Elements of a Contract for a business Research Paper

Elements of a Contract for a business - Research Paper Example Contracts make clear what each party’s expectations are, and what each party is ready to give in return for the expected results. Elements of a business contract are many e.g. the Parties of a contact, which are the entities that are involved in the agreement. There is also the Consideration, which states and explains what the involved parties stand to gain from the agreement or arrangement. Terms and Conditions of business contacts do stipulate the obligations and rights of each party. Competent Parties; the parties involved must also be competent ones since a contract can be considered invalid in case it can be conveyed that a party was not mentally competent at the time of the contract agreement and signing. A business contract has to be of or for a Legal Purpose so that it can be regarded as being valid (www.expertlaw.com). Consideration is what both parties give to the other as the approved price for the others promises. Regularly, but not a must, the consideration is the payment of cash. It can be anything valuable including the promise of not doing something, or to desist from applying some right. The payment does not need to be fair. The courts will not intercede where a party has made a hard negotiation unless unconscionable conduct, duress or fraud is involved. If the consideration is there, then I as the former employee to the fabulous hotel will have to compensate them in one way or the other. Together with the hotel, would agree on what the compensation should be (www.smallbusiness.wa.gov.au). With in a contract, only what has been offered can be accepted. This implies that the offer has to be accepted precisely as it has been offered without conditions. If any new terms are suggested, then they are considered to be a counter offer which can be rejected or accepted. There can be numerous offers and counter offers before an agreement is reached. Who makes the final offer is not significant;

Global studies Essay Example | Topics and Well Written Essays - 1000 words - 1

Global studies - Essay Example on the quality of life in American society reveal that African Americans are the most disadvantaged and continue to lag behind the whites in every aspect in the society. For instance, African Americans tend to have low quality education, have difficulty getting employed and also accessing quality health care among others and this clearly indicates the depth of racial inequality in American society. This paper discusses how different individuals understand the issues of civil tights and racism in American society today and it covers the liberal ideals that assisted in promoting civil rights movement. The civil rights movement was a struggle by the African Americans to achieve equal civil rights as the whites including equal employment opportunities, good housing, quality education, voting rights, equal access to public facilities and most importantly the right to be free of racial discrimination. Therefore, this movement was particularly â€Å"organized to protest the unfair treatment of black Americans† (Wright 4). Basically, this movement aimed at ensuring that African Americans enjoyed the citizenship rights assured by the fourteenth and fifteenth amendments of the U.S Constitution. These amendments were very important to the civil rights movement as they guaranteed every American citizen equal citizenship (Hasday 8). Generally, the civil rights movement prompted gains for African Americans, women as well as persons with disabilities among others. African Americans’ rights of citizenship had been worn by the segregationist Jim Crow laws in the South because unde r these laws, African Americans were denied the right to vote; they were subjected to segregation; and disadvantaged when it comes to access to education, employment and healthcare among others (Ferrante 190). However, the Congress passed the Civil Rights Act in 1866 which highlighted numerous civil liberties including the right to make contracts, own and sell property and receive equal treatment under

Analysing Structure Changes due to Sony in Restructuring Mode

Analysing Structure Changes due to Sony in Restructuring Mode As directed by the Board of Directors of Sony, this report will analyse the structure of Sony Corporation from 1999-2005, the problems faced together with its responses and underlying rationales and recommendations for the benefit of the future directions of Sony. Being a multinational corporation in the electronics business, the company faces significant macroeconomic challenges. The decreasing trend in profits could be seen since 1998, possibly the main reason that prompted the need for an organisational restructuring. Whether the organisations strategy influences its structure or vice versa, the structure of Sony has to be evaluated first. In 1999, after the restructuring, the company became a tall hierachical structure with three main business areas electronic, entertainment and insurance and finance. Alongside with the unified dispersed model to face the constant market demands, the company became a divisionalized form with decentralization of dispersion of power to ease decisi on-making. The divisional structure of the electronics business is divisionalised due to its low interdependency level, adhocracy in entertainment business and professional bureaucracy in the insurance and finance business. In 2003, Transformation 60 saw a more centralised structure of Sony management-wise and financial-wise . It was found that Transformation 60 still had the company in a divisionalised form but a stronger pull to formalize in its technostructure. One of the problems faced include rapid evolution of technology causing top management to respond by investing heavily and restructuring of the organisation using a Value Creation Model and Transformation 60. Stiff market competitions resulted to partnership and takeovers for off-shoring purposes and to benefit the AV industry. The election of Howard Stringer as CEO will cause the problem in management style due to the differences in national culture. It can be concluded that Sonys management and business strategies affec t its organisational structure as it was the drop in profits that had the shareholders to pressurised the change of top management. Recommendations include the need to combine both Western and Eastern cultures under Stringer and comprehensive considerations in investment strategies. Contents Pages 1.0 Introduction 3 2.0 Business Description and Corporation Strategy 2.1 Key Figures 2.2 Correlation between Organisation Strategy and Organisation Structure 