Globalization & Migration Essay

Globalization is the interconnected web of communications between countries and different cultures including technology, business and culture. Migration is the movement of people into or out of a different country. Migration increases globalization by creating a greater diversity of cultures, different ideas, and increasing the way the economy grows. The internet is one of the biggest global communication systems. In the 1980s, mail order wives were introduced. Men in the US seeking Asian brides could now simply go onto the internet and find a wife and communicate with them. Men usually want to marry foreigners because they are viewed as more â€Å"exotic† and â€Å"dependent† than women raised in the US. Without the internet (aspect of globalization) there wouldn’t be communication between US men and their possible spouses. Globalized consumerism also affects the topic of the relationship between globalization and migration. When companies are creating a new product, they have to create the design. Once the design is created, the product is made then the company pays for the distribution of the product. The people who make the products are usually immigrants. They do this because â€Å"there is a demand for unskilled labor in the North and because there is a large supply of unskilled workers in the South who are ready and willing to migrate North. † Usually the workers in the South migrate to the North for higher paying jobs. There are great differences in the salary from the South and the salary from the North. In 1995, workers in the US(North) were paid $17. 20 an hour, 71 cents per hour in the Philippines(South), 46 cents per hour in Thailand(South), and 25 cents per hour in China(South). People from third-world countries are also parts of migration and globalization. In 1945, two brothers from Chinantlan, Mexico moved to New York and got jobs mopping floors. As the years passed they pooled their income and started sending the money they saved to their hometown. They began an organization where more of their relatives from Chinantlan joined them in New York and sent money back home to improve their community. By 1990, the organization had already sent $2 million each year. This shows that migration can improve third-world countries and their cities.

Jayanta Mahapatra`s poem “Dawn at Puri” Essay

Jayanta Mahapatra`s poem â€Å"Dawn at Puri† narrates by describing the Oriyan landscape, especially the holy city of Puri. Mahapatra is deeply rooted in Indian culture and ethos with which he is emotionally attached as a poet. Though the language of expression is English his sensibility is ‘Oriya’. In order to appreciate the prescribed poem it is important to understand his sensitive attitude to the native socio cultural practices.Here in the poem under discussion, Puri is the living protagonist for him .Puri is not only a setting but also a protagonist because he presents a graphic description of Puri as a central as a place for the four ‘ dhams ‘or ‘sacred cities’ but also for the ‘math’ or the monastery set up by Shankaracharya . Lord Jagganath is the main deity in Puri who is in the form of Lord Vishnu. The way Mahapatra delineates the events and incidents in the poem shows us that he disapproves of what is going on under the cover of tradition and practices. Look more:  first poem for you essay You will notice how life lies like â€Å"a mass of crouched faces without names† and you also can see how people are trapped by faith as expressed in the expression â€Å"caught in a net â€Å". The shells on the sand are â€Å"ruined† the word, â€Å"leprous† is suggestive of decadence and infirmity. The poem evokes loss of identity, anonymity, death, disease and decadence. As I have mentioned above, most of the Hindus wished to be cremated in the land of Lord Vishnu. The speaker’s mother also had such a last wish, the wish to be cremated in Puri. This is fulfilled by the effort of her son in the blazing funeral pyre which is seen as â€Å"sullen† and â€Å"solitary† .The poem winds up on an uncertain note like the corpse of his dead mother.character .Here Puri is personified. At Puri, we find a stretch of beach called Swargadwara or ‘Gateway to heaven’ where the dead are cremated. Many pious Hindus and widows feel that it is possible to attain salvation by dying at Puri. Mahapatra states: â€Å"Her last wish to be cremated here/ twisting uncertainly like light/ on the shifting sands.†

