Constructivism and Post-Structuralism Essay Example | Topics and Well Written Essays - 3000 words

Constructivism and Post-Structuralism - Essay Example Constructivism's 'importance and its added value for the study of International Relations lie mainly in its emphasis on the ontological reality of intersubjective knowledge and on the epistemological and methodological implications of this reality'. He devotes an entire section to elucidating intersubjectivity as collectively shared knowledge which both empowers and constrains actors and also defines social reality. The upshot of Adler's portrayal of constructivism is, as the title of his article suggests, that it has a justifiable claim to the 'middle ground', which he construes as situated between rationalism and poststructuralism. Adler identifies 'seizing the middle ground' as the key to the constructivist project. This assessment is echoed by other scholars. Hopf sees constructivism as situated in the middle ground between rational choice theory and postmodernism, whilst Ted Hopf locates it between the mainstream and critical theory. Thus in defining constructivism scholars make reference to recognising the material world as existing independently of, but interacting with, the social world, the central role of intersubjectivity and the significance of occupying a middle-ground position. Wendt's positioning in the middle ground, related to a particular notion of identity; Kratochwil's reliance on an unproblematic intersubjectivity, based on normative context; and Onuf's claim to an independently existing material world behind our constructions. The acknowledgement of materiality appear to be crucial.... (Katzenstein, 1998, 645-85) This takes us on to a second key element of constructivism, namely intersubjectivity. (Guzzini, 2000, 147-82). According to Adler, constructivism's 'importance and its added value for the study of International Relations lie mainly in its emphasis on the ontological reality of intersubjective knowledge and on the epistemological and methodological implications of this reality'. (Adler, 1997, 319-63) He devotes an entire section to elucidating intersubjectivity as collectively shared knowledge which both empowers and constrains actors and also defines social reality. (Adler, 1997, 319-63) The upshot of Adler's portrayal of constructivism is, as the title of his article suggests, that it has a justifiable claim to the 'middle ground', which he construes as situated between rationalism and poststructuralism. (Adler, 1997, 319-63)Adler identifies 'seizing the middle ground' as the key to the constructivist project. This assessment is echoed by other scholars. Hopf sees constructivism as situated in the middle ground between rational choice theory and postmodernism, whilst Ted Hopf locates it betw een the mainstream and critical theory. (Hopf, 1998, 171-200) Thus in defining constructivism scholars make reference to recognising the material world as existing independently of, but interacting with, the social world, the central role of intersubjectivity and the significance of occupying a middle-ground position. Wendt's positioning in the middle ground, related to a particular notion of identity; Kratochwil's reliance on an unproblematic intersubjectivity, based on normative context; and Onuf's claim to an independently existing material world behind our constructions. (Onuf, 1989, 45-50) The acknowledgement

What Is Meant by the Terms Aims and Objectives Essay Example for Free

What Is Meant by the Terms Aims and Objectives Essay A mission describes the organisations basic functions in society, this is in terms of the products and services that it produces for its customers. A clear business mission should have each of the following elements Purpose, this is why the business exists, next there is the Strategy and scope, this is what the business is doing and going to try and achieve, next is the standards and behaviours, this is the rules and regulations of how the business is to be operated, finally there is the values, this is what the management believes in for the business to work. The aims of a business can be different depending on which sector they’re in: Privately owned business: This business focuses more on their customers and the employees, with the costs of their products or how they give the value for the money to the products that they sell. They also focus on the profit maximisation, the growth, and their increasing market share survival. Publicly owned organisations: These may mention the service they provide, the work they do is included in the missions statements about the quality of their efficiency ad customers. These are also here to provide the best service possible to the community with the money that is provided by the government for them to spend. Non-for-profit and voluntary organisations: These people focus on the services they provide, the causes they support or their aims in helping those who are in need. These also focus on charities for example: Oxfam, British heart foundation, and many more charities, that will help people who are indeed. †¢Values †¢Strategy and scope †¢Standards and Behaviours 3 Examples of mission statements. EasyJet To provide its customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this they will develop their people and establish lasting relationships with their suppliers. Reference: http://www.bized.co.uk/compfact/easyjet/easy8.htm BAA Our mission is to make BAA the most successful airport group in the world. This means: †¢Always focusing on our customers needs and safety. †¢Achieving continuous improvements in the profitability, costs and quality of all our processes and services. †¢Enabling us all to give of our best. †¢Growing with the support and trust of our neighbours. Source: BAA Web site Reference: http://www.bized.co.uk/compfact/baa/baa8.htm McDonalds McDonalds aim to be the UKs best fast service restaurant experience. Reference: http://www.bized.co.uk/compfact/mcdonalds/mc9.htm Many mission statements are quite short, but others are long. These all include the aims and the objectives of the business, in other words what the business is going to do and how it will achieve its missions. 