...(i) Education is a must in the development of the country. We all know by that human capital and knowledge is valuable in bringing new ideas to an economy and retaining that knowledge to further increase economic development. I believe a parent’s greatest investment is the education they give their kids. If the kids get properly raised and educated, they not only help themselves, but also lift their parents out of poverty and help the wider society. For example, a family that migrates to a city from a rural village will most likely push their kids to get a good education. The mother and father will be most likely working in a factory or doing some other miniscule job that requires little knowledge. The child will go to school. The parents will pay for their college in the hopes they will become successful. The children will then help their parents with paying the household expenses. The time and money the parents put on their kids is basically an investment that they will get a high return later in life. Not to mention, the bragging rights the parents have since their child is educated. (ii) Education plays a huge role in the development of LDC economies. For example, at the prestiges school in India, the students were able to land in high paying jobs in the United States and many of them even started their own companies. This is a negative and positive outcome for the society in India because there is a brain drain of knowledge of educated individuals leaving...
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...find the overlap between Volvo’s Prestige position and Geely’s low cost product position. They don’t have any common customer base, have language and cultural barriers, time zone barriers, while China is a collectivist society and Swedish is individualist, and historical barriers where Chinese pay attention to the past and pays less attention to long-term future, Swedish are the opposite. The high value of Volvo brand is very challenging work for Geely. Geely is unknown to people in industrial nations, and known for low-cost and quality product domestically, this impacts the value of the Volvo brand. Cost structure also plays a significant role where Sweden is a high-cost country, and China a low cost. Though production is moved to China, the problem is the low products installed in Volvo car cannot be accepted by Volvo management. Exchange rates among buying and selling in different countries, how can the profit be distributed: Swedish Kronas or Chinese Yuan? Tax considerations, Inflation rate, cost of capital all has to be considered. Even though Geely’s merger for now has saved Volvo from financial loss, and Volvo cannot get any financial help from Ford Company after the merger, the European Investment Bank does not want to get involved with Geely as they find Geely as a weak owner, and are opinionated that it does not have the finance capacity to invest in Volvo. Therefore, this a great challenge for Volvo to secure finance investment in future. Resolutions or Strategies...
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...company in 2008 by offering (462.5 million) shares for public subscription, which represented -at that time- 50% of the shares in the company which brought a large turnout to subscribers in the IPO of the company because of its high prestige in the kingdom, and the confidence of the shareholders in the company due MAADEN’s long history in the mining sector. However, when we reviewed the last five years (2009-2013) and analyzed the company financial statements; We found that MAADEN had the ability to cover its short-term obligations between 2009 with current (6.54) till (1.09) in 2013, the number has decreased by years either due company started to use its liquidity into investments... Etc. Or -most likely- the company increased its loans and dept. When "MAADEN" surprised us with their recordings of net-loss of(12.82) in 2010, we could justified it by several reasons, including lower production and higher costs and less investments. I think that the most important reasons directed this net loss were: investments with (154.49) and expenses (304.39) that was a high number comparing with operating profit (89.66). Low liquidity of 2013 with gross profit (27%) and operating profit (12%) affecting the dept or short-term loans investments that increased from (43%) in 2009 to (69%) in the same year 2013. MAADEN has financed (49%) of its assets by long-term dept in 2013, this number increased by years from 2009 with percentage of 30%. In another hand the company used...
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...According to IANS, investments in India is very likely to pick up in the current year. A survey has revealed that many companies will be expanding during this current year which would increase the economic growth of the country. In the current financial year, 44% of the companies are planning to expand their domestic investment according to (CII) Confederation of India Industry’s survey. And the survey also mentioned that thought the economy is currently slowing down, 37% of the investors said that their investments did not decline. 50% of the investors did not find any increase in their foreign investments whereas 37% saw there was an increase I their investments. In spite of the negative sentiments in the economy, this seems to be an encouraging situation or development. On measures required to revive growth, 52 percent of the investors said their first priority was to clear 50 large projects worth more than Rs.1,000 crore and 200 large projects worth between Rs.250 and Rs.1,000 crore in the coming six months. The topmost policy for 24% of the respondents to the survey was the CRR and the policies set by RBI. The survey, conducted among 75 national council members of the CII, predicted that the turn-around in growth may take place only from next fiscal. In this circumstance 80% of the respondents do not see increase in the GDP crossing 5.5%. The investment growth during the year 1/4/12 to 31/3/13 was 5% which was the lowest in a decade. China--a perennial favourite...