ACCOUNTS RECEIVABLES MANAGEMENT Essay

Chapter-V Accounts Receivable Management †¢ Introduction †¢ Goals of Receivable Management †¢ Credit Management †¢ Optimum Credit Policy †¢ Credit of Account Receivable 155 Introduction Accounts receivable represent the amount due form  customers (book debts) or debtors as a result of selling goods on credit. â€Å"The term debtors is defined as ‘debt’ owned to the firm by customers arising from sale of goods or services in the ordinary course of business.† The three characteristics of receivables the element of risk, economic value and futurity explain the basis and the need for efficient management of receivables. The element of risk should be carefully analyzed. Cash sales are totally riskless but not the credit sales, as the same has yet to be received. To the buyer the economic value in goods and services process immediately at the time of sale,  while the seller expect an equivalent value to be received later on. The cash payment for goods and services received by the  buyer will be made by him in a future period. The customer  from whom receivables or book debts have to be collected in  future are called Trade debtor and represent the firm’s claim on assets. Receivables management, also termed as credit management, deals with the formulation of credit policy, in  terms of liberal or restrictive, concerning credit standard and credit period, the discount offered for early payment and the 156 collection policy and procedures undertaken. It does so in such a way that taken together these policy variables determine an optimal level of investment in receivables where the return on that investment is maximum to the firm. The credit period extended by business firm usually ranges from 15 to 60 days. When goods are sold on credit, finished goods get converted  into accounts receivable (trade debtors) in the books of the seller. In the books of the buyer, the obligation arising from credit purchase is represented as accounts payable (trade creditors). â€Å"Accounts receivable is the total of all credit extended by a firm to its customer.† A firm’s investment in account receivable depends upon  how much it sells on credit and how long it takes to collect receivable. Accounts receivable (or sundry debtors) constitute the 3rd most important assets category for business firm after plant and equipment and inventories and also constitute the 2nd most important current assets category for business firm after inventories. Poor management of accounts receivables are: neglect of  various overdue account, sharp rise in the bad debt expense, and the collection of debts expense and taking the discount by customers even though they pay after the discount date and  even after the net date. Since accounts receivable represent a sizable  investment on the part of most firms in the case of  public enterprises in India it forms 16 to 20 per cent of current assets. Efficient management of these accounts can provide  considerable saving to the firm. 157 Factors involving in Receivable management: 1. The terms of credit granted to customers deemed creditworthy. 2. The policies and practices of the firm in determining which customers are to be granted credit. 3. The paying practices of credit customers. 4. The vigoir of the sellers, collection policies and practice. 5. The volume of credit sales. Goals of Receivable Management The basic goal of credit management is to maximize the  value of the firm by achieving a trade off between the liquidity (risk and profitability). The purpose of credit management is not to maximize sales, nor to minimize the risk of bad debt. If the objective were to maximize  sales, then the firm would sell on credit to all. On the contrary, if minimization of bad debt risk were the aim, then the firm would not sell on credit to anyone. In fact, the firm should manage its credit in such a way that sales are expanded to an extent to which risk remains  within an acceptable limit. Thus to achieve the goal of  maximizing the value, the firm should manage its trade credit. The efficient and effective credit management does help  to expand sales and can prove to be an effective tool of  marketing. It helps to retain old customers and win newcustomers. Well administrated credit means profitable credit accounts. The objectives of receivable management is to  promote sales and profits until that point is reached where the 158 return on investment is further funding of receivables is less than the cost of funds raised to finance that additional credit. Granting of credit and its management involve costs. To  maximize the value of the firm, these costs must be controlled. These thus include the credit administration expanses, b/d  losses and opportunity costs of the funds tied up in receivable. The aim of credit management should be to regulate and  control these costs, not to eliminate them altogether. The cost can be reduced to zero, if no credit is granted. But the profit foregone on the expected volume of sales arising due to the extension of credit. Debtors involve funds, which have an opportunity cost. Therefore, the investment in receivables or debtors should be optimized. Extending liberal credit pushes sales and thus  results in higher profitability but the increasing investment in debtors results in increasing cost. Thus a trade off should be sought between cost and benefits to bring investment in  debtors at an optimum level. Of course the level of debtors, to a great extent is influenced by external factors such as industry norms, level of business activity, seasonal factors and the  degree of completion. But there are a lot of internal factors include  credit  terms,  standards,  limits  and  collection  procedures. The internal factors should be well administered to optimize the investment in debtors. 159 Credit Management In order that the credit sales are properly managed it is necessary to determine following factors: 1. Credit Policy 2. Credit Evaluation of Individual Buyers 3. Credit Sanction Decisions 4. Control and Monitoring of Receivables Credit Policy The first stage of credit sales is to decide policy in which most important variable is whether credit sales should be made or not and if yes to what extent i.e. what percentage of sales should be done on cash and what percentage on credit. The  discussion with cement companies marketing and financà ©Ã‚  department clearly suggest that the credit policy is more  dependent upon market forces and less on company specially  in periods when there is excessive competition which has  happened a number of times in the history of cement industry after decontrol and manufactures have been forced to provide credit if they wanted full utilization of capacity. If in the market there is practice of providing credit, those companies who do not fall in line have lower sales and so lower utilization of instilled capacity. The management has to weigh whether it  should avoid risk of realization and problem of arranging  funds for larger sales on credit or decide for reduced capacity util ization thereby resulting in higher cost per tonne of cement produced. 160 Actually the policy should be based on cost benefit  analysis of these factors but often policy is decided without detailed calculations. In actual practice when one waits to push sales the marketing department pressurizes the management to provide liberal credit to buyers to realize sales targets. Credit Rating The second virtual point of credit policy is to whom to give credit and whom it should be denied. Whether it should be given to everyone or on selective basis? As per standards one can workout impact of credit sales on profits by following formulae: ∆P = ∆S (1-V) – K * ∆I – B, ∆S in the above formula ∆P = Change in profit ∆S = Change in sales V = Ratio of variable cost to sales K = Cost of capital i.e. interest cost of credit ∆I = Increase in receivables investment B = Bad debts ratio on additional sales The change in profits (∆P) is dependent upon ratio of variable cost and fixed cost and change in sales. The figure is worked out by deducting variable cost from sales i.e. sales  minus variable cost is change in profits. The above formula appears to be very simple but for  policy purposes it requires that policy maker should be able to estimate precisely the impact of credit on sales value, the  variable cost and bad debts besides the cost of capital. In practice besides the cost of capital, it is very difficult to measure extent of increase in sales as a result of credit and it is only broad estimate of sales department. Similarly, it is very difficult if not impossible to workout likely bad debts. The variable cost can be worked out with great precision if proper costing system is maintained. Because of difficulties in  quantifying various variables in the formulae often credit  policy is decided without working details on prevailing market conditions and the need of the company to push sales at a point of time. It has been by various companies that no details are worked. Credit Period The credit period is the time length for which seller agrees to provide credit to the buyers. It varies according to the practice of trade and varies between 15 to 60 days. In some  cases for an early payment pre-agreed discount is given to  induce buyer make an early payment. For late payment in the  agreement there is provision for interest payment by buyer. If credit is given for longer period it induces to push up sales but this is true only when one provides longer period credit than competitors. The customer-distributor, dealer, consumers is attracted to a firm who provides longer period credit. The impact of credit on profits and sales can be worked out from the following formula: ∆P= ∆S (1-V)*K*∆1-b, ∆S The various components are as under : 162 ∆ P= Change in profit ∆ S= Change in sales ∆ 1= Change in investments receivables V= Ratio of variable cost to sales K= Cost of giving credit b= bad debits ratio to increased credit The discussion with the industry suggests that they rarely take decision on period of credit based on formula. It is market conditions and practices in the trade, which decides the period of credit and hardly any calculations of cost are done. In practice it is marketing department whose advice plays an  important and deciding role. In the period when sales have to be pushed up more credit is provided and there is no uniform policy overtime. During rainy season (July-Sep.) when demand is generally slack more liberal credit is granted than rest of the year. Further, when stocks accumulate due to sluggish sales,  producers accept the terms of their customers and traders  about the period of credit but when market conditions are  tight, the seller becomes more strict in providing credit. Optimum Credit Policy Credit policy refers to those decision variables that influence the amount of trade credit i.e. the investment in receivables. The firm’s investment in receivable are affected by general economic conditions, industry norms, pace of technological change, competition etc. Though the firm has no control on these factors, yet they have a great impact on it and it can certainly influence the level of trade credit through its 163 credit policy within their constraints imposed externally. The purpose of any commercial enterprise is the earning of profit. Credit itself is utilized to increase sales, but sales must return a profit. Further, whenever some external factors change, the firm can accordingly adopt its credit policy. R.J. Chambers says, â€Å"The responsibility to administer credit and collection policies may be assigned to a financial executive or marketing executive or both of them jointly depending upon the original structure and the objectives of the firm.† Different types of credit policy are: 1. Loose or Expansive Credit Policy– Firms following this policy tend to sell on credit to customers very liberally. Credits are granted even to those whose credit worthiness is not proved, not known and are doubtful. Advantages of Loose or Expansive Credit Policy: (i) Increase in Sales (higher sales), (ii) Increase in profit (higher profit), Disadvantages of Loose or Expansive Credit Policy: (i) Heavy bad/debts. (ii) Problem of liquidity (iii) Increase in cost of credit management. 2. Tight or Restrictive Credit Policy– Firms following this policy are very selective in extending credit. They sell on credit, only to those customers who had proved credit worthiness. Advantages of Tight of Restrictive Credit Policy: (i) Minimize cost. (ii) Minimize chances of bad debts. 