as a manual interface between the client and the exchange. The task performed by the broker is simple, standardized and easily repeatable. Given that the frequency of transactions by the customers is at least moderate if not high, there is a significant scope for reduction in overall costs through automation. The geographic span of the clients is also widespread. All these characteristics make trading highly amenable to E-enablement. (Berber)Significant Players and Groups knottedOnlin invsting bgan in th US and is a big businss thr. In th first quartr of 2004, thr wr approximatly 25 million onlin invstors with ovr US $ 4 trillion in assts. In yar 2002, 14 million onlin invstors with an asst bas of US $ 700 Billion were activ. Th markt ladrs ar a mixtur of full srvic firms (DLJ Dirct, Morgan Stanly Dan Wittr, Discovr), wll-stablishd discount brokrs (Fidlity a nd Charls Schwab) and nw on-lin spcialist firms (*Trad). Markt Shars, in trms of onlin trading volums, ar such that near 9 on-lin brokrs hav 86 pr cnt of th markt shar. Individual Invstors hav to opn an account with a firm bfor commncing trading and th minimum account opning balanc rangs from US $ 500 (with Jack Whit and Company) to US $ 10,000 (with Wall Strt Accss, Intrnt Trading Com and J B Oxford). (Tower Group)Anothr important fatur that attracts on-lin invstors is th fr rsarch providd by th on-lin firms. Prviously this was availabl only to larg institutional invstors. In addition to fundamntal information about stocks, bonds and mutual funds sophisticatd tools lik tchnical analysis rports and charts ar also availabl for fr. Som of ths ar also customizabl, ithr fully or partly. Th problm for invstors is on of information ovrload and how to absorb all th information providd as wll as analyz and act upon it. Rcognizing this nd som firms hav takn concrt stps to summariz and focus th information to mt with individual rquirmnts. Pric alrts ar a standard fatur with most brokrs. (Berber)Th nw on-lin brokrs do not hav any lgacy systms and in spit of making havy invstmnts in tchnology (which is th backbon of any on-lin trading systm) hav vry low transaction costs, typically about lss than 10% of full srvic brokrs cost. Th xisting discount brokrs lik Charls Schwab who startd offring on-lin trading did so by stablishing a sparat division for -trading rathr than risk th whol organization. Th main worry for ths brokrags has bn th rlations and businss prospcts of thir xisting sals forc of brokrs. (www.aboutschwab.com)Benefits of E-tradingSwitching over to E-trading results in several benefits, both to the user and to the broker.Benefits to UsersLower transaction costs normal brokerage-rates in India are in the range 1.0-1.5%, whereas the rates for E-trading are as low as 0.1 %. E-trading brings down costs of not only the execution of the transaction but also the tran sfer of securities. In physical purchase of securities, the stamp duty rates are 0.5% of the value of the shares. With dematerialization of securities, the stamp duly charges are not applicable, in the US, brokerage costs before E-trading was introduced were as high as 7%, and have now come down to about 1%.(Colkin Cuneo) transparentness E-trading empowers the customer to transact directly on the stock exchange. It delayers the process thereby improving transparency. The user does not need to rely on the brokers word-of-mouth or transaction slips for confirmation of the price at which his trade was conducted.Convenience Online trading is available at the click of a button making it much more convenient for the customer to trade. Also, with limit based orders being allowed, customers can place their orders even during the non-trading hours, which are executed at the earliest trading possibility.Procedural benefits foreign the earlier scenario, where the customers had to physically g o to the broker to complete the formalities of trade i.e. payment/receipt of shares, involving procedural hassles, under the E-trading paradigm, these procedures are done away with. The built-in cycle-of-trade i.e. placing the order, transfer of funds and transfer of securities trade is done electronically.Benefits to Online BrokersEasier risk management Offline brokers collect margins from their clients and establish limits for trading based on the same. This may result in a situation where the broker would have to collect funds after the execution of the trade, exposing the broker to client credit-risk. However, under the online mechanism, the system would first check the precondition of funds available with the client in his bank account and only then allow the trade to take place. This reduces the exposure of the broker to client-risk.Greater occupation potential The new paradigm of E-trading, which allows simple, convenient and transparent transactions may encourage more par ticipants to trade. It is expected that the introduction of E-trading will expand the market itself resulting in better business for brokers.Lower staff costs Automation of the processes, resulting in reduced requirement of manpower, offers significant cost-savings to the brokers.Technology and Security IssuesTechnology companies have developed online transaction bear on (OLTP) applications that allow real time transaction execution. An extension of the OLTP transaction is the Straight-through Processing technology that allows an application to directly interface with the central system of any market place, without any manual intervention. Straight-through processing technology permits financial software products to directly interact with the stock exchange system by communicating with the exchange market social organizations. (odysseytec.com)The cycle of E-trading has to pass through three layersThe Client Interface Layer the front-endThe Middle Layer risk management systems that access info from banks and depository participants (DP), calculate client exposure at that instant, and give the Go/No go advice to the trade. The End Layer the back-end, where the accounting modules, pay in/pay out schedules, etc, operate.From a technical perspective, there are three key success factors for E-tradingScalability and robustness of the trading system The fundamental difference between the Internet as a transaction medium and the conventional closed user group network is that the Net is a universal platform providing concurrent access to infinite users at any given point in time. Consequently, it becomes imperative for any Net-based application to have a prove capability for scalability and robustness, which ensures the ability to hold and process requests from multiple users at any given point in time.Bandwidth optimization The application software should demonstrate intelligence in optimizing the available bandwidth by deploying advanced technologies such as strea ming.Integration with third party systems On the Net, with information feeds available from multiple. points, it is prudent to deploy applications that are built on open architecture methodology for interfacing with third party systems.SecurityAny system to be successful should provide security, reliability and confidentiality of data. This can be achieved through the use of encryption technology before the online trading begins. The exchange must ensure that records maintained in electronic form by the broker are not susceptible to manipulation, and adequate back-ups and storage are available. The security features demanded by regulatory authorities include a unique user identification number and passwords that can be renewed from time to time to prevent hacking by outsiders. The major security requirements of e-broking1 areTrusted means of authentication over open networksConfidentiality of the transactionMeans to ensure integrity of data in transitMeans to ensure ruin-repudiation of payment or its receipt.Various security models are adopted to unspoilt e-broking transactions. The commonly employed security models in e-Broking are passwords. Secure Sockets Layer (SSL), Kerberos, Pretty Good Privacy (PGP), Public Key Infrastructure (PKI), and Custom Implementations. (Odyssey Technologies) hereafter of E-trading IndustryExchanges across the globe are exploring an alliance that will create a 24-hour global equity market. The NYSE and exchanges from three main time zonesAustralia, capital of Japan and Hong Kong in the Asia-Pacific Sao Paulo, Mexico and Toronto in the Americas and Euronext, the combined Amsterdam, Brussels and Paris exchanges in Europeplan to form a trading mechanism that will allow trading of the worlds global companies. Each of the partnering markets will retain its brand and form a platform to allow companies with worldwide demand to experience 24-hour trading of their shares. This is expected to fart to a better price discovery on a global basis. (Marlin)The proposed Global Equity Market (GEM) link the trading systems of each exchange to provide a global market structure based on the principles of transparency, self-regulation and agency-auction price discovery. (Angel) This high-tech linkup of auction markets will create a global puss of liquidity, facilitate global price discovery and provide investors with better access to global stocks.The GEM will address investors appetite for big-capitalized stocks by providing them easier access to stocks not currently available on their local Stock Exchange. The market capitalization of the companies listed on the participating exchanges is expected It) exceed $20 trillion, representing more than 60 per centum of the worlds market capitalization. Like the 24-hour Forex market and its electronic network SWIFT, the GEM will have an Electronic Communication Network (ECN), thereby realizing the ultimate potential of E-trading. (Marlin)Nowadays, the structure of commercial finan ce is about to change dramatically. In place of the traditional bank-centered model, where institutions call the shots about who gets loans and who carries risk, we are going to see dominant players in their total chain (companies such as Hewlett Packard or General Electric) use E-trading tools to film the provision of financial services in the future. Today, companies like HP, GE, GM, and FedEx already exert tremendous influence on their trading partners. Their expressed and inferred capital goods requirements drive billions of dollars in marketing, sales, investment, and product decisions by their global business partners. (Macauley)Emerging E-trading environments will provide an grand vehicle for investors to get access to transactions at the point of salethrough independent E-trading platforms or direct access to legacy enterprise systems. Their development will drive a major revolution in working capital financing in the United States, and that the funding vehicle is securit ization. And there is also belief that the caterpillar tread to securitization of commercial assets is shorter than one might expect.Securitization