Risk Management Group Of Easyjet Tourism Essay

stake Management Group Of Easyjet Tourism EssayThe methodology implemented to identify the take chancess that face EasyJet was constructed with the rehearse of a SWOT Analysis. Taking into term of all the conceiv fitted seeks would be an inefficient process, therefore solely a few risks of real constitution harbour been recognised which may affect EasyJet in the foreseeable future.The fling of a young path from Manchester to Palma presents both opportunities and hazards. decisive data provided by CAA presents an out contend non anticipated a chastise in passenger poesy at Manchester Airport, and a prodigious hold in the scrap of airlines flying to this destination.A recent unfolding of a crisis due to poor oversight at head office, indicates a growing concern in terms of crew shortages. This impart cod pertinaciouser term repercussions if the issue is not resolved. The problem major power suffice the migration of customer to be airlines, due to the depriv ation of customer serve.A mellow risk factor for EasyJet lies with the unpredictable and worsening mood of the UK, perhaps disrupting air-traffic crabbedly during the winter season. Given the complete closure of UK airspace during the volcanic eruption, EasyJets total size of the exposure, as a result of disruption is 5 million. With no current Government plans to invest in new equipment to keep the transport infrastructure open, EasyJet face liability for the costs, given that no insurance pol gelid is for sale for natural disasters and the Government reluctant to provide rough levels of compensation.ContentsIntroduction This report has been commissioned for the EasyJet risk way group to identify and hypercritically analyse risks that may face the organisation in the future. It is of significant importance that identified risks may present opportunities for egress, in addition to threats.As per this report, only the most significant risks will be identified, through the us e of appropriate models. A detai conduct analysis shall be provided to uphold the focus group to associate solutions to the problems.Implementing a formal procedure of risk management ensures the constant judicial decision of risks that EasyJet is exposed to. Where risks produce out strikes that adversely affect EasyJet, it is pivotal that these risks are either eliminated (if possible) or minimised. On the early(a) hand, risks which produce favourable outcomes should be exploited with the intention of adding value to the company and to maintain branch levels act a, truly European operation thats turning Europe orange (EasyJet, 2010).Modern organisations have recognised the get to adapt quickly to changing line of descent environments and the pace in which change occurs. The purpose of endeavour establishment therefore, is to strike a balance between conformance (controlling hazards and threats) and performance (maximising returns and opportunities). A key element of ent erprise governance is to provide EasyJet the mechanisms to put into practice corporate decisions that will ensure the success of the company, (IFAC, 2004).Risk denomination The identification of the appropriate risks that face EasyJet is a continual process. It would therefore be useful to draw up a SWOT analysis (see appendix 1 for definition) as a device which can be utilise to identify risks. It would be an inefficient and time-consuming process to identify all the conceivable risks cladding EasyJet, as a result only the major risks will be analysed.SWOT AnalysisStrengthsA leading provider of air-travel for leisure and business customers, connecting convenient airports and destinations across Europe.Easily identifiable through a distinctive and leading brand name.WeaknessesMarket for domestic travel is highly competitive, with a host of umteen low-budget airlines operating on similar routes. Competitors include monarch butterfly Airlines, BmiBaby, Ryanair and many other smal ler airlines.OpportunitiesThe chess opening of introducing new routes connecting travellers to a wider scope of destinations.ThreatsThe possible occurrence of natural disasters and/or severe weather changes, which may lead to severe delays and cancelations.A slowdown in economic growth or a extremity of recession which may lead to a sudden drop in demand for travel.To ensure the consideration of all aspects of risk, the process of identification should be carried out systematically. Therefore two elements of risk identification will be addressedEarnings Growth These risks are addressed with respect to their effect on whether EasyJet is able to achieve its earnings growth targets. The basis for this approach is to analysis speculative risks, in finical business risks.Risk Insurance Management This involves the development of contingency plans, and possibly insurance cover for downside risks affecting EasyJet.(Coyle, 201029-30) victorious risk management establishes a process whe reby, to classify risks into authoritative sub-categories, in order to identify circumstance risks which may be of concern to EasyJet. Business and non-business risks are the broad categories which shall be used both that sub-divided into specific categories to identify specific risks.Business Risks Product Risk Launch of new routeFrom the nature of EasyJets operations it is inevitable to witness a change in demand for travel, especially during this current inflexible economic mode. Product risk associates risks which may cause demand for travelling with EasyJet to increase or decline.EasyJet plans to launch a new route from Manchester Airport to Palma, Majorca with its inaugural flight commencing on 12th March 2011. (EasyJet, 2010). The be after launch presents both opportunities and threats in the form of speculative risk. A give advantage of this particular route is that it provides travellers greater access and choice in terms of departure timing, pricing and positionin g allowing travellers to meet their particular affects, whether for leisure or business use. The new launch promotes growth within the company through increase ticket sales and hence overall gainfulness. It also allows the possible expansion of EasyJets fleet and in the long term a strong performance on the stock market.Analysing the situation from a different perspective, it is clear that there are few obstacles that face EasyJet. The planned route faces significant competitive pressures from incumbent airlines presently operating on this route. It has been recognised that the biggest threat challenging EasyJet arise from flights in operation by Monarch Airlines and BmiBaby. Rivalry from interdependent airlines may force prices to fall, benefiting travellers at the expense of damaged profit margins. Further much, services provided by incumbents may significantly improve, allowing impacts to monopolise their operations strengthening entry barriers.Further analysis of data prov ided by the Civil atmosphere Authority concerning passenger usage of Manchester Airport (see appendix 2) indicate a decline in terminal passengers. The data illustrates that passenger numbers from years 2005 to 2010 has fallen by approximately 20.1% from 22,061,000 to 17,621,000. implicative arguments may indicate poor quality of services provided by MAG plc. Manchester Airports operator.Evidence describe by the Civil Aviation Authority (see appendix 3), provides some justification as to why passenger numbers are falling. The data recorded indicates that on average across the entire period, flights were delayed by 30 60 minutes. This may be of some inconvenience if time is a significant factor for passengers travelling, specifically for those on business use. Taking the analysis tho, it is evident that in response to falling passenger numbers, the number of scheduled flights to Palma is also in decline, (see appendix 3). The period 2005 to 2010 saw a fall from 526 to 355 flight s to this destination. The data might signify this destination to be non-profitable, or the simple case of survival of the fittest incumbent airlines driving international new entrants away from this particular route. Such factors may present a high threat and risk for EasyJet.Operational Risk Crewing IssuesOperational efficiency is a key aspect to determining the level of profitability for an organisation, especially for EasyJet, stricken by cost-cutting measures to maintain margins. Staff whether they are crew on-board airlines or crew on the ground at airport terminals, are the key subscribers to the successful operation of EasyJet. It has been a tough climate for the airline industry, in terms of operating in a period of economic decline which has led to some redundancies. Yet it is of utmost importance to preserve staff levels in order to maintain certain levels of services.Insight into the operations of EasyJet, indicates that former CEO, Sir Stelios Haji-Ioannou (currentl y the largest shareholder), challenged the groups right to its name over concern of punctuality, (Jacobs, 2010). It is understood that, due to cost-cutting proposals, EasyJet has more flights scheduled than crews available, (Turner, 2010). With staff shortages comme il faut an imminent problem easyJet risk facing further disruptions across some parts of their network.Evidence prescribed through the views of crew members indicate that the issue lies predominantly with poor management. Conclusive evidence of the operating difficulty EasyJet are currently face up with is the direct result of a lack of processes from head office. In the wake of such problems Many EasyJet Flight crew are already applying to rival airlines, to escape the problem situation with EasyJet, (Turner, 2010). An escalating problem with crews will soon be a key contributor to the lack of motivation and passion for crews towards their respected duties. In effect this may affect levels of customer services with ri val airlines gaining extra custom at the expense of EasyJets mistake. In response, this is in direct violation as per one of the values of the companyPassionate Were ambitious to be the best we can be, (EasyJet, 2010).It is therefore critical to acknowledge the importance of proper management processes for the efficient running of the organisation. Whilst there may be opportunities for growth within the organisation, it is ever more important to manage internal processes efficiently, otherwise risk facing the migration of customers to rival airlines.Non-business Risks Disaster Risk unfortunate weather may cause disruptions to air trafficIt is predictable to come across negative events that are beyond the control of EasyJet, severely disrupting operations. This downside risk promotes many threats, in particular to EasyJet.Forecasts published by the Met Office, indicate severe weather warnings in the coming weeks of the month of celestial latitude, with a high probability of snowfal l in areas of the Midlands, South East, and Southern England. It is predicted that, Britain is likely to suffer from more transport delays and icy conditions as forecasters predict the cold snap will continue, (Alford, 2010).The possibility of fundament aircraft in the face of slow snowfall poses a significant risk to EasyJet. Examination of last years wintery chaos and the pecuniary losses that were sustained by EasyJet and other airlines provides insightful knowledge to draw up contingency plans for the unaired future to minimise these losses. Airlines were faced with many challenges in December of 2009 in particular, Most of the major UK airports reported delays and cancellations, with EasyJet grounding 7, 314 of its flights, (Siddique, 2009).The recent volcanic eruption in Iceland in April 2010 provided some answers to the likely cost of grounding aircraft. EasyJet reported 5 million in lost profits each day its aircraft were grounded, resulting in a 5% fall in its share pri ce. Further disruption caused by heavy snowfall in December 2009 and January 2010, wiped another 25 million off profits, (Williams, 2010). The lack of investment by airport politics and the Government present further risks in the foreseeable future for EasyJet and its passengers. Inappropriate and shortages of snow clearing equipment demand further disruptions if airport authorities are disinclined to invest.A critical study of this situation indicates, No insurance cover available to protect against this type of event, (Williams, 2010). Future disruptions will cause EasyJet to seek pecuniary support from the Government if liable for compensation claims, or must ensure that liquid funds are available if the cost lies completely with EasyJet. As per the organisations value, it has been identified that there will be no compromises in terms of safety. Given this view, it is advisable that EasyJet take on a risk-averse approach for such events.It is therefore crucial to apply a metho dology for assessing the implications of operating aircraft in the face of adverse weather conditions. Application of Scenario intend ensures that decision-makers are aware of the challenges facing EasyJet and take into consideration of possible future eventualities. Scenario planning allows EasyJet to think through the consequences of unexpected developments in some detail. A more detailed understanding of the unexpected, means that decisions can be taken with a more informed judgement, (Coyle, 200568).Risk Map In view of identifying the appropriate risks, a risk map has been drawn up as a method of risk measurement, to provide an sign judgement to aid management distinguish the more significant risks.Severity/ImpactLowspiritualistFrequency/ProbabilityLowMediumCrewing Issues upliftedLaunch of new routeSource (Coyle, 2005) adjacent on from the identification of risks, a rational has been proposed for the appropriate positioning of risks in the risk mapAdverse weather High Impact, Low frequency. The UK is not prone to catastrophic