164 (iii) Higher sales in long run. (iv) Higher profit in long run. (v) Do not pose the serious problem of liquidity. Disadvantages of Tight or Restrictive Credit Policy: (i) Restrict Sales. (ii) Restrict Profit Margin. Benefits of Credit Extension: (i) Increases the sales of the firm. (ii) Makes the credit policy liberal. (iii) Increase the profits of the firm (iv) The market value of the firms share would rise. Cost of Credit Extension: (i) Bad debt losses (ii) Production and selling cost. (iii) Administrative expenses. (iv) Cash discounts and opportunity cost. Cost Benefit Trade off Profitability 165 Aspects of Credit Policy: (i) Credit terms (a) Credit Period (b) Cash Discounts (ii) Credit Standard (iii) Collection policy or collection efforts. (i) Credit terms – The stipulations under which the firm sells on credit to its customers are called credit terms. (a) Credit Period – The time duration for which credit is extended to the customers is referred to as credit period. It is the length of time for customers under which they are allowed to pay for their purchases. It is generally varies between 15-60 days. When a firm does not extend any credit the credit period would obviously be zero. It is generally stated in terms of a net date, for example, if firm allows 30 days of credit with no discount to induce early payments credit then its credit terms are stated at ‘net 30’. Usually the credit period of the firm is governed by industry norms, but firms can extend credit for  longer duration to stimulate sales. If the firm’s bad debts build up, it may tighten up its credit policy as against the industry norms. According to Martin H. Seidhen, â€Å"Credit period is the duration of time for which trade credit is extended. During this period the overdue amount must be paid by the customer. The  length of credit period directly affects the volume of  investment in receivables and indirectly the net worth of the company. A long credit period may blast sales but it also 166 increase investment in receivables and lowers the quality of trade credit.† (b) Cash Discounts – It is the another aspect of credit terms. Many firms offer to grant cash discount to their customers in order to induce them to pay their bill early. The cash discount terms indicate the rate of discount and the period for which discount has been offered. If a customer does not avail this offer, he is expected to make the payment by the net date. In the words of Martin H. Seiden â€Å"Cash Discount prevents debtors from using trade credit as a source of Working Capital.† Liberalizing the cash discount policy may mean that the discount percentage is increased and or the discount period is lengthened. Such an action tends to enhance sales (because the discount is regarded as price reduction), reduce the average collection period (as customers pay promptly). Cash Discount is a premium on payment of debts before due date and not a compensation for the so – called prompt payment. (iii) Credit Standard – The credit standard followed by the  firm has an impact of sales and receivables. The sales  and receivables level are likely to be high, if the credit  standard of the firm are relatively low. In contrast, if  the firm has relatively low credit standard, the sales  and receivables level are expected to be relatively  high. The firms credit standard are influenced by three  Ã¢â‚¬Å"C† of credit. (a) Character – the willingness of the  customers to pay, (b) Capacity – the ability of the  customers to pay, and (c) Condition – the prevailing  economic conditions. Normally a firm should lower its credit standards to the  extent profitability of increased sales exceed the associated costs. The cost arising due to credit standard realization are administrative cost of supervising additional accounts and  servicing increased volume of receivables, bad debt losses,  production and selling cost and cost resulting from the slower average collection period. The extent to which credit standard can be liberalized  should depend upon the matching between the profits arising  due to increased sales and cost to be incurred on the increased sales. (iii) Collection policy- This policy is needed because all  customers do not pay the firm’s bill in time. There are certain customers who are slow payers and some are non-payers. Therefore the collection policy should aim at accelerating  collections from slow payers and non-payers and reducing bad debt losses. According to R.K. Mishra, â€Å"A collection policy should  always  systematization  emphasize  in  promptness,  collection  efforts. It  regularity  will  and  have  a  psychological effect upon the customers, in that, it will make them realize the attitude of the seller towards the obligations granted.† The collection programme of the firm aimed at timely  collection of receivables, any consist of many things like  monitoring the state of receivable, despatch of letter to  customers whose due date is approaching, telegraphic and  telephone advice to customers around the due date, threat of legal action to overdue accounts, legal action against overdue accounts. The firm has to be very cautious in taking the steps in  order to collect from the slow paying customers. If the firm is strict in its collection policy with the permanent customers, who are temporarily slow payers due to their economic  conditions, they will get offended and may shift to competitors and the firm may loose its permanent business. In following an optimal collection policy the firm should compare the cost and benefits. The optimal credit policy will maximize the profit and will consistent with the objective of maximizing the value of the firm. Credit Evaluation Before granting credit to a prospective customers the  financial executive must judge, how creditworthy is the  customer. In judging the creditworthiness of a customer, often financial executive keep in mind as basic criteria the four (i) Capital –refers to the financial resources of a company as indicated primarily by the financial statement of the firm. (ii) Capacity – refers to the ability of the customers to pay on time. (iii) Character – refers to the reputation of the customer for honest and fair dealings. (iv) Collateral – represents the security offered by the customer in the form of mortgages. Credit evaluation involves a large number of activities  ranging from credit investigation to contact with customers, appraisal review, follow up, inspection and recovery. These  activities required decision-making skills which can partly be developed through experience but partly it has to be learned externally. This is particularly true in area of pre-credit  appraisal and post-credit follow up. It is an important element of credit management. It helps  in establishing credit terms. In assessing credit risk, two types of error occur – (i) A good customer is misclassified as a poor credit risk. (ii) A bad customer is misclassified as a good credit risk. Both the errors are costly. Type (i) leads to loss of profit on sales to good customer who are denied credit. Type (ii)  leads in bad debt losses on credit sales made to risky customer. While misclassification errors cannot be eliminated wholly, a firm can mitigate their occurrence by doing proper credit evaluation. Three broad approaches used for credit evaluation are: A. Traditional Credit Analysis – This approach to credit  analysis calls for assuming a prospective customer in terms of 5 of credit: (i) Character, (ii) Capacity, (iii) Capital, (iv) Collateral, and (v) Conditions. To get the information on the 5 firm may rely on the following. 1. Financial statements 2. Bank references 170 3. 4. Credit agencies 5. Experience of the firm 6. B. Trade references Prices and yields on securities Sequential Credit Analysis – This method is more efficient method than above method. In this analysis, investigation is carried further if the benefits of such analysis outweighs its cost. C. Numerical Credit Scoring – This system involves the following steps. 1. Identifying factors relevant for credit evaluation. 2. Assign weights to these factors that reflect their relative importance. 3. Rate the customer on various factors, using a suitable rating scale (usually a 5 pt. Scale or a 7pt. Scale is used). 4. For each factor, multiply the factor rating with the factor weight to get the factor score. 5. Add all the factors score to get the overall customer rating index. 6. Based on the rating index, classify the rating index. D. Discriminant Analysis – The credit index described above is somewhat ad hoc in nature and is based on weight which are subjective in nature. The nature of discriminate analysis may be employed to construct a better risk index. Under this analysis the customers are divided into two categories: 1. who pay the dues (X) 171 2. who have defaulted (O) The straight line seems to separate the x’s from o’s, not completely but does a fairly good job of segregating the two groups. The equation of this straight line is Z = 1 Current Ratio + 0.1 return on equity A customer with a Z score less than 3 is deemed credit worthy and a customer with a Z score less than 3 is considered not credit worthy i.e. the higher the Z score the stronger the credit rating. (V) Risk Classification Scheme – On the basis of information and analysis in the credit investigation process, customers may be classified into various risk categories. Risk Categories Description 1. Customers with no risk of default 2. Customer with negligible risk of default (< 2%) 3. Customer with less risk of default (2% to 5%) 4. Customer with some risk of default (5% to 10%) 5. Customer with significant risk of default (> 10%) Credit Granting Decision – After assessing the credit worthiness of a customer, next step is to take credit granting decision. There are two possibilities: (i) No repetition of order. Profit = P (Rev-Cost) – (1-P) Cost 172 Where P is the probability that the customer pays his dues, (1-P) is the probability that the customer defaults, Rev is revenue for sale and cost is the cost of goods sold. The expected profit for the refuse credit is O. Obviously, if the expected profit of the course of action offer credit is positive, it is desirable to extend credit otherwise not. Customer pays (Rev-cost) Offer credit Customer default (1-P) Refuse credit (ii) Repeat Order – In this case, this would only be accepted only if the customer does not default on the first order. Under this, once the customer pays for the first order, the probability that he would default on the second order is less than the probability of his defaulting on the first order. The expected profit of offering credit in this case. Expected profit on initial order + Probability of payment and repeat order x expected profit on repeat order. [P1 (Rev1 – Cost1)-(1-P1) Cost1] + P1 x [P2(Rev2-Cost2)-(1P2) Cost2] The optimal credit policy, and hence the optimal level of accounts receivable, depends upon the firm’s own unique operating conditions. Thus a firm with excess capacity and low variable production cost should extend credit more liberally and carry a higher level of accounts receivable than a firm operating a full capacity on a slim profit margin. When a sale is made, the following events occur: 173 (1) Inventories are reduced by the cost of goods sold. (2) Accounts receivable are increased by the sales price, and (3) The differences is recorded as a profit. If the sale is for cash. Generally two methods have been commonly suggested for monitoring accounts receivable. (1) Traditional Approach (a) (b) (2) Average collection period Aging Schedule Collection Margin approach or Payment Pattern Approach (a) Average Collection Period (AC): It is also called Day Sales Outstanding (DSOI) at a given time ‘t’ may define as the ratio of receivable outstanding at that time to average daily sales figure. ACP = Accounts receivable at time â€Å"t† Average daily sales According to this method accounts receivable are deemed to be in control if the ACP is equal to or less than a certain norm. If the value of ACP exceed the specified norm, collections are considered to be slow. If the company had made cash sales as well as credit sales, we would have concentrated on credit sales only, and calculate average daily credit sales. The widely used index of the efficiency of credit and collections is the collection period of number of days sales 174 outstanding in receivable. The receivable turnover is simply ACP/360 days. Thus if receivable turnover is six times a year, the collection period is