4-6 3.0 Organisational Structure 3.1 Structure of Sony in 1999 3.1.1 Internal Structure of Sony as a Whole 3.1.2 Divisional Structures of Sony 3.2 Structure of Sony in 2003 3.2.1 Divisional Structure of Transformation 60 3.2.2 Financial Structure of Transformation 60 7-12 4.0 Problems and Responses 4.1 Rapid Evolution of Technology 4.2 Market Competition 4.3 Differences in National Culture 13-16 5.0 Conclusion 17 6.0 Recommendations 18 Appendices 19 Bibliographies 20-22 1.0 Introduction As directed by the Board of Directors of Sony Corporation, this report will analyse the companys situation from 1999-2005. Sony, a world class consumer electronics makers, was facing serious concerns since the late of 1990s, such as Asian financial crisis in 1997, the tech bubble and the terrorist attacks in America in 2001. Besides, the ever increasing competition from competitors and rapid market changes are eroding the market shares of Sony. The top management confront their difficulties bravely and executed a series of actions to respond to those difficulties. This report focuses on the structure of Sony in 1999 and the restructuring in 2003, as well as the analysis of difficulties faced by Sony and how the management responded to those issues. The structure of the report starts with the business description and the corporation strategy which has significant relationship with the following sections. Then, the focus will move to structure 1999 follow with the restructuring of Sony in 2003 called Transformation 60. After the discussions about the business structure, the report will concentrate on analysing the issues associated with Sony and state the responses taken by the management and its underlying principle before concluding and with appropriate recommendations. 2.0 Business Description and Corporation Strategy Sony is one of the worlds top consumer electronics makers and employs over 167900 workers (Sony, 2010). The business operates in over 200 countries and covers the games, electronics, financial services, entertainment markets and others (ibid.). After 65 years of growth, today, the group has established a world class brand and the strong brand image can benefit its bargaining power and make the business move into new markets easily. 2.1 Key Figures Some key figures of Sony from 1997 to 2010 are listed below (Graph12). The Sales figure remained in the reasonably floating level before 2007. Unfortunately, the management and shareholders are unsatisfied with the profits, since 1998 the profits reduced nearly every year, this might have been the trigger to ignite the restructuring of Sony. Graph 1 Source: Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data Graph 2 Source: Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data 2.2 Correlation between Organisation Strategy and Organisation Structure Strategy and organisation structure are correlated to each other, even the debate of whether strategy or structure comes first is still in existence (Lynch, 2006). Therefore, to understand Sonys corporation strategy (Graph34) is significantly important before discussing the structure and restructuring of Sony. Besides, an essential portion of the study of Sonys actions is an understanding of the nature of business strategy for the Sony corporation as a whole (Mullins, 2010). Graph 3 Source: Sony Annual Report 1998 pp6, 7 Sony Annual Report 1999 pp26 Graph 4 Source: Sony Annual Report 2003 pp5-management discusses key issues 3.0 Organisational Structure This section is classified into two parts, 3.1 focuses on the structure of Sony in 1999 while section 3.2 concentrates on the restructuring in 2003. 3.1 Structure of Sony in 1999 Sony as a world class player in a diversified high-tech market was challenged with the fierce competition during the late 1990s (Sony, 1999). Therefore, the restructuring was necessary for Sony to survive in the competitive market. The group announced the organisations restructure plan in March 1999 to seize further growth opportunities in the new century and the Internet era (Sony, 1999). The structure of the organisation is determined by its age and size, technical system, power and environment (Mintzberg, 1979). Furthermore, in relation to the environment, the diversity of the environment will largely determine the structure of organization and directly affects the organisation functions into goal-seeking activities through the formal structure to achieve aims and objectives (Mullins, 2007; Mintzberg, 1979). In this diverse environment, different structures will be taken in specific department to meet different aspects of situation for Sony. 3.1.1 Internal Structure of Sony as a Whole The internal structure of Sony is a tall hierarchical structure as Sony consists of three main business areas which are electronic business, entertainment business and insurance and finance business (Graph 5). Besides, the setting up of the unified dispersed management model is to face the rapid change in market in the aforementioned pillars of Sony (Ravi, 2005). As a result, the overall structure of Sony in 1999 was divisionalized form. Schwartz and Thompson (1986) suggested that the divisionalization form can facilitate the various divisions to compete fiercely among them, with effective operations to face rapid changes in external environment. Graph 5 Source: www.Sony.net, Press Archive, March 29, 1999 Besides, centralization and decentralization depends on how organisational power is dispersed and is determined by the organization structure for decision-making and problem-solving (Schmidt, 2006). The structure of Sony in 1999 displayed Sonys trend to be decentralization to distribute the power yield. For example, Sony set up a unified dispersed management model which facilitates more functional and operational autonomy (Ravi, 2005). 