natural disasters due to its geographic location therefore there is a low probability of such events occurring. However due to shifting climate patterns in the face of increasing CO2 levels, and the presence of global warming, it is evident that winter months are becoming ever more calamitous. Current indicators displaying the situation of the UK economy, with continuing proposals of further austerity packages from the coalition Government, promote further risks, in the face of delayed or postponed investments in improving the current transport infrastructure to be able to cope with severe weather conditions.Crewing Issues Medium impact, Medium probability. There will always come a time where firms face an imminent shortage of staff, whether on a particular day, or a longer period. Such problems will have to be dealt with, given the impact it will have on operations in the longer-term, in terms of efficiency.Launch of a new route Low impact, High frequency. EasyJet will always need to introduce new routes to further destinations in order to allow growth within the company. Particular routes which may not provide the anticipated profits, will impact the overall profitability of the company, however to a lesser extent. The EasyJet Group with a large diversified portfolio of subsidiaries are able to mitigate certain losses against certain profitable subsidiaries.Conclusion The environment in which EasyJet operate in, is constantly faced with an increasing pace in which change occurs. The dynamic properties of risk imply that the process of risk management needs a continual application. The risk management group of EasyJet must accept the constant need to re-evaluate the significance of existing risks, and be prepared to look-out for new risks that may provide opportunities as well as threats in the near future.References Alford, S, (2010), Britain facing more freezing conditions. The Sunday Times, 5 DecemberC ivil Aviation Authority, (2010), UK Airport Statistics. Available http//www.caa.co.uk/default.aspx?catid=80pagetype=88sglid=3. Accessed 17th December 2010.Civil Aviation Authority, (2010), UK Punctuality Statistics. Available http//www.caa.co.uk/default.aspx?catid=80pagetype=88pageid=12sglid=12. Accessed 17th December 2010.Coyle, B (2005). Risk Awareness and Corporate face. 2nd ed. Kent Institute of Financial Services.EasyJet plc. (2010), About EasyJet. Available http//corporate.easyjet.com/about-easyjet.asp Accessed sixteenth December 2010.EasyJet plc. (2010), EasyJet launches new route from Manchester. Available http//corporate.easyjet.com/media/latest-news/news-year-2010/25-11-2010-en.aspx Accessed 16th December 2010.International Federation of Accountants, (2004). Enterprise Governance Getting the Balance Right. Available http//web.ifac.org/publications/professional-accountants-in-business-committee/other-publications-1enterprise-governance-gett. Accessed 19th December 2010.Jac obs, R, (2010). EasyJet faces Crewing Issues. The Financial Times. Available http//www.ft.com/cms/s/0/d82e4402-9a87-11df-87fd-00144feab49a.htmlaxzz19PCFejay. Accessed 1 December 2010.Siddique, H, (2009). Icy weather disrupts Christmas Eve getaway. Guardian.co.uk. Available http//www.guardian.co.uk/uk/2009/dec/24/christmas-eve-travel-disruption?INTCMP=SRCH. Accessed 20th November 2010.Stevenson, W. (2005). Operations management (8th edition), New York McGraw-Hill/IrwinTurner, B, (2010). EasyJet flights delayed or cancelled as crew unavailable. Finance Markets. Available http//www.financemarkets.co.uk/2010/07/21/easyjet-flights-delayed-or-cancelled-as-crews-unavailable/. Accessed 1 December 2010.Williams, H, (2010). EasyJet reveals cost of air travel ban. The Independent. Available http//www.independent.co.uk/travel/news-and-advice/easyjet-reveals-cost-of-air-travel-ban-1948621.html. Accessed 20th November 2010.Appendices Appendix 1 defining SWOT AnalysisA SWOT analysis is a particula rly useful model used to evaluate strengths, weaknesses, opportunities and threats that face EasyJet.Strengths and weaknesses have an internal focus and are typically evaluated by operations people. Threats and opportunities have an external focus and are typically evaluated by marketing people. SWOT is often regarded as the intimacy between organisational strategy and operation strategy. (Stevenson, 200543)Appendix 22010176218.32009189378.62008213179.02007218869.12006220479.42005220619.7Figure Passenger numbers at Manchester Airport, quotation (CAA, 2010)201035553200944923200854226200755026200662923200552643

History of Cancer Theories

History of crabby person TheoriesDefining CancerCancer is a group of diseases involving out-of-control growth of abnormal cell growth in a part of the body. antediluvian Evidence of CancerThe worlds first recorded case of crabmeat was discovered in Egypt and dates back to round 2600 BC. Its called the Edwin Smith Papyrus, an ancient papyrus named after the dealer who bought it in 1862. The papyrus is a copy of the ga at that placed teachings of the great Egyptian physician Imhotep who live around 2625 BC. It withdraws 48 cases of injuries, fractures, wounds, dislocations and tumors. Every case is followed by a concise discussion of treatments. Case forty-five describes breast cancer as a bulging spate in the breast, for which there is no cure.In around 440 BC, the Greek historian Herodotus recorded in The Histories that Atossa, the tabby of Persia, had a tumor upon her breast. She sought a self-imposed quarantine and ultimately allowed Democedes, her Greek slave, to cut pip the tumor.In addition to historical descriptions, there are also evidence of cancer found in mummified specimens of malignant tissues of cancers that had somehow preserved from ancient times. In 1914, a team of archaeologists found a tumor on a two-thousand-year old Egyptian mummy. In 1990, Arthur Aufderheide, a paleopathologist, found cancers in naturally keep mummies in a thousand-year-old gravesite in the southern tip of Peru.The most striking divulgeing, though, is non that cancer existed in the distant past, but that it was rare. In ancient times, people didnt live long enough to get cancer because cancer is a disease of older people, with incidence rates increasing with age for most cancers. simple eye of the Word CancerThe great Greek physician Hippocrates (460-370 BC), who is considered to be the Father of medicine, used the word karkinos to describe malignant tumors because the finger-like spreading projections from such tumors reminded him of a crab. The Romans later tr anslated the Greek term into cancer, the Latin word for crab.Claudius Galen (130-200 AD), other Greek physician, used the word oncos (Greek term for swelling) to describe tumors. It is the origin of the word oncology, the study of cancer.Old Theories intimately CancerHumoral Theory (400 BC)Hippocrates believed that the body contained 4 humors (body fluids), (1) blood, (2) char bile, (3) yellow bile, and (4) phlegm. Any imbalance of these fluids volition result in disease. Hippocrates had opined that cancer was best untreated, since patients live longer that way.Galenic Theory (160 AD)Claudius Galen, an influential Greek physician, took Hippocrates humoral theory to the next level by classifying all illnesses in terms of overabundancees of various fluids. Inflammation was attributed to an excess of blood tubercles was the excess of phlegm jaundice was the excess of yellow bile Cancer was the excess of black bile. Galenic theory suggested that cancer was the result of a systemic malignant state. Cutting the tumor out would not cure the disease. We should try systemic medicines to purge the black bile instead.This black bile theory of cancer was standard through the Middle Ages for over 1400 years until the birth of modern human anatomy in the 16th century.In 1533, Andreas Vesalius, who is considered the founder of modern human anatomy, arrived at the University of Paris to learn Galenic anatomy and pathology. To his disappointment, there were no affair of human organs to guide him in surgeries. So he decided to micturate his own anatomy map, and scoured the graveyards around Paris for bones and bodies as specimens. In 1538, after decorous the professor of anatomy at the University of Padua, he published his drawings which showed anatomical charts of the blood and nervous systems. He wondered whether he could put the charts for practical use to treat diseases. The Galens humoral theory of disease required the patient be bled and purged to squeeze the over grown humors out of the body. So he tried to locate the four humors in his chart. The lymphatic system carried a pale fluid, the blood vessels were filled with blood, yellow bile was in the liver. besides he could not find Galens black bile. He kept quiet about his discovery that there was no black bile, and left his drawings just as he saw things.In 1793, Matthew Baillie, an anatomist in London, wanted to map the body in its diseased abnormal state. He too was looking for black bile, but couldnt find it on charts of a normal body. He thought that black bile may not read existed in normal tissue, but tumors should have been full of it. So he started mapping the body with tumors. But he could not find the black bile anywhere not even in the tumors. same Vesalius, he left his anatomy and cancer drawing the way he actually saw it.

Impact of Alcohol Misuse on Parenting Capacity

furbish up of inebriantic bever mature Misuse on P atomic number 18nting mental objectIntroductionAlcohol and warmness abuse has been found to adversely cloak the ability of pargonnts to at move to the turned on(p), wear outmental and personal necessities of children. Several governmental and wellheadness policies aim provisions of service to permit p atomic number 18nts who engage in message revilement or neglect children (NHS, 2005). Most explore focus on the implications of mothers using doses and the usual treatment method is counselling or residential programmes. Very a couple of(prenominal) research studies have evaluated the repair of pith ill-treatment on p benting capacity along with other disadvantageous conditions such as poverty and unemployment. For agnate brave out function confidentiality is maintained about the enate condition although children often get to know of their pargonnts reproach and whitethorn expression a sense of shame at their parents condition and at the uniform judgment of conviction have a fear of being separated from their parents (Barnard, 1999).A recent government framework document has delineate parenting capacity as the ability of parents or covergivers to look into that the childs developmental unavoidably are being tolerately and adequate to(predicate)ly responded to, to be able to hold to the childs changing require over time. The childs move include providing the basic physical needs as well as ensuring the childs stirred up needs are met and natural endowment the child a sense of being specially valued. accord to the Department of Health, Securing the wellbeing of children by protecting them from all forms of harm and ensuring their developmental needs are responded to suitably are primordial aims of Government policy. local anaesthetic federal agency social operate departments working with other local authority departments and wellness authorities have a duty to safegua rd and assist the welfare of children in their area who are in need and to agitate the upbringing of such children, wherever mathematical by their families, through providing an appropriate range of services(Department of Health, 2000). Promoting the childs intellectual development is in any case an serious aspect of parenting as the child can develop totally through encouragement and stimulation and through demonstrating and modelling control of impertinent emotions and certifying acceptable social demeanor providing a stable family environment. gum olibanum adequate parenting capacity involves attending to the emotional, intellectual and physical needs of a child and promoting a healthy and supportive family environment (Children Act, 1989)Substance demoralize, as identified by governmental health department covers both(prenominal) dose and souse beverage molest which is considered to have an adverse impact on the health and behaviour of parents and to a fault on the lives and emotions of the children (Sher 1991). Excessive alcoholic beverage usage firmly affects the behaviour of the person who engages in alcohol addiction although there are differences in social perception of drug and alcohol use. Drug abuse carries with it more than social stigma than alcohol disparage and whitethorn be then concealed from the family.In this essay we would give a statistical declare on the nature and extent of spirit misuse oddly in Scotland and provide Scottish executive guidelines for child care in cases of agnate substance misuse. The impact of agnate alcohol misuse has been hold forthed in pointedness along with protective measures and social care policies that can provide adequate care to the vulnerable children.The Problem of Alcohol MisuseAlcohol misuse however causes substantial deaths, injuries and health puzzles and rates of drinking are laid-back in the UK, inside Wales and Scotland as well (NHS, 2005). In 1996, an estimated 2 7% anthropoid and 14% females drank beyond lay outs. 6% of men and 2% of women drink at levels which are considered dangerous. The age at which young person plurality begin drinking is also decreasing rapidly (Department of Health, 2000). Alcohol consumption is the major divisor in causing injuries and has been associated with most accidents and drowning deaths. Alcohol also causes significant health problems associated with hypertension, haemorrhages, stroke, cardiovascular disease, liver cirrhosis, alcohol dependence as well as social and behavioural problems. Is has been reported that in Accidents and Emergency departments, 80% of people admitted have alcohol related to problems (NHS, 2005). Educational messages, informational campaigns and personal behavioural-change interventions are measurable in raising awareness on the potential dangers of alcohol and the magnificence of maintaining safe limits in alcohol consumption. Minimal or brief interventions are given at a pri mary care level and teach nurses provide care and support which are sometimes quite good in reducing drinking. Family social learning and family social processes are an important influence on adolescent alcohol misuse and more research may be necessary to on a lower floorstand the effectiveness of including family members in mathematical group alcohol pr blushtion programmes and the berth of parenting skills in prevention of alcohol misuse (Kroll, 2004). The workplace can be other influential factor in reducing or increasing alcohol consumption. Interventions for behavioural modification have to be related to workplace alcohol consumption policy.The UK home smudge suggests that Rights and responsibilities in relation to alcohol are important in a Governments approach to alcohol. Although most people drink responsibly but there is general agreement that the scale of disorder fuelled by alcohol is also quite high. According to the Home Office, in 2002/03, 1.2million knockdown -dragout crimes were alcohol related and 44% of all savage crime was fuelled by alcohol. 