necessarily 60 days. (b) Aging Schedule – An aging schedule breaks down a firm’s receivable by age of account. The purpose of classifying receivables by age group is to gain a closer control over the quality of individual accounts. It requires going back to the receivables’ ledger where the dates of each customer’s purchases and payments are available. To evaluate the receivable for control purpose, it may be considered desirable to compare this information with earlier age classification in that very firm and also to compare this information with the experience of other firms of same nature. Financial executives get such schedule prepared at periodic intervals for control purpose. So we can say Aging Schedule classifies outstanding accounts receivable at a given point of time into different age brackers. The actual aging schedule of the firm is compared with some standard aging schedule to determine whether accounts receivable are in control. A problem is indicated if the actual aging schedule shows a greater proportion of receivable, compared with the standard aging schedule, in the higher age group. An inter firm comparison of aging schedule of debtors is possible provided data relating to monthly sales and collection experience of competitive firm are available. This tool, 175 therefore, cannot be used by an external analyst who has got no approach to the details of receivable. The above both approaches have some deficiencies. Both methods are influenced by pattern of sales and payment behaviour of customer. The aging schedule is distorted when the payment relating to sales in any month is unusual, even though payment relating to sales in other months are normal. II. Payment Pattern Approach – This pattern is developed to measure any changes that might be occurring in customer’s payment behaviour. It is defined in terms of proportion or percentage. For analyzing the payment pattern of several months, it is necessary to prepare a conversion matrix which shows the credit sales in each month and the pattern of collection associated with it. The payment pattern approach is not dependent on sales level. It focuses on the key issue, the payment behaviour. It enables one to analyze month by month pattern as against the combined sales and payment patterns. From the collection pattern, one can judge whether the collection is improving, stable, or deteriorating. A secondary analysis is that it provides a historical record of collection percentage that can be useful in projecting monthly receipts for each budgeting period. Control of Accounts Receivable Some of the important techniques for controlling accounts receivable are ratio analysis, discriminate analysis, 176 decision tree approach, and electronic data processing. Information system with regard to receivables turnover, age of each account, progress of collection size of bad debt losses, and number of delinquent accounts is also used as one of the control measures. Ratio analysis is widely used in the control of accounts receivable. Some of the important ratios used for this purpose are discussed below: (1) Average collection Period (Receivables x 365/Annual Credit Sales): The average collection period indicates the average time it takes to convert receivables into cash. Too low an average collection period may reflect an excessively restrictive credit policy and suggest the need for relaxing credit standards for an acceptable account. On the other hand too high an average collection period may indicate an excessively liberal credit policy leading to a large number of receivables being past due and some being not collectable. (2) Receivables Turnover Sales/Receivables): (Annual Credit This ratio also indicates the slowness of receivables. Both the average collection period ratio and receivables ratio must be analyzed in relation to the billing terms given on the sales. If the turnover rates are not satisfactory when compared with prior experience, average industry turnover and turnover ratios of comparable companies in the same industry, an analysis should be made to determine whether there is any 177 laxity in the credit policy or whether the problem is in collection policy. (3) Receivables to Sales (Receivables/Annual Credit Sales x 100) Receivables can be expected to fluctuate in direct relation to the volume of sales, provided that sales terms and collection practices do not change. The tendency towards more lenient credit extension as would be suggested by slackening of collections and increase in the number of slow paying accounts needs to be detected by carefully watching the relationship of receivables to sales. When credit sales figures for a period are not available, total sales figures may be used. The receivables figures in the calculation ordinarily represent year-end receivables. In the case of firms with seasonal sales, year-end receivables figures may be deceptive. Therefore, an average of the monthly closing balances figures may be more reliable. (4) Receivables as percentage of Current (Receivables/Total Current Assets Investment) Assets The ratio explains the amount of receivables per rupee of current asset investment and its size in current assets. Comparison of the ratio over a period offers an index of a firm’s changing policies with regard to the level of receivables in the working capital. Some other ratios are: 1. Size of receivable = receivable/total current assets 2. Size of debtors = debtors/total current assets 178 3. Size of loans and advances = loans and advances/total current assets The size of receivables of selected companies has been given in table 5.1 Table 5.1 Size of Receivables of the Selected Cement Companies for the years from 2003-04 to 2007-08 Year ACC Mangalam Gujarat Ambuja 0.52 0.35 0.43 0.35 0.46 0.52 0.43 0.54 0.38 0.54 0.44 0.46 Shree Cement 0.58 0.55 0.63 0.61 0.66 0.61 India Cement 0.54 0.72 0.79 0.84 0.87 0.75 Industry Average 0.53 0.53 0.61 0.61 0.62 0.58 2003-04 0.68 2004-05 0.61 2005-06 0.67 2006-07 0.64 2007-08 0.62 Company 0.64 Average Source: Based on data provided annual Reports of the cement companies. The size of receivable of all the cement companies shows  fluctuating trend throughout the study period except Gujarat Ambuja, and Shree. Both the companies show increasing trend. The minimum size of receivable in ACC is 0.61 (2004-05),  Mangalam is 0.38 (2007-08), Gujarat Amubja is 0.35 (2003-04 and 2004-05), Shree Cement is 0.55 (2004-05) and in India  Cement is 0.54 (2003-04). The maximum size of receivable in  ACC is 0.66 (2003-04), Mangalam is 0.52 (2003-04), Gujarat Ambuja is 0.54 (2007-08), and Shree cement is 0.66 (2007-08) and in India cement is 0.87 (2007-08). The study of the  composition of receivables is a very important tool to evaluate  the management of receivables. It assists to show the point where receivables are concentrated most. The size of sundry debtors in cement manufacturing   companies in India has been computed and presented in the table 5.2. Table 5.2 Size of Sundry Debtors of the Selected Cement Companies  for the years from 2003-04 to 2007-08 Shree Cement 0.22 India Cement 0.11 Industry 0.21 Mangalam Gujarat Ambuja 0.34 0.05 2004-05 0.29 0.32 0.05 0.33 0.08 0.22 2005-06 0.32 0.34 0.07 0.32 0.11 0.23 2006-07 0.28 0.31 0.08 0.27 0.14 0.22 2007-08 0.27 0.21 0.09 0.26 0.12 0.19 Company 0.28 0.30 0.07 0.28 0.11 0.21 Year ACC 2003-04 0.19 Average Source: Based on data based on Annual Report of Cement Company It is evident from the table 5.2 that the size of sundry  debtors in ACC, India Cement, Mangalam and Shree show fluctuating trend throughout the study period. Percentage to current assets was highest to 0.32 in ACC in 2005-06 and  highest 0.33 in Shree in 2004-05. Gujarat Ambuja shows  increasing trend throughout the study period. The percentage of sundry debtors to current assets where reduced shows that in those years the speed of increase in current assets was much more than that of the sundry debtors. The size of receivable of all the cement companies shows fluctuating trend throughout  the study period except Gujarat Amubja. The minimum size of  receivable in ACC is 0.21 (2003-04), Mangalam is 0.21 (2007-08), Gujarat Ambuja is 0.05 (2003-04 and 2004-05), Shree cement is 0.22 (2003-04) and in India Cement is 0.08 (2004-05). The  maximum size of receivable in ACC is 0.32 (2005-06),  Mangalam is 0.34 (2003-04 and 2005-06), Gujarat Ambuja is 0.09 (2007-08), and Shree Cement is 0.33 (2004-05) and in India Cement is 0.14 (2006-07). The average collection period of selected cement  companies has been given in table 5.3 Table 5.3 Average Collection Period in Selected Cement Companies for the years from 2003-04 to 2007-08 (in days) Year ACC Mangalam Gujarat Ambuja Shree 1999-00 34 36 7 46 India Cement 18 2000-01 43 36 7 47 20 2001-02 43 33 8 49 22 2002-03 41 27 10 48 37 2003-04 26 28 10 37 47 Company 39 32 8 45 29 Average Source: Based on data provided in Appendix The minimum Average Collection Period in ACC is 34 (2003-04), Mangalam is 27 (2006-07), Gujarat Ambuja is 7 (200304 and 2004-05), Shree Cement is 37 (2007-08) and in India Cement is 18 (2003-04). The maximum Average Collection Period in ACC is 43 (2004-05 and 2005-06), Mangalam is 36 (2003-04 and 2004-05), Gujarat Ambuja is 10 (2006-07) and  2007-08), and Shree Cement is 49 (2005-06) and in India Cement is 47 (2007-08). 181 The Creditor turnover of selected cement companies has been given in the table 5.4. Table 5.4 Creditor turnover of Selected Cement Companies or the years from 2003-04 to 2007-08 Shree 11.10 Mangalam Gujarat Ambuja 8.77 1.12 1.63 India Cement 1.40 Industry Average 4.80 2004-05 12.60 6.98 0.71 1.15 1.38 4.56 2005-06 12.93 5.80 0.63 1.41 1.09 4.37 2006-07 12.19 5.48 0.95 1.93 0.97 4.30 2007-08 13.42 3.71 0.73 1.58 0.90 4.07 Company 12.45 6.15 0.83 1.54 1.15 4.42 Year ACC 2003-04 Average Source: Based on data based on Annual Report of the cement companies It is evident from the table 5.4 that Creditor turnover in ACC and Gujarat Ambuja and Shree fluctuating trend. Mangalam and India Cement show decreasing trend all over  the study period. The minimum Creditor turnover in ACC is 1.10 (2003-04), Mangalam is 3.71 (2007-08), Gujarat Ambuja is 0.62 (2005-06), Shree Cement is 1.15 (2004-05) and in India Cement is 0.90 (2007-08). The maximum Creditor turnover in ACC is 13.42 (2007-08), Mangalam is 8.77 (2003-04), Gujarat Ambuja is 1.12 (2003-04), and Shree Cement is 1.93 (2006-07) and in India Cement is 1.40 (2003-04). The  debtors  turnover  in  cement  manufacturing  companies in India has been computed and presented in thetable 5.5. 182 Table 5.5 Size of Receivable of Selected Cement Companies  for the years from 2003-04 to 2007-08 Year ACC 10.65 Mangalam Gujarat Ambuja 10.21 50.26 2003-04 2004-05 8.58 10.21 2005-06 8.45 2006-07 2007-08 Shree 7.90 India Cement 20.45 Industry Average 19.89 52.07 7.78 17.85 19.30 11.19 44,17 7.47 16.66 17.59 8.95 13.64 36.79 7.67 9.92 15.39 10.20 13.06 37.41 9.94 7.73 15.67 Company 9.37 11.66 44.14 8.15 14.52 17.57 Average Source: Based on data based on Annual Report of the Cement Companies It is evident from the table 5.5 that the debtors turnover in ACC is fluctuating maintains approximately a fixed level. Mangalam and Gujarat Ambuja show fluctuating trend  throughout the study period. Debtors turnover was highest to 13.64 in Mangalam and 9.94 in Shree in 2006-07 and 2007-08  respectively. India Cement shows decreasing trend throughout the study period. The minimum debtors turnover in ACC is 8.45 (2005-06), Mangalam is 10.21 (2003-04 and 2004-05),  Gujarat Ambuja is 36,79 (2002-03), Shree Cement is 7.47 (200506) and in India Cement is 7.73 (2007-08). The maximum debtors turnover in ACC is 10.65 (2003-04), Mangalam is 13.64 (2006-07), Gujarat Ambuja is 52.07 (2004-05), and Shree Cement is 9.94 (2007-08) and in India Cement is 20-45 (2003-04). 183 Select References: O.M. Introduction to Financial Management (Homewood illnois: Richard D. Irwin, 1978). Lawerence D. Schal and Charles W. Haley, Financial Management, 3rd Edition. New York, McGraw Hill, 1973). S.E Bolten, Managerial Finance, (Boston: Houghton Mitten Co., 1976). R.J. Chambers, Financial Management, (Sydney: GTE Law Book Company Ltd,. 1967). Joseph L. Wood, ‘Credit and Collections’ in Daris Lillian, ed., Business Finance Handbook, (Englewood, Cliffs, New Jersey : Prentice Hall, 1962. Martin H. Seiden, The Quality of Trade Credit (New York : National Bureau of Economic Research, 1964. Theodore N. Backman, Credit and Collection: Management and Theory (New York : McGraw Hill Book Company, 1962). 184