3.1.2 Divisional Structures of Sony After the discussion above, the focus now moves to the structure of different divisions. The electronic business consists of various subsidiaries (Graph 6). Each subsidiary is responsible for its own different products and makes business decisions in different markets. There is little interdependence that exists between each other. Thus, the structure of electronic business was divisionalized form. Entertainment business displayed adhocracy due to its little formalisation of behaviour. Insurance Finance business displayed a Professional Bureaucracy structure due to its complex environment with highly trained skills and knowledge to offer standardisation of products and services (Mintzberg, 1979). Graph 6 Source: www.Sony.net, Press Archive, March 29, 1999 Each business division has the autonomous to make decisions in its daily operation. The Group headquarters concentrated on coordinating these business divisions to make a long-term business strategy. Nevertheless, under the complex, diverse and dynamic environment, perhaps the more organic and decentralized structure is more suitable for Sony. 3.2 Structure of Sony in 2003 Indeed, Sony restructured its organisation in 1999 into a more divisionalized and decentralised form using the unified dispersed model as a means of a Value Creation Model. Transformation 60 saw some changes in the architectural structure of the organisation with it becoming more centralised, management-wise and financial-wise. It was aimed to refining the organisational responsibilities in carrying out the operating strategies and restructuring the marketing strategies in profitable niches. The goals are to achieve more profit margins, reducing annual cost, and component outsourcing (Sony, 2003). 3.2.1 Divisional Structure of Transformation 60 Transformation 60 saw the convergence of the three pillars of Sony electronics, entertainment and financial as opposed to the unified dispersed model. The following are the divisional changes: In the electronics business, the management combined the Semiconductor Network Company, Home Electronics, Mobile Electronics and Information Technology (Sony, 2003). The entertainment business saw the joint of assets of pictures, music, game, electronics and services to enhance its position as a worldwide media company. The constructed financial holding company absorbed Sony Life Insurance Company Ltd, Sony Assurance Inc. and Sony Bank Inc. By these convergences, Sony clarified the operational structure and concentrated on the engineering, innovation and financial resources. According to the converging strategy, the new operation structure of Sony seems like a basic Machine Bureaucracy structure (Mintzberg, 1983). Although it is less dispersed than the structure in 1999, the pull to formalize by the technostructure of Sony could be seen in Transformation 60 (Mintzberg, 1981). The restructuring of Sony in 2003 was more centralised than before as a result of the serious convergences of several businesses. The tactical and strategic plans were permitted to each sectors, which points that the divisionalized form still existed. However, the power on personnel issues was controlled by the top management, as well as the supportive finance and the ultimate goal were allocated and formulated by the headquarters (Ravi, 2005). Moreover, the restructured Sony in 2003 did not belong to any specific structure of Mintzbergs pentagon t heory but the combined one (Graph 7). Graph 7 Sony organisational chart: electronics-related business (as of 1 April 2001) Source: www.sony.net, Press Release, 29th March 2001(a) 3.2.2 Financial Structure of Transformation 60 In the light of improving its fiscal position, the consolidation of fixed costs and the combining of assets reflected the change of a more centralized structure in Sony. The company aims to achieve an annualized cost reduction of approximately  ¥300 billion (Ravi, 2005). The cut in employees due to the off-shore strategy to China establish the Contribution equal to Compensation principal of paying for performances, as Schein (2004) stated that employees have worked well enough to be considered valid. Deactivating employees from Sony had cost the company financially and it might have explained the poor financial performance of Sony after the transformation was done. 4.0 Problems and Responses This section will discuss the problems associated with Sony alongside with the responses taken and its rationale. The difficulties faced by Sony have been separated into different categories mainly the rapid evolution of technology, competition in the market and the differences of national culture. 4.1 Rapid Evolution of Technology The rapid evolution of technology as pointed out by Idei (Ravi, 2005) has affected the electronics, entertainment and insurance and finance sectors of Sony. The constant improvements in technology have caused the company to respond to the demand of the market. The following are the responses made by the company alongside with its underlying rationale: Investments: Sony invested heavily in RD, capital equipment and facilities in order to meet demands and improve profitability. Technology for Inspiration and Shared Experience and Creating New Value are Sonys RD missions (Sony, 2011). The company believes that technology is capable of linking inspiration and shared experiences on top of creating new values and capturing emotions of customers (ibid.). Investment strategies link to the capability of top management of Sony. Organisation restructuring: The Company believes that the new group architecture can help gain market share besides increasing shareholders value (Sony, 1999). In this Value Creation Model, the unified dispersed management method saw changes in the electronics operations, establishment of Digital Network Solutions (DNS), changes in composition of workforce which could ultimately affect the morale of employees, implementation of new value-based performance measurement system and the separation of headquarters into two distinct functions (Ravi, 2005; Sony, 1999). Indeed, the model brings competitive advantage to Sony (Jayaranam Luo, 2007). In such a stiff market, it is understandable as to the measures taken to seize every opportunity. Unfortunately, in 2001, the September 11 attacks caused the consolidated drop in sales, affecting the fiscal position of the company (Sony, 2001b). This has proven that the Value Creation Model had loopholes, hence Transformation 60 took course. Severe cost saving measures were taken but by 2005, as a result of pressure from shareholder, a top management reshuffling with Howard Stringer as CEO (Ravi, 2005). This proves that investors of Sony began to lose confidence of the previous management team therefore it was necessary for the company to overhaul its board. 4.2 Market Competition Among Sonys competitors are LG, Samsung, Sharp, Dell and Canon. Each competitor seemed to have an advantage over Sony in different products. Below are among the steps taken by Sony to beat the competition in the market: Partnership with Solectron Corporation in year 2000 and off-shoring to China were to aid the outsourcing process of production of electronics was a step to help the company meet fluctuations in demands, cost reduction, quality improvisation and customer satisfaction (Sony, 2003; Sony, 2000). Outsourcing may be beneficial to the company as a whole but it could ultimately decrease the motivational level of employees, as there is a tendency of decrease of power of managers, and failure rate is between 40%-70% (Purse, 2009). This may explain the Sony Shock (Ravi, 2005) incident that happened in 2003 despite the laborious process of organisation restructuring. The cost-benefit consideration was not given much thought before the outsourcing was done. The takeover of Aiwa Co. Ltd. as a wholly owned subsidiary in 2002 was for the benefit of the electronics business of the company, particularly the audio and visual (AV) industry (Sony, 2002). The takeover became part of Transformation 60. It helped accelerate the structural reform of the electronics business of Sony on top of the creation of synergy as a result of the merger. 