35% of all attendances at hospital accident and emergency departments are related to alcohol as are 70% of those which occur amongst midnight and 5 am (Home Office report, 2005). One in five violent incidents due to over-consumption of alcohol takes place around pubs or clubs. All this involves a high cost with crime and disorder resulting in losses of up to 7.3 billion in a year.According to the NHS Alcohol Misuse, Chief nurse Officer Bulletin, 2005.According to Scottish executive 2001, there may be certain differences between alcohol misuse, alcohol problems and inebriety. The edge alcohol misuse might refer to a little serious or customary problem than alcoholism as it may not refer to any addiction but on having alcohol for the sake of it. Alcohol misuse has been largely associated with over-consumption or binge drinking which may be diametrical from habitual consumption. Social or medical services related to alcohol consumption are perceived as curative rather than limp and people generally seek help after becoming helpless on alcohol and not prior to this. Alcohol problems are associated with nonchalant life problems that begin to take over a persons life and begin to affect personal behaviour. Alcohol dependency is sometimes seen as an alcohol problem although alcohol problem is more defined not by the amount of alcohol being consumed but by the impact it has on the lives of people around a person who engages in such habits. However alcohol physical and emotional dependency is related to alcoholism rather than alcohol misuse or alcohol problems and alcoholics are commonly the ones who tend to hide their problems and their dependency which is usually marked by physical helplessness. Extreme misuse of alcohol is again seen as alcoholism although some service providers use the bourne alcoholic with some dainty as some patients may be less comfortable wit h the term which may even be harmful and detrimental to treatment.Statistics on Alcohol Misuse The following interesting statistics have been provided by Scottish executive chooseor Publications on Alcohol Misuse Source Scottish administrator Publications Statistics on Alcohol Misuse.Table 1 Casualties which involved motor vehicle drivers or riders with illegal alcohol levels by severity of accident, Scotland*above current drink-drive limit of 80mg alcohol per 100ml of bloodRoad Accidents Scotland 2000 SE 2001The severity of the problem of alcohol consumption could be seen from the report presented which indicates that alcohol related deaths, violence, mental illness, emergency admissions and alley accidents have all gone up in the last few years with the UK alcohol consumption also extracting a plunk rise in the late 90s and early 2000. These problems are especially reflected in paternal alcohol consumption cases which have severe adverse impacts on children.Promoting Child Welfare The Perspective from Scottish administratorThe Scottish Executive documents provide the following vision for the welfare of Scottish children A Scotland in which every child matters, where every child, regardless of his or her family background, has the best possible function in life. Two important documents have been released for these purposes. For Scotlands Children, which was published in 2001, gave advice on how better to integrate childrens services and the Report of the Child shield Audit and Review 2002, aimed to improve services for children who experience abuse or neglect at home or elsewhere.The Child Protection Review (2002) statesThe problems of neglect and problem drug or alcohol use are often related, particularly where household finance are spent on drink or drugs, or the behaviour of the parents or their associates impact on the childs welfare. Some problems are intergenerational, particularly neglect. We have concerns about the future well being of a l arge number of children who are now being born into drug misusing families, and ensuring their better vindication must be a priority.Child Protection delegacys, Drug/Alcohol serve Teams, and agencies involved in preparing Childrens helper Plans should ensure that all agencies agree on how they will work unitedly to protect children, support families and provide appropriate services (Daniel, 2004). Tackling all kinds of substance misuse is a high priority for the people of Scotland and the Scottish Executive and all methods need to be developed according to Scottish subject strategies. One such strategy is Tackling Drugs in Scotland Action in compact and the Plan for Action on Alcohol Problems.Scottish Executive deputation recognises that although not every family with substance misuse experience difficulties, parental substance misuse can have significant and change consequences for children at home. The Committee proposes that such children are entitled to help, support a nd protection even within their own families although sometimes help from agencies are necessary for their safety and security. Parents are also required to support their children and help children to overcome their problems by promoting childrens full potential. The national drugs strategy calls for agencies to assess the needs of children who are pretermit by parents on drug misuse and help provide services to these children for their safety and welfare. The Scottish executive has provided guidance to all Drug Action Teams and Child Protection Committees and encour hoary these organisations to have local policies on support to help children of drug misusing parents. Within the specified Alcohol Plan for action, children of problem drinkers are also identified as a group with special needs. Drug and Alcohol Action Teams look at the needs of children whose parents misuse alcohol.The main tenets of the Scottish Executive are given as follows1. Childrens welfare is the most importan t consideration2. It is everyones responsibility to ensure that children are protected from harm3. We should help children early and not bet for crises or tragedies to occur and4. We must work together, in planning and delivering services, in assessment and careplanning with families, and in multi-disciplinary training.According to the Scottish executive, as there is currently, no national database of problem alcohol users in Scotland, data on alcohol use come from a number of sources in 2000, 26% of all women and 44% of all men drank more than in two ways the dailybenchmark on their heaviest drinking day the equaliser of women aged 16-64 drinking more than the hebdomadally recommendedlimits increased from 13% to 15% from 1995 to 1998 young people, aged 16-24, in Scotland are drinking more average weeklyconsumption in young people aged 16-24 has risen from 1995-1998 for both sexes men living in the most deprived areas of Scotland are sevener times more likely to diean alcoho l-related death than those in the least(prenominal) deprived areas 72% of victims of violent crime reported that their assailant was under the influenceof alcoholRecent estimates has also suggested that 40,000-60,000 children in Scotland are unnatural by their parents drug use and 80,000-100,000 are affected by parental alcohol misuse.The following examples give data from two urban areas Glasgow and Dundee I A local study of childrens cases, in which Glasgow City Council had wantChild Protection Orders between 1998 and 1999, found that of 111 Orders made onchildren in 62 families, 44 (40%) cited drug-related risk. 47 of the children werenamed on the local child protection register, 27 because of concerns about neglectand 16 for physical injury (Quinlan, 2000 cited in Scottish Executive 2002). Source Scottish ExecutiveII- In Dundee the proportion of children subject to child protection case conferenceswhose parents were recorded as having problems with alcohol and/or drug misuse ,rose from 37% in 1998/1999 to 70% in 2000. Of the 30 children on the childprotection register in October 2000, 53% had parents with problems associated withdrug and/or alcohol misuse. Source Scottish ExecutiveThe Impact of Parents Substance Misuse on ChildrenAccording to Mountenay (1998) parental substance misuse is neither a necessary nor a fitted cause of problems in children. However, alcohol and substance misuse greatly increases the risks of family problems and substance misuse in parents can make up a focal step to the fore of life and social behaviour of children at home. Mountenay (1998) has further claimed that long term drug or alcohol misuse in parents lead to deteriorating mental health and permanent mental problems for children. Alcohol dependence causes severe problems in households and the fact that drug use is illegal can cause equal problems among children who perceive the problems of their parents with considerable shame and disgust. The problem of children is however mainly ill-researched and less known and they are seen as hidden tragedies or unseen casualties (Wilson, 1982) out-of-pocket to parental substance misuse, children may be at high risks of maltreatment, emotional and physical neglect, family conflict and unlike parental behaviour (Barlow, 1996). Children may be exposed to or get associated with drug or alcohol related crimes and as a consequence they are more likely to usher behavioural problems and experience social stigma and isolation and may also themselves become substance mis-users as adults. Since parents on drugs and alcohol spend a lot of time on buying, assessing or obtaining these substances, their emotional or social relationships with their children are hampered as they do not have much time or availability for their children. This problem is especially acute in star parent household and in economically deprived areas, especially when there is no support from relatives or family members.Households in which dr ug or alcohol abuse is common is characterised by violence, criminal activity and poor or unstable environments. Drug or alcohol dependent parents ultimately fare poor relationships and have strained and conflictual relationships with their children. Parents may fail to keep up or perform their parental duties and provide ineffective supervision, inconsistent care or overly punitive or strict discipline which may strain their relations with the children. There may be deficiencies in parenting skills of parents which may in turn have been imbibed from the parents of the drug users who served as poor office staff models. Barlow (1996) claimed that children of drug using parents may in the long term show serve social and motional difficulties, and may show strong reactions against change, isolation, with worry in learning, problems with social humour and estrangement and isolation from family and peers.However the impact of parental alcohol or drug misuse varies according to the age of children and according to which developmental stage they are in. The impact also depends on abilities of children. Children with physical or learning disabilities or with some health problems may be more vulnerable to emotional difficulties due to their parents conditions and parents involved in substance misuse may have difficulties in understanding these especially sensitive children or meeting their needs. Thus assessment of care persona and parental support should always consider each child individually.Infants in their pre- nurture years and babies in general are particularly vulnerable to do of physical and emotional injury and neglect and this can have damaging effects on their long term development and social adjustment. indifference can happen when the parent in care is in an alcoholic or drugged condition and unaware of the childs needs or reactions. Parental commitment to care for children is severely affected when in drugged or alcoholic condition and can lead to inappropriate responses to the questions or concerns of the child. The parents in drugged or alcoholic state may be unhappy, tensed or irritated and can even suffer or harm the child under the influence of such conditions (Forrester, 2000). unforesightful and inconsistent parenting damages the attachment process and unpredictable parental behaviour hinders the childs cognitive and emotional development. Substance misuse is usually an expensive vice and there may be financial demands on the parents which mean money would be wasted and not used appropriately to improve a childs material environment. Physical or emotional rejection in such household can prevent children from ontogeny a positive sense of self esteem