Learning the signs of child abuse Essay Example | Topics and Well Written Essays - 1250 words

Learning the signs of child abuse - Essay Example Although nonprofits might also be interested in this workshop they may not have the ability to pay for service. My fees would be comparable to other consultant fees. In looking at fees on the Internet I found that consultants charge many different amounts for their workshops. For an online workshop I saw fees between $195 per person and $395 per person. I saw one Internet workshop to become a consultant (taught by a consultant) where she charged $297 per person. I think that I would charge as one consultant did: $395 for the first person and $195 for each person after the first one from the same company. I would require a minimum of 15 people to do a workshop and it would be a full day. I would charge the same fee for this workshop because if I showed enough value people would pay the fee. I do not believe in giving a discount rate to a nonprofit organization because it is "nonprofit." There are many nonprofits like The United Way, The American Cancer Society and others who are adept at fundraising. They understand that they must pay for services they receive. I would consider group discounts (as noted above) and I would consider shortening the workshop for an organization or business if they just wanted a half day. However, the half day fee would be based on the full day fee. I would not work towards convincing the decision maker to hire me because prior to a meeting with them I would send my marketing materials. I would first find out whether the company was the type that I describe in my target market and when they did professional development. I would find this out through a phone call. I would also find out the name of the person in charge of scheduling workshops. At that point I would send marketing materials and ask that they give a call. I would attempt to get as much information from the executive assistant or the individuals department

Explanation of the graphics figures upon budget Assignment

Explanation of the graphics figures upon budget - Assignment Example The budget line implies that if Susan spent all her income on clothing she would be able to purchase OB units of it. If on the other hand, Susan spent all her income on food, she would be able to purchase OA units of food. If she allocates her income on both goods then all combinations of food and clothing she can attain are those on or within the line AB. Thus the triangle OAB defines the combinations of food and clothing attainable by Susan, given her income and the prices of food and clothing. Assuming that Susan is rational, and the law of diminishing marginal utility holds for both goods, and she has continuous and complete preferences, her preferences can be depicted by downward sloping convex indifference curves. Susan’s objective is to attain the highest possible indifference curve within the reach of her budget set. This is shown in figure 2. Figure 2: the utility maximising choice in Adelaide As shown above in figure 2, given her budget constraint, Susan’s utility maximizing choice in Adelaide is point E. She consumes OC of food and OD of clothing and this generates the level of utility denoted by the indifference curve IC1. Linda is aware that in Melbourne the prices of both goods are higher and that food is relatively more expensive than clothing compared to the situation in Adelaide. Therefore, with her present income (that she earns by working in Adelaide) Susan will be able to by lesser of both food and clothing. Additionally, because food is rela tively more expensive, not only she will be able to buy less of food if she invests all her income in food compared to the amount of food she would be able to buy in Adelaide, the reduction in the amount of food she can buy will be more than the reduction in the amount of clothing she will be able to buy. What this implies is that i) her budget line will shrink inwards and ii) it will be relatively more flat compared to her budget line in Adelaide. This is depicted in figure 3. Figure 3: FG - Susan's budget line in Melbourne if her income remains equal to her Adelaide income In the diagram above, FG is Susan’s budget line in Melbourne if her income remains unchanged. Observe that not only can she buy fewer amounts of either products, the reduction in her capacity to purchase clothing had she chosen to invest all her income in clothing, depicted by the amount GB in the figure above, is less than the reduction in the amount of food she can buy if she invests all her income in f ood, AF. This is implied by the fact that food is relatively more expensive than clothing in Melbourne. Figure 4: Susan's new budget set relative to her old preferred bundle and utility level. Therefore, as reflected in figure 4, Susan can no longer access the utility level denoted by the indifference curve IC1 and nor can she afford the commodity bundle she preferred when she was in Adelaide. Therefore her real income will fall if she has to move to Melbourne but her income is still as it was back in Adelaide. Linda, if she has to make sure Susan accepts the offer, will have to pay her enough to ensure that her real income is at least as high as it is presently in Adelaide. There are two possible ways of achieving this. I. If Susan is paid an income so that she can purchase a commodity bundle that places her again at the utility level IC1. This implies paying her an income over her present Adelaide income that will allow her to access her old indifference curve IC1. This would be w hat is termed as the Hicksian compensation. The idea is that Susan will be back at her old real income level if she has access to her old utility level. Figure 5: The Hicksian Compensation - PQ

Abortion and Womens Rights Research Paper Example | Topics and Well Written Essays - 1750 words

Abortion and Womens Rights - Research Paper Example A woman, however, is a container for the fetus and without her, the childbirth is not even possible (Shafak, n.p.). She needs to make the decision regarding whether or not she is capable of carrying the child in her womb for a period of 9 months. Every woman must have the right to make the decision regarding abortion depending upon a number of factors like the involvement of the father, financial resources available to her, health implications as well as a matter of mere choice of whether or not she wants the baby and is willing to sacrifice her life to care for her child (Abortion Is Every Woman's Right, n.p.). A woman’s body is her own and thus no other person should be allowed to make the decision regarding what she wants, especially if she is an adult of sound mind, capable of making her own decisions. The right to abortion is a very crucial topic that needs to be discussed and taken care of because it involves the life of an unborn child. It is thus up to the woman to dec ide whether or not she wants to give life to the fetus because she herself will be able to ascertain whether or not she has the potential to do so and carry on with the pregnancy (BBC News). Many times, women fail to gather the support of the men that got them pregnant in the first place; in such a situation, how is it that a woman should not be given the right to carry on with the abortion if she wants to? (Abortion Is Every Woman's Right, n.p.). A woman is a human being too, something that a patriarchal driven society often tends to forget; it is not an easy task to carry on with pregnancy and give birth to a child especially without financial resources and proper nutrition. Unless and until a woman wants to have a child, she should not be forced into doing so because this takes away the rights of not only the mother but also her unborn child (Dreaper, n.p.). A pregnancy does not always have to be planned; in many cases, two people engaging in sexual intercourse while using all th e necessary precaution could still fall short – condoms are not a hundred percent effective and neither are birth control pills and that is why a woman should have the right to decide whether or not she wants to keep the child once pregnant (Dreaper, n.p.). Young couples could get pregnant without having the means to support a child or a plan for the future of the child and in this case, if they deem fit that they should abort the pregnancy, it is their decision. Moreover, if a woman is young and has her entire future ahead of her, she should not lay prey to society to do what is best – she should know what is best for her and take the necessary actions because otherwise, she will have to deal with the consequences (Shafak, n.p.). Pregnancies have a very adverse effect on the body of a woman; they tend to disrupt the normal course of lifestyle for her and there are many changes that she goes through in her body.  