4.3 Differences in National Culture As Howard Stringer took over as the CEO of Sony in 2005, a major problem he would experience would be the differences in organisational culture. Culture refers to the way we do things around here (Sanchez, 2004). Being one of the few foreigners to be part of the top management in a Japanese company, Stringer has the responsibility of considering whether to impose the Western culture in a Japanese company. Azumi Mcmillan (1975) found that both the U.S. and Japanese culture are quite highly centralized and companys rules and procedures are abided. In Sony, although divisionalization form can be seen, the Headquarter still plays its role as a coordinator, meaning that ultimately, the decision-making process will need approval from the top management. Also, in Japan, traditional values that emphasises on hard work and details are a common practice due to its religion influences but in the U.S., creativity and innovation are the common values (Webster White, 2009). Hence, in U.S., risk-taking is very much observed. The open management style of Stringer, his understanding towards Sonys tradition and his international viewpoints could be the key to influence the cultural organisation (Sony, 2005). This can explain Stringers successes in streamlining Sonys movie and music businesses. 5.0 Conclusion Due to the external environment effect such as the Asian financial crisis, the ever increasing competition, as well as the internal business issues like the low efficiency, the profits of Sony has been reduced dramatically since 1998. Therefore the management had to execute some restructuring plan to respond to those concerns. According to the restructuring plan announced in March 1999, the structure of the group was divisionalized and more decentralization, in order to seize further growth opportunities in the 21st century. Besides, the group launched a unified dispersed management model to ensure that the business operate more efficiently and to be able to survive the rapid change of environment. Sony did a mass of changes to adapt to the market changes; unfortunately, the pace of the latter was overtaking the managements expectations. Consequently, Sony had to accelerate the reform plan and announced another restructuring plan called Transformation 60 in 2003. The change in 2003 s aw a stronger pull to formalize in the technostructure although it can be seen that there is a mixture between the machine bureaucracy and divisionalized forms. Convergences in the three sectors saw power being more focused at the top management. The change of technology, market competition and the differences in organisational culture, especially after the takeover of Stringer, were the main concerns of Sony. Organisational restructuring and investment strategies were among the solutions in coping with technological changes. Market competition forced Sony to deal with vast partnerships, joint ventures and mergers with other companies for outsourcing purposes. Finally, the change to a foreigner to lead a Japanese company spark concerns on the future of Sonys organisational culture. Nevertheless, based on the analysis that has been done, it can be concluded that Sonys management and business strategies affects its organisational structure. It was the drop in profits that led investors to force the overhauling of top management, as a result, the unified dispersed model and Transformation 60. Unfortunately, both measures failed to bring positive impacts to the companys fiscal positions. In light of the situation above, the new team led by Stringer with the probable change in organisational culture could probably help turn things around. 6.0 Recommendations Two main recommendations should be taken into account: Firstly, the future of the organisational culture of Sony has to be determined from two aspects based on the organization structure and the differences in national culture since the takeover of Stringer as CEO. Perhaps, Stringer could consider integrating the Eastern and the Western cultures to obtain the best of both worlds. Next, investment strategies of Sony may have to be re-evaluated again, as after the study of the company was done, there are hints of possibilities that failures in the companys fiscal position may have been caused by past investment decisions. Outsourcing may be beneficial but a thorough cost-benefit analysis has to be done. Investment decisions will reflect the capability of top management to stakeholders. Appendices Value Creation Model refers to the combination of intangible assets and monetary items to create additional value of the business for stakeholders, particularly shareholders (Qureshi, Briggs Hlupic, 2006; Haksever, Chaganti Cook, 2004). 2 The performance measurement system is capable of reflecting the current cost of capital of Sony 3 Before being elected as the CEO of Sony Corporation, he was the Chairman and CEO of Sony Corporation of America. Bibliographies Azumi, K Mcmillan, C (2004) Culture and organisation structure: a comparison of Japanese and British organisation, International Studies of Management and Organization. Vol. 5, no. 1, pp. 35-47. Available from: Business Source Premier. [Accessed 16 January 2011] Datamonitor (2010), Sony Corporation-Company Profile, pp4, 5 and 21, Publication date: 12 Mar 2010 Elkington, J. Masaki, T. (2004) CSR Report 2004, [online]. Available from: http://www.sony.net/SonyInfo/csr/issues/report/2004/index.html [Accessed 5 January 2010] Haksever, C, Chaganti, R Cook, R (2004) A model of value creation: a strategic view, Journal of Business Ethics. Vol. 49, no. 3, pp. 291-305. Available from: Business Source Complete. [Accessed 27 December 2010] Jayaranam, V Luo, Y (2007) Creating competitive advantage through value creation: a reverse logistics perspectives, Academy of Management Perspectives. Vol. 21, no. 2, pp. 56-73. Available from: Business Source Complete. [Accessed 23 December 2010] Lynch, R. (2006). Corporate Strategy, 4th edition, Harlow: Financial Times Prentice Hall Mintzberg, H. (1979). The