or even a sense of identity and children may have their physical needs neglected and tend to remain unwashed, uncared and unfed (Sher, 1991). Children may be trounce up and be subjected to direct physical violence and by witnessing direct domestic abuse, they may themsel ves learn inappropriate behaviour which may take the form of post traumatic stress disorder in which they demonstration emotional symptoms if parental behaviour becomes unpredictable and frightening.Older or primary school children are at increased risks of injury and they may show symptoms of fear of hostility with parents and also anxiety. The gender of the children play an important role and girls may show different reactions to such parental behaviour than boys. Although boys tend to show behavioural problems like aggressiveness, girls can be equally affected. At this stage, poor parental supervision and parental neglect or neutrality can lead to failure in academic attainment and childrens attendance to school can become irregular or erratic. withdrawal from parents can also cause distress and disrupt social behaviour and academic achievement (Kroll, 2004). Parental behaviour can lead to feelings of amazement and shame in these individuals and may be responsible for making children socially isolated for fear of humiliation by friends. Children can also start taking responsibilities for themselves and their younger siblings and may become too independent move to move away from home and family life. Children and adolescent with drug or alcohol problems at home may not attend school and become delinquent. They may become isolated with no friends, may reject family completely and experience significant disruption in their education (McKeganey et al, 2002). Without parental support children at adolescence and puberty may have to face increased problems although they may become increasingly beyond parental control. Sexual aggression, bullying tendencies and emotional disturbances may accompany concerns of shame and embarrassment in children to compensate physical neglect by parents. Children with parental substance misuse might develop an early problem of drug and alcohol abuse themselves.Chandy et al (1993) discuss that children of alcoholics constitute an at-risk population and their study attempted to understand the impact of parental alcohol misuse on school performance of children. They used a sample of 838 teenagers from alcohol misusing parents and found that these teenagers performed significantly poorer in all the cardinal measurements of school performance. The study identified that the teenagers who did perform well in school said that their parents have high expectations of them and these teenagers rated themselves highly in terms of health and also claimed to be religious and thus religiousness and parental expectations could be considered as protective factors as identified in this study.In another study by CoSandra et al. (2000) the effects of parental alcohol use on African American and White adults were studied. The study results indic

Analysis Of Marketing Positioning Of Kelloggs Special K Marketing Essay

Analysis Of grocerying Positioning Of Kelloggs limited K Marketing essayKotler et als ideology of trade entailing understanding discountcel outrs and their ask and designing securities industrying initiatives to deliver those needs (2009, p. 5) emerges in the grocerying demiseeavors undertaken by the Kelloggs limited K (SK) caryopsis sword. The commercialiseing foresight inculcated by the im holyion not sole(prenominal) helped it contri savee to the overall advantage of the Kellogg conglomerate solely if similarly helped it shoot as a strong contender in the UK metric grain grass industry. This identification give unravel the marting practices fol mino flushed by the SK reproach by analyzing its lay in the UK grain commercialize. The analyses volition encompass extravagantlylighting the customer cleavage adapted by this texture brand followed by evaluating the efficacy of its scar mart plectron. Subsequently, it volition assess the cereals situat ioning as compargond with its competitors place including its consumption of the trade amalgamate ele manpowerts to sustain that positioning. Finally as an outcome of the to a spiriteder place abridgment, it will offer recommendations to strengthen the brands market positioning.Assumptions MadeBarring considering the retailers as buyers for a five force analysis of the UK cereal industry, the assignment considers the end users as the consumers of the SK cereal. Whilst for a perceptual map, price1has been utilize to draw inferences on the output tincture of the several(a) cereal brands, Kelloggs return life cps face in the UK market and SKs brand share have been used to draw inferences on SKs product life cycle stage.UK Cereal Market and KelloggsThe UK cereal market grew by 15.7% in nurture between 2004 and 2008 because of the perceived health benefits of and convenience in consuming cereals coupled with the declining popularity of the traditional breakfast (Worth, 20 09). This growth rate indicates the attractiveness of UK cereal industry, which is also affirmd by a Porters five forces analysis of the market ( equal diagrammatically in Figure 1.1).This oligopo controversyic market is dominated by three big brands Kelloggs, Weetabix and Cereal Partners (Worth, 2009 and Datamonitor, 2009a) with Kelloggs leading the market (as shown in inscribe 1.2).Since giving the world its very first make water to eat cereal cornflakes (Emerald, 1991, p. 16), Kelloggs has become practically synonymous with breakfast cereals (Mitchell and Boustani, 1992, p. 21). With over 100 years of experience in the cereal business, it appears that Kelloggs has built its extravagantly brand value (shown in work 1.3) on consistent pioneering innovations and unremitting delivery of consumers nutritious food requirements. And keeping true to this tradition is Special K, the leading cereal brand of the Kelloggs family2.Special K and its marketing choicesLaunched in the UK i n 1959 (Kelloggs Special K, 2009), Special K is a nutritious low-fat, take to eat diet cereal that owes its eminent market position to the enhance marketing choices make by the Kellogg marketers (Kellogg Company, 2003,2004). Following section of the assignment will analyse the components of the marketing choices made by the SK brand.Market sectionalization and posterior MarketSK is targeted at system of clogs conscious women, employed/homemakers, between the ages of 25-49 who impulse to attain a slimmer shape either for a healthy life-style or for an involvement. And in pursuit of their weight goals these women will prefer to consume nutritious food substitutes including paying an above average price for the product. resembling the cereal manufacturers who use a spell of variables to segment their customers (deduced from the data on consumption of cereals displayed in figure 1.4), it appears that SK also segments its customers utilize demographic variables such as gender, age and occupation and behavioral variables such as occasion and benefits.But unlike the disparate cereal manufacturers, SK utilized its customer segmentation to identify and serve a distinct market group, which proved to be attractive and fat over catering to the entire mass market. however factors that contribute to the continued success of serving this target market areDieting rationalises Results of a consumer research carried out in 2008 revealed that women are ceaselessly trying to lose weight, where 24.3% of the women dieted most of the time as compared to 13.9% of men (Baxter, 2009). This consumer deportment augments SKs target market selection.Popularity of Health food The popularity of health food is change magnitude as confirmed by a consumer research where 43.8% of the research pussycat displayed an affirmative interest in purchasing functional food. This festering trend benefits SK as women (47.3%) accounted for the majority of the preference over men (40.1%) (Taylor, 2008).UK Obesity levels The forecasted UK obesity levels for 2010 where women (29%) are more likely to be obese then men (27%) (Gower, 2008) not only favors SKs product proffer but also provides the brand with an opportunity to expand its customer base.Grocery shopping SK can effectively access its target market using Kelloggs existing distribution reassign of grocery chains, owing to the consumer conduct where women undertake majority of the shopping at supermarkets as compared to the men (shown in figure 1.5).Growth of UK cereal market In addition to its current growth rate (as discussed earlier), the UK cereal market is also forecasted to prosper in the futurity (displayed in figure 1.6). This future growth rate, supported by an immense market potential that exists in the form of people still skipping their breakfast, enables SK to attract new customers.Whilst the above factors substantiate SKs distinctive target market selection it is also imperative to evaluate t he brands positioning in this target market as compared to its competitors to gauge the success of its marketing foresight.Competitors versus Special Ks positioningThough Porters five force analysis of the UK cereal industry reveals that competitive rivalry in this market is moderate, calamity by cereal manufacturers in differentiating their products will result in increase competition. SK endures industry competition based on the category points of the parity from different health cereal brands, including the various Kellogg brands, and market competition from other slimming acquired immune deficiency syndrome such as diets, meal replacements and appetite suppressants (represented diagrammatically in figure 1.7).Whilst the popularity of the cereals is on the rise (refer to prior discussion) the popularity of the slimming back up is on the even off cod to the augmented awareness of the healthy eating habits (Baxter, 2009). therefrom though the slimming aids are positioned as w eight forethought products (Refer to figure 1.8 for the positioning of the various slimming aids in the market) also targeted at women, it can be deduced that SK has a superior market potential over these products.A perceptual subroutine of SK with its industry competitors (displayed in figure 1.9) divulges that the brand is perceived as high timber subvention priced product by its customers. However SKs consumer perceived value is not alone limited to its price and quality differentiation but rather is accentuated by its unique market positioning in the cereal industry.Special K is positioned as a premium shape management nutritious cereal for womenThe above positioning unveils that instead of imitating its competitors by using common variables such as quality, energy, taste, natural ingredients and price, SK utilizes the popular variable of dead frame shape to differentiate its product (refer to figure 1.10). Though a number of consumer products and services use the variable of shape to differentiate their product, SK was the first cereal brand to employ this positioning making it unique in the cereal industry3. Kelloggs by using its extensive experience to develop and position the SK cereal, appears to have understood and delivered its consumer needs where women may want to lose weight either post an occasion such pregnancy or spend or to lead a healthy lifestyle or to break their physical experience.The value proposition offered by SK that acts as its point of contrast from the other cereal brands has also helped it minimize the risk of cannibalization from the other Kellogg cereals.Furthermore, SKs market positioning has helped convert the consumers cereal procure decision from a low involvement to a moderate involvement activity by linking their purchase decision to the psychological and physical benefits that can be derived from the product. Infact the SK 2 hebdomad contend, which is an important element of the brands positioning (refer to fig ure 1.10), facilitates potential increases in the product usage and brand loyalty as once consumers verify the benefits of the product they may want to extend their association with the brand. It can be argued that by targeting only one distinct consumer group, SK is limiting its profit potential but on the contrary the growth in its market share (depicted in figure 1.11) is a testament of its successful market positioning in highly profitable target market.However SKs current and future market share could be threatened if it is no more the only cereal adopting the shape positioning as revealed in a SWOT analysis displayed below. Hence the strength of its positioning depends on effective management of the marketing fluff elements.Marketing Mix ElementsProduct SK by offering a series of value added benefits in addition to its core benefits (displayed below) appears to acknowledge the impressiveness of support for its customers during the challenging process of weight loss. And by providing these benefits the brand has transitioned from a low fat consumer product to a perceived face-to-face weight management partner for its customers.Furthermore it appears to understand variety seeking behaviour4of its consumers as it extended its product line to include other SK sub-brands failing which women might have used other tasty healthy cereals with the SK personal plan. The brands packaging while being environmentally and user friendly tripping to transport and store, also serves as an effective marketing tool. It provides product nurture and reinforces the brands positioning by illustrating its value proposition of shape on the box. but by using the Kelloggs name and tag line If it doesnt say Kellogg on the box.it isnt Kellogg in the box on the packaging, it depicts its association with Kelloggs premium quality and high brand value thus discouraging potential brand turn5.Place Kellogg distributes SK selectively through and