is a proven financial technology that is used to fund trillions of dollars of credit card, mortgage, auto loan, and a variety of specialty consumer loans each year. It provides the lowest cost, is the most efficient vehicle for funding large pools of financial assets, and, with modest enhancements, can be adapted to the E-trading environment. With small equity charges, high liquidity, low processing costs, and capital markets pricing, it presents a compelling opportunity for E-traders. (Berber)Today a few triple-A companies like GE are able to fund their own working capital requirements through their captive commercial paper conduits, and finance companies frequently fund their deal flow through third-party conduits (and a thick layer of equity capital). (Kelly) But to do so, there is need to solve several complex problems such as stand ard risk scoring, transaction capture, and back office processing services. Major initiatives are underway to solve eachand winners will innovatively combine them to create this new marketplace. Ultimately, it expected to see hundreds of billions in capital liberated from de-levered balance sheets of enterprises around the world.BibliographyMacauley, John T. The End of CI Lending. ABA Banking Journal, Vol. 93, 2001Colkin, Cuneo. E-trading Hangs On. InformationWeek, Issue 918, (12 Sep 2002)43.Kelly, Susan. The Rocky Road to Corporate E-trading. Treasury Risk Management, Vol. 11 Issue 9, (Oct 2001)55Berber, Philip. From SOES to E-SOS The Rise of E-trading, The go by of Exchanges. Securities Industry News, , Vol. 12 Issue 15, (04 Oct 2000)3Marlin, Steven. NYSE Aims at E-trading. InformationWeek, Issue 1001, (8 Sep 2004)22Tower Group Research Online Brokerage Becoming the norm Discount and Full Service Brokers Seek New Ways to Differentiate, July 2004New York Stock Exchange., The Formation of a Global Equity Market, July 2002 www.nyse.com/content/articlesAngel, James J, integrating in Global Equity Market, An Historical Perspective, 1998Odyssey Technologies, PKI for E-broking, www.odysseytec.comE*Trade Website www.etrade.comSchwab Charles Company Website http//www.aboutschwab.com/schwabcorp/history.htmlFreeTrade by AmeriTrade Website www.freetrade.comThe Financial Cafe.com Website www.thefinancialcafe.com

Executive Branch Essay Example for Free

Executive Branch EssayThe executive forking is the almost powerful branch of government. The executive branch move ins the president commander in chief. It also gives the president the utilisation of economic leader. And he/she can also make executive orders that have the force of law. These are just some of the many roles that make the executive branch the most powerful branch of government.When the president has the role of commander in chief he/she is given the power to use force to back up our foreign policy. They are in charge of the army, navy, crinkle force, marines, and the coast guard. The top commanders of all of these branches of service are subordinate to the president.The president is also our economic leader. He/She deals with unemployment, rising prices, high taxes and more. When voted into office the president is pass judgment to care of these issues. One key task the president must accomplish each year is to plan the federal governments budget too. subsist but not least, the president has the role of chief executive. He can make an executive order, which has the force of law. During his presidency, Harry S. Truman had to use an executive order in 1948 to integrate armed forces. The president also has the power to grant pardons. A pardon is a declaration of forgiveness and freedom from punishment.The president has many roles to avail keep our country in order. From commander in chief, economic leader, and chief executive he/she helps everything run as smoothly as possible. The executive branch is by far the most powerful branch of government, because it helps keep our country out of trouble and copasetic.

The Tesco Loyalty Card Scheme

The Tesco Loyalty Card SchemeToday the businesses confine become guest centric and the marketing mix of 4 Ps is now creation replaced by 30 Rs (Gummeson2008). Companies are to a greater extent center on delivering the economic value de valet de chambreded by the clients, they are creating exit barriers for the clients by maintaining profound traffichips with them to retain them and earn lifetime trueness. Today in highly rivalrous markets getting new guests is costlier and more unmanage qualified than maintaining the existing unitarys. So, companies are putting more emphasis on Zero Defection Strategy and maintaining their customer descent as best as possible. In this essay we will critic altogethery evaluate the loyalty scheme blend by Tesco to manage its customer relationship and the RM techniques followed by the companion with different post subdivisions that whether they are successful or need almost improvement in future.TESCO PROFILE Tesco, a European based com pany is the biggest and the most profit qualified supermarket compass in UK. It is considered to be the fastest gro reachg company and a successful supermarket in the world selling almost everything, from food to clothing and operating by both geographic locations and internet. (retail loyalty scheme2003, Corporate profile Tesco2004). Tescos success so far is based on its marketing relationship strategies which it has maintained through the put up of Club card game in 1995(Mitchell, Peck2007). It has effectively used the scheme fundamenting different customers segments, for attracting and retaining them. Tescos main approach path is to defecate value for the customers and earn lifetime loyalty and they gauge harder for customers than anyone else. (Corporate profile Tesco2004). They have arrogaten advantage of major changes in the lifestyle and it is the key for their round-the-clock success. kinship MarketingGronroos has defined relationship marketing as, An approach to est ablish, maintain and enhance relationship with the customers and new(prenominal) partners at a profit, so that objectives of the partners involved are met and this can be achieved by mutual exchange and finale of promise. Thus, relationship marketing is an approach to establish and maintain good relationships with the customers in such a way that, no party is in loss and in that respect is a room for profit for both the parties. care customers in the first-year line of defence and winning their loyalty is the main theme of RM.Loyalty lead Model The sit down was suggested by Kotler 1997 for categorising customers on the basis of relations formed with them or repetition of purchases.PartnersMembersAdvocatesClientsRepeat customersFirst time customersProspectsTesco Company uses loyalty streak and commitment based segmentation to retain its existing customers and it has reason them in 6 different stages. These arelogged oncautionarydevelopingestablishedconsecratedlogged off ( ne cessitate win back the confidence)Tesco works with them in the sequence upside down as believe that newest customers can make an impression or slip it. Tesco uses automated event messaging for encouraging them for regular purchase. Whenever customers register themselves, they are prospect and need motivation to deprave. After 2 days, receives a registration email along with 5 discount on first purchase and the journey begins. zero(prenominal) they are first time customers or cautionary buying for the first time at discount and receive an e-mail asking active their experience and then anformer(a) discount on next purchase. They keep on receiving bi- weekly alerts and e-newsletter on exclusive and personalised offers. On the top of mailing procedures the company offers Clubcard loyalty schemes to the dedicated customers with variety of incentives such as shop with the partners of Tesco, stunt man the points on regular purchase and social statuss with the alliances offered by Tesco. Now they are the established ones word of rima oris will increase companys reputation and brand equity. By association the clubs they become members of the company. If company comes to manage that a customer is not buying for a long period then a reactive e-mail is move to survey if he is having most problem with incentive of 5. These are the logged off needs winning back the confidence with further incentives. Thus Tesco manages its customers and try not to lose them.RM techniques of Tesco, the loyalty card schemeCustomers loyalty plays an important role in RM, as their loyalty through repeat purchase and word of blab with other customers can not only bring higher revenue for the company but new customers likewise. Tesco has managed all this through its Clubcard scheme this is a membership card which allows the customers to save their money on shopping at any store of Tesco group of the companies or its partner companies and getting price off vouchers or Club card vo uchers after collecting 150 points. As they win points on every pound they spend on shopping and after a limit these points get doubled, so such a scheme motivate the customers to buy more and earn points. On the other hand generate good revenue for Tesco groups. Such a loyalty scheme has enabled Tesco to increase its market share in grocery (squid2009) and overtake Sainsbury as a number one retailer. Following Tesco, many other companies like ASDA, Safeway and Sainsbury tried to run the loyalty card scheme but were unable to manage and match the success of Clubcard and failed.How club card helped in retaining existing and attracting new customersThe biggest challenge faced by the companies is to make their loyalty scheme, effective and appealing to the customers. Retailers need to clearly define the target segments, anticipate their needs and fulfil them properly to be successful (McGoldrick2002). Same is done by Tesco, as per the promise made by the company to produce value for t he customers it has provided club cards to the members and created following clubs where the members can shop and save money. Tesco targets 10 years old buy to 80 years old man as its customer and effectively offers benefits and value to all its targeted segments through these clubs. Members get magazines on different issues and price off vouchers from these clubs creating a creditability and loyalty for the company in the heart of the customers. The clubs for different segments areTesco Kids Club This club offers products and fun culture for kids of age 5 to 8 years and it is their parents choice to join the club for kids and buy gifts for them. They provide them with the tips for safety and sanitaryness of the kids to the parents to create creditability and soft corner on parents heart. (harlequin1,2001)Tesco Baby and Toddler club This club offers tips and advice more or less the child care and motherliness tips to would be parents or pregnant ladies. Club provides them parking area closer to the store to facilitate