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...International business increases sales and profits, enhances a company's prestige, creates jobs, and offers a valuable way for business owners to expand. China has become one of the most sought out country for foreign businesses to invest in. Manufactures in China are growing fast in industrial and consumer product sold in the United States. Although the market is growing in China laws and regulations are becoming even stricter. Doing business in another country takes time and research. To often management fails to understand that business values and behaviors done in the United States do not translate to the rest of the world (Daft & Marcic, 2011, p. 105). This could be an area that the president of Rocky River failed to research, and understand what business values his joint venture company Shui Fabrics believes in. CULTURAL CHARACTERISTICS There are cultural characteristics that influence organizations, those characteristic include language, religion, social organization, education and attitudes. Attitude is a big factor in the Rocky River and Shui Fabric joint venture, mainly understanding each other’s value. As noted in the textbook Understanding Management “Attitude toward achievement, work, and people can all affect organizational productivity” (Daft & Marcic, 2011, p. 111). Just as Paul Danvers doesn’t understand that his counter part Chui Wai is very pleased with the five percent return on investment, referring to attitude of the Chinese culture. Understanding...
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...the control of business, also the spending power of consumers and other businesses. We must consider those factors as important depending on the political system of the country we are operating in and the political condition of the country as a whole. The Indian economy has been subject to some positive economic reforms since 1992 which had improve a better working environment for foreign companies and has made it possible for foreign investors to operate in the country in a easy way. Economic factors The Indian Government is still trying to improve unfavorable factors like widespread poverty, inadequate physical and social infrastructure, bureaucracy, limited non-agricultural employment opportunities, regulatory and foreign direct investment controls, insufficient access to quality basic and higher education, and the imbalance of rural-to-urban migration.. Socio-Cultural factors The culture of India poses a great challenge. The mix of traditional tea-drinking population together with the various differences between Muslim and Hindu and the difference between various regions of the country, makes it hard to divide and place is concrete consumer groups. There’s obvious separation in coffee consumption between rural and urban areas having distinctly higher preferences for coffee. “Still the numbers of coffee consumers remain low with slow negative growth figure between 2000 and 2005 - 6.7% and 2.0% respectively.” Legal factors The legal environment in India is very different...
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... Executive summary Eli Lilly entered the Indian market in a joint venture with Ranbaxy, in order to capitalize on increasingly favourable market conditions, low costs and to gain a foothold for entering other Asian markets. This move succeeded because of a commitment to values for the two partners, cooperation and excellent management. Ranbaxy smoothed the way with existing distribution networks, government contacts and local market knowledge. Lilly provided foreign expertise, competent managers and capital. The venture earned both firms significant advances in market share and earnings, and the relationship remained positive throughout. As the Indian economy has become increasingly liberalized and open to foreign investment, there is great potential in the market. Other foreign firms are entering the market, and as a well-established powerful player in the market Lilly no longer needs to use Ranbaxy as an intermediate. Lilly seeks continued, stable growth in the region and needs to consolidate and refocus its business in niche drugs to remain competitive in a changing global business environment. Ranbaxy wants to move away from generics to become a more internationalized and R&D based company like Lilly, but needs significant cash flow in order to grow abroad. Both firms are considering options for the future. Problem statement Eli Lilly-Ranbaxy, a joint venture in India must re-evaluate the direction of their business relationship. Though the...
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...Running head: UBS Financial Services Inc. AN ANALYSIS OF INTERNAL AND EXTERNAL PRACTICES UBS FINANCIAL SERVICES INC.: SWOT ANALYSIS Fall 2012 November 20, 2012 Berkeley College Larry L. Luing School of Business Personal Introduction With a month before graduation, a strange feeling of both accomplishment but yet uncertainty overcomes me. I have nested comfortably in a routine that is college and has been my life for the past four years. Change is imminent, the cliff is pronounced, what was once obligatory will be new and strange. As per a requirement for graduating, students of Berkeley College must engage in an internship to gain work experience in the students’ academic background. Being such that accounting was my choice of study; interning for UBS Financial Services Inc., in White Plains, NY, opportune itself with the experience I need. For many students, including myself, the required internship class was the first exposure to an office setting among many things. Prior my experience at UBS, I was not accustomed to: answering clients’ calls, taking messages, or meeting deadlines issued by anyone other than my professors. There was a definite period of adjusting to the work environment, I needed more time in the morning just to fix a tie. I quickly learned that smarts or native intelligence is but half the battle of becoming a professional in the financial services field; to be professional – to present oneself as someone...
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...INTRODUCTION After surveying the current car washing market, we saw the need to satisfy the prestige of the esteemed customers who require a classy and quick car wash. Since setting up a permanent car washing facility would limit our customers, we came up with Ganton Car Washers. This is a mobile car washing facility fully automatic and able to move from one place to another. Our facility can service up to 5 cars before re-filling our water supply. Most of our equipment would be imported from the main manufacturing company in Japan since they are not locally produced and assembled here in Kenya. As a start up strategy we would start with 5 mobile car washing facilities spread out in Nairobi and its environs. The small number of cars invested in would be used to study the market to see how the potential customers receive the business. The best area to set up the headquarters is a place that is full of potential customers and easily accessible thus Upper Hill seems to be the best fit. This is mainly where the calls will be received and redirected to our drivers who are on standby. Our services will mostly be door to door whereby we come to you. Once at your location all you have to do is drive into the back of our cleaning facility. Sensors tell the type of car we are handling then the cleaning begins. MARKET Our target market will be mostly posh areas where it is hard to access a quick and decent car wash, also offices and parking lots. Since most of these people drive long...