Structuring of Organization.Prentice Hall, Englewood Cliff Mintzberg, H. (1983). Structure in Fives: Designing Effective Organizations. Prentice-Hall Inc. pp 169-175, pp 190-200, pp 215-222, pp 273 Mintzberg, H (1981) Organization design: fashon or fit? Harvard Business Review [online]. Vol. 59, no. 1, pp. 103-116. Available from: Business Source Complete. [Accessed 16 January 2011]. Mullins, L, J. (2007) Management and Organisational Behavior, 8th edition Harlow: Pearson Education Limited Mullins, L, J. (2010) Management and Organisational Behavior, 9th edition, Harlow: Pearson Education Limited Purse, K (2009) Outsourcing myths and workers compensation claims administration, The Australian Journal of Public Administration Vol. 69, no. 4, pp. 446-458 Available from: Business Source Complete. [Accessed 4 January 2010] Qureshi, S, Briggs, R Hlupic, V (2006) Value creation from intellectual capital: convergence from knowledge management and collaboration in the intellectual bandwidth model, Group Decision and Negotiation. Vol. 15, no. 3, pp. 197-220. Available from: Business Source Complete. [Accessed 27 December 2010] Ravi, M., (2005) Sony in restructuring Mode: Stringers Challenge (B), ICFAI Knowledge Center Sanchez, P (2004) Defining corporate culture, Communication World [online]. Vol. 21, no. 6, pp. 18-21. Available from: Business Source Complete. [Accessed 27 November 2010] Schein, E. H. (2004). Organisational Culture and Leadership 3rd editions, John Wiley Sons, Inc. Schmidt, T. (2006) A review of Structure in Fives: Designing Effective Organizations Schwartz, M. and E. Thompson, 1986, Divisionalization and Entry Deterrence, Quarterly Journal of Economics, 101, 307-321. Sony (1999) Press Releases: Sony announces new group architecture for network-centric era [online]. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/199903/99-030/index.html [Accessed 23 December 2010] Sony (1999) Press Releases: Sony Announces Organisational Structure For New Network Companies [online]. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/199903/99-038/index.html [Accessed 23 December 2010] Sony (2000) Press Releases: Sony and Solectron announce cooperation in electronics manufacturing [online]. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/200010/00-1018E/ [Accessed 4 January 2011]. Sony (2001a) Press Releases: A New Group Structure for the Next Stage of Integrated, Decentralized ManagementTransforming Sony into a Personal Broadband Network Solutions Company.[online] Available from http://www.sony.net/SonyInfo/News/Press_Archive/200103/01-017E/ [Accessed 3 January 2010] Sony (2001b) News and Information: Consolidated financial results for the second quarter ended 30 September 2001 [online]. Available from: http://www.sony.net/SonyInfo/IR/financial/fr/qfhh7c000000kl5e-att/qfhh7c000000kl6g.pdf [Accessed 27 December 2010] Sony (2002) Press Releases: Accelerating structural reform of the Sony groups electronics business  [online]. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/200202/02-0228aE/ [Accessed 5 January 2011]. Sony (2003) Press Releases: Transformation 60 confirming Sonys position as a  leading consumer brand in the 21st century [online]. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/200310/03-047E/ [Accessed 4 January 2011] Sony (2005) News Releases: Sony Corporation announces new management structure [online]. Available from: http://www.sony.net/SonyInfo/News/Press/200503/05-014E/index.html [Accessed 16 January 2011]. Sony (2010) Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data [online]. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Accessed 1 December 2010] Sony (2010) Sony Annual Report 1998 pp6, 7 Sony Annual Report 1999 pp26 [online]. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Accessed 1 December 2010] Sony (2010) Sony Annual Report 2003 pp5-management discusses key issues [online]. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Accessed 1 December 2010] Sony (2010) About Sony Group-Sony Corp. Info [online]. Available from: http://www.sony.net/SonyInfo/CorporateInfo/index.html [Accessed 3 December 2010] Sony (2010) Technology: RD Mission [online]. Available from: http://www.sony.net/SonyInfo/technology/rd/index.html [Accessed 20 December 2010] Webster, C White, A (2009) Exploring the national and organisational culture mix in service firms, Journal of the Academy of Marketing Science [online]. Vol. 38, no. 6, pp. 691-703. Available from: Springerlink. [Accessed 30 November 2010]

Story of an Immigrant :: Sudan Lost Boys Immigration Essays Papers

Story of an Immigrant The focus of this paper is Shimma. His tribal home is in Sudan. He is believed to be 21 and has resided as a refugee in the USA since August 2001. He is known as a â€Å"Lost Boy of Sudan.† I met Shimma while shopping at Wal-Mart in central Phoenix. I had been fascinated by the reports of the Lost Boys that I had heard on TV and read in the newspapers. I knew that some of the Lost Boys were being relocated to Phoenix and hoped to meet some of them along the way on my travels through out Phoenix. I had seen them at bus stops and around the city walking. They have a very distinctive appearance, not your typical African-Americans. They are tall and thin with high cheekbones and dark black skin tone. While shopping at Wal-Mart I rounded a corner and there he stood tall, dark and smiling. I got excited about finally meeting one of the Lost Boys and began to ramble. I introduced myself and inquired into his status as one of the Lost Boys. He introduced himself and confirmed that he was indeed one of the Lost Boys I had been reading and hearing about. I asked him for an interview and he offered his name and telephone number. I repeatedly tried to contact him and weeks later he agreed to meet me at a local restaurant. The day of our interview after many phone calls he arrived over an hour late, which I accounted for as cultural time difference. Shimma is a very busy man. He works at Wal-Mart and attends ESL classes two days a week at Phoenix Community College. Much of our study in this anthropology class has centered on voluntary immigration due to economic circumstances. Shimma did not migrate for economic reasons, he is a refugee seeking safety and sanctuary from his war ravaged country. The book that we read in class about refugees was a case study that considered the plight of the Hmong in Wisconsin. The Hmong are refugees from Laos who fled after US forces pulled out of the Vietnam War. I also read a book about the Hmong that dealt with a case study in California and a little girl of Hmong descent that encountered great difficulties with the medical institutions after she was diagnosed with Epilepsy.