the ladies and such a deed builds strong relations and assurance for the Tesco Company and customers prefer the club for a long.Tesco Healthy Living Club The club offers magazines and booklets for health tips and it is for the middle aged or old people who necessitate healthier sustentation. It also provide price off coupons on organic and dairy foods to promote its Healthy and Organic foods and win creditability as a health conscious retailer.Tesco World of Wine Club it provides a good and new range of wine for those to like to drink and promotes it through price offs to attract some new customers too. It also gives information about what kind of food goes with which wine.Tesco Food club it provides its members cooking tips and teaches them techniques to cook easy, enjoyable and tasty food. How To videos for cooking facilitate the members to survey and learn the make of the meal and even they get mails about ideas for simple weekdays mea l and menu.Like these Tesco have some more benefits too like greener living cards, association with Air miles company etc but its success is more dependent on its partnership with many other companies like Powergen electricity and gas provider, beefeater restaurants, National Tyres and Avis car hire etc and customers can use the clubcards to deal with these companies also. Besides this, online shopping, Tesco petrol stations, Tesco mobile and credit cards also add points for the customers. Thus interconnected approach of Tesco for maintaining relations both with the businesses and the customers helps the company to win trust of the customers.Clubcard as a CRM ToolThe loyalty card scheme presented by Tesco acts as a CRM tool for the company collecting necessary information about customers buying habits and their specific needs. For getting club cards, customers have to get registered through filling a form online, on paper or through telephone. This form seeks the necessary informa tion about the customers helping the company to design their marketing strategies as well as develop new products and offer them to the customers in a cost effective manner. Every year, nearly all the transactions held at Tesco are associate with the customers profile and now it has become companys philosophy to maintain and retain good relations with customers (ICMR, 2003). By getting information about the customers, company is able to go out its customers interrupt and can serve them in the best possible way. Tesco consider the scheme as a learning cognitive operation through which it can know about the customers, what they want from the retailer and how they shop and provide them the value and benefits asked by the customers and promised by the company. (Humby, 2003) The reward system of discounts and price offs has enabled the company to successfully maintain the relations with the customers.Critical evaluation Clubcards loyalty schemes have enabled Tesco to grow as a no.1 r etailer in UK market leaving the competitors behind who were not able to run such schemes profitably. The Clubcard customers are also benefited by the schemes as they can shop and earn points with Tesco partners. Company listens and modifies its activities on their recommendations such as Wine club and Kids Club. (Rowley2007). tho it was not successful in all the target market such as student segment.(Retail loyalty Scheme2003) and not able to still attract the students segment by offering them the benefits like special discounts as many retailers in UK do such as Peacocks, Apple store etc.(aceltham.co.uk2010). Also the redemption process of the vouchers is time consuming as it is through post and not online. Even the redemption value of the clubcard points is also very low. (Tesco2010). Not that loyalty schemes really makes the customer loyal because customers pay for the service they received which contributes to store loyalty and repetitive purchase.(Turner Wilson2006) So, it is necessary for Tesco to emotionally appeal the customers and manipulate their interest as in the competitive world permutation to the competitor costs very low for the customers.Would Tesco be successful without the ClubCardTescos success depends on its targeting different segments and fulfilling their needs by developing strategies and products as per the demand. All this it can manage through its loyalty schemes. Many others companies have also tried such schemes, as Nectar, managed by Loyalty Management UK Ltd also offers the rewards and points on shopping from its members(Rowley2005) but not as successful as Clubcard. Tesco considered as CRM champion after the launch of loyalty scheme because it was able to win trust and loyalty of their customers both in behavioural and attitudinal form. The whole credit goes to the Tesco management who has effectively formulated the strategies for the target segments, derive information about their needs through their profile and delivered th e value with the help of its CRM tools (ICMR2003). Even the rewards and benefits gained by the customers from its partners also helps in retaining the customers as they found it costlier to switch to other company. So, we can say without Clubcard, Tesco would have to struggle a lot to become as successful as it is now.RecommendationsTrack the polygamous loyalty customers and provide them with better incentives for their better word of mouth as they deal with many loyalty schemes and make them feel that Tesco is better than others.Take advantage of modern communication technology and allow online chat rooms. systematic emotional attachment with the customers will lead to behavioural and attitudinal loyalty.Attract student segment by offering them additional discounts more than other segments.It costs v times more to acquire a new customer than to retain the existing one so company needs to apply positive switching barriers for customer retention.(Gee, Coates and Nicholson2008)Approp riate monitoring is required to evaluate that customer defection is not covered up by customer acquisition. (Gee, Coates and Nicholson2008)Tesco can provide a combination of currency-points flexibility. (Strategic Direction 2007)Analyse the LTV or estimated profitability of the customers and then allocate companys resources to them such as marketing spend. (Day, 2003). completion After going through the relationship strategies and loyalty schemes of Tesco, it can be said that with the help of single loyalty scheme, it was able to target and address customer segments of different age groups. Club cards act as a CRM tool for the company and company has adopted the culture to follow the customers needs and reward them accordingly. Tesco has effectively managed the loyalty scheme and was able to win the trust and loyalty of the customers in return which helped the company to grow so far. It is advisable that company should maintain its relationship marketing strategy and loyalty scheme and redesign them as needed to provide the differentiated advantage to the customers forever.ReferencesGummeson Evert. (2008). Total Relationship Marketing. p36-40, third edition. Elsevier ltd.Mitchell H. Peck H. (2007). Does Tesco hold all cards. Cranfield school of management.Peck, Payne, Christopher, Clark. (1999). Relationship marketing for competitive advantage, keeping and winning customers. Reed educational and professional publishing ltd.Retail loyalty scheme, myth or marvel, Tesco. (2003). procurable at http//www.businessteacher.org.uk/free-marketing-essays/tesco-marketing-essay. furthermost accessed 3/04/2010.Tesco club card. (2010). Available at http//www.tesco.com/clubcard/clubcard/clubs.asp. give way accessed 3/04/2010Loyalty scheme helps tesco grow. (2009). E money news. Available at http//www.squidcard.com/corporate/emoneynews/loyalty/loyalty-scheme-helps-tesco-grow218.html. die hard accessed 3/04/2010Tesco plc, company profile. (2010). Available at http//uk.fin ance.yahoo.com/q/pr?s=TSCO.L. Last accessed 3/04/2010Michael Jorgenson. (2009). Tesco.com. How they do it. Available at http//www.scribd.com/doc/22655210/Tesco-com-%E2%80%9CHow-Do-They-Do-It-%E2%80%9D. Last accessed 3/04/2010Corporate profile Tesco. (2004). Corporate watch. Available at http//archive.corporatewatch.org/profiles/tesco/tesco1.htm. Last accessed 3/04/2010Christian Grnroos. (1994). From Marketing Mix to Relationship Marketing Towards a range of a function Shift in Marketing Management Decision, Vol. 32 No. 2, , pp.4-20. MCB University Press Limited, 0025-1747.Harlequin1. (2001). Tesco kids club. Available at http//www.dooyoo.co.uk/offline-shopping-misc/tesco/305681/. Last accessed 3/04/2010ICMR. (2003). Tesco- the customer relationship management champion. Available at http//www.icmrindia.org/casestudies/catalogue/Marketing/MKTG070.htm. Last accessed 3/04/2010McGoldrick, P. (2002). Retail Marketing 2nd edition. Maidenhead McGraw-Hill.Humby, C., Hunt, T. Philips, T. ( 2003). Scoring Points How Tesco is winning customer loyalty 1st variant Kogan Page Limited.Rowley J. (2005). Customer relationship management through the Tesco Clubcard loyalty scheme. International Journal of retail and distribution management, Vol. 33, p196-206.Rowley J. (2007). Reconceptualising the strategical role of loyalty schemes. Journal of Consumer Marketing, p.366-374 Emerald company Publishing Limited.Peacocks special offer. (2010). Available at http//www.aceltham.co.uk/acebusinesses.php?id=217. Last accessed 3/04/2010Apple store. (2010). Students discounts. Available at http//store.apple.com/uk/browse/home/education_routing. Last accessed 3/04/2010Tesco. (2010). Clubcard points. Available at http//www.tesco.ie/clubcarddeals/. Last accessed 5/04/2010Turner Wilson. (2006). Grocery loyalty. Tesco Club card. British Food Journal, Vol. 108 No. 11, 2006, pp. 958-964.Gee, Coates and Nicholson. (2008). Understanding and profitably managing customer loyalty. Marketing Intell igence Planning, Vol. 26 No. 4, 2008, pp. 359-374Strategic direction. (2007). Vol. 23, No.2, pp 18-22.Day, G. (2003), Creating a superior customer-relating capability, MIT Sloan Management, Review, Spring, pp. 77-82.TATA STEEL (B2B) CONTEXTContentsAbstract 12Introduction 12Tata marque Profile 12Branding Steel 12Customer Base Brand Equity Model 13-14The Initiatives act as CRM tools 15Benefits Reaped with Branding 16Critical evaluation 16Recommendations Conclusion 16References 17Abstract The report is about the B2B relationship of Tata Steel Company that how they manage their relationships with their business customers and the techniques they apply for the same. Critical evaluation will be done of the techniques that whether these are appropriate or any recommendation required will be given to the company.Introduction B2B marketing is the practise of doing business with other organisations or the businesses not the ultimate consumers. This practise is not new and is old as commerce itself but the concept of B2b marketing is quite recent. Companies