5 Business Aims: †¢Survival, Is a concern for all business especially when they first start trading, To survive a business needs to work really hard to find and keep customers, but making sure there a lot better than their competitors. †¢ Growth, this is another way of saying of increasing the sales, but the sales can be increased by increasing the market share, by selling in new areas or to new customers of the country, or even developing better products or services. †¢Breaking Even, In order for a business to service it needs to be able to break even, this is the point where a business becomes self sufficient, where the money it collects in each sales is equal to the money it spends on costs. †¢Sales, this is where some businesses only focus on their increasing sales, perhaps because they think that big firms can compete more effectively than smaller companies/ businesses. †¢Market Share,  This is where many companies will aim to increase their market share each year by winning its customers away from their rivals. The aims of a business will vary depending on the sector they’re in. †¢Private Sector, the aims for this are profit maximisation, growth, increasing market share and survival. And they also would be looking to expand the business. †¢Government, the aims for this sector is to grow the economy, to help provide the best services to the public, they also are there to keep people safe to create a fair community. †¢Public sector, there aims are to provide the best service that is possible to the community with money which is provided by the government, they also are here to help improve service provision and they also have to operate within the budget that is at break even. †¢Not-for- profit, this is to raise awareness of particular causes and is to provide the best service possible with the available money. And are to increase the rand of services †¢Voluntary sector, this sector is to raise awareness of particular causes and is to provide the best service possible, with all the volunteers that are available. These also support a free service to the needy. Example of Business Aims †¢British Airways, this year we have mapped out a long-term vision for our business. It is to be the world’s leading global premium airline. http://www.britishairways.com/cms/global/microsites/ba_ report0809/pdfs/Strategy.pdf †¢Sainsbury, Aims are to provide a safe and prosperous town for its residents advertise as much as possible http://www.ukqna.com/business/2906-2-buesiness-ukqna.html †¢Easy Jet, to provide its customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. http://www.experts123.com/q/what-are-the-business-aims-and-objectives-of-easyjet.html †¢Tesco’s Value for money- competitive prices- meeting consumer needs progressive returns on investment. http://www.blurit.com/q901525.html †¢Oxfam, to examine levels and determinates of utilisation in the views of  various stakeholders (population, health committees, providers, health authorities) in the context of cost sharing. http://www.oxfam.org.uk/resources/downloads/wp_costsharing_yemen/wp_yemen_2aims Business Objectives. Aims are where the business wants to go in the future; these are long term achievements for a dream to come true for them. Objectives are more specific than aims. They are set over the short to medium term. Objectives are necessary because aims, in themselves, are to general and may be overwhelming. The aims maybe *for example*, to go to university. Business can meet their objectives by keeping focused on what they’re going to do, and what they need to do to get to that objective. For example, wanting to go to university, they need to get all their A levels. Objectives need to be smart in order for them to be realistic and work for a business. Smart- stands for †¢Specific- You need to have a clear statement about what you will be doing. It is usually quantified, which this means that it has a number in it. †¢Measurable- Achievement can be checked. By keeping a record of your progress, and the completed assessment, this will be able to measure the achievements. †¢Achievable- you can attain you’re target if you work hard, you can also do really well if you stretch you’re self. †¢Realistic- Your target should be sensible one that you can stand a chance of achieving it, for example, saying you will make  £2000 a week. †¢Time- Constrained- every objective should have a date included for achievement or review. This acts as warning, as well as backup if you happen to be falling behind. The objectives of a business will vary depending on the sector they’re in. †¢Private Sector, Increase sales, and reduce the costs to develop new products and services, improve existing products and services to hopefully find new customers. †¢Government, to reduce the crime to set the appropriate taxes, petrol prices, and provide the best schools and hospitals, to create new laws they should also improve the product quality. †¢Public sector, to  exceed customer expectations, for example they could reduce the waiting time in hospitals, help to improve exam results for GCSE and A level students. And they want to lower crime rates. They could also