Microeconomic Factors in Automobile Industry in India

Automobile Industry Hailed as ‘the industry of industries’ by Peter Drucker, the founding father of the study of management, in 1946, the automobile industry had evolved continuously with changing times from craft production in 1890s to mass production in 1910s to lean production techniques in the 1970s. The Asian countries, mainly by Japan, China and India, registered a 9% increase in production over last year, constituting 35. 9% of the global production. In fact China and India posted positive growth rate over 2003.This supply mainly catered to meet the demand from households where the automobiles constituted the second largest expenditure item next only to housing. Thus the global automobile industry dominated by Europe, US, Japan, and of late by China and India, continued to have a significant influence on economic development, international trade, foreign direct investment and environment-friendly practices. Total Sales Trend of Four-wheelers in India Demand Factor s 1. Financing Options Auto industry observers cite car loans as the biggest driving factor for the expansion of the Compact Car segment.At present, almost 85 per cent of all new car sales are  backed by auto finance, compared to 65 per cent five years ago. Interest rates on car loans have come down drastically in the past four or five years, which helps prospective buyers, take the plunge. The growth of the CC-segment in the  past few years can be mainly credited to factors such as rise in income levels leading to increased affordability and simultaneous reduction in interest rates leading to lower  EMIs. The drop in interest rates usually helps very few people to probably shift from the base model to a deluxe model.A larger shift happens if people are willing to take long-term loans, like five years instead of the earlier three-year loans. 2. 2. Advertising And Marketing Due to the advertising techniques adopted by all the manufacturers in the CC-Segment the sales have risen drastically. It is all due to because the companies now days are using even aggressive selling techniques for which they are even coping with the Film celebrities and Cricket stars, like Maruti has contracted Irfan Pathan as the  brand ambassador of Zen and for Santro Hyundai has contracted for Shah Rukh Khan.And the companies are even trying to approach to the customer as to their demand for  a vehicle at special interest loans, etc. They are using data according to the customers return and earning capacity for attracting the customers for their vehicles. 3. Price of the Car One of the major factors that affect the demand of any commodity in the market is the  price of the commodity. As the law of demand also states that with an increase in  price the demand of the commodity decreases and vice versa.Since, in the compact car segment market even there are very less competitors there is stiff price competition. Like the price of Zen in 2001 was Rs. 3. 93 lacs which increased to Rs. 4. 01 lacs in 2005, but still the sale of the Maruti brand keeps on increasing it was due to the company’s reputation with the customers. 4. Income of Consumer / Buyer The income of the consumer or buyer of the car is a very important factor of demand. In recent time we have seen that due to increase in the Income of the general public, there has been a shift from the Lower CC-segment cars to the Upper CC-segmentcars. 2Due to the recent increase in the number of multinationals in India, the income level of the employees have risen drastically and has made CC-segment cars an entry level car for a lot of people. The average age of a CC-segment car owner has also dropped from 35 years to 31 years in India. 5. Increase  in  Affordability The demand for passenger cars is driven mainly by greater affordability, which in turn increases the aspiration level of the customers. Today with high amount of disposable income in the hand of Indian youth, who forms major portion o f the population, P-marker has larger addressable market. 6. Demographic DriversCars being aspirational products, purchase decisions are influenced by the overall economic environment. Increase in per capita income increases the consumption tendency of the customer. Growth in per capita income and rising aspirations and changing lifestyle is leading to increased preference for cars over two-wheelers, which is also having a positive rub off on car demand. 7. Availability of Easy Financing Options A majority of PV purchases are financed through financial institutions. Over the past4-5 years car industry has been benefited through significant increase in affordability due to the decrease in EMIs.Car finance rates dropped from 17% in 2000-01 to 11%in 2005-06. However it has increased and averaged at 13. 75% in 2006-07. The current hardening of interest rates is expected to affect demand by reducing affordability. 8. New Offerings Car sales increase when a new model hits the market. Due to escalation in competition in Indian car market, frequency of new model launches has increased. In the past one year only the Indian car market has seen many launches namely SX4,Swift Diesel, Zen Estill, Spark, Logan, etc. 9. ExportsThe share of exports from domestic production is currently at 12-13%, which is much lower than current export hubs. Currently, India’s share of global passenger cars export volume stands at less than 1%. But India is fast emerging as a manufacturing hub for leading global car makers, and several manufacturers have already firmed up  plans for setting up manufacturing bases in India, which will also be used for exports. 3 Supply Factors 1. Presence  across  Segments Manufacturers with presence across various product segments can ensure higher  volume and better capacity utilization by using the common manufacturing capacity.Typically a customer upgrades from one segment to higher segment and the presence across various segments ensures th at the company retains its existing customers. 2. Efficient Operations Competition in PV segment is very intense and this requires the existing players to initiate steps to reduce their cost of production. Effective and successful operation methods like platform commonality, reduction in vendor base and workforce rationalization can help a company immensely. 3. Wide  Dealer Network and Availability  of FinanceA wide dealer network helps the company serve customers over wide geographical area. For e. g. Maruti has used its available wide service network as point of difference over competitors. The companies are tying up with the financial institutions having rural presence to provide additional financing options to customers in such areas. 4. Access  to Latest Technologies Indian PV segment is highly competitive with as many as 14 players operating in it and more than 80 models on the offering. But still any new model launch meets with increase in sales volume for the company.M oreover in a time when a substantial  portion of Indian customer is looking to upgrade in higher segment, companies with latest technologies and latest models will catch more attentions 5. Price of the Car Price of the car is one of the major factors that affect the supply as well as the demand of a car. If the price of the car is high in the market, the manufacturer or the supplier  will want to supply more units in the market so he can earn more profits. In the automotive industry where the market type is oligopoly, if one company drops its price for the car, there is a huge impact on the sales of the other cars as well as the same car.In the market the price of one car is inter-related to the price of the other  cars in the same segment. The best solution is that market equilibrium should be achieved so that the amount of the quantity demanded should be equal to the amount of the quantity supplied to achieve maximum profits. A Market Equilibrium is achieved at the point of intersection of the demand line and the supply line. The point is the equilibrium point where the quantity demanded is equal to the quantity supplied. 