sell their products to other companies and organisations to resell them or use the components or products for manufacturing the stuff, they are offering to the end users or support their activities. Today the steering is on maintaining relations with the customers as who is the customer today will be tomorrow also if they are being treated well. (Morgan Hunt1994)The organisation has to manage these relationships for acquisition and retention of the customers. For acquisition they need to create value for them and for retention they need to enhance the value offered or sustain it. (Morris, Pitt, Honeycutt2001). We will evaluate the B2B approach followed by the Tata Steel, the warning followed to collect information about their business customers and strategies they followed to make their customer happy.Tata Steel Profile Tata marque, a part is Tata Group is the worlds sixth largest stain producer operating in mo re than 20 countries. In past few years with the investment in Corus, millennium stigma and NatSteel Holdings the company is able to create a marketing and manufacturing network in South East Asia, Pacific-rim countries and Europe with the capacity to produce every year 30 million tonnes of crude steel. (docstoc.com2010, Tata steel 2010) In year 2001 and 2005, it was ranked as worlds best steel company. (Kotler2006). The profitability of the steel companies depend on the business cycles, they can make profit in the times of boom in the preservation and loose it in the recession. Even the external environmental factors also affects the revenue generation of the companies. So to reduce the dependence on the business cycles and make continuous flow of revenue Tata steel adopted the strategy of stigmatisation,(ICMR2004) so that customers would buy the brand and pay the premium for the value added services provided to them with the brands. Tata Steel has also launched versatile initi atives for promoting its brands such as CVM, RVM, CAMs and ecommerce.The strategy they follow to create relationships with the business customers is stigmatisation, CRM initiatives and e commerce.Branding steelA successful business marketer knows the customer needs and offers them the same. Tata has also recognised its customers in two segments the end users and businesses organisations using steel for the manufacturing of their products mainly automotive industries such as Maruti, Ford, Telco, Honda etc and realised that 80% of the sales is being covered by these business sectors, so it formulated different strategies for B2B and B2C segments. The companys B2B customers are more knowledgeable and brands help to create good finance and public ken for the company. (Kotler,2006). So, Tata steel branded its products under following brandsTata Steelium for cold rolled steelTata Shaktee for galvanized sheetsTata Tiscon for re-barTata Wiron for wiresTata Agrico for hand tools and impleme ntsTata Pipes etc.Customer Based Brand Equity Model The object lesson was suggested by Keller(1993,2001,2003) and constitutes of four stages through which brand is created and built its equity and strong relations with the customers. The model can be used in both B2C and B2B context. The model is in form of ladder going upward and it is subdivided in form of blocks in pyramid. (Kuhn Alpert, Keller2001) Lets see how Tata Steel branding policy fits in the CBBE model.http//www.frost.com/prod/servlet/cio/142401287The model has four phases for creating, enhancing and maintaining relationship with the customers through brands.Creating identity for the company or the product First of all the company needs to create awareness among the business customers about the product. Variety of steel is available in the Indian steel market and it becomes really difficult for the customers to differentiate that which one will be suitable for their use. Keeping that in mind, Tata Steel centre on custo mers need and then branded the steel to facilitate its business customers. Now they can order the variety or brand needed.Delivering value The company realised that its B2B customers are more knowledgeable than ultimate customers, they dont buy the brand rather are keener about the quality, specificity and performance of the steel. So, for better performance of the product and satisfying customers psychological needs the company has promoted the brands in accordance with its usage as Tata Tiscon for constructional bars and Tata Shaktee for roofing and NatSteel for cold rolls etc. For making the scheme successful, brand management department has been created in 2002 to evaluate and train the staff and sales personnel accordingly. They focused on making more and more interactions with the customers to understand their needs and offer them the needful in a better and improved way. They made their branded products highly value added to beat the industry and take the company to new heigh ts of success. (Kotler2006). Following the excellence model of Tata (TBEM), the company kept on making improvements in its offerings and undertaken many initiatives such as Retail Value Management, Customer Value Management and Customer Accounts Managers to help their business customers in brand promotion, building brand equity and solving their grievances.(Improvement initiatives,2009)Customers positive responses It is think with the responses given by the customers on the basis of the judgement and feelings associated with the brand that how far the products were successful in satisfying their needs.(Keller2001) With the continuous improvement in the offerings and CRM initiatives the company was able to place itself as the Worlds Best Steel Company in 2001 and 2005,(Kotler 2006) by the studies done by World Steel Dynamics, USA. Its bearing division became the preferable supplier for Hero Honda and Toyota motors and they recognised the company as Zero ppm Supplier and Direct Onlin e Supplier. (docstoc2010)Maintaining strong relationships Tata steel was successful in making strong relationships with its business customers and 60% of its products are sold through contracts and company spend 1.3% of its turnover in maintaining its brands.(Kotler2006). Branding of steel is providing the business customers a stable price of the commodity which creates a good impact on the business customers mind. Aligning with the Tata Groups internationalisation initiatives, the company was able to acquire NatSteel Asia and Corus UK as both the companies were seeking to establish long strategic alliances with the reputed steel companies of the world and Tata was able to do so with its deep social commitment towards society, trusted and reputed relations with the stakeholders.(Noronha2006,2007)The initiatives for maintaining successful relationshipsAlong with the branding, some more customer centric initiatives has been undertaken by the company for better understanding of the cus tomers and direct and continuous interaction with them to maintain strong relationships with their customers. (improvement initiatives2010)Retail Value Management The initiative was started in 2002 to redefine the concept of retailing and build stronger relations with the rural retailers by educating them about the selling techniques and customers need. The company has planned to target the small retailers operating in the rural areas and enhance the retail chain to near about 4000 retailers and serve the rural market personally by integrating retailers in the program and inquiry done by the company help the retailers in selling the product according to the customers specific need. (Media releases Tata,2006, High beam research2006)Customer Value management Tata steel has started the initiative to retain and build strong relationships with its customers. These were designed to deeply understand needs of the business customers and deliver improved value added products. They build tea ms to study the value chain of operations like receiving, storing, deploying of steel by the customers and even rejection. The company was able to understand the problems related with the value chain and provide deep insights to crop them at an effective and less cost. Thus company was able to win loyalty of the customers by making the supply chain (sales team, dealers and retailers) more customer focused and customer sensitive (Pullanikkat 2010, Economic times 2007)Customer account manager Company has maintained separate accounts for the customers for improvement and focus on business customers. The accounts were categorised as underEnterprise accounts potentially large and long term accounts.Commercial accounts the key accountsDistribution for the customers accessed through distributors. (docstoc2010)Such an initiative helped the company to crystalize their customers on the basis of their transactions and now they can deal with these customers accordingly. This also helped in so lving their problems and grievances and increase interaction with them for better understanding. (Kotler2006, scribd.com2009)E business Tata steel has started the initiative for e business looking forward to tap the opportunities of information technology. These are E-procurement and E-sales, the e- procurement allows the business customers to get multi dimensional information, such as online and offline quotations put down for auction, inbound supply chain, order placement, material receipt and delivery compliance monitoring. Some new and value added features like negotiation chat rooms for work auction, e-mail notifications and acknowledgement and FAQs are also offered. (E-procurement system, Tata steel 2010)Benefits Reaped The Company is able to succeed so far due to the its relationship marketing through branding, strategic alliances as well as other initiatives focused on customers need and building long term relationships with them. Through its strategic alliances especially with Corus, the company has locomote on from fifty sixth position to the sixth largest steel maker in the world.(Norohna2007). Mr Muthuraman, managing director, Tata Steel says Branding helped the company in gaining both the tangible benefits in form of pricing and intangible benefits in form of loyal customers. The successful RM startegy so far has made Tata Steel Worlds Best Steel company and has started co branding initiative in 2003 with the automobile companies such as Ashok Leyland and Telco (ICMR2004) and has decided to move on with co-branding in consumer durable sector.Critical evaluationB2B customers focused more on functionality or performance rather than taste or aesthetics as customers on consumer market do. (Anderson Narus,1999). Tata steel has taken the initiative of branding steel to protect itself from fluctuations in business cycles and set a premium price on steel through brands. Through its regular upgrading and customer focus was able to become the most prefe rable brands in steel. But there are price sensitive customers in industry that seems steel as a commodity not a brand and are not ready to pay premium prices for that. The company needs to educate and create awareness among these customers.