try and meet customer targets. And keep the costs low. †¢Not-for- profit, to raise more money and to reduce the costs so more money can be used on the services, to improve services, to get more people aware of the particular cause. †¢Voluntary sector, they want to get more volunteers to help improve their servi ces. They also want to increase revenue from donations. They should also take into account of reducing costs. Examples of Business objectives: The first set of objectives is taken from Kellogg’s a PLC business and the other objectives are from a not for profit organisation Barbados’s . †¢Kellogg’s, 1.encourage and support physical activity among all sectors of the population 2.use resources to sponsor activities and run physical activity focused community programmes for its consumers and the public in general 3.increase the association between Kellogg and physical activity 4.use the cereal packs to communicate the balance message to consumers 5.Introduce food labelling that would enable consumers to make decisions about the right balance of food. http://www.thetimes100.co.uk/case-studyusing-aims-objectives-to-create-business-strategy6-267-3.php Barnardos ambition for the next three years is to help as many families and children as possible to overcome disadvantage. To fulfil this ambition, our aims include to: †¢use donations to help the most vulnerable and †¢hardest to reach children and young people †¢better demonstrate the effectiveness of †¢our children’s services †¢extend our reach into minority communities †¢campaign fearlessly on behalf of a population †¢of disadvantaged children, young people and †¢families who struggle to represent themselves †¢exceed the average fundraising performance †¢across charities in the UK †¢grow awareness of and active support for †¢Barnardo’s work †¢attract more volunteers, especially to our †¢stores and children’s services †¢continue to grow our net retail income †¢drive up organisational performance and †¢Increase our competitive advantage. http://www.barnardos.org.uk/annual_review_2010_interactive.pdf

Medieval England :: essays research papers fc

Medieval England It is said that 'An apple a day keeps the dentist away.' This has become a common saying among Society today. We do not stop to think of how it reflects our outlook of Medicine in our lives. We have come to understand the value of simple practices in order to keep ourselves healthy. This is not, however, the case of Medieval England. Most 'medical practices' of the time were based upon superstition, ancient texts, myth, or the direction of the church. Medical practices of Medieval England often based upon nothing more than superstition proved unbeneficial if not harmful to the people of England. Part of the obvious problem was the fact that the common person had little care or sense for improving their own health. The life and livelihood of an average person was less than desirable even from the time of birth. In the villages chronic inbreeding must have produced many children who started life with a built in weakness, either mental or physical. Many would die in childhood, but others who grew into manhood, might drag out a useless existance, dependent on charity for their sustenance. In general, infant mortality was extremely heavy....Once the child was free to crawl about among the unsanitary rushes, with a child's natural instinct to put everything into its mouth, it is a wonder that any survived. Fromt then on disease and accident would provide ample scope for a medical service, which was virtually non-existent. (Tomkeieff 119). Furthermore, the collective knowledge (what little there was) was held and practiced by Monks in Monasteries. In summary of medical practice to the end of 1400, it may be said medicine was practiced mostly by the clerics in monasteries and the laity whose locus of operation was the apothecary shop. The physician thought surgery was beneath his dignity (to have blood on his hands and clothes) and left this to uneducated 'barbers' The practitioner carried the title 'Master,' whereas teachers carried the title 'Doctor' The physician was little advanced over the knowledge of Galen's time. They still believed in the Doctrine of four humours, making diagnoses by inspection of the blood and urine. Most of the therapeutic measures included blood letting, steam baths, amulets, spells, hexes, prayers, the king's touch, and polypharmacy known as theriaca. (Snyder 1). The problem is furthered by the fact that these 'practices' proved of little benefit. Most of these had no scientific basis and were instead rooted in superstition and/or the church. "The concern of Christian theology, on the other hand, was to cure the soul rather than the body; disease usually was

Cultural Differences in Parent-Child Communication Essay

Today’s children face more diversity than their parents were when they were at the same age. The cultural differences in how the parents deal and communicate with their children around the world are a great challenge. Parent’s involvement in their children’s literacy and communication either in school, home or community will be effective through communication strategies and awareness about cultural differences (Alvarez, 2000). The support of parents is one of the critical components of their children’s communication development. The effort, support and parent’s expectation for their children’s way of communication can be of great help to understand the complicated and diverse cultural differences. The socio-cultural differences vary from language, ethnicity, poverty level, sex and education that could affect the children. Cultural differences are a great challenge to