6. Factors of  Production There are some factors of production which influence the supply of a car likeCost of Raw Material Labor Cost Machinery Input Cost. These factors influence the supply of a car largely. If the cost of the raw material (Steel, Spare Parts, Rubber) increases there will be an increase in the cost of  production leading to decrease in profit margins. Costs like labor costs, machinery and input costs also influence the supply with the increase or decrease in these costs. 7. 7. Government Policies and Taxes If there is a change in the government policies regarding the increase in the road tax charged or the tax which is to be paid per unit sold, the supply of a car will fluctuate with the nature of the change.Recently the government has reduced the custom duty on inputs and raw material from 20% to 15% which has increased the supply. Conclusion Market economies are assumed to have many buyers and sellers, high competition and many substitutes. Monopolies characterize industries in which the supplier  determines prices and high barriers prevent any competitors from entering the market. Demand and supply refer to the relationship price has with the quantity consumers demand and the quantity supplied by producers. As price increases, quantity demanded decreases and quantity supplied increases.On the other hand, elasticity tells us how much quantity demanded or supplied changes when there is a change in any of the factor. The more the quantity changes, the more elastic the good or service. By studying various demand and supply factors affecting  the automobile industry we can conclude that an upturn or downturn in this sector is due to an aggregate effect of  multiple factors. These together govern the economies of automobile sector. Porter’s Five Forces Analysis of Indian Automobi le Sector Industry Rivalry Bargaining Power of CustomersBargaining Power of Suppliers Threat of New Entrants Threat of Substitutes Industry Rivalry Bargaining Power of Customers Bargaining Power of Suppliers Threat of New Entrants Threat of Substitutes 1. Industry Rivalry * Industry Concentration: The Concentration Ratio (CR) indicates the percent of market share held by a company. A high concentration ratio indicates that a high concentration of market share is held by the largest firms – the industry is concentrated. With only a few firms holding a large market share, the market is less competitive (closer to a monopoly).A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share. These fragmented markets are said to be competitive. If rivalry among firms in an industry is low, the industry is considered to be disciplined * High Fixed costs When total costs are mostly fixed costs, the firm must produce capacity to attain the lowest unit costs. Since the firm must sell this large quantity of product, high levels of production lead to a fight for market share and results in increased rivalry.The industry is typically capital intensive and thus involves high fixed costs * Slow market growth In growing market, firms can improve their economies. Though the market growth has been impressive in the last few years (about 8 to 15%), it takes a beat in even slight economic disturbances as it involves a luxury good. Aggressive pricing is needed to sustain growth in such situations * Diversity of rivals: Industry becomes unstable as the diversification increases. In this case the diversity of rivals is moderate as most offer products which are close to standard versions and the competitors are also mostly similar in strength Highly competitive industry: The presence of many players of about the same size little differentiation between competitors, and a very mature industry with very little g rowth were the features of a highly competitive industry. Higher the competition in the industry lower would be the profit margin. To remain ahead in competition, auto-makers were tempted to offer value added services to the customers incurring more costs 2. Threat of New Entrants These are the characteristics that inhibit the entrance of new rivals into the market and in turn protect the profits of the existing firms.Based on the present profit levels in the market, one can expect the entrance of new firms into the market or not. The entrance is however also affected by the start-up costs * Economies of scale: The Minimum Efficient Scale (MES) is the point at which unit costs are minimized. The greater the difference between the MES and the entry unit cost, greater is the barrier. Economies of scale are becoming increasingly important as competition is driving the profit margins to lower levels. Also being a capital intensive industry economies of scale have important consequence * Government policies: Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy * The passenger car industry was delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases * The norms for Foreign Investment and import of technology have been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive * At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment.The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is allowed under automatic route in this sector * The automotive industry comprising of the automobile and the auto component sectors has made rapid strides since delicensing and opening up of the sector to FD I in 1991 * The industry had an investment of about Rs. 50,000 crore in 2002-03 which has gone up to Rs. 80,000 crore by the year 2007.The automotive industry has already attained a turnover of Rs. 1,65,000 crore (34 billion USD) * The industry provides direct and indirect employment to 1. 31 crore people. The contribution of the automotive industry to GDP has risen from 2. 77% in 1992-93 to 5% in 2006-07. The industry is making a contribution of 17% to the kitty of indirect taxes of the Government With all the policies regarding the FDI and Tariff barriers as mentioned above, it has become easier for the foreign players to enter the Indian automobile industry. 