(Norohna2003). Tata steel is selling steel under different brand so it should be careful that customers may not be intense and actively loyal with all the brands, they may experience resonance with a particular brand.(Keller2001). Branding is related with making a promise to the customer and delivering it so far but if in any case company fails to deliver the brand meaning it can lose its market position and customer may move on to the competitors. Online branding technique is now getting popular in western countries and as Tata steel operates in six continents why hasnt taken the initiative yet? The company also finds challenging, the management of the channel to sell the branded products in near future, says Mr Muthuraman.Conclusion and Recomme ndations The above report shows the Tata steel strategy followed for B2B relationship marketing. The company has managed it with branding the steel and remained customer centric by adopting and launching various initiatives like CVM, RVM, CAMs and e-commerce. As, it has been noticed that branding has not only helped the company to generate regular move revenue but also helped in maintaining long term relationships with the customers and become the preferable supplier of the customers. Such initiative has also made feel the grandness of relationship marketing to the other steel makers. Along with the success, relations with business customers have brought about new challenges for the company which needs some recommendationsRegular tinkle on the product quality is needed as brands provide quantitative and qualitative satisfaction to the customers.Brand awareness among the price sensitive customers as among these some can turn to be the loyal customers.Online branding initiative shou ld

Analysis of Mittal’s Acquisition of Arcelor

Analysis of Mittals Acquisition of Arcelor1.0 Executive SummaryThis examination of the spinal fusion of Arcelor and Mittal in the brand pains give examine the success and or shortcomings of this major deal that has created an indus puree organiseer that is con attituderably larger that its nearest competitor. In examination the link upr, this study looks at the steel diligence from the perspectives of historical underpinnings and ramifications, pricing, laws, monopolies, emerging market places, mature markets, new areas for exploration, as salutary as the resulting post merger effects of this union. To achieve the front, this study has organised the foregoing into a comprehensive lit review that will grok into the indicated areas, following this with a findings and analysis section to equate the earlier.The organisational method has been selected to in defecate as headspring as guide one through the intentness and the merger process to result in a clear understanding of the present momentant and salient points that wedge the merger process, and its resultant effects on the industry. The conclusion brings forth the summary of either of the sections that preceded it to equate the results and potential areas for add togetheritional study owing to the newness of this union. The bold escape by Mittal in acquiring a gild if its same size and then moving forward as a unified new entity tag a new period in the steel industry worthy of examination as an history making event.2.0 IntroductionThe purpose of this investigation is to delve into an understanding of the steel industry as the means to reach a determination as to the potential benefits and ramifications of the ArcelorMittal merger that is just about a category old. As such there is little in the way of case studies, and or historical data to equate the effect of the merger, this examination shall utilise historical as well as current information to understand the steel sector and and the n d rude(prenominal) deductions on the effectiveness of the merger in footing of competition, the industry and economical ramifications. The research question thus stems from the examination of the Mittal blade and Arcelor merger, and how it developed, along with the advantages as well as disadvantages of the process in terms of the dickens companies.The Research Objective is to determine if the merger made ArcelorMittal a market leader in a highly competitive market, and the manner via which this was accomplished as well as if the foregoing brought about new opportunities, and or projects in terms of real ones, and or potentials for the future. The research hypothesis pretends equating the impact of the Arcelor Mittal merger in terms of the industry dynamics in pricing, market positioning, competitive advantages, or other areas as uncovered by research to prove or disprove the basis for the merger as a sound proposition in the face of the preceding.To achieve the foregoing, thi s study shall look at the steel industry objectively through extensive research into its importance with regard to economics, workmanship, pricing within the industry, applicable laws, monopolies, the importance of emerging markets that might pose weighed on the purpose to seek a merger, the importance and or considerations of mature markets, and new locations of exploration and or supply. The approach to equating the foregoing was to conduct and extensive review of lit on the aforementioned points to provide a comprehensive view of the steel industry, where is has been, presently is, and is going. The preceding will provide a reference point to try to determine what the executives of Mittal saw in reaching the ratiocination to attempt the Arcelor acquisition. That insight, their decision process to seek the acquisition of Arcelor, was based upon the federations intimate acquaintance and understanding of the steel sector, and a plan to capitalise on those emergences based upo n the projected future occurrences in the market.Donaldson and Lorsch (1983, p. 112) tell us that in strategic decision making executives must consider thatUnder certain parcel, the firms real economic and financial constraints perpetuate stability in the financial goals system that is central to incorporate strategy. The first such circumstance occurs when the composition and objectives of managements triad primary constituencies remain constant over time. If the existing financial goals system truly represents a equilibrize response to each constituencys minimum acceptable requirements for continued participation in the usher inprise, then external pressure for change is not likely to develop in the absence of some fundamental change in the constituencies themselves.The decision to seek an acquisition as a means to growth represents a process that a accompany decided upon long before taking such an action. Wall and Wall (2000, p. 39) observe that Companies that are using acq uisitions as a strategic prise are rarely making solitary(prenominal) a single deal acquisitions are ongoing and oftentimes overlapping, with several happening at once and to a greater extent to come. Mueller (2000, p. 57) states that most acquired companies were and are usually healthy strong firms in their own right that add some underlying competitive advantage in the face of market realities. He goes on to add that the rationales can be economies of scale, to obtain a to a greater extent dominant market position, to gain access to markets, to spoke off competition, to limit merger options of rival firms as well as a strategy for growth. Mueller (2003, p. 82) addsA company faced with a slow-growing or declining market has two choices for avoiding stagnation and dec aura it can expand its share of this market, or diversify into new ones. Growth can be sustained indefinitely only through diversification. Thus, we expect the maturing company to resort to internal diversification by development new products and/or external diversification through mergers. Even in a steady-state introduction, a company must (continually) diversify to sustain a growth rate above that of its companys market.Wall and Wall (20000, p. 39) add he most successful acquirers have developed a clear, logical, and replicable approach that they rehearse to manage the stainless process from initiation of the deal to the ongoing and longer-term development of the new organization post integration. There is an integration process that accompanies e precise merger, where the rationales for preceding are thus put to the realities of the finalised merger process. This is where the decision to merge answers the questions, and or solves the issues that brought about the process in the first place. This study shall seek to equate the foregoing in the case of ArcelorMittal.3.0 Literature ReviewThis review of literature shall examine what has been written about the topical areas that are covere d herein to gain a picture of the overall steel industry, the merger of ArcelorMittal, and the market factors essential in the sector. The preceding shall seek to uncover the questions as posed the research objectives and find the answers to the research hypothesis3.1 The Steel applicationSteel is the material that is the economic backbone of world(a) economies, representing the prime material in building, infrastructure projects, refineries, vehicles, industrial as well as consumer goods. The recent emergence of new world(prenominal) players that have significantly amplificationd their work and export capacities and thus has harkened a change in the inter content structuring of the industry whereby consolidation has become a critical dowry in competitiveness (DCosta, 1999, pp. 11-12). chinas application and accession to the World Trade Organization has had major implications in terms of the global market as a result of the countrys modernisation programmes, cheap labour sup ply and pursual in becoming a significant part of global production and export (ChinaDaily.com, 2007). The foregoing only adds to the rounds of consolidation in an industry where economies of scale in terms of raw materials as well as production are key foundational factors in a highly competitive sector (Mangum et al, 1996, pp. 2-6). The above factors are important background aspects in the context of this study in that it is providing insight as to the attitude of the market.The aforementioned consolidation has been basically built upon the rounds of joint ventures that the industry seriously embarked upon during the mid 1980s in response to the want to tap emerging markets as well as areas of exploration for raw materials (Mangum et al, 1996, pp. 11-14). Steel, along with oil and uranium and a few other raw materials, represent concerted efforts and concerns by national governments and their important industry producers to ensure domestic effectivity in these sectors is maint ained, owing to their importance in their economies (Visclosky, 1999). Restructuring