through supermarkets, hypermarkets a nd convenience stores utilizing the below represented distribution ne dickensrk.Using popular supermarkets/hypermarkets, which are the leading medium for cereal distribution (shown in figure 1.13), is aligned with SKs target market selection (covered in a prior discussion) which is accentuated by the supermarkets ability to attract customers through their own high advertising budgets (displayed in figure 1.14).Promotion SK utilizes promotional campaigns, advertising and interactive marketing to sustain its winning market positioning. The SK 2 week challenge, which is an integral element of the cereals offering, originated as a creative promotional campaign that helped the brand acquire its market growth (Kellogg Company 2003, 2004). victor of the 2 week challenge is largely attributable to the consumer perceptual experience that it is an easier challenge to take due to its shorter duration. another(prenominal) successful campaign launched by the brand is the SK slimmer jeans chall enge which astutely kicks-off at the start of the New Year when women would be keen on losing their post holiday weight and dropping a jeans size (Kelloggs 2009).SK uses its high media advertising expenditure, which is high than any of its competitors (shown in figure 1.15) to effectively communicate its positioning to its target market. It creatively employs the informational appeal gist style in its television advertisements to convey product information and benefits, aimed at sustaining and attracting new customers (as evident in its latest advertisement6). On the downside, both(prenominal) women may not relate to the product as the brand stereotypes a womens body shape by using perfect size models in most of its advertisements which may also conflict with its brands positioning of slimmer shape (not perfect shape).SK also recognized the suppuration popularity of internet among UK consumers (Euromonitor International 2009a) and hence uses its website and facebook group, as fo rms of interactive marketing, to connect with its customers. SK by allowing consumers to access the brands value added services on its attractive website aims to engage its customers and encourage repeat visits.Price As cited earlier, SK is priced higher than any of its industry competitors7(displayed in figure 1.16) which is in sync with its premium brand positioning. The brands high quality is buttressed by its high price. SKs growing brand share despite its higher pricing appears to support the consumer perception that a high value compensates for a high price. But as discussed in the SWOT analysis, SKs future product demand may decline if the consumers opt to purchase the cheaper private health cereals due to the economic recessional (Worth, 2009). Moreover its future demand may also be wedge by the marketing tactics of supermarkets such as placing their cheaper cereals on the ledge next to the SK brands8.Marketing recommendationsFrom the above analysis, it is evident that SK is effectively managing its marketing mix elements to strengthen its market positioning. However since the brand is in the maturity stage of its product life cycle (represented diagrammatically in figure 1.17) it needs to defend its market share to avoid the onset of the decline stage. Hence the following recommendations have been offeredFirstly using its exposure of a high advertising budget, SK can enhance its promotional activities by aptly insertion additional innovative promotional challenges. And increase consumer participation in these challenges by providing opportunities to win prizes such as designer wardrobes or free SK cereal vouchers. Secondly by using real9slimmer size women in its advertisements it will not only distinguish itself from the other product manufacturers who stereotype womens body shape but also may generate increased consumer authorisation in the products market message. Alternatively by taking inspiration from its website, SK can incorporate the succe ss stories of its consumers in its advertisements to reinforce the products effectiveness. Lastly owing to the growing popularity of health foods it can extend its product line to introduce other weight assistance products such as SK nutrition drinks which may complement rather than compete with the cereal. Such product introductions will also glitter the brands commitment to delivering the healthy weight management needs of its consumers.The above recommendations will not only augment SK existing strong market positioning but will also discourage possible brand switching due to the economic recession.ConclusionThis assignment acknowledges that the marketing choices made by Special K, quite like its name, prove to be special for the brand. perceptive of its consumer needs and behaviour, Special K effectually segmented its customers and selected a profitable and sustainable target market in a flourishing cereal industry. This target market selection has immensely contributed to the special status acquired by this brand. However the true success of the brand lies in how it differentiated itself from its competitors by relying on the SHAPE positioning that also acts as the value proposition for its consumers. Though the brand astutely manages the product, place, promotion and price attributes of its marketing mix to support its positioning, the reality of its product life cycle stage cannot be escaped. Hence recommendations to improve SKs advertising, promotional activities and brand line extensions have been made to avoid the onset of the decline stage for the product.AppendixKellogg brand listKellogg offers a vast product line catering to the needs of different customer segments. Kellogg brands include All bran, Coco Pops, Cornflakes, Crunchy Nut, Frosties, Fruit n Fibre, Winders, Natures Pleasure, Optivita, unsophisticated Store, Honey Loops, Just Right, Ricicles, Start, Pop tarts, Rice Krispies, Frosted Wheats and Special K.Special K product variationsSpec ial K PackagingAs shown in the above images, Special Ks packaging conveys that it is a low fat cereal and provides information on the personal plan and its benefits and cereal nutrition figures. The red color is synonymous with the Special K branding and labeling which not only shows it strong connection with the Kelloggs brand but also symbolizes confidence and devotion (Kelloggs Special K, 2009) that a consumer will enjoy after achieving the shape want by them. The packaging supports easy and convenient usage through the unreal box and plastic bag, which help in storage and preservation of the quality of the cereal.Special K in supermarketsThe observations on the shelf post assiduous by Kelloggs Special K were made by visiting two large supermarkets, Tesco and Morrisons. A large section of the middle shelf space in the cereal section of the supermarkets was devoted to Special K cereals and its sub-brands. This shelf positioning helps attract customer attention and expedite t he purchase process. Another observation made was that both Tesco and Morrisons placed their cheaper cereals next to Special K which may deter the purchase decision of a cash strapped consumer. Infact Tesco has also extended this marketing gimmick to its online shop as displayed in the below images.Links to advertisementshttp//www.specialk.co.uk/special-k-news.aspx Latest adverth ttp//www.tvadmusic.co.uk/2009/06/kellogs-special-k-shape-up-for-summer/

A Strategic Analysis Of J Sainsbury Marketing Essay

A St browsegic epitome Of J Sainsbury Marketing EssayJ Sainsbury plcconsists of Sainsburys a grasp of 509 supermarkets and 276 convenience stores, Sainsburys online, Sainsburys blank space and Sainsburys Bank. Sainsburys Supermarkets is the UKs longest standing major viands retailing chain, which opened its foremost store in 1869. The Sainsburys brand is built upon a heritage of providing customers with vigorous, safe, sugared and tasty sustenance. Today it several(predicate)iates itself by whirl a broad range of grand quality products at plumb prices with particular emphasis on fresh aliment, a strong honorable approach to fear and continuous get hold ofership and innovation. At Sainsburys products argon modify and developed to get wind the play along leads in terms of the ingredients used and wholeness of sourcing.Sainsburys goalis to improve quality shop experience for customers with great products at average prices. Their aim is to exceed customer expectati ons for healthy, safe, fresh and tasty food, fashioning the customers lives easier e very day.Sainsburys brand Values-passion for healthy, safe, fresh and tasty food, their focus is on delivering great products at fair prices, they nourish a history of innovation and leadership and a strong regard for the social, ethical and environmental effects of their operation, and this has keep to stand the test of time.Sainsburys five principles atomic topic 18 at the hition of their pipelineThe best for food and healthSourcing with integrityRespect for our environment do a compulsive difference to our communityA great prep ar to work.And at Sainsburys they believe that these principles provide differentiation from their major competitors and define and luff all last(predicate) their activities.Sainsburys caper priorities areGreat food at fair pricesAccelerating growth of complementary non-food rangesReaching more than than customers through additional transmitGrowing superm arket spaceActive property guidanceThe organisation that has been selected to find out and analyse is Sainsburys. Sainsburys has started its journey in 1869 and since then it has gradually schematic itself as the third base largest supermarket chain in UK. Over the past a couple of(prenominal) eld its parent company J Sainsbury plc has prolonged its business and now owns a whole range of other companies like Sainsburys Supermarkets, Sainsburys Local, Bells Stores, Jacksons Stores and JB Beaumont, Sainsburys Online and Sainsburys Bank. The attach figures of Sainsburys global sales and purchasing operations contri fur in that locations to a signifi standt rise in the business competence and productivity. However, this report bequeath be examining Sainsburys status in the retail industriousness, explaining the role of interaction within the macro and micro environment, drawing up a detailed militant good of the organisation and the strategies that influence the business pol icies to survive in the competitive market.depth psychology of Financial data rude Profit Margin (GPM)- Due to the intense competition in the supermarket industry margins are generally low. See the following table for comparators which shows relatively scurvy margins for Sainsbury even compared to other retailers CompanyIndustryROAProfit Margin label SpencerRetailer and Financial service4.43%3.91%J SainsburyRetailer and Financial Services5.60%3.61%ThorntonsRetailer of Chocolates etc8.43%6.45%NextRetailer of C attracterhing26.14%13.82%Dixons GroupRetailer of electronic and so onGoods19.78%14.41%Yates GroupRetailer of sustenance9.13%13.34%Safe itineraryRetailer of Food7.24%4.14%MorrisonsRetailer of Food12.93%5.87%TescoRetailer of Food and Household Goods9.99%5.72%Strategic analytic thinking of Sainsbury PLC using Porters 5-Force postureSWOT AnalysisASWOT Analysisis a strategical planning dent used to evaluate theStrengths, Weaknesses, Opportunities,andThreatsof an organizatio n. With the answer of this SWOT epitome we will be able to find out the positives and negatives of Sainsburys.StrengthsSainsburys has had thirteen hearty quarters of growth showing real turnaround in its business. eventide for 2007 it has shown an attach of 7% in turn all over and a huge 450% join on in profit after tax (Annual proclaim 2007).It has an extremely study leadership team.Sainsburys seems to be very well placed on unripened and environmental issues due to its various recent initiatives, like buying fair-trade bananas (economist.com 2008 online). what is more its uphold in closing down gang master has had a positive effect on the public in general. It has a positive consumer brand and its liked by both green activists and consumers.It is unrivaled supermarket chain that has a clear celebrity endorsing products, leading to increased sales. With Jamie Oliver, it has been simple for Sainsburys to see uplifts in sales of specific ingredients that have been featu red in ad campaigns. The supermarket had to order nine tons the equivalent of two classs impart of nutmeg to meet demand when it appeared in one of Jamie Olivers ads.WeaknessThe takeover bid by the Qataris Private equity firm last year female genitals have about implications as people are gravitating towards British companies and the prospect of Sainsburys being governed by a unknown firm can lead to consumers switching loyalties.Unlike Tescos expansion plan (economist.com online 2008), Sainsburys is not perplex in markets other than the UK. This can lead to trouble especially if there is near problem within food retailing in the UK or if there postulate to be a source of purposeless growth.OpportunitiesSainsburys secondary business states a great opportunity for future growth. Its enthronizations in property and a goal of 40 one thousand million profit through its aver seem like a good strategy to pursue.Online sales are a great opportunity as well, since online m argins are spiriteder and investments are not huge.ThreatsThere needs to be continuous heavy investment in environmental and green issues without immediate eudaimonias. The problem lies in maintaining a brace e.g. Bio-fuel is an important machine to curb global emissions and its use affects Sainsburys skid chain directly, so Sainsburys should support it. However, a spurt in bio-fuels has do corn dearer (in interdependent.co.uk online 2008) affecting its prices within the UK and making Sainsburys consumers bear the brunt.Sainsburys operations are subject to a broad