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...Katz's framework on essential managerial skills, low-level managers need to develop more conceptual skills then top-level managers. (false). Lower level managers need to consist of a lower level of conceptual skills then top-level managers, equivalent human skills and lower level managers need to consist of a higher level of technical skills then the top level managers. 7. What are the key conditions that describe the general business environment? The key conditions that describe the general business environment are: 1. Economic Conditions - Be concerned about the overall health of the economy meaning financial markets, inflation, income levels, GDP, unemployment and job outlook, customer spending, resource supplies and investment capitals 2. Legal Political Conditions - be concerned that they are following all he laws and not going against it 3. Technological Conditions...
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...maximizing opportunities within an organization through the adoption of proper management procedures. These procedures will not only help an organization reduce its overall costs but will also ensure that it achieves its strategic goals. Many a time, the ideas in an organization outweighs the scarcity of resources. However, an organization can review its strategic plans against the ideas available to prioritize its objectives against the scarce resources. This paper tries to show the decisions reached by management to source for additional finance and the effects it has on the company’s financial performance. Benefits of Forming a Liability Company A limited company refers to a company whose members’ liability is limited to their investment or guarantee. The benefits of forming this type of company for instance, Marrocco Company Limited includes: There is a Separate Legal Entity This means that third parties are required to contract with the company itself and not with individual shareholders or directors. It also means that the company has perpetual existence and the death of its owners does not make the company to collapse. Unless the company goes into liquidation or wounds up officially, it will always continue in operation. Unlike other businesses, the company offers job security to all employees working for it (Henry, C. 2013). The Owners Liability is Limited The...
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...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • Authentic British heritage Unique democratic positioning within the luxury arena Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear Globally recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – with innovative outerwear as the foundation Channel expertise in retail (including e-commerce), wholesale and licensing Global reach: operations in markets throughout the world, with a balance across major geographic regions A unified, passionate and seasoned...
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...Recently, Vietnam is attracting increasing interest from international investors as a promising emerging market. Some of the largest U.S. corporations such as Intel, IBM, Wells Fargo, Citigroup, to name a few, started to set foot in the country with confidence. However, investing in Vietnam still constitutes a conundrum for outsiders and horror stories have been told by former entrepreneurs who lost their fortunes and even almost lost their lives dealing with the Vietnamese Communist Party. Case in point: Trinh Vinh Binh, a Vietnamese Dutch investor who escaped from Vietnam and later sued the Vietnamese government for breach of contract and for confiscating his assets in Vietnam. The case was eventually settled for an undisclosed amount of award in 2007. The initial claim was $150 million (UNCTAD, 2007). The crucial question remains: “under the current market conditions, is it worth to invest in Vietnam?” S.W.O.T analysis Strengths. 1. A fairly large customer base of more than 86 million and growing at a rate of 1% annually. 60% of the population are young, born after 1975 and aspire to become a consumer society with higher standards of life. Wages in Vietnam are among the least expensive in all Asia. Vietnam has a high rate of literacy. 90.3% of the population aged 15 years and older are literate (CIA World Factbook, 2009). 2. Significant reserves of energy and mineral resources such as oil (Vietnam is ranked 33 worldwide among oil producing countries), bauxite...
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...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • Authentic British heritage Unique democratic positioning within the luxury arena Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear Globally recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – with innovative outerwear as the foundation Channel expertise in retail (including e-commerce), wholesale and licensing Global reach: operations in markets throughout the world, with a balance across major geographic regions A unified, passionate and seasoned...
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...EF5052(A) INVESTMENT CASE 2 Netscape’s IPO Group 7 JU Fei LIU Yao LIU Yini WU Tianyi ZHANG Xuehui ZHANG Yiyun 52752084 52815259 52750804 52748187 52700026 52738944 Netscape’s IPO Brief Introduction Netscape Communication Corporation is going to issue its initial public offering in August 9, 1995. It is a young but rapidly growing company which is founded in April 1994 and only operates for 15 months. Netscape is also going through losses and never gain profits. But in the time of rapidly developing of the Internet, Netscape now had succeeded in capturing 75% of the Web browser market by using its most popular product, Netscape Navigator. Netscape has set the industry standard and is the indisputable leader of its kind. Netscape Navigator begun to ship in December 1994. Until then, Netscape did not earn significant product revenues. And Netscape Navigator generated more than half of total revenues for the company in the first two quarters in 1995. The other main source of revenues is generated by Netscape’s server and integrated applications products. In terms of the market share, we can say that Netscape has a promising future by using its excellent Web browser, Netscape Navigator. Another reason for its promising future is the industry background that Internet is in a rapidly developing position. However, Netscape is also facing kinds of competition in every market...
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