within the steel industry is described by DCosta (1999, p. 11) as an organizing concept to analyze capitalist development in general and reorganization of industrial capacity in particular. He adds that (DCosta, 1999, p. 11-12)Restructuring also refers to the various ways by which a national industry adjusts to the capitalist imperatives of competition, profitability, market control, and national development (DCosta 1989). more specifically, restructuring is viewed as a complex process by which the steel industry is evolving as a result of technological developments, corporate strategy, and government policies. With innovations and the diffusion of applied science at the core of capitalist industrialization, restructuring of the steel industry globally can be conceptualised in terms of different national technological trajectories. By juxtaposing the factors that lead innovating countries like the US to fall behind technologically with the mechanisms by which late industrializing countries acquire technologies we can establish the uneven diffusion of technology and the process of restructuring.The preceding represents an important understanding in this examination, as the traditional powers in the steel sector have been either challenged and or replaced by other companies / countries in the global sphere. Anwar (2006) presents an important summary overview of the steel industry that includes some of the foregoing factors, as well as providing additional insight areasThe increasing ramifications of industry volatility has been and is associate to the levels of consolidation, the cyclical nature of the industry, along with the emergence of China as an important and critical player in the market.The importance of tapping into emerging growth markets has helped to fuel industry consolidation.Chinas emergence as a consuming nation as well as producer , and its huge international market has caused a shifting in the strategic focus of the industry, and thus its companies.The heightened competition and cost variables of the industry help to explain the change magnitude rounds of consolidation that in the interests of cost efficiencies utilises more supply chaining to set up production facilities in important developing countries, as well as close to natural steel resources.The consolidation as well as fragmentation of the global steel industry is amply illustrated in the following ChartChart 1 Global Steel Industry(Anwar, 2006)The cyclical nature of the industry is caused by price significant drops due to the selling of steel at bargain prices as companies storage area their production facilities track when industry sectors in certain countries are working off their own inventories (Matthews, 2007). It may sound illogical, but it is actually more cost effective to keep plants running as opposed to temporarily shutting them down and restarting again, even at the cost of dramatic price drops that occur in the process (Matthews, 2007). desegregation has enabled important companies in the market to fend off competitors in their areas, and leverage their positions (Matthews, 2007). The rapid growth of Chinas internal market, as well as upgrading of its steel production capabilities has significantly added to global tonnage output (Anwar, 2006).The heavy rounds of consolidation is in keeping with the regionalization of the international market as The North American Free Trade Agreement, that entails the United States, Canada and Mexico, competes with the European Unions 25 countries, Mercosur that includes brazil nut, Paraguay, Uruguay, and Argentina, and of course China, whose domestic market and size provides a market that is larger than to the highest degree all of these combined (UC Atlas, 2006). The importation of the foregoing is that these trade blocs represent associations that have been string by the attending governments to aid in the management as well as trade promotion activities for their regions, and countries within these blocs (UC Atlas, 2006). The foregoing dynamics of globalisation thus helps to explain the consolidation that has been and is taking place in the industry.Figure 1 Regional Trade Blocs / European Union(Europa, 2008)Figure 2 Regional Trade Blocs / NAFTA(UC Atlas, 2006)Figure 3 Regional Trade Blocs / MERCOSUR(UC Atlas, 2006)3.2 ArcelorMittalIn 2006 Arcelor one of the worlds biggest steel producers as represented by turnover and output, was acquired by Mittal for $31.9 billion USD in a deal that ended over five months of a hard fought takeover battle (White, 2006). Born out of a prior merger of Spains Aceralia, Frances Usinor, and Arbed of Luxembourg in 2002 (Reed, 2006), the acquisition by Mittal of Arcelor that was formed out of the preceding triumvirate is a further example of industry consolidation. The company, that consisted of in excess of 94,000 people in excess of 60 co untries, was a major company in supplying the automotive, metal processing, structure, household appliance as well as general industry segments (wcbstv, 2006).Mittal Steel, which is based in Rotterdam, was the worlds largest proud producer in terms of volume prior to the merger, and still retains that title post merger, is a family controlled company by Chief Executive Officer Lakeshmi Mittal (ArcelorMittal, 2008a). The resulting company after the merger, ArcelorMittal, represents a concern that has 310,000 employees in more than 60 countries (ArcelorMittal, 2008b). The new company become the overall global leader in the automotive sector, construction industry, household appliance as well as packaging industries, along with becoming the leader player in technology as well as volume of steel produced (ArcelorMittal, 2008b). In terms of size, the new union creates a company that dwarfs the competition plank 1 Largest Steel Companies(editgrid.com, 2007)Metal Bulletins top steelmak ers of 2006Millions of TonnesCompany Country 2006 20051Mittal Steel1 Netherlands 63.66 49.892Arcelor Luxembourg 54.32 46.653Nippon Steel lacquer 33.7 32.914JFE Steel Japan 32.02 29.575Posco South Korea 31.2 31.426Shanghai BaosteelChina 22.53 22.737US Steel USA 21.25 19.268Nucor USA 20.31 18.459Tangshan China 19.06 16.0810Corus UK 18.3 18.1811Riva Italy 18.19 17.5312Severstal Russia 17.6 15.1613ThyssenKrupp Germany 16.8 16.5514Evraz Russia 16.1 13.8515Gerdau Group Brazil 15.57 13.716Anshan China 15 11.917Jiangsu ShagangChina 14.63 12.0218Wuhan China 13.76 13.0519Sumitomo Metal IndJapan 13.58 13.4820Sail India 13.5 12.2221Techint Argentina 12.83 11.4222China Steel Corp Taiwan 12.48 11.6523Magnitogorsk Russia 12.45 11.3824Jinan China 11.24 10.4325Maanshan China 10.91 9.6526Laiwu China 10.79 10.3427Shougang China 10.55 10.4428Hunan Valin GroupChina 9.91 8.4529Imidro Iran 9.79 9.4130Ind Union/DonbassUkraine 9.52 8.55The preceding duck has been utilised here to indicate that out of the top 30 steel companies globally, nine are located in China, with one in India and just three others coming from the European Union. The highlighted companies in colour have relevance in other sections of this study. The importance of the merger, as brought forth by the preceding discussion of the significance of regional trade blocs and national interests, is illustrated by the fact that at the time, then French President Jacques Chirac endorsed the union after the merger talks eased from creation unfriendly to friendly in the face of certain guarantees concerning jobs as well as research operations (Noon, 2006). The new company represents 10% of the global market in steel and becomes a highly significant company for the European Union in the face of competition from and in China, as well as India, providing it with the resources and economies of scale to wrest deals from its rivals.3.3 PricingIn terms of pricing, the steel industry is cyclical running through periods whereby supp ly exceeds supplicate, and then when demand exceeds supply. The recent trends has seen demand exceeding supply as steel prices have been inching upward since 2003 as Chinas economy has begun to heat up, along with India taking steps to emergence the demand in its economy for more products and production (domain-b.com, 2004).Table 2 World Carbon Steel Transaction Prices(Steelonthenet.com, 2008)The preceding Table shows that upward parkway that has and is making a new trend for the long embattled steel sector that had gone through heavy dumping in the nineties as markets and the global recession dried up demand. But, that scenario seemingly looks like a thing of the long gone past, with Chinas appetite just getting started, and India beginning its sit at the steel table. Prices are on the way up, as production capacity has remained relatively static with 1999 levels (DiCianni, 2007)Chart 2 Steel Production Capacity(DiCianni, 2007)The upward trending in steel prices as a result of production capacity is reflected in the following ChartChart 3 Steel Price Comparisons in Key Regions(DiCianni, 2007)The foregoing rise in steel prices is reflective of change magnitude global demands as illustrated by the followingTable 3 Global Steel Demand(DiCianni, 2007)The prognosis for increased prices is forecast by a broad consensus of industry analysts as caused by heightened production costs, and increased consumer demand as a result of growth markets (rediff news, 2007). Spot prices for ore are a prime contributor to the foregoing as prices have been on the increase since 2003Chart 4 Iron Ore Spot Prices(DiCianni, 2007)The preceding trend is highly different from the one facing the steel industry during the mid and late 1990s when too much capacity was the problem and steel prices dropped (Denoel et al, 2002).3.4 LawsThe rules governing trade laws is overseen by the World Trade Organization that also oversees the varied treaties its member nations make (WTO, 2008a) . The principle tactic and the one that is subject to attention in terms of laws has been anti-dumping policies utilised by Japan as well as Russia and recently China in the early 1980s and 1990s to gain a footing in supplying steel when prices were depressed as a means to enter and secure contracts (WTO, 2008b). Dumping represents the selling of steel in foreign markets beneath what is charged in home markets in order to secure a foothold, and or longer term supply contracts to keep factories running (Scheurman, 1986). The anti-dumping provision has long been a measure whereby countries seek to prevent lower priced steel from competing with domestic producers and thus threatening their home markets (WTO, 2008b).An example of the foregoing is provided by Jones (2004, p. 23) in his book Whos Afraid of the WTO?When steel imports from Japan and other countries batchd in the United States in the wake of the crisis, however, it became a trade problem, and WTO rules prohibiting unilate ral trade restraints as a stabilization tool by governments shifted blame over to the system of trade rules itself.The