Do you know who Paul Robeson is Assignment Example | Topics and Well Written Essays - 1250 words

Do you know who Paul Robeson is - Assignment Example Robeson’s mother, Maria Louisa Bustill came from a well known family of mixed ancestry consisting of Anglo-American, American and Lenape. She died from a house fire when Robeson was just 6 years of age. Robeson’s other siblings were: William Drew Robeson II, Rev. Benjamin C. Robeson, Reeve Robeson and Marian Robeson (Boyle and Bunie 13). Education and Early Life Robeson’s father held a strong belief that African Americans were as good as their whit counterparts. He instilled in his children this notion and made sure that they attended the same schools as white children. Robeson attended Somerville High School in New Jersey where he graduated with honors in 1915. While at the school, he participated in various activities such as acting, singing and athletics (Dorinson and Pencak 23). His academic excellence and activities in school earned him a full academic scholarship at Rutgers University. Being accepted on scholarship at Rutgers was a great feat for the young Robeson since there were only two other African Americans who had achieved the same. He was the only African American student in the university or the whole duration that he was at Rutgers. While in his third year, he became one of the only three classmates to be accepted into the Phi Beta Kappa fraternity. In 1919, he was one of the four students who were selected in the Cap and Skull honor society (28). Robeson continued to be involved in school activities while in Rutgers where he participated in debate and oratorical contests. He was the recipient of the statewide debate contest prize for four straight years (Foner 33). Robeson was also an avid singer and he was part of the campus Glee Club. However, because of the racist environment at the time, he was not allowed to travel with the group for social events and performances. Another hindrance he faced as a result of the racist climate during his studies was being denied the chance to enjoy the festivities of the universityâ€⠄¢s Philoclean Society, even though he was a duly elected member of the literary society (Boyle and Bunie 100). Just like when he was in high school, Robeson was also an all-rounder in campus. He was an excellent sportsman at Rutgers where he took part in American football, basketball, baseball and athletics. His participation in these sports earned him some 15 varsity letters. In football, he played the end position and he was so good at it that he earned himself a name in the first team All-America in 1917 and 1918. He became the first student and player from Rutgers to reach that feat (Duberman and Bauml 20). Despite his prowess in the game of football, Robeson faced numerous racial episodes, for instance when some Southern teams declined to play with a team that had an African American in the lineup. However, this did not deter him and he is considered by many to be one of the greatest football players of his time (22). Robeson was the valedictorian in his 1919 graduation class. Historians have always praised his academic and athletic excellence that few others can measure up to (Larsen 35). After graduating from Rutgers, Robeson enrolled in the Columbia Law School. To pay for his education at Columbia, Robeson worked as an athlete and a performer. He played for the Akron Pros and the Milwaukee Badgers, teams that were part of the American Professional Football Association, which later cam to be known as the National Football League. He also played

Dreaming Research Paper Example | Topics and Well Written Essays - 1500 words

Dreaming - Research Paper Example The dreams can last from a few seconds to even thirty minutes. Typically, normal human beings experience an estimated three to four dreams, however, in some instances, even seven dreams. Dreams are extremely pictorial and frequently illogical in nature. This paper explains the historical, psychological and the science behind dream reasoning. Human being have strived to understand dreams for the centuries about 3000-4000 B.C., In some aboriginal societies, participants were incapable of differentiating between the real world and the dream world. Members of these primal societies could easily opt not to make the differentiation. These primal societies perceived that the dream domain was a very strong world and moreover an extension of real world (Dreammoods, 1) In the   Roman and Greek epoch, dreams were perceived in a religious perspective. Dreams were thought to be undeviating messages from the dead or from the gods. The people of that era relied onto their dreams for clarifications what course of direction to take or on what action to do. They had faith in dreams predicted and forewarned the upcoming events. Special worship places were even constructed where individuals can visit there to sleep in the belief that a message in the form of a dream could be delivered to them. Their faith in the strength of dreams was so powerful that it even controlled the deeds of both army and political leaders. Actually, dream translators even escorted army leaders into wars to assist with war line of attack (Dreammoods, 1).  Ã‚   In ancient Egypt, priests also mediated on behalf of a dream translator. The Egyptians documented their dreams in hieroglyphics. Individual with specific vibrant and noteworthy dreams were alleged to be consecrated and were regarded as special. Individuals who had the capability to interpret dreams were highly regarded and seen as exquisitely talented.  Dreaming can be observed as a tangible dwelling where your soul and spirit

Business Environment Analysis of British Airways Assignment

Business Environment Analysis of British Airways - Assignment Example (BA) using a brief description of its mission, vision along with its long and short-term business objectives. The discussion would also focus on describing the extent to which BA addresses different objectives of the stakeholders and explain the key responsibilities of the organisation towards implementing strategies to accomplish them. Moreover, the aim of the assignment is also to understand the nature of the national environment in which BA operates, by evaluating economic system and assessing impact of the fiscal, monetary policy along with competition and regulatory mechanism on BA to achieve its business objectives. In addition, the assignment also tends to explain the current market structure of the airline industry of the UK and reveal how it determines the pricing and output decision on different airline activities of BA. Finally, the assignment will focus on the significance of key global factors that have major influence on the UK business organisations and how they shape the national business activities of BA. Founded in the year 1974, BA has long been witnessed as one of the highly reputed organisations in the global airline business industry. The organisation performs its continuous development through different unprecedented conditions of the global airline industry. In relation to the current business performance, the key purpose of BA is to maintain continuous focus on its strategy of being renowned as the world’s leading premium airline company (British Airways Plc., 2010). The mission statement of BA significantly defines delivering of effective airline services by acting responsibly to ensure better customers experience with adequate safety and confidence while flying to their respective destinations. With due regards to the mission statement of BA, providing adequate safety along with increasing confidence of the customers is the utmost factor

Ursula K Le Guin Essay Example for Free

Ursula K Le Guin Essay Ursula K. Le Guin was born Ursula Kroeber in Berkeley, California, on October 21, 1929. Her mother, Theodora Krackaw Kroeber, had an advanced degree in psychology and was a well-known writer for her narratives: Ishi in Two Worlds in 1961 and Ishi, Last of His Tribe in 1964. Le Guin’s Father, Alfred Kroeber, was a distinguished anthropologist for his work with tribes of Native Americans indigenous to California (Carmean, Williams, and Rich). Her father also taught at the University of California at Berkeley. Le Guin and her three older brothers Karl, Theodore, and Clifford were encouraged to read at a young age (Boon and Heller). During the academic year, the Kroebers lived at their home in Berkeley. When summer arrived, the family would move to their estate, Kishamish, in Napa Valley. There, the family enjoyed the company of many intellectuals: writers, scholars, graduate students, and American Indians. Also, Le Guin and her brother frequently explored their forty-acre summer home. This exploration would later influence many of her novels that are based on journeys by foot (Boon and Heller). Growing up in an environment that fostered intellectual pursuit and having unlimited access to books, sparked Le Guin’s creativity. Due to her parents’ dedication to other cultures, her fiction shows many different worldviews other than the usual Euro-American competitive materialism. Her multiple worldviews allow Le Guin’s writing to move smoothly across barriers of culture, language, gender, and ideology while exploring both dimensions of social and psychological identity (Carmean, Williams, and Rich). Le Guin discovered science fiction while reading the works of Lord Dunsany, and remarkably, she produced her first fantasy when she was only nine years old. Thereafter, a magazine rejected her first science fiction story, written when she was eleven (Carmean, Williams, and Rich). In 1947, Le Guin was enrolled in Harvard University’s Radcliffe College and graduated in 1951 with a bachelor’s degree in French and Italian with an emphasis in Renaissance literature (Carmean, Williams, and Rich). She then entered Columbia University and completed her master’s degree in 1952. Le Guin began  a doctoral program at Columbia, but in December of 1953 she decided to end her studies to marry Charles Le Guin, a history professor, in Paris, France. S he had met Charles while traveling to France as a Fulbright Fellow (Boon and Heller). After the wedding, the Le Guins lived in Georgia. While in Georgia, Ursula Le Guin taught French at Mercer University, and Charles Le Guin had successfully completed his Ph.D. in French history at Emory University. The Le Guins then moved to Idaho and had their first child, Elizabeth, in 1957, and their second child, Caroline, in 1959. In the same year, Charles Le Guin took a position at Portland State University and the family moved to Oregon permanently. The Le Guin’s third and final child, Theodore, was born in 1964 (Carmean, Williams, and Rich). Ursula Le Guin began trying to publish her work in book form instead of magazines (Carmean, Williams, and Rich). She began writing poetry, later collected in Wild Angels in 1975, and a few novels after her marriage. Publishers rejected her early works for not fitting precisely into a genre (Boon and Heller). Her breakthrough in writing occurred in September 1962, when the publishing company, Fantastic, published â€Å"April in Paris.† The following year, the same publisher printed her first science fiction story, â€Å"The Masters† (Carmean, Williams, and Rich). Le Guin began to earn prestigious awards and achieve recognition fo r her trilogy: Rocannon’s World (1966), Planet of Exile (1996), and City of Illusions (1967). In 1968, Le Guin’s A Wizard of Earthsea won the Boston Globe Horn Book Award and in 1969, The Left Hand of Darkness won both the Hugo and Nebula awards. She became the first writer to win both the Hugo Award and the Nebula Award twice for the novel The Dispossessed (1974, 1975). Since the 1970s, Le Guin has won many more awards, including several Hugos and Nebulas, Pen/USA, Locus Readers Awards, a Pushcart Prize, and a Gandalf award for achievement in fantasy (Boon and Heller). Additionally, she won the Kafka Award in 1986; a Hugo Award for â€Å"Buffalo Gals, Won’t You Come Out Tonight?† (1988); a Nebula Award for Tehanu and â€Å"Solitude† (1995); and the Endeavor Award or both The Telling (2000) and Tales from Earthsea (2001); Lastly, Le Guin was inducted into the Science Fiction Hall of Fame in 2001, and was named Grand Master by the Science Fiction and Fantasy Writers of America in 2003 (Carmean, Williams, and Rich). While most of Le Guin’s time was devoted to writing, she was also known to be involved in political activities. As she gained popularity, she  became a strong advocate for improving the quality of fantasy and science fiction. She was also a firm advocate for feminism. Her early works lightly touched on gender i ssues; later works, such as Tehanu, addressed the absence of equality directly (Carmean, Williams, and Rich). While she placed an emphasis on science fiction and gender issues, the subject of Le Guin’s work is always humankind. She uses a descriptive technique while her mode is metaphoric. Drawing from the outlook of the Daoist philosopher Laozi, Le Guin’s characters seek unity and complete self-awareness and must be able to recognize the true natures of people or objects before they can truly understand their place in the world. The characters must learn the inevitable paradoxes in life and the ambiguous nature of creation (Carmean, Williams, and Rich).