3.Threat of Substitutes * The replacement market is characterized by the presence of several small-scale suppliers who score over the organized players in terms of excise duty exemptions and lower overheads. * A product’s price elasticity is affected by the presence of substitutes as its demand is affected by the chang e in the substitute’s prices * The cost of the automobiles along with their operating costs was driving customers to look for alternative transportation options * The new technologies available also affect the demand of the product E. g. In case of Maruti’s products, the threat of substitutes is high. The competition is intense as several players have products in the categories given by Maruti. However, in the 800cc range it is the market leader and the threat of substitute products is low. Price performance comparison favors heavily towards Maruti in most product categories. Also the high availability and quality of services offered by Maruti gives the customer a better trade-off 4. Bargaining Power of Suppliers * Suppliers can influence the industry by deciding on the price at which the raw materials can be sold.This is done in order to capture profits from the market. * Steel is a major input in this industry and so steel prices have a sharp and immediate impact on the product price * The industry being capital intensive switching costs of suppliers is high, other than steel as raw material which is highly price sensitive and the firm may easily move towards a supplier with lower cost 5. Bargaining Power of Buyers * It specifies the impact of customers on the product * When buyer power is strong, the buyer is the one who sets the price in the market.Here there is purchases of large volumes * There is prevalence of alternative options * Price sensitive customers were some of the factors that determined the extent of influence of the buyers in this industry E. g. : In the case of Maruti, the sales volumes have shown increasing trend over past so many years. The customers are more or less concentrated in metros or other tier two cities. The industry is also concentrated in these regions mostly. Most of them are have good amount of knowledge about the product.Except the 800cc range in other categories brand loyalty is only moderate. Also it is dif ficult to measure since repurchases are rare. Product differentiation is high as there are many categories in the passenger vehicle segment. Buyers get incentives in the form of cost discounts and better after sales services * The major focus of Indian Component suppliers is Quality as suggested by one of the Japanese Quality focus firm. The Industry association ACMA reports that over 170 of its members have already received ISO-9000 certification and 23 have received QS9000 certification.There are examples of Indian suppliers becoming single source global suppliers for leading OEMS (GM and Ford), and also becoming global leaders with Sundaram Clayton receiving the Deming award but there are few drawbacks as shown by A. T, Kearney survey which found that defect rates in India are in the range of 1000-2000 ppm against Japanese average of 100-200 ppm * The rising gasoline price is bound to influence the buyers Taxation India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government, in accordance with the provisions of the Indian Constitution.The main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are:- Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings.The Local Bodies are empowered to levy tax on properties (buildings, etc. ), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities. Excise Duty Central Excise duty is an indirect tax levied on those automobiles which are manufactured in India and are meant for home consumption. The taxable event is ‘manufacture' and the liability of central excise duty arises as soon as the automobiles are manufactured.It is a tax on manufacturing, which is paid by a manufacturer, who passes its incidence on to the customers. Types of Excise Duties Basic Excise Duty: This is the duty leviable under First Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule. Special Excise Duty: This is the duty leviable under Second Schedule to the Central Excise Tariff Act, 1985 at the rates mentioned in the said Schedule. At present this is leviable on very few items.Basic Central VAT (CENVAT) or Excise Tax Structure for Automobiles Year| CommercialVehicles| MUVs| Cars| 2 Wheelers| 3 Wheelers| Unit| | | | | ? 75 CC| > 75CC| | | 2001-02| 16| 32| 32| 16| 16| 16| %| 2002-03| 16| 32| 32| 16| 16| 16| %| 2003-04| 16| 24+1*| 24+1*| 16+1*| 16+1*| 16| %| 2004-05| 16| 24+1*| 24+1*| 16+1*| 16+1*| 16| %| 2005-06| 16| 2 4+1*| 24+1*| 16+1*| 16+1*| 16| %| 2006-07| 16| 24+1*| 24/16**+1*| 16+1*| 16+1*| 16| %| 2007-08? | 16| 24+1*| 24/16**+1*| 16+1*| 16+1*| 16| %| Source: Society of Indian Automotive Manufacturing (SIAM) – Based on Government of India Notifications,  ?Additional higher & Secondary Education Cess of 1%,  *National Calamity Contingent Duty (NCCD) of 1 %,  **16% on cars (up to 4000mm in length &1200cc for petrol & up to 4000mm in length & 1500cc for diesel) and 24% for rest National Calamity Contingent Duty (NCCD): Normally known as NCCD. This duty is levied as per section 136 of the Finance Act, 2001, as a surcharge on specified goods. Excise Duties and Cesses Leviable under Miscellaneous Act:On certain specified goods, in addition to the aforesaid duties, prescribed rate of excise duty and cess is also leviable.Education  Cesson excisable goods is levied in addition to any other duties of excise chargeable on such goods, under the Central Excise Act, 1944 or any other law for the time being in force. Customs Duty Customs Duty (Import duty and Export tax) is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Taxable event is import into or export from India. In India, the basic law for levy and collection of customs duty is Customs Act 1962.It provides for levy and collection of duty on imports and exports, import/export procedures, prohibitions on importation and exportation of goods, penalties, offences, etc. Basic Customs Tax Structure for Automobiles Year| CVs1| MUVs2| Cars| Two Wheelers| Three Wheelers| Unit| 2001-02| 35| 105/60/35| 105/60/35| 105/60/35| 105/60/35| %| 2002-03| 30| 105/60/35| 105/60/35| 105/60/35| 105/60/35| %| 2003-04| 25| 105/60/35| 105/60/35| 105/60/35| 105/60/35| %| 2004-05| 20| 105/60/35| 105/60/35| 105/60/35| 105/60/35| %| 2005-06| 15| 100/60/15| 100/60/15| 100/60/15| 100/60/15| %| 2006-07| 12. | 100/60/12. 5| 100/60/12. 5| 100/60/12. 5| 100/60/12. 5| %| 2007-08| 10| 100/60/10 | 100/60/10| 100/60/10| 100/60/10| %| Source: Society of Indian Automotive Manufacturing (SIAM) – Based on Government of India Notifications, *For Used Vehicle/New CBU/CKD & Components respectively,  1CVs = Commercial Vehicles  2MUVs = Multi-Utility Vehicles   Ã‚   Export duties are levied occasionally to mop up excess profitability in international prices of goods in respect of which domestic prices may be low at the given time. But the sweep of import duties is quite wide.

Rebecca Skloot’s story

Rebecca Skloot’s story, The Immortal Life of Henrietta Lacks, is based on Henrietta and her family. In order to learn about the indescribable Henrietta Lacks, Skloot as a result, wrote this biography on her. Skloot wanted to further her study about the Lacks family in relation to their health, personal life, and ethnic concerns associated to the story. Henrietta and her family’s knowledge about her cells and how they were being used was the main issue. Human rights that people had/have about their bodies and how they are used in medical research becomes the stories moral question.Also in questioning is race. As stated in the book, â€Å"There’s no way of knowing how Henrietta’s treatment would have differed if she’d been white. According to Howard Jones, Henrietta got the same care any white patient would have; the biopsy, the radium treatment, and radiation were all standard for the day† (Skloot, 64). There is a slight possibility that if sh e had been white she may have acquired some acknowledgement, at that moment or later, for the impact of her cells that were delivered for further study on cancer.Since this was in the 1950s, â€Å"The era of Jim Crow,† there were different outlooks of ethnicity than what there are today (Skloot, 15). Christoph stated in the book, â€Å"When you find oil on somebody’s property, it doesn’t automatically belong to them, but they do get a portion of the profits† (Skloot, 267). Awareness that people should have on different parts of their body, and how their body parts are being used around the globe for further research is also argued in the book.