laws on steel stem from this foundation, contained within World Trade Organization rules, thus it represents a confusing as well as under most circumstances self-servicing provision enacted frequently by the target country. The following provide illumination on the foregoing (Tarullo, 2002)While not specifically proscribed by international agreements, dumping has been internationally identified as deserving of condemnation if it causes injury to an industry in the importing country. (2) U.S. law, since emulated by other countries, added to the definition sales below fully allocated cost of production, even where the price charged for the merchandise was the same as that in the importing country. Anti-dumping law generally provides for imposition of an additional import duty to equalize the price of the imported goods with the normal value, as calculated from foreign sales or from the cost of production. Most economists find the entire acquaint of anti-dumping law misguidedat least where there is no predatory intent or effectbecause it discourages some forms of price competition in some circumstances. Certain domestic interestsparticularly those in industries with high fixed costsare equally insistent that anti-dumping laws are necessary to protect them from foreign producers suppressing prices by flooding domestic markets. The laws and regulations enacted by countries, which can be very complex, reinforce the suspicion of liberal traders that the laws are rigid, biased implementations of a misguided premise.Not surprisingly, disputes over imposition of dumping duties have been frequent. Exporting countries have often complained that, quite apart from the principle that dumping is bad, importing countries misuse their anti-dumping laws. The first code negotiated in the GATT to supplement the rules of the original GATT agreement was one that li mited the use of anti-dumping measures. (3) New, more detailed agreements to limit national anti-dumping measures were included in both the Tokyo Round and Uruguay Round of trade negotiations. Meanwhile, use of anti-dumping measures had spread from the United States, European Union, and other industrialized countries to developing countries as well. (4) Thus, while international disagreements over dumping continue to pit some industrialized countries against Japan and many developing countries, the lines are not as clearly drawn as they were twenty years ago.The fray over anti-dumping continues to dominate the steel sector, but the recent surge in demand is lessening such occurrences and companies scramble to ramp up production and meet increasing demand. This has been a significant tactic used in the market that could very well continue after the shakeout over which companies dominate in China as well as India settles in.3.5 MonopoliesSteel represents an important broker in the he alth of national economies by virtue of the broad range of industries it supplies. Automotive, construction, appliances, equipment, industries machinery, pipes, plumbing and a host of other areas that underpin production are all industries that need steel. As such national interests step in, as indicated under regional trade blocks, whereby steel is akin to a national resource, in the securing of raw materials and finished output, thus the strengthening of company positions in the sector is a priority that regional and national governments seek and endorse, as evidenced by origin French President Jacques Chiracs positive comments on the Arcelor Mittal merger. From this stance, having too many producers, steel companies, weakens their position in the global market, and size enables them to introduce economies of scale in production and sales. Thus, monopolies simply are not a term that applies in this sector as a result of intense global competition and national interests.In steel, bigger is better Better for the steel company, national interests, domestic market supplies, and in terms of strength against their rivals. In the European Union, monopoly like status is not punishable as it is in the United States, as long as such does not harm the consumer or restrict competition (European Union, 2002). In the European Union a Monopoly is defined as (Europa, 2008)Market situation with a single supplier ( monopoliser) who due to the absence of competition holds an extreme form of market power. It is tantamount to the existence of a dominant position. Under monopoly, output is normally lower and price higher than under competitive conditions. A monopolist may also be deemed to earn supra-normal profits (i.e. profits that exceed the normal remuneration of the capital). A similar situation on the demand side of the market, that is with a single buyer only, is called monopsony.In other words, if the status of an extremely large company is not harming consumer markets and or increasing prices that are out of line with the normal costs of production, then, it is basically non actionable. The European Unions actions against Microsoft were of a different nature in that Microsofts actions were restricting competition in the entire industry sector, and the company was convicted of unfair tactics (European Union, 2004).3.6 Emerging MarketsThe merger of Arcelor and Mittal provided the new company with the size as well as clout to make a significant difference in emerging markets such as China due to its enhanced capabilities across all market and industry sectors (ArcelorMittal, 2008b). The foregoing increased size as well as capabilities also provides the new company with advantages in the high growth Indian market (ArcelorMittal, 2008b). The company announced forthwith after its bid for Arcelor was accepted that the new plans call for boosting its presence in both the Chinese as well as Indian markets (EarthTimes, 2007). Lakshmi Mittal is of Indian decent, thus this new and larger company will provide him with increased presence in that market as a result of long standing contacts and the companys enhanced capabilities (Forbes.com, 2007). As the worlds fifth richest person whose wealth is estimated as $32.0 billion that influence helps his aims in many areas (Forbes.com, 2007).Of particular interest is the discussion of the formation of a new regional transaction block in Asia consisting of China, Japan, South Korea and India, a union that along with other countries would account for 20 percent of the worlds Gross Domestic Product, that would relegate the other major trading blocs and lesser players (Bergsten and Scollay (2001).The potential for such an arrangement has gained in strength since 2001, with increasing talks being held between China, South Korea and Japan (Asia Times, 2003). Increasing ties between China and India, as a result of the proposed cross border trade route would open up trading in the region and serve as the foundation for a new trading bloc (Hasan, 2006). The present trading Bloc, ASEAN, which was formed in 1967, consists of Indonesia, Malaysia, the Philippines, Singapore and Thailand, that represents a combined population of approximately 560 million (Association of Southeast Asian Nations, 2008). China, with its population of 1,321,851,888 (Rosenberg, 2007), along with Indias 1,027,015,247 people (indianchild.com, 2007), and Japans 127,288,419 (CIA World Factbook, 2007), would result in a combined trading bloc population of 2,476,155,554, or slightly more than one-third of the worlds total population of 6,602,224,175 (World Factbook, 2007a). That would dwarf the population counts of the European Union, 490,426,060 (World Factbook, 2007b), as well as NAFTA (446,078,489), with its U.S

Effect of Low Income School on Parent Involvement Article

Effect of Low Income School on P bent date Article(Smith 2006, p. 43) in her article has tried to ginmill the impact of strategies undertaken to involve parent in child bringing up at a low income direct using soft search methods.Aims of ArticleThe main aims of this article are toDefine how a low-income inculcate defines lettered parental involvement strategiesDefine effects of those strategiesThe MethodologyThe above article is done as a qualitative research. Qualitative research is done to gain a deep understanding of a specific event, rather than a description of a large sample of a population. It is also called ethnomethodological analysis or field research. It helps create information about human groups in social settings. Qualitative research aims to lead a violate understanding of a phenomenon through experience, correct reporting, and quotations of actual conversations. It aims to provide an understanding about how participants tend to interpret their surroundings , and how their interpretations influence their behaviors.The main methodology for conducting this research was conducting a study at a low income school whose new structure was replacing an outdated structure in 2002. During the planning acquaint of the school community members, parents and agency professionals were involved in development of the new school structure to cater for the needs of low income families and of programs to involve parents in students education at the school. The efforts were then measured using qualitative entropy collection methods such as participant observation, interviews and document reviews.Participant observation is a pointedness of intensive social interaction between the researcher and the subjects, in the latter&aposs environment. It becomes the full-time occupation of the researcher. Participant observers are trained in techniques of observation, which distinguishes them from invariable participants.Interviewing is one of the most commonly us ed methods for gathering entropy in qualitative research. Qualitative interviewing is usually different from quantitative interviewing in a shape of ways.Interviewing tends to be much less structured in qualitative research. In quantitative research, interviews are usually kept much more structured in order to provide a valid measurement of key concepts that commode answer some specific research questions.In qualitative interviewing, deviating is encouraged to bear insight into what the interviewee sees as important. This is however discouraged in quantitative research.In qualitative interviewing, interviewers bay window significantly change the schedule and guide of the interview.In qualitative interviewing, The questions of interview get detailed answers in quantitative research the interview generates answers that can be processed and statistically analyzed quickly.Researchers supplement qualitative research methods such as interviewing and observation with gathering and ana lyzing documents produced specifically for the research at hand . As such, the review of documents is an unobtrusive method, rich in portraying the value and beliefs of participants in the setting.Sampling was done using snowball ingest technique. A snowball sample is anon-probability