spectrum of regulatory requirements particularly in parity to planning, competition and environmental issues, employment, pensions and tax laws and in terms of regulations over the groups products and services.Thisconcludesthat with the help of this SWOT analysis Sainsbury would now know where they stand. This will as well as give up them work on their opportunities, weaknesses and threats and build up on their s trengths giving them a cutting edge.Macro-EnvironmentAt this present phenomenon the nature of the retail industry is changing its image dramatically and the importance to survive with the competitors and remain as a leading company in the market has reached its highest peak. However, there are some issues which may have some impacts on the business. Political factorsAt present the changing trend of globalised business could be a challenge as well as an opportunity for the Sainsburys be lawsuit they would have to compete against new forces from all over the military personnel to maintain best quality of the products and services they offer. guest may get a negative impression because of the investigation spillage on price fixing as Sainsburys is listed in the top intravenous feeding retailers in UK (Rigby 2008).The UK Government is to reduce corporation tax rates from 30% to 28%, which will help Sainsbury, to save large amount of bills (HM Treasury 2008). Economical factorsT he rising food prices because of global food crisis may have impacts on the business of Sainsburys as it will definitely increase their purchasing and production cost (economist.com 2008). And eventually it will increase the boilersuit price of the products in the super marketSupply chain of Sainsburys may get affected with the rising cost of fuel which may lead to an general increase in prices.The credit crunch will cut the purchasing military unit of the consumers as they would have slight money to devolve on luxury products. Therefore, automatically it is going to decrease profit margins for Sainsburys. On the other hand Sainsburys conks financial services company with HBOS (Annual Report 2007) and alike a bank. However, both of are directed affected due to recession.As the competition in the market is really high other hulky competitors like ASDA ,TESCO ,MORRISON ,LIDL , ALDI are cutting down their product prices and giving lot of incentives to customer which may bound Sa insburys to drop their prices to survive in the market. (Annual Report 2008)SOCIAL FACTORSSainsburys may introduce new recipes to cook easy and healthy food because now a days consumers tend to eat fresh food and seem to be more health conscious.According to the health department the obesity rate in UK is increasing (department of health 2008). And because of that agreement the UK government has emphasised on healthy eating (eatwell.gov.uk 2008) which gives Sainsburys to an opportunity to render more healthy foods at a cheaper price to match the on-going trend.TechnologicalIt is predicted that by 2011 the online retail sales in Europe will hit approximately 263 Billion Euro because of the rapid increase of cyberspace shopping in which the shoppers in UK may accounting for more than a third of all revenue.Sainsburys can take the advantage of utilizing internet as an advertising media as 8% of the global advertising is spent on the internet and the percentage is increasing day by day (The Economist, 2007).It will be very cost effective and help the company to globalize very easily.Self checkout machines may increase customer loyalty as they dont have to wait in long queues sometimes for very a few(prenominal) products. It saves their time and increase comfort bandage shopping. It can also be very cost effective as it will require less worker to work and can be in operated 24 minute shops which will boost up the sales figure.RFID (Radio Frequency Identification Device) is a new technology yet to be popular but can play vital role in supply chain management fort the company. It can benefit big companies like Sainsburys to save their semiprecious time as it requires less inventory and offers more efficiency. (Directions magazine 2008)environmental factorsEnvironmental factors are one of the key issues these days. Every company has to ensure that they contribute in reducing carbon footprint and to increase muscularity efficiency (Bream 2008) which instru ment big companies like Sainsburys would have to invest more money to sort out Green issues.With the growing ethical issues such(prenominal) as addressing organic foods and treating animals in a good way may have impacts on the business of Sainsburys because they would have to retain their customers and balance their pricing after maintain all the environmental issues.Legal factorsSainsburys would have to develop its packaging and labelling policies to meet all the implications of LAW on food and drinks. Which will add extra cost to their overall budget.As Sainsburys operate a bank and is involved with financial services they would have to be more concerned about the legal issues and risks involved with their business.Porters 5 Forces agonistical rivalry-The retail market is enormously competitive with a very crowd market. Now, as more and more companies are toilsome to get into non food sectors it further intensifies the competition.Sainsburys has a market share of 14.9% in 2007 , steadily increasing since its restructuring programme that started in 2004 (Annual Report 2007). This is a positive trend but it lags well behind the runaway market leader Tesco, showing that there is considerable distance to cover.Tesco, Asda, and Morrisons are the other three big supermarket manacles in the UK retail sector. All of them have a different competitive advantage over their competitors. Sainsburys reach in the convenience stores makes it have a larger customer reach.Banks and building societies compete with Sainsbury bank but it is not a core business for Sainsburys.Barriers for entry-Barriers to entry are extremely high in the food retail market due to a number of factors. Firstly, formd retail is amongst the most sophisticated sectors within the UK and needs a lot of investment, along with significant brand development, which takes years to establish. Secondly, retail is also at an advanced stage within the UK and most of the western world, which means there is l ittle scope for new entrants to establish themselves.Local association is extremely crucial within the food retail sector, something that is difficult for foreign firms to replicate. This is corroborated by the figurehead of few global supermarkets within UK.Threats of Substitutes-The threat of substitutes in the food retail industry is a low one entirely because consumers view it as a necessity, especially in the developed world and increasingly in the emerging markets.The retail market is always trying to converge and assimilate new innovations with respect to food products or alternative businesses, to make shopping an extremely pleasurable experience. This makes them extremely difficult to substitute.The and major threat of substitute is an internal industry threat whereby one supermarket can lap up the business of other supermarkets.buyer power-Buyer power is high in this industry simply due to the presence of so many competitors selling the same products. It is only diffe rentiated in price and consumer loyalty and increasingly on green credentials. Moreover, the switching be are low for consumers.As the economy goes further towards recession consumers needs are likely to be given more weight, increasing their power considerably.provider power-Supplier power is usually more complicated as it is difficult to categorise it. It is safe to call it a mutually dependent relationship as suppliers are in itself huge companies, like PG, Unilever, Cadbury etc. with huge brand appeal. It can be argued that if supermarkets do not sell their products consumers will shift loyalties, making suppliers very powerful. However, if the products of big companies do not reach supermarkets, their sales volumes will be affected hugely. The relationship strength change depending on the situation of the big branded supplier, for example, when sales of Cadburys dairy farm milk increased through the successful Gorilla ad campaign.Supplier power of smaller suppliers will not be considerable because of their sales volumes on dependence on these supermarkets.Competitive advantageSainsburys has got some competitive advantage which made its business so successful all over UK and established the 3rdfood retail chain in linked Kingdom. The competitive advantages are discussed below16 million customers visiting every weekMore concerned with the environmental issues such as green house effect , reducing fuel emission , providing 15 million reusable bags , 8 million car stickers and fridge magnets to remind and aid people to use environmental friendly resources.Performing social accountability while working with Comic Relief to raise money and help poor neighbourhood.22% market share makes them one the power key player after Tesco in the British retail industry.They have established a brand image and are considered to have the supermarket power which is Locations.Sainsburys market strategy is to attract the middle class consumers with an affordable cost whil e maintaining particularly quality of the food they simultaneously.They are promoting a new separate name Active Kids to help school kids and teachers to overcall child obesity.http//www.bitc.org.uk/resources/case_studies/afe_1343.html)Sainsbury is the first super store to start One Hour Delivery one-armed bandit extraneous of London. In addition if the y fail to do so on time customers will be paid 10 future(a) time they do online shopping.(http//www.sourcewire.com/releases/rel_display.php?relid=19562hiliteSainsburys bank loans ranked 13 out of 16 in the Ciao top list as The Best lend Lendershttp//www.ciao.co.uk/Sainsburys_Bank_Loans__6914648)Developing customer service is a key advantage for Sainsbury. They discovered their highly skilled employees focus on their duties rather than Customers. So thusly , they changed the strategies and focused more to improve customer service to get extra advantage.The adoption of RFID has brought new competitive advantage as only few compan ies has the privilege to use this innovative technology.Making Sainsburys store more ready to hand(predicate) for its customer while keeping in mind about some facts such as geographical aspects, ever changing lifestyles, and Government restrictions. trim cost , giving incentives and introducing constant innovative products is a core advantage over competitors.Sainsbury manufacturers their own products and has their own brands which helps them to produce products in a spate quantity at a cheaper price.The company has a unique core competency which is they promote value by providing good quality products at a competitive price.Vertical integration in between buyers and suppliers has managed to organise and run a healthy supply chain system for the company which may help them to expand their business in future..Limitations inter-related with the gadfly AnalysisIn analyzing the macro-environment, it is important to identify the critical factors that might have affect on the business . A number methods of have been developed so far. PEST analysis happens to be one of the key tools to determine those factors in a various way.Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and thrill for operations. The utilization of PEST analysis could be considered effective for the corporate benefit and strategic developments of the company. Although everything has its own Pros and Cons , PEST analysis as a tool is not unlikely to them.It can be said that Pest Analysis are sometimes through on simple assumptions which may not even exist in real. The reason behind may be the facts we take into account while doing a PEST for any company. It may not be considered on specific area or may be they less possibility to happen reality. It is also considered that PEST analysis doesnt really emphasise on critical factors and it one of the major lacking(p) of this method is it only covers externa l issues without concerning the internal environment of the company and position of competitors in the industry. Another disadvantage for PEST would be it is not done on a regular basis as the rules and regulations, currency rate , variables , foreign investment and economic figures etc .change quite often. Indeed to make it more realistic and practical it is important to gather information and obtain different perspectives based on individual point of view which is going to increase cost thus, results as a limitation for this vastly used tool.The latest position of the company in the market is quite strong though with the booming recession and business expansion of other competitors may cause some difficulties in future.Sainsburys being one of the largest supermarket company in UK should repair some standards to achieve outstanding performance as a overall company. Moreover, Sainsbury should introduce some new business policies to expand its business outside of UK and explore the new markets like China, India , USA, Australia.ConclusionFrom this investigation it can be seen through the various analyses methods used Marketing Audit, Porters 5 Forces and SWOT, that Sainsburys is an iconic British food brand, well loved by its consumers and importantly profits, have modify tremendously. Although it has shown steady growth it is important for Sainsburys to go the next level by challenging Tesco, a competitor identified in the Porters 5 forces analysis, any by thinking of international expansion or on price. This in conjunction with its increasing property portfolio and alternate businesses should help in go on the strong growth path, as well as tiding over threats (SWOT) in its external environment.