prove that parents can communicate with their children and improve their behavior in dealing with other people. There are variety of reasons why parents resist and exclude themselves in children’s literacy, school activities and communication process. The number of cultural differences increases with the number of children in school, and children with full support from their parents can achieve more especially if the school setting resembles their home language. Every parent must have face-to-face interaction with their children. This is a way to establish a trusting relationship with them. Discussion Since people from different culture and race exist, parents must inform and orient their children about individual beliefs and different way of living and why does it happen. By acknowledging the differences in culture is a way to clear children’s obscured judgment of other cultures and encourage an unbiased opinion (Alvarez, 2000). As responsible adults, parents have the responsibility to open their children’s thought without prejudice about cultural mix. The couple themselves may be from different cultural backgrounds but if they do not allow this difference to get in the way of their relationship, this can allow their children to experience the mixture of different cultures (Hoover-Dempsey, 2002). It is the responsibility of parents to educate their children on matters of religion and spirituality. Nowadays, there are children who are smarter than their parents. These children can throw various questions that expect intelligent answers from adults. In teaching children about cultural differences, respect and tolerance about one’s practice and belief is important. Most of the children will emulate their adult figure and will act the same way as their parents. Parent’s effort in learning cultural differences will help their children to gain diverse awareness. Parents must have the initiative to get to know their neighbor, encourage their children to befriend other children in their school and community, and invite some friends to join dinner at home. Despite the difference in physical attributes (i. e. , hair, skin color, height, and beliefs of individuals, children must be trained to respect everyone and perceive them as a person. Understanding one’s culture does not mean acceptance but matter of respect regardless of their similarities and differences. Parent’s responsive behavior and desire to educate their children about other people’s beliefs, practices and values could promote secure attachment. There are different factors which influence individual beliefs, values and practices like parent’s intuition, the accustomed parenting practices, previous attachment practices to their parents, parental norms and accepted culture in their family, religious belief and the generation changes (Madriz, 2000). There are no consistent patterns of parental communication within each cultural group. There are predominant beliefs and practices brought by parental instinct which do not involve assistance and learning from professionals or literature but could provide security and protection during the course of child development. This type of parenting is not always reliable and can be derived from different sources. Many parents learned their communication through formal and informal means depending on their country of origin. One good example of cultural differences that takes place is when children feel lost when he enters the school premises for the first time. These children have little confidence on how to communicate with other children. However, they gradually follow consciously or unconsciously the cultural trends in school until they become accustomed to the culture. The presence of parental support like sharing their past school experiences to their children is one powerful way of informal learning. It is not necessary that parents must have an answer for every child’s inquiry but it is important to let them have awareness for everything. Parents can be of great help to their children by providing them support and making them feel comfortable to stay in school despite having no relatives, cousins, playmates and other house members that could attend to their immediate needs (Allexsaht-Snider, 2000). Parents need to talk to their children about the enjoyment brought by coming to school as they meet different people from different culture. The care and love provided by every parent to their children will equip them with confidence. Parents vary from being over-protective, loving, unmindful of their children, abusive both physically and emotionally and may not portray a typical model of ideal parents. Other parents do not have desire to act like parents despite the challenges of taking this role (Bloom, 2000). Trying to have positive outlook for their kids may be difficult due to internal conflict. They keep on fighting on how they were brought up by their parents. These negative patterns of parent’s growth will affect their child rearing process and security attachment. Although there is recognition and awareness of being parents to their children, they need to overcome their negative patterns of growing by showing great affection that they missed when they were still a child. There are different accepted parenting norms influenced by cultural differences with extent pressure to conform to their norms. Parents who strongly believe that their cultural practices must continue despite having unsupportive environment will affect their way of communication with their children. Parents keep on teaching their children the strong interwoven tradition of their religious beliefs, values and practices, the important role of