Issues Faced By Marks And Spencer Commerce Essay

Issues Faced By Marks And Spencer Commerce Essay Supply chain management  (SCM) is the process of managing an interconnected business network in the provision of service packages and products needed by the end customers within the supply chain.  The process of supply chain management spans all storage and movement of the finished goods, work in process inventory, raw material storage and finished goods from the point of origin to the place of consumption. (Buxton, 2009) It mainly involves monitoring, control, execution and design of supply chain objectives with the aim of building net value, competitive infrastructure, synchronizing and leveraging worldwide logistics with respect to the demand and supply thereby measuring performance globally. (Especially in the cases like MS). So there is every chance for of issues to take place in global supply networks. (Briggs, 2002) The suppliers bargaining power is very low in clothing industry especially when it is in retail clothing purchases and buying. The supplier of MS are changed quite often, the best example is that the company have alliance with British suppliers in order to attain high quality but later it decided to outsource it globally, this decision has been taken putting lower costs in consideration but the supplier relationships has raised questions. Now MS is no longer reliant on specific suppliers, so the bargaining power of them has drastically lowered. MS is also purchasing good in bulk which is leading the bargaining power to fall year by year. (Murray, 2013) The biggest single problem at the moment with MS is the logistics, Christmas in 2012 saw unexpectedly bad fall of 3.8% in the sales and Simon Irwin to BBC has claimed it to be the supply chain which is the cause. They are making measures to modernize it but not until 2016 and this is causing many problems with to the suppliers. Pitcher (2009) MS is undertaking a multimillion-pound plan which includes big logistical moves having automated warehouses but this transformation period is causing logistical issues in communicating the demand and forecast of the goods globally. (Foster, 2013) With the steady decrease in the pound value and European debt crisis the suppliers of UK retail giants are facing problems with profits, the currency conversion is one of the issues faced by the suppliers as MS has outsourced its supplier opportunities to other countries leaving the British companies. Moreover MS is proposing amendments to the relationship with its supplier asking them to contribute (600millions) to the revamp and innovative plans but they are missing a fact even they have to identify their core market before doing this. The supplier contributions might be very common in the non-food and food retail industry but the input levels of the suppliers will be escalated suddenly. They are expecting 1.25% retrospective levy in an year turnover. It might be a part of journey among the vendor and suppliers but having a department store format comprising of multiple brands this is raising questions to their brand name. (Mortimer, 2011). Supplier partnership with MS is not very transparent these days as there are different organizations including distinct departments are involved in their supply chain. The expectations and results of MS is creating pressure and more competition among the suppliers thereby decreasing the bargaining power. (Murray, 2013) SCOR model suggest to use a common language for the language of supply chain but MS is solely concentrating on cutting the cost when selecting the suppliers and this is effecting many past suppliers and the brand image of the company. Shifting its base to other countries rather than in UK has decreased the supply visibility of MS so the order batch size is drastically reduced where the suppliers are not able gain bigger margins on the supply to MS. Whitehead (2001) Risk management is an end to end aspect in a supply chain and all the key partners should be involved according to their demand planning and manufacturing capacity but MS during the recession had a tough time to manage financial risks of the suppliers who are in alliance. Many companies like MS are looking to shift more risk on the suppliers, they are ordering only what they need or to fill the shelves of the stores which is now becoming a new set of challenges for the suppliers. Pitcher (2009) They are trying to put the supply chain as thin as possible by taking active role in planning the demand but by limiting the product complexity which comes from the late-stage customizations and inventory-related risks the responsibility is being transformed to the suppliers who are at the end of the chain rather than distributing equally throughout the supply chain. Whitehead (2001) 2. Critically evaluate how large organizations like Marks and Spencer can work with their suppliers to increase the level of understanding and align their supply chain processes? [25 Marks] Developing supplier relationships and level of understanding: In the supply chain, the ability of Marks Spencer in actively responding to the varying needs and demands of customers is determined by the relation the company holds with buyers and suppliers. Marks Spencer has ensured the business growth of suppliers. The critical element in the business development is the trust and relationship between the suppliers and Marks Spencer. (Murray, 2013) Fairness is one of the main elements in supply chain management. (Briggs, 2002) Closely working with limited suppliers pertains to helping them for meeting the business aspirations without costing a lot for other main suppliers. In supply chain management, the starting point is coordinating the business strategy of Marks Spencer with the business plans of suppliers. This provides the direction and structure for all the suppliers. Integrity forms the heart of this process. It is very important for Marks Spencer to ensure that they have dealt with all parties in equitable and fair way such that rela tions will be sustained and there will be opportunities and developments in long term. (Buxton, 2009) Supplier Strategy Many suppliers are being in contact with Marks Spencer. This relation is interdependent as the Marks Spencer organization largely depends on the supplier capabilities in meeting the customer requirements. If the organization has successfully met the customer needs, suppliers can reap the rewards and benefits. Supplier meeting enables everyone in the supply chain to provide clear structure for wide range of products in the early stages. Key issues like which products must be used, which products should be manufactured and released and other technical priorities can be identified. (Buxton, 2009) The potential problems which hinder the business should be identified and solved. Conducting the early meetings reduces the burden on crisis management. (Foster, 2013) In meetings, discussions will also be done on developing previous seasons products such that priorities can be established in coming years. The meetings focus on sales patterns, market and fashion trends, theme boards, and color palette, components involved in various products, and fit and range of products. This will hugely increase the level of understanding. Pitcher (2009) Methods to tackle the issues and maintaining relationship with retailers Functional shifts generally take place when distinct entities in the supply chain partnership vary and it will have a substantial amount of power economically over other entities. Moreover the entities that are powerful will transfer more activities and responsibilities on to a weaker entity and the weaker entities are made to look for ways to cut the distribution or manufacturing costs. So the four key factors that global companies like MS need from their suppliers are electronic data interchange, storage of raw inventory, organization of products and various packaging activities. The retail supply chain should be optimized with the help of cross-entity functions in order to maximize the profits in the entire supply chain. There is also another retailer and supplier partnership initiative namely CPFR (collaborative planning, forecasting, and replenishment). Crum and Palmatier (2004) claimed that focal point to reduce uncertainty must be the demand knowledge of the global retailers. This will help the suppliers and in turn reduces the bullwhip effect. There should not be differences in actual orders and demand information as this will result in suppliers fulfilling orders unnecessarily. To maintain good relations the communication between the global retailers and the suppliers should be more open with trust. (Foster, 2013) Fig 1: Strategy for improvement of SCM in retail sector. Pitcher (2009) The supplier retailer trend of collaboration can be done using the VMI method (vendor managed inventory). Davis (1999) claimed that maintain VMI facilitates cost cutting for both suppliers and retailers thereby increases customer service level. VMI is a method by which vendors hold the responsibility to determine level of retail replenishment and manage the inventory of the retailer. The retailers can meet the customer demand very easily as there will be frequent replenishment according to the demand or distribution facilities. The on shelf availability of the global companies will be increased which results in increase of sales revenue of the retailer. Fig 3: Visibility enhancement in SCM (Suppliers and retailers perspectives). Whitehead (2001) The supplier also benefit as the variability of the demand is transparent. Ultimately the suppliers can be prepared well in advance to avoid logistical issues and transportation costs. Although this method incurs risks because of sharing the sensitive data across the companies it provides good results. A company like MS can implement the VMI as they are direct buyers and direct sellers in the market which makes it easy to distinguish the data shared with various suppliers. (Briggs, 2002) 3. Analyze which supply chain solutions could be employed to answer the variety in consumer demand and associated fluctuation from its customers on the global supply network of Marks and Spencer. [25 Marks] An organization should have a clear understanding about the opportunities and potential threats of their suppliers for taking competitive advantage in the market conditions. Suppliers can be defined as the collection of organizations and individuals who act as the potential sellers of services and products. Market conditions will be influenced by many factors such as changes in the buying patterns, needs, demands and expectations of customers. MS incorporates fashion, food and core products. In an organization manufacturing of various products is determined by changes in the business trends and preference of people. So, organizations have to constantly update their products and release new products for meeting the customer demands. (Buxton, 2009) If the organizational performance is not up to the standards expected by the people, the failure probability will be very high. In Marks Spencer, designing and developing new products has turned out to be one of the toughest challenges. The organization has to identify and analyze the gaps which created failure to sustain and flourish in the tough market conditions. In order to understand and analyze the complex cycle of retail market, decision makers should have entrepreneurial flair, experience and sound judgment. The best example is the UK lingerie market which is  £1.75 billion worth. The Marks Spencer is a market leader which can be indicated by the statistical figures which show that the organization is having a market share of 40%. In order to take competitive advantage, Marks Spencer should have good relation and understanding with their buyers and suppliers. (Murray, 2013) The strategic objectives of Marks Spencer are to develop new products such that they satisfy the customer needs in terms of fit and comfort and are available on demand. The products should be specified clearly such that they can be launched to any manufacturing site and provide maximum benefits. The season strategy meeting of Marks Spencer will be a good opportunity for the suppliers in discussing about their expectations and areas of growth in business. This meeting enables the decision makers of Marks Spencer in providing realistic assessment about where the suppliers have to develop. In this stage, discussions broach many issues regarding how others should be encouraged in taking their products and how the knowledge should be spread. MS supply chain and use of technological recommendations: MS has more supply chain partners all over the world and there is an increase in the supply chain initiatives. So the company should make use of the technology to meet the demand of the customers. Using technology will help MS to cut costs and communicate better. The company can make use of the international information technology to drive its suppliers as it is a unique way of supply chain. The supply chain of MS should also make use of the RFID tags which will help them to pilot the changes in the trend of the sales. With the ability to store more data in a omni-directional way with automatic barcode detection MS can provide error-free visibility, delivery and fulfillment within its supply chain. It will also decrease the labor cost as it does not need human intervention. Hence the response to the demand of the consumer and events which are unanticipated in the supply chain of MS will be expected to be faster than ever before with all these strategies. Fig 4: Meeting customer demand and reduction of time variability (Murray, 2013) Securing growth and meeting the customer demands need truly global Customer and supplier Networks, it is clear that the future of the retail giants depend on the global customers and products that are customized. So the supply chain complexity will grow accordingly and it needs to be managed effectively. (Erog, 2002). 85% of the companies in the world are expecting the supply chain complexity to grow significantly in the next decade. Hence the locations of the customers along with product variants and SKU counts grow, then the manufacturing locations might decline drastically because of outsourcing. Thereafter it is obvious that there will be scarcity in the suppliers where MS could end up not meeting the demand of it customers. So the recommendation is to configure supply chains regionally because the regional supplier will better understand the trend before bundling the goods. They can also make the logistics look better and easy. MS decision to outsource work to the global supplie rs might help them to reduce the cost but on a long term basis the distribution centers might be a supply chain problem if it expands in a faster pace than ever before. (Buxton, 2009) The major supplier for Marks Spencer over the last 50 years is the Coutaulds textiles, one of the large scale textile organizations. Both the organizations share common values and goals. The Courtaulds textiles reap the rewards if the Marks Spencers product range is successful. The textile organization firmly believes that the Marks Spencers demand for excellence and through the organizations support the Courtaulds Textiles has turned out to be one of the prominent companies. Both the organizations ever consider that the people always look for innovation and newness in products. (Briggs, 2002) This stimulated the innovation and interest which directed the market towards scientific and technological development. Following the standards of environment and quality, Coutaulds textiles have become one of the successful textile organizations. On the side MS has earned reputation in meeting the customer demand. Pitcher (2009) 4. Evaluate the role of Quality in enhancing the efficiency and effectiveness of the Marks and Spencer supply chain. [25 Marks] Role of quality: Quality in the context of supply chain has many factors involved in it, so this section brings you a critical understanding of how the quality can enhance the effectiveness of MS supply chain. (Erog, 2002) 4.1 Customer focus The core principle and idea behind quality of MS is customer focus. Quality effort arises from customer needs and end with customer acceptance. In supply chain, customers are classified as sellers, manufacturers, suppliers and users. In supply chain, problems arise due to inadequate communication between members in supply chain. (Buxton, 2009) In the process of bidding, procurement specifications are equivocal and buyers dont dare to argue about them. So as discussed earlier if the communication with the suppliers and customers are of high quality it gives the best edge for MS to enhance their supply chain effectively. 4.2 Leadership Leadership determines the effectiveness in the process of quality management. Leadership should be effective improving the quality effort. In supply chain, leadership is the core enterprise because development strategy is established through it. (Erog, 2002) Core enterprise must be a leading for adequately considering the expectations and needs of members in supply chain, lead the team members and in establishing a holistic target. In parallel, core enterprise must foster more leaders in quality assessment. MS has to consider the target and expectations of the customers by making the availability of goods with high standards. 4.3 Involvement of people The prerequisite in quality management is exertion of creativity and enthusiasm in all the employees. In supply chain, work environment should be excelsior such that employees will be inspired in showing enthusiasm and come up with creative thoughts. (Whitehead, 2001) In the system of supply chain, employees should learn the skills, technologies and principles of quality. In supply chain, the ethos of self-knowledge and self-motion can be fostered. MS Quality Control teams are cross functional and by means of establishing them we can enable the employees to actively participate in supply chain. 4.4 Process management The modern quality view focuses on the process of quality management and not on the traditional quality view. In every step of supply chain, the correlative processes involved are service, selling, inventory, production, logistics and procurement which will be having their own set of independent programs and objectives. (Murray, 2013) Some conflicts exist between suppliers and retailers but the mutual effects between the processes should be identified and managed such that the supply chain operation will be harmonious. Although MS is outsourcing supplier opportunities, if it can maintain the quality standards of the local companies it will have the best ways to improve their efficiency. System management The system approach considers the quality management as holistic system in identifying and managing the sub systems. The mutual promotion and coordinated effect in sub-systems improve the efficiency and validity of targets. In supply chain, enterprise must confirm the relation of mutual dependence in the processes, break the boundaries in members of supply chain and integrate various processes in the system of supply chain. Operational efficiency is denoted by the ability in collocating the resources rationally between sub systems. (Whitehead, 2001) Finally, in the supply chain system which comprises of supply, production, inventory, transport and distribution realizes the quality and policy of target by means of optimal operational mode. This will enhance the efficiency of supply chain process at MS. (Erog, 2002) Continual improvement The focus of modern research quality will be on continual improvement. Enterprise should improve the service quality as well as product quality and reduce the costs such that customer satisfaction is ensured. As the competition is increasing, more burden has been created in the continual improvement of supply chain process. (Erog, 2002) Logistic providers, sellers and suppliers should improve their skills for achieving the harmony and establishing the quality assurance. Core enterprise must use benchmarking for continually improving the performance. Factual approach to decision making The data available should be adequate such that decision making will be effective. Many organizations are using the technologies like POS, EDI, ERP and MRP for making decisions effectively. (Buxton, 2009). Data gathered should be analyzed for decision making. Based on the data analysis, potential problems can be found in the every stage of supply chain. Decisions should be taken accordingly for improving the organizational performance. Most importantly they should speed up the process of warehouse automation upgrades (Due till 2016) because it will affect the supply chain and logistics in a huge way Mutually beneficial supplier relationships As mentioned earlier profits margin cuts and fund requests (1.5% from suppliers) mentioned in section 1 is not good for MS to maintain supply chain quality. The recommendation provided companies work directly with the suppliers of raw materials and ensure that materials are of high quality. (Murray, 2013). Many TQM organizations are working in collaboration with suppliers for increasing the product quality. Organizations are maintaining quality action teams in consulting their major suppliers. Value will be added if there is good relation between suppliers and organization. So if the above strategies are followed in the context of quality then MS can enhance their efficiency with respect to their strong supply chain. References: Alon, (1999), International Franchising Modes of Entry, in Franchising Beyond the Millennium: Learning Lessons From the Past, Society of Franchising 13th Annual Conference. Briggs, A. (2002), St. Michael Marks and Spencer PLC. in International Directory of Company Histories, A. Hast, eds., St. James press, 124-126. Business Week (2008), Marks Sparks Isnt Throwing Off Any, (November 16), 64. Buxton (2009), MS Chief Rejigs Retail Operation, Marketing Week, 22 (12), 6. Crum and Palmatier (2004), Marks and Spencer, in International Retailing, Brenda Sternquist, eds., New York: Fairchild Publications, 159-166. Dow Jones Industrial, Executive Report Marks Spencer PLC, http:mrstg1s.djnr.com/cgibin/DJIntera_binding=get_name=nullsearchText=U.MAR, (Retrieved December 26, 2012). Ethical Trading Initiative (2008) MS: Getting Supplier Buy-In (Online) Available at http://www.ethicaltrade.org/in-action/member-performance/marks-and-spencer-getting-buy-in (Accessed on 09 January 2013) Erog, S. (2002), The Internationalization Process of Franchise Systems: A Conceptual Model, International Marketing Review , 9 (5), 19-30 Foster (2013) Top 25 Third-Party Logistics Providers Extend Their Global Reach (Online) Available at http://www.supplychainbrain.com/content/sponsored-channels/kenco-logistic-services-third-party-logistics/single-article-page/article/top-25-third-party-logistics-providers-extend-their-global-reach/ (Accessed on 10 January 2013) MS (Marks Spencer) Press Releases (1999): www.marks-andspencer.co.uk/corporate/press-releases/19990518.002.html (retrieved 5/27/99).  © MS Annual Report (2008): www.marks-and-spencer.co.ukate/annualreport/Europe(Far-East or America)/main.html (retrieved 10/9/98). Market Guide (2009), Wal-Mart Stores, Inc., (June 5), 1-15. Marketing (2009), MS Doubles Ad Budget in L20m Branding Review, (March 25), 9. McIntyre, Faye S. and Sandra M. Huszagh (1995), Internationalization of Franchising Systems, Journal of International Marketing, 3 (4), 39-56. Murray M (2013) Quality In The Purchasing Process (Online) Available at http://logistics.about.com/od/qualityinthesupplychain/a/Quality-In-The-Purchasing-Process.htm (Accessed on 11 January 2013) Murray M (2013) Quality Inspections In The Supply Chain (Online) Available at http://logistics.about.com/od/strategicsupplychain/a/Quality-Inspections-In-The-Supply-Chain.htm (Accessed on 12 January 2013) Murray M (2013) Total Quality Management (TQM) (Online) Available at http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm (Accessed on 12 January 2013) Pitcher (2009), Reality Forces UK Retail Giants To Check Out Their Strategic Options, Marketing Week, (January 21), 21-24. Whitehead (2001), International Franchising Marks Spencer: A Case Study, International Journal of Retail Distribution Management, 19 (2), 10-12.