Free Trade Agreement Between the GCC and ASEAN

Free Trade Agreement Between the GCC and ASEAN executive instantlyor SummaryThis paper is a consolidate address of curriculum vitaes on rouge issues and concerns to pile and adornment in an ASEAN-GCC reposition divvy up environment. The researchers were able to pick line out out a schema of most handlely issues and concerns that would be deterrent to negotiations for a promiscuous art agreement on the ASEAN and GCC zones.The consolidated report is establish on an intensive literature review. As the ASEAN-GCC talks argon remedy under course, the researchers thought it wiser to first create a schema for an enterprisingness survey which would task the eventiveness as tumesce as determine restraints which would unwittingly affect ASEAN-GCC warrant shell out negotiations.A consolidated report on much(prenominal) particularors would greatly benefit bet enterp elevators as well as the organization itself in that it provides a guidelines of expectations and, th us, this could be turn to early on.The report first discussed an overview of the GCC financial market to establish the market potentials and capacity of the region. The key issues and concerns that were ga in that respectd through research were then grouped accordingly to whether they decide under the tariff obstructions or functional trans process cost issue, and the non-tariff barrier (NTB) or sexual action cost issues.From the consolidated report, it was revealed that dapple tariff barriers or formal transaction be affects flip and investing, it was the non-tariff barriers which generally be companies a lot. Non-tariff barriers include red tape from getting work certifications, lightheaded legal system in particular in legal dis seates and the like, enforcement of environmental policies, restrictions dictated on self-control of equities and real estate, existence of laws which prohibits remote studys from applying for business permits, especially in atomic nu mber 18as outside the free hand zone. on that point in like manner exists roughly governmental and/or diplomatic barriers. However, these should non be given to a great deal focus as these contribute entirely a small descend of influence to the conduct of mint and investment.Area of StudyThis mull over on the free avocation agreement betwixt the ASEAN and GCC focuses on identifying issues and concerns that should be addressed in do for a free flip-flop agreement among the GCC and the ASEAN to be expedient and beneficial for all signatory parties. These issues and concerns atomic number 18 set through extensive research and inference from previous studies and factual articles. However, issues that are only signifi understructuret for the government and opposite stakeholders, but are non of particular important to the business sector (i.e., labor and environmental issues) were non considered.Background of the ProblemLast June 30, 2009, a grapple pact in the form of a history of agreement (MOA) was sign among the gulf Cooperation Council (GCC) and the 10 country- particles of the Association of Southeast Asian Nations (ASEAN) (TradeArabia, 2009). The said MOA focuses on make a great deal bloc between the GCC and ASEAN, and similarly explores the possibility of a Trade and Investment Framework Agreement (TIFA) and a free slew agreement (FTA). The wiliness pact was signed after the first favored GCC-ASEAN ministerial meeting held in Manama, Bahrain, wherein the ministers ap arised a 2-year working(a) plan in improving trade relations between GCC and ASEAN countries (TradeArabia, 2009 Arab news show.com, 2010). A trade and investment road map in the form of the GCC-ASEAN 2010-2010 action plan was adopted on the second GCC-ASEAN ministerial meeting held in Singapore in May 2010 (ArabNews.com, 2010 Press Trust of India/bilaterals.org, 2010 The Malaysian News Agency, 2010).In an article by the Press Trust of India (2010) as cited by bilaterals.org (2010), the GCC and ASEAN withdraw agreed to further enhance vocation and investment opportunities as well as collaboration in the areas of improving the economy, commercial and business effort, education whilst promoting mutual respect through culture and media by way of the ASEAN-GCC Two-Year Action intend (2010-2012) . However, in the re cent press bend of the ASEAN Secretariat (www.asean.org, 2010) a free trade agreement between the two blocs was not brought up.Business Dictionary defines free trade agreement as a treaty between countries that essentially reduces tariffs and barriers on goods and service, although capital and/or labor may not sustain freely (businessdictionary.com). These agreements specify the rules and for trade between or among signatory countries (Sen, 2004, p. 1).Free trade means trade of goods and services (not necessarily capital and labor) between countries that is free from tariffs and opposite trade barriers imposed by the gove rnments of those countries (Bhagwati, 2002, p.3). It is considered as the building block for economic consolidation in a region (Sen, 2004, p. 1). Free trade is based on the principle of proportional advantage first proposed by David Ricardo (Case Fair, 1999, pp. 812-818). Ricardos theory of comparative advantage asserts that countries could enkindle goods much efficiently if they specialized at producing the good(s) which they produce most efficiently and bought all former(a) goods from an otherwise(prenominal) nations specializing in producing those goods (Case Fair, 1999, pp. 812-818). jibe to this theory, specialization result make production of goods more efficient and thus, communicate down prices. Therefore, if goods can freely enter a country, advocates of free trade suggest consumers would benefit because of the lower prices of goods (Case Fair, 1999, p. 818).WTO and other reports provoke stated that free trade agreements have started to proliferate between coun tries and even between trading blocs (C stark nakedford and Fiorentino, 2005, p. 2 Razeen, 2006). Of regional trade agreements reported to the WTO as of 2005, 84 per cent are free trade agreements (Crawford and Fiorentino, 2005, p. 3). The WTO reports that the uncertainty of the fate of the Uruguay Round (1986-1994) has prompted countries to ensue their own preferential deals, mostly bilateral, or involving two countries, with other nations (Crawford and Fiorentino, 2005, p. 6).The more aggressive countries or trading blocs are the European Union, Australia, Japan, Singapore, New Zealand, and the joined states and Canada. The ASEAN and the GCC are both(prenominal) lock awayging behind in creating deals, but the member countries, oddly of the ASEAN are forging their own FTAs with other countries such as Japan, South Korea, and China (Crawford and Fiorentino, 2005, pp. 6-8).It has been observed that trade among the Arab states has been relatively small compared to other regions ( Hassan and Tarik, 2010). This is despite the observation that members of the GCC have common economic and social characteristics (Fasano and Iqbal, 2003). plainly the GCC is trying to catch up with paying attention to forming free trade agreements as a bloc with other countries and trading blocs (Hassan and Tarik, 2010). It has signed a free trade agreement (GSFTA) with Singapore in 2009 and has since experienced a appendage in investments from and an increase in trade with this country.The GCC consists of Bahrain, Kuwait, Oman, Qatar, Saudi-Arabian Arabia, and the United Arab Emirates and was organise in May 1981 (Fasano and Iqbal, 2003). Its aim is to promote cooperation and peace among member nations. The member countries of the GCC have all undergone diversification from dependence on fossil oil into trade and services-centered economies. The GDP per capita in these countries are among the highest in the world (Fasano and Iqbal, 2003).The members of the ASEAN, however, h ave followed a various track. Instead of forming free trade agreements as a bloc, separately individual member of the ASEAN has began to forge free trade agreements with other countries such as Japan, South, Korea, the United States, and Australia (Razeen, 2006). Singapore is the most aggressive of these countries, having signed a free trade agreement with the GCC in 2009 (iAdvisory, 2009). However, the region has started talks as a bloc for free trade agreements with China, Australia New Zealand, and the GCC (China Embassy, 2004 Xinhua, 2008 Tradearabia, 2009).The ASEAN was formed in 1967 in Bangkok, Thailand through the signing of the ASEAN Declaration by the five debut members, namely Indonesia, the Philippines, Malaysia, Thailand and Singapore. It was later joined by Brunei Darussalam in 1984, Vietnam in 1995, Lao PDR and Myanmar in 1997, and finally, Cambodia in 1999. Thus, today ASEAN has ten member countries (ASEAN website).With the signing of the memorandum of agreement between the GCC and ASEAN for in 2009 (Tradearabia, 2009) and the adoption of the ASEAN-GCC Two-Year Action Plan in 2010, trade and finance rancidicials in these two regions are mum on the verge of devising such an agreement that would be attractive to all involved. The Joint Vision in 2009 built the economic confederation between the two regions on the following areas economic, cultural, scientific and social, and aims to promote people-to-people contacts. On the other hand, the two-year action plan expands its cooperation and collaboration along the areas of trade and investment, economic and developmental cooperation, education and training, culture and selective info, and mutual consultation in international matters (ASEAN Secretariat, 2010).Research ObjectivesThe researchers believe that this paper would be timely as it attempts to point out possible key issues and concerns that the business enterprisingness cleverness come up against in operating within the GCC. It is a fact that business organizations and companies are the driving forces behind trade. Thus, the point of view of these organizations will have to be considered for a free trade agreement to prosper.Therefore, the excogitation of this paper is to identify possible issues and concerns that should be addressed in high society for a free trade agreement between the GCC and the ASEAN to be useful and beneficial for all signatory parties. Issues that could be significant for the government and other stakeholders, but are not of particular important to the business community (for example, labor and environmental issues), will not be considered.Expected answerThrough this research, we hope to uncover key issues that are seen by businesses in both the ASEAN and the GCC as roadblocks to free trade between the two regions. We announce that lack of information intimately to separately one others markets, and the convoluted restrictive policies of individually region will be primary c oncerns. Also, the unification of standards for export products, particularly in the electronic sector may be another authoritative issue. These concerns will be discussed in detail. The literature will as well be consulted for possible solutions on how to address the issues. Such possible solutions will be incorporated in the conclusion and recommendations portion of the paper.Methods of ExaminationLiterature go offDue to time constraints, the researchers opted to use literature review as a method for identifying key issues and concerns in the GCC-ASEAN free trade agreement, particularly with regard to trade and other aspects that affect it such as cultural, governmental, and social environments, will be reviewed in order to identify possible issues and challenges that would be stumbling blocks to attain a beneficial trade agreement.Research and statistical material on the effects of free trade agreements spoilt by GCC with other countries, regions, or trading blocs will in like manner be examined to determine issues that have emerged, if whatever, in these free trade agreements. The same shall be made with regard to the agreements forged by the ASEAN and its member countries with other nations or trading blocs.Techniques and Strategies Useddescriptive analysis such as frequency counts, means, percentages and was used in describing the consolidated report about the place key issues and concerns surround the GCC-ASEAN free trade agreement. These literature were gathered from published journals, news articles, magazine articles, e-zine and the like. The need to consolidate the information gathered from these materials are very important in order to show a general picture of the key issues and concerns plaguing the business enterprise operating within the GCC-ASEAN free trade agreement. And, thus, inference can be drawn.From the consolidated report, a conceptual framework could be sufficiently drawn, providing a springboard for an intensive enterprise s urvey in order to assess the effectiveness of the GCC-ASEAN free trade.Analysis and FindingsThis section describes the literature review conducted by the researchers. In this review, variables under consideration are scrutinized and discussed through presentation of germane(predicate) articles focusing on a GCC-ASEAN collaborationistship. The presentation begins with an overview of the GCC as potential cigaret market, followed by a brief discussion of both formal and informal transaction cost in the international marketing scene as variables considered for a successful trading agreement. After which is an analysis of the external head investments (FDI) of the regions concerned so as to assess and somehow predict a successful trade agreement should the key issues and concerns be identified and addressed.The GCC financial MarketThe Arab world is characterized by five attributes that have allowed it to benefit from the plausive international economic conditions. First, it owns t he worlds largest deposits of energy. It has 58 per cent of all known raw oil reserves and 27 per cent of all proven raw(a) gas reserves. (IMF Country Report, 2009). Second, the Arab world benefits greatly from international remittances. Ratha, Mohapatra and Silwal (2009) in the manhood Bank Migration and Development Brief 10, cited that the Arab world as a wholly again benefited more than other world regions when international remittances quadrupled in 2000-2008. Third, Arab countries have benefited from the global boom in tourism during 2002-2008. Fourth, Arab countries accumulate a lions parcel out of total global development assistance (World Bank, 2009). Fifth, Arab countries accumulated substantial impertinent assets of more than US$2500 per inhabitant in 2006 (IMF, 2009).In a study conducted by Zarrouk (2001) authorize A Survey of Barriers to Trade and Investment in Arab Countries wherein a total of 230 companies, which represent the manufacturing and service sectors o f Egypt, Gaza-West Bank, Jordan, Lebanon, Saudi Arabia, Syria, Tunisia and the UAE, it was revealed that the trading barriers are most intensive in Gaza-West Bank with a mean of 2.0, followed by Syria (mean = 2.1), Egypt (mean = 2/41), Tunisia (mean = 2.43) and Saudi Arabia (mean = 2.8). Zarrouk (2001) describes the mean score from a scale of 1 (extremely problematic) to 4 (not problematic) (please refer to the circuit card adapted from Zarrouk, 2001).From the result of the study of Zarrouk (2010) it can be inferred that Saudi Arabia figured as a country, wherein an FTA might prove challenging. As to the areas or indicators of what might these trade barriers be. Zarrouk (2010) identified these barriers. First, his study revealed thatSaudi has visa restrictions for business visitsThere exists local anesthetic agency laws which allows Saudi nationals only to register for business and to be an agent of a extraneous phonerSaudi customs are biased on Arab-made products but are more len ient to Asian, North American, and European productsOn the subject of transaction be, Zarrouk (2010) business enterprises were interviewed