sampling techniquethat is appropriate to use in research when the members of a population are difficult to locate. A snowball sample is a sample in which the researcher collects data from the few members of the target population they can find, then they ask those members from whom the data is collected to provide information on the location of other members of that population whom they know.Snowball sampling hardly leads to a exemplification sample, but sometimes it may be the best option available. For instance, if you are studying people smoking cannabis, you are not likely to find a list of all the people smoking cannabis in your city. However, if you identify one or two people smoking cannabis th at are uncoerced to participate in your study, it is likely that they know other cannabis smoking people in their area. However snowball sampling can be avoided if data about something is readily available.Source http//www.northumbria.ac.uk/static/images/schoolimages/ar_images/cetl/gilldavisondiagram1.jpgThe SettingThe setting for this research was Clark principal(a) School which was situated beside a city park in a small community surrounded by large industrial complexes. Most of the residents in neighborhood were low income. During the 2003-2004 school year, 5% of the students were American Indian, 3% of the students were Asian, 7% were Black, 19% were Hispanic, and 67% were White. According to the Clark Elementary School website, as of October 1, 2003, the languages spoken were 79% English, 11% Spanish, 6% Russian, 3% Ukrainian, 1% Vietnamese, and 2% other.In 1998 the zone began to build a new school in order to replace the old one. A advisory group was formed consisting of me mbers from community organizations, government agencies, the local anaesthetic church, the neighborhood association, the Clark Parent Teacher Organization (PTO), educators from Elementary School, and school district personnel to provide input for development of new school. The school was finally spotless in 2002.Data CollectionThis research was qualitative in nature. Data was collected from the participants in three waysObservationInterviewsDocument ReviewsObservationThe cause acted like a participant observer for before and after school programs, Read and play programs and awards assembly to which all families had been invited.Interviews Semi-structured, open-ended interviews were conducted with educators, family workers, and parents from Clark Elementary School. 4 administrators were interviewed including the principal, the district consultant, The family Liaison coordinator and the Family Services coordinator. 6 teachers were interviewed, 6 parents were interviewed. For inter views snowball sampling was used.Sourcehttp//www.featurepics.com/FI/Thumb300/20090704/Interview-1236952.jpgDocument Reviews Documents reviewed pertained mostly to the development process for the new school. All materials collected during the blueprint process were examined and all references to the school in the local paper were reviewed. In addition, the school website and monthly newsletters were reviewed.sourcehttp//blogs.adobe.com/acrolaw/files/2011/01/00_quick_review_illustration.pngFindingsA Foundation of Understanding Since the school architecture and its programs were developed keeping the opinions of the communities, parents and members of community associations. After the school opened teachers and staff were made to understand the life circumstances of school families. This helped teachers understand parents more and decrease the probability of teachers blaming parents when their children faced academic difficulties and instead has increased the desire for teachers to assist the children.A Broad Definition A definition of parental involvement emerged at the school which recognized a wide array of behaviors of involvement such as receipt of social services or picking up victuals or clothing at Family Resource centre. These behaviors also included the learning activities families engaged in while at home.Creating Intentional Parental Involvement Strategies The intentional parental involvement strategies were designed in two distinct waysStrategies to Provide Services During initial meetings after considering the needs of neighborhood families it was decided to rile the school in a community center style so as to provide services for low income families. The family resource center in the school helped connect parents with the various activities in school and also provide them with many facilities including computers, free food and clothing provided by government agencies.Strategies to Enhance Parental Involvement The Clark Committee had designed parental involvement plans based on broad definition of parent involvement and on foundation of understanding. These strategies included inviting parents to school conferences, family nights and inlet resources offered by Family Resource Centers. All these services were found to have a positive impact of parent involvement and hence positively impacted Clark Elementary School.Benefits of Parental Involvement Interviewers described better parent involvement leading to academic success. Teachers found that students were more motivated and had better self confidence as a result of parent involvement. Parents also were found to have other benefits of involvement other than academic ones and they could feel themselves part of a community.RecommendationsFollowing things are recommended in this studyIn order to develop strategies for parent involvement in low income schools it would be better to input the advice of neighbors and interested agency representatives in order to understand the lives of people the school shall serve.If we can get a clear understanding of the lives of their school families, we ought to encourage definition of parental involvement which would allow in a wide list of parental behaviors that lead to academic success.Educators serving low-income populations must consider offering services to the families of their students, thereby bringing parents into the school buildings. Full-service schools can provide services based on the understanding of the needs of the neighborhood, intended to meet the needs of low-income school families.Educators should invite the input and participation of community agencies, businesses, and faith-based groups in any efforts to meet the needs of school families. Offering the opportunity to provide input can encourage them to own the process and make them have a long term participation in the processEducators need to accept that parents may not choose to be involved in education in commonly accepted ways.Conclusion The main point of the article is that a better understanding of the community needs is a must for forming a better definition of parent involvement for the community. Hence, Educators working in low-income communities need a willingness to learn about their student populations and a high degree of commitment to school families in order to better formulate parent involvement strategies in schools. The author has used qualitative research methods to show a relationship between better understanding of the community by the school for introducing locomote to increase parent involvement at the college. However, the main problem lies here in the sampling for interviews. Here snowball sampling is being used. This should have been avoided as snowball samples are hardly representatives of target populations and are just used for exploratory purposes. Since data for teachers and parents could have been made available by the school I this case, Using that data could have lead to a better sampl e could have been active that would have been more representative of the population at hand. As it stands the study can be considered a good starting point of research for introducing steps for parent involvement in low income schools.BibliographySmith, J. G. (2006). Parental Involvement in Education Among Low-Income Families A Case Study. School Community Journal , 43.

Oliver Twist And Sense And Sensability Comparison Essay -- essays rese

Set in the Victorian era, Sense and Sensibility and Oliver Twist, parallel but also contrast in many key elements. In both movies, mannerisms, class distinction, and the childs role in society were reflected by both writers. Through these analysis, I was able to achieve impertinent insight into the conditions of the Victorian era.In Oliver twist, mannerisms were greatly displayed in Oliver as a character. His mannerism best demonstrated how upper-class children were supposed to behave during this era. They were to be seen and non heard. Oliver when spoken to, was extremely polite and respectful (Very odd for how, and where he was raised). Even when living in the streets, after creation kicked out of the orphanage, he still unbroken his high morale standards.Much like children, women were also supposed to be seen and not heard. As well, it was not proper to show emotion, such exuberance or love in any way. Marianne, in Sense and Sensibility, goes against these "rules" of proper etiquette many times, such as when she shouts at John Willoughby at a ball this pull much scandalous attention to herself. This was very humorous to me, because it was nothing i expected, or thought would happen.The one very positive element I dictum in this era, was how the men displayed chivalrous attitudes, such as how they courted women, as well as their words. Unfortunately this was a double standard, since it sometimes had unpleasant results, like being forced into marriage. However, thei...

Comparative: Equality 7-2521 versus Z :: essays research papers

Ego, a common word used in most people?s lives, unfortunately its not as common or even nonexistent in the lives of Equality 7-2521 and Z. They live their lives a bit different than most people. They live as a collective. Yes, a collective, they live in societies that don?t believe in individualism. Without individualism there are no ideas or opinions and without them its very hard for a society to function. Z , an ant who lives to help his colony, risked his life for the women he loved. Equality 7-2521, a determined man who broke countless laws to save the pride of his life, his light. Although Equality 7-2521 and Z have numerous similarities they have very different lives. Individualism, which is a big difference between Z and equality 7-2521. Z has a name that can distinguish him from opposite people. Were as Equality 7-2521 does have a very descriptive name. Another difference is Z is aloud to have opinions on issues. Conversely Equality 7-2521 has no opinions he is not even aloud to have them. Even though Equality 7-2521 and Z are different, in many ways they have very similar characteristics such as the desire to be different without being an outcast because they are smarter or stronger. No matter how hard Equality 7-2521 and Z tried they always managed to