Critical Analysis Of The Ambush Marketing Events Media Essay

Critical Analysis Of The Ambush Marketing Events Media Essay The early days of sports marketing, during the 1950s and 1960s, witnessed a significant growth in sponsorship deals and those wanting to be sponsors, but during this period anyone who wanted to become a sponsor could organize some sort of deal. Accordingly, everyone was welcome and the varying levels of competition that existed meant that there was no need to ever ambush an event. The problem with this open access model was that it did not provide sufficient funds to host major sporting events and, in particular, the Olympic Games. By the late 1970s the International Olympic Committee (IOC) had serious financial problems. This meant that it was difficult to attract bids; indeed only Los Angeles bid for the 1984 Games. When Juan Antonio Samaranch took over as president of the IOC in 1980 he took a decision which transformed the finances of the Olympics and started a revolution in sports marketing. He introduced global sponsorship and broadcasting rights. This revolution was consolidat ed by Peter Ueberroth, president of the Organising Committee for the 1984 Los Angeles Olympics, who instituted three categories of sponsor: official sponsor, official supplier and official licensee. What Samaranch and Ueberroth had done was to introduce exclusivity as a central pillar of sponsorship deals. This meant that sponsors knew that if they entered a sponsorship deal they could get the benefits of association with the Games and the exclusion of their competitors. The strategy was very successful that the Los Angeles Games actually generated an extra as have consequent Games. But a side effect of this strategy was that the excluded competitors took steps to be associated with the Games without paying any sponsorship fee. Ambush marketing was born. Ambush marketing is a marketing campaign that takes place around an event but does not involve payment of a sponsorship fee to the event. For most events of any significance, one brand will pay to become the exclusive and official sponsor of the event in a particular category or categories, and this exclusivity creates a problem for one or more other brands. Those other brands then find ways to promote themselves in connection with the same event, without paying the sponsorship fee and without breaking any laws. The Olympic Games are one of the most effective international marketing platforms in the world, reaching billions of people in over two hundred countries and territories throughout the world. Support from the business community is crucial to the staging of the Games and the operations of every organisation within the Olympic Movement. 2Revenue generated by commercial partnerships accounts for more than forty percent of Olympic revenues  and partners provide vital technical services and product support to the whole of the Olympic  Family. Each level of sponsorship entitles companies to different marketing rights in various regions, category exclusivity and the use of designated Olympic images and marks.  [3]  Some corporations paid a multi-million dollar fee for the right to be part of The Olympic Partner (TOP) program. The TOP program, managed by the International Olympic Committee (IOC), grants sponsors the exclusive worldwide marketing rights in their product categories for both the Winter and Summer Games. (The following companies are TOP Partners for the Vancouver 2010 and London 2012 Olympic Games: Coca-Cola, Acer, McDonalds, Omega, Panasonic, and Samsung). Others will look for join their companies with the Olympics and capitalize on the attendant good will without authorization of the International Olympic Committee (IOC) or payment of the mandatory sponsorship fees. This is generally referred to as ambush marketing.  [4]  This part will recognize the Olympic organizations that own and use the Olympic G ames intellectual property, how ambush marketing has been employed and challenged at prior Olympic Games and at the London Games, and the legal and ethical issues surrounding ambush marketing. The main question is the ambush marketing a legal or an illegal activity? Sport sponsorship is big business. The event owners need a huge amount money because of they try to collect the best sponsor for their sports event. The major competitions are good advertisement for the companies as well. The ambushers, those company who could not pay the expensive fees or just do not want to pay, are result huge risk for every single organizer and for the official sponsors. 5Despite the potentially large impact of the legal regulation of ambush marketing, financially and on fundamental freedoms, it is still not clear what constitutes ambush marketing. All forms of ambush marketing are bad? From the event owners point of view the ambush marketing is the worst thing ever because it threatens their ability to keep top-paying sponsors. In the same way, for the official sponsors ambush marketing is unwelcome because it increases the risk to their deal. The ambushers point of view that ambush marketing is an important commercial instrument and a natural result of free competition. Outside the sporting context ambush marketing is perfectly legitimate marketing activity. Everybody can find a lot of ambush marketing advertisements on the internet. As for the sport events, we find that ambush marketing has had some decent supporters over the years. For the reason that ambush marketing has not got a workable definition which is accepted by both of the branches. Th ere islegitimate ambush marketing. The main supporting companies such as Pepsi, Nike, Adidas, Subway, Fuji, Kodak, Wendys and Qantas have all engaged in it. Many companies who opposed ambush marketing for events which they officially sponsored have occupied in the practice themselves at other events. Before we would start to collect the arguments for and against ambush marketing in bigger deepness, it is important to mention a few well-known examples. 6The American Express advertising campaign in the Visa-sponsored 1994 Lillehammer Winter Olympics featured the perfect slogan If you are travelling to Lillehammer, you will need a passport, but you dont need a visa! 7Qantas Airlines 2000: Ansett was the official airline partner of the Sydney Olympic Games. Qantas ran a marketing campaign in the lead-up to the Games that included advertisements featuring Olympic athletes such as Cathy Freeman and using expressions such as we welcome the spirit of competition and Australia wide Olympic sale. More Australians believed that Qantas was a sponsor of the 2000 Olympics, rather than Ansett. 8In 1996 Olympics Games, Linford Christie arrived wearing the incredible electric blue contact lenses with a white Puma logo in the centre of each lens. Officially the Reebok was main sponsor of this Games. 9Pringles, Wimbledon Tennis Grand Slam, 2009: The Pringles chips are wrapped into a longish cylinder which is typical and well know thing as how the tennis balls are distributed. This comparison gave the idea of a campaign. The message was the following on the green boxes These are not tennis balls! The green boxes were the top of the cake because everybody knows that the players are playing on grass in Wimbledon. And a newest from the Football World Championship, from South-Africa (2010) where the authorized beer, the official sponsor was the Budweiser, who has paid millions for the privilege of exclusive representation during the whole competition.  [10]  But Bavarias campaign with 36 young ladies who were wearing mini-dresshas grabbed the attention. Even if the Bavarias board member said that the FIFAs reaction was ridiculous and even if it is true that the FIFA does not have got any monopoly on orange dress and people have freedom to wear what they want anytime and anywhere the FIFA is taking into consideration a legal action against the Dutch company. The Bavarias defence was not too bad, but tell the truth a bit unbelievable that 36 models at the same time would go to the football match just for supporting the Dutch team, wearing a same dress and sitting directly in front of the cameras and all of these things are just occasional 11It is not always easy to identify an ambush marketing activity. The European Sponsorship Association (ESA) has declared the following as examples of activities where the position is not so clear: Sponsoring media reporting of the event, without being an event sponsor Running generic football themed campaigns during the period of a major international football tournament (for example, the notable case of Lufthansa painting footballs on its aircraft during the 2006 World Cup). 12Governments began to outlaw almost all forms of ambush marketing for certain major sporting events at about the start of this decade. This trend was started by Australia when it had to defend the Sydney Olympic Games, the next one was South Africa in relation to the Cricket World Cup, and later the UK in relation to the London 2012 Olympic Games, and in recent times, New Zealand which last year introduced legislation aimed at protecting any major event. Such legislation often gives government ministers the power to state that key words will be protected. For example, Canadian legislation covering the 2010 Winter Olympic Games in Vancouver will strictly limit people from using generic words such as winter, Vancouver, 2010 and games.  [13]  Despite this The Subway tried to snake out from the law. Tried to make a contact between the Vancouver Winter Olympic Games and its own trade mark with its newest advertisement in which Michael Phelps was the main character. McDonalds could not look at this with a good eye, because they were the executive fast food restaurant for the Olympic Games. The wonderful swimmers of our age, Michael Phelps, was swimming all the way through the indoor swimming pools walls on an animated map to Vancouver, where as the slogan said à ¢Ã¢â€š ¬Ã… ¾the big events of the this years winter happen. The place is not called by its name in the advertisement. But everybody can guess right that on the stylized map with three of the initials of the English name of Canada CAN -, the snowy mountain peaks and the slogan unmistakable telling to us that it just could be Vancouver. It is also a well know thing that Phelps one of the most successful Olympic athletes of the whole world with 16 of his own Olympic medals, from which 14 golds. The McDonalds states it is more than enough that everybody thinks the Subway representative Phelps is the face of the Olympic Games. And the McDonalds did not make a mistake with this. 14The London Olympic Games and Paralympics Games Act 2006 contains almost the same provisions to protect the typical Olympic words such as Gold, London, summer, Games and 2012. There are two lists of protected words. If the marketers will use any two of the A list words they will breach the rules. Also if they would like to use in their campaign one A listed with one or more B listed. As for me I am sure that the ambushers can get pass these lists of words.  [15]  Moreover, the Secretary of State can add to the list by order. The law states that any person who is not certified to make an image that may create an association between that person or company and the London Olympic Games in the mind of the public will be in fall foul of the Act. Further protection was added by the Olympic Symbol etc. (Protection) Act 1995 (the 1995 Act). (Rather than sign up to the Nairobi Treaty) In addition, legislation has been passed to provide added protection to the elements that comprise the Ol ympic brand, and the brand as a whole. This is the London Olympic Games and Paralympics Games Act 2006 (the 2006 Act). This Act gives the Games organizers (event owners) the power to award licence to official sponsors to use the symbols, words and logos of the event. Some governments have progressed to criminalise the ambush marketing. For the reason that South Africa organized the Cricket World Cup in 2003 it was the first who stated that ambush marketing a criminal offence when it introduced anti-ambush marketing legislation.  [16]  It has repeated in New Zealand when they ratified the Major Events Management Act 2007 for a World Cup. Although this new law was created with the 2011 Rugby World Cup in mind, it is not specific to that event. 17Can we seriously call the ambush marketing activity as a criminal action? I do not believe so.. 18My arguments against a ban on ambush marketing consist in answering three key questions. (I based my arguments on Pà ©ter Berkes professors statements) Does a ban on ambush marketing benefit the economy? Almost in all of the other sector of the economy ambush marketing is an acceptable practice which support the competition. Banning it would constitute a major control of trade and, by benefiting a few main companies at the expense of many others, could well be anti-competitive. The fact is that major sporting events typically give grow to a large amount of business opportunities across the wider economy. Which are the normal borders of the ambush marketing? How far can the anti-ambushers go? Ambush marketing has got a lot of forms. I have already mentioned a few examples. I could write several others which one may not normally connect with ambush marketing but which have nevertheless been targeted by anti-ambush laws.  [19]  If a school deciding to organize a competition series for their students during the summer which will be called Summer Games it will be illegal or not?! There is almost a same situation if a pub is putting a chalkboard in front of the place with this script for example watch the 2012 Games here is breaking the law if the name of the pub is on the board, but if it is not, then no rules breaching. These examples show how difficult to divide the real ambushers from the normal company. It also makes more difficulty if we start to think about using of generic words like Games and Summer Anyway it would be a good question as well that why do the governments believe that major sports events need such strict protection? Many sports events have in recent years been staged without the same protection, for example, the 2006 World Cup in Germany and the 2008 European Cup in Austria and Switzerland, the 2010 European Swimming Championship in Hungary, so it is obviously possible to finance and stage a successful major sporting event without that strict anti-ambush legislation. Does existing law effectively protect the legitimate interests of sponsors? The authorized sponsors already have intellectual property and unfair competition laws. Any symbols or logos particularly for a major sports event can be protected, by intellectual property especially by trademark or copyright. Unfair competition laws are turn up where a company connect in misleading or unreliable advertising. In summary we can say there is a small line between smarter marketing and breaking the strict rules. Unless the courts clear decision or any legislation, ambush marketing will continue and increase, even it is ethical or not, illegal or just simple a clever business practice. So called parasite marketing by its critics, claiming that companies are on purpose looking for easier ways to win on their rivals sponsorship of major sport events. Supporters of ambush marketing including me as well see it as smart business. I mean all of those rules, guidelines are important to protect the official sponsors, and the sport need these sponsors, because they are very essential according to the sport financial. Events like an Olympic Games and a World Cup are incredibly expensive to put on, so they need big-money sponsors and this in turn means that the organisers must protect hardly against ambush marketing. But it is true as well that ambush marketing makes available a positive free market. B y exposing to authorized sponsors and event owners the true scope of exclusivity that any sponsor can reasonably suppose to enjoy, ambushers in effect help count the true market value of Olympic sponsorship while participating in the marketing attack in a way they think most cost effective for their company. As it looks like very well to possible sponsors of future major sports events that event organizers will not be able to stop all ambush marketing efforts, this should be a reason that is accounted for in determining the fees to be paid for an executive sponsorship. I think even in London or in another major sports event the rules will be stricter than ever before, no one can stop the developing of ambush marketing. [Word Count: 3376]