their cultural spirituality greatly affects their way of living and dealing with other people that can be passed through their children and offspring. Living in another location induces stress on the parents and children, especially when difference in cultural background is present. It strongly affects their children due to their fear of rejection, lack of support for their beliefs and practices, and fear of how to ingrate their culture to the present situation. Example of this stressful cultural difference includes the Yugoslavians who were trapped in the midst of ethnic conflict due to religious differences. Other examples include the Muslims from Africa who do not eat pork, the Asian nations that swear not to fight, and the religious sects who do not want to consume drugs for their sick loved ones (Allexsaht-Snider, 2000). Parents having difficulty transmitting and enforcing their values become even stricter in ensuring that their own cultural traditions will prevail. Children are usually surrounded and mingle with peers who do not have the same cultural orientation. The risk and fear of being voted out by their fears bring them unspeakable dilemma (Allexsaht-Snider, 2000). As parents, communicating with their children about cultural differences they must inflict to them that their trust is to mould them as good children with moral and responsible obligation to their family, school and community (Allexsaht-Snider, 2000). The clash of cultural differences must not be a form of struggle in their day to day living but rather help them to become flexible and protective of their own culture. From child’s birth to his seven years of existence in the world, most parents play and rear their children. From seven years to fourteen years of life they guide them to follow their cultural practice. From fourteen to twenty one years of life towards adulthood, parents must be a friend to their children (Joyner, 1996). They keep on guiding but respecting their own prerogatives in life. Regardless of countries of origin, families can gain practical learning experiences that can transfer to their children and let them feel the challenge of changes in their lifestyle with guidance. By understanding the children’s priority with compassionate guidance they can be ready to occupy a space in this world with respect to cultural differences and share their own cultural and religious beliefs and practices. Within cultural groups, an individual may experience diversity but the important thing is for them to recognize the dynamic features of every culture (Allexsaht-Snider, 2000). Changes may take place from generation to generation brought by influx of younger generation ideas and countries global position. However, the essence of cultural differences lies in the benefits derived from diversity learning. During the past, most children would be quietly sitting in their living room while their parents are entertaining visitors and must be involved in their conversation. Those were the days of traditional parenting. At present it is necessary for parents to encourage their children to get involved in conversation and be confident enough to share and learn new ideas. It is just right to keep certain traditional beliefs and practices but by adding some new and positive ideas can help them in adjusting to current environment. Reflecting and evaluating the parenting style, values and practices will enable the children to keep the best values, give up the not so good ones and adopt to new ones. Though parents can keep on talking about their old practices and beliefs about cultural differences, it is just right to adopt new practices, beliefs and values with an intention of improving and benefiting their children. Conclusion Cross-cultural learning experiences differed but it is important not to fall into the trap of being left and keep on living based on past cultural beliefs, values and practices. Giving children the affection, attention and respect despite of being young are significant aspect of parent-children relationship, community involvement and extended family interaction. No individual learns from one person alone. Each individual is connected by their day-to-day interactions with others. The children should be taught to communicate in positive manner with others as this can help them in their self-development (Edwards, 2001). It is great to know that children will obey their parents not because of fear or control but because of their choice to share their own opinion and be respectful in dealing with other people. Teaching children to respect everyone regardless of cultural differences is a way of helping them to grow (Allexsaht-Snider, 2000). The deep and enduring connection of parents to their children creates happiness at home with their own freedom of expression towards healthy child development. References Alvarez. T. (2000). African-American and Latino Teacher’s Perspectives on Inner City Teaching. Philadelphia, PA: University of Pennsylvania Center for Urban Ethnography Allexsaht-Snider, M. (2000). Families, Schools and Communities Practices. New Orleans, LA: American Educational Research Association Bloom, D. , Katz, L. , Solsken, J. ,Willet, J. , & Wilson-Keenan, J. (2000). Interpellations of family and classroom literacy practices. Journal of Educational Research, 93, 155-163. Joyner, E. (1996). Rallying the Whole Village, Reforming Education. New York: Teachers College Press. Edwards, P. (2001). A Path to Follow Learning to Parents, Greatest Challenge. Portsmouth, NH: Heinemann Gunn-Morris, V. (2000). Preparing for Family Involvement. New Orleans, LA: Educational Research Associations Hoover-Dempsey K. (2002). Parents