as to whether these were not costly (value of 1) to prohibitive (value of 4). It was found out that customs duties and other import charges (mean score of 3.0) seted first followed by domestic taxationes (mean score of 2.6), customs clearance (mean score of 2.5), universe sector corruption (mean score of 2.4), inspection/conformity certification (mean score of 2.2), transshipment regulatory measures (mean score of 2.1), and business visa restrictions (mean score of 1.8). Please see table below (adapted from Zarrouk, 2001).When the companies were interviewed about the most restrictive constraints to trade and investment, the study revealed that a primary obstacle is the weak legal system that fail to assure that the terms of business contracts are honored (Zarrouk, 2001 Abdel-latif, 1992). Second in rank is the restrictive local agency law gr anting business permits only to nationals. In a similar vein, Newquist (1994) hints in his article for Computer World entitled Breaking a Barrier to Trade that cultural values fill a role in trade and investment. For instance, he said that ethnocentricity weakens trade. In a free trade agreement wherein distant nationals are invited to invest in the region, this factor would have a very negative effect indeed. Third in rank as most restrictive is that foreign nationals are prohibited ownership of real estate. This means that foreign investors have less opportunities of staying longer in Arab countries, thus, the cost of transferring to and fro their home country would be quite expensive. In relation to this, Arab countries also puts limits on foreign ownership of equities thus this would mean a slow expansion and product of businesses. Sadly, corruption, bureaucratism and bad governance also figures in the trade barriers identified by Zarrouk (2001). Meanwhile, less transparent a nd complex tax systems and para-tariffs were also included in the list of most restrictive barriers.The GCC has been lovely in trade agreements with countries other than the ASEAN. For instance, they also have a free trade agreement with the EU, the NAFTA, the WTO, and GAFTA in as much as it enjoys bilateral trade relations with a host of other countries as Japan, South Korea, China, Singapore and its neighboring Arab countries.Zarrouk (2001) also attempted to interview the business enterprises with regard to the free trade agreements signed by their respective governments. It was revealed in the study (Zarrouk, 2001) that among the trade barriers to a comp alls ontogenesis according to the respondent companies areThere is a lack of trenchant orientation with regards to free trade agreement benefits given to the business enterprises organisation agencies do not make enough effort to inform the public about the benefits of the agreementsCompetition from Asian countries is much str onger, offsetting the benefits of the agreementsImplementation problemsPartner countries do not commit to terms and conditions of the agreementsArticles of some agreements are left to the reading material of customs officialsTrade agreements do not reduce the numerous administrative procedures, paperwork and red tapeImplementation of certain articles of the agreements is not reciprocal out-migration between Arab countries is inadequate.Considering these results of the study of Zarrouk (2001) with specific reference effective free trade barrier which states that Competition from Asian countries is much stronger, offsetting the benefits of the agreements a free trade agreement between the GCC and the ASEAN is highly workable. This is backed up by a shared trading history that have been shared by both regions (Press Trust India, 2010 The Malaysian National News, 2010 Reuters, 2010).Transaction CostsIn Economics, a transaction cost is cost associated with flip-flop of goods or service s and incurred in overcoming market imperfections (BusinessDictionary.com). Also known as frictional cost, these are fees and charges serial to buying, selling, and trading which includes transportation cost, legal fees, communications charges, and even opportunity costs in taking up time and energy in set up a business venture.As cited by Abdel-Latif (1992), transaction costs cover a wide range of transactions from the conceptualization of place up an investment until the actual running of the business itself.Generally, transaction costs includethe costs of obtaining information about market conditions in any given foreign market (the quantities and qualities desired and the prices prevailing for each different quality) and the reciprocal costs for agents in foreign countriesthe costs of information about government regulations and other policies in both foreign and home markets (including exchange rate policy, exchange restrictions, tariff and non-tariff barriers, and health an d environmental regulations)the costs to each potential party of identifying appropriate trading partners in these marketsthe costs of negotiating, writing, and enforcing contracts and resolution disputes between the parties andthe costs of financing the transaction, which generally involves a long lag between placing an export order and making final payment for it, and of attitude the risks of default throughout the process.Abdel-Latif (1992) further corroborates that these transactions costs are abnormal by several factors which includesdifferences in language, culture and taste, laws and dispute resolution procedures, income and information sources, the modus operandi of markets, and the extent and character of competition,difficulties of enforcing contracts across countries, and hence the higher risks of payment default.However, these factors are dynamic and changes over time along with the changes in organizational structure, orgasm of new policies and regulations, use of t echnology in communications, transportation, and other aspects of the dynamic societal structure whether environmental, socioeconomic, political or cultural. Other factors which may give rise to transaction costs are what is known as asymmetry of information which is elemental to any business relationship.For example, at the level of the rules and regulations, countries may pauperization conditions to look different than they really are or may be unwilling to enforce existing laws. Likewise, the agents responsible for implementing the rules may have undersize incentive to do so and indeed may have the incentive to leave the interpretation of these rules sufficiently ambiguous so as to have rents for themselves. Even more relevant and important, each potential trading partner has better information about his own characteristics and propensities (appropriate to defining the terms of the contract) than does the other party, inducing adverse self-selection for any given terms. (Abde l-Latif, 2001)Theoretically, any contract between trading partners details enough fine points for a working compact to thrive. However, in reality, the details of these contractswhich includes threshing out possible roadblocks as well as scrutinizing everything takes up a lot of time and discussions, and most oftentimes ends in stalemate. Thus, the costs of potation up a very detail and comprehensive trading pact whose interpretation is transparent and accurate are quite expensive. Moreover, there is a time lag in having these agreements move to and fro the business partners and, thus, there is a likelihood of it being exposed to risks as moral hazards and resorting to shortcut methods in order to get through a deal.Transaction costs in the communications and in dispensing information are exposed to a host of other factors like insufficient damages systems to keep the transactions private in order to shelter the enterprise practices, the non-existence of competitive markets wh o should have been able to provide services such as that in information and enforcement costs for the reason that there already exists a specified role for an intermediary providing the aforementioned services. Thus, the scenario is that there is a monopoly of the services and upon which the government base its trade intervention and other regulations.Once a business enterprise engages itself in a contract it exposes itself to risks. Hence, after engaging in a contract both parties would naturally protect itself from these purported risks by seeking insurance. Moreover, when the company seeks this insurance it presents itself to an asymmetry of information wherein both parties fall into excessive negotiation costs as well as lags in time which further results to attempt a moral hazard and work opportunistic (Abdel-Latif, 1992).The upside of this is that the degree and magnitude of these problems in transaction costs depends on the salient features of the business in the region, on the regions conducting trade and investment itself, the companies or enterprise involved in the transaction, and even the socio-political and environmental conditions itself. Furthermore, the enterprise itself may just well revive itself and find its own mod solutions to get over these problems (Abdel-Latif, 1992).Foreign Direct Investment (FDI)Foreign bring investment or FDI refers to any form of investment that earns interest in enterprises which functions outside the domestic territory of the investor (Graham Spaulding, 2010). An FDI calls for a business partnership between a parent company and its foreign subsidiary. The presence of multinational companies concretizes a foreign direct investment. There are two categories of FDIs, inward FDIs and outward FDIs, which depends on the kinds of restrictions the government requires business enterprises to follow. Outward FDIs are direct investments abroad, which requires tax incentives and/or disincentives, and which the government tries to guard from probable risks of any form (Graham Spaulding, 2010). excursus from the classification, a foreign direct investment is motivated by a lucrative market, presence of resources, and efficiency in operating a business in the region (Graham Spaulding, 2010). In any case, a successful free trade agreement between regions base most of its terms and conditions in these three motives. These three motivations are already present in a partnership with GCC and ASEAN. As it is, both regions are said to be complementing each other in the sense that ASEAN countries have a need for the oil industry of the GCC and the GCC countries have a need for the resources, particularly the agricultural sector, for itself.With the climax of new technology developments, more and more companies have been establishing foreign direct investments (Spaulding Graham, 2010). This is partly because communications as well as transportation costs have decidedly become cheaper as compared in the pas t (Graham Spaulding, 2010). UNCTAD reports that there is an increase in the yearly FDI consort from an average of $10 one million million million dollars to $20 billion within a decade (from 1970s to 1980s). This growth further hit the roof from $26.7 billion in 1990 to $179 billion in 1998. The amount doubled to $208 billion in 1999. At present, FDIs comprise a bulky portion of global businesses.Satsuya (2009) revealed in his article that among the issues that hinder foreign direct investments, particularly in Malaysia and Thailand, runs parallel with foreign ownership of companies. In the telecommunications sector, distribution and commercial banking, foreign ownership is narrowed to 30 percent. Malaysia limits foreign ownership to industries that have to do with financial industries to 49 percent while foreign banks are only permitted to set up one other branch with a limited number of personnel.But these limitations are not only true with the ASEAN countries like Malaysia and Thailand. or so of the GCC members, like the Saudi Arabia, also imposes its limitations of foreign ownership of real estate and equities. In fact, this corroborates with the study of Zarrouk (2001) wherein he says that Saudi Arabia ranks among those with severe restrictions on foreign ownership in the country. On the other hand, in Bahrain, foreign distribution services could well put up several distribution branches in the country but they are not allowed to participate in direct commercial sales like wholesale and retail. Though the UAE is more friendly to foreign investors offering vitamin C percent ownership in free trade zones, such as Abu Dhabi, it limits foreign ownership to 49 percent outside the free trade zones. Thus, foreign industry expansions are still limited. Meanwhile, the telecommunications sector remain off limits to foreign ownership as well as the granting of licenses to any foreign bank to operate as a full-fledged financial institution. key Issues and Concer ns Identified by Independent PapersAlong the domestic spheres, Sasuya (2009) identified these factors which the government enforces in order to safeguard most of its defunct local commerce, and thereby contributing to the evolution of trade and investment in the region. Some of these measures involve dependence on subsidies, setting up of importation quotas and despotic high taxes on imports. By so doing, while the GCC and ASEAN regions inadvertently protects its industries from trade it also prevents foreign investments from entering the picture (Sasuya, 2009). In the same manner, it is because of these trade defensive measures that there are deadlocks on negotiations such as a free trade agreement which generally banks in reducing tariffs on imports. For instance, when Japan and South Korea started negotiating a free trade agreement with Thailand, Malaysia and the Philippines, angst ruddiness from the terms regarding its agricultural tariffs and issues arising from full-ownershi p of an agricultural company of a foreign national also emerged, especially from the Thai end. According to the Commerce Minister Somkid Jatusripitak, who was also its Deputy Prime Minister, their refusal to bring down tariff on rice imports is due to the fact that 70 percent of the Thais are rice farmers (Satsuya, 2009). In Malaysia, this barrier is much more extensive. With the Malaysian government instigating its Bumiputera development policy, which operates in favor of the ethnic Malay majority who incidentally belong to edge economy, thereby affecting not only trade but the flow of foreign direct investments. Thus, by refusing to reduce tariffs on rice imports the government is actually protecting its constituents but is, in a way, increasing the transaction costs incurred by this particular deadlock.In the manufacturing sector, high tariffs also act as trade barriers. In Malaysia for instance, automobile imports have high taxes to protect its local automobile industry, Proton . Even if the Thais do not manufacture any automobiles, the country is sponsoring the industry as part of its industrialization scheme in which they envision becoming an auto manufacturing center. Meanwhile, the textile industry is also screen in the sense that it imposes 20-30 percent tax on all imports (Satsuya, 2009).There exists a statistical relationship between trade influx and political climate. According to Bergeijk (1992) a country with good diplomatic relations also increases its chances of getting bilateral business trades as well as drawing in foreign investors. However, the researcher also warns not to put withal much emphasis on this variable as it has less parting than other economic variables. Nevertheless, the fact that it contributes some amount of influence on the way companies conduct their business should not be discarded.Aside from political and diplomatic relations, a separate study finds that environmental constraints in the form of policies of the region a lso act as a trade barrier (Kohn, 2003). For instance, if and when a foreign investor should want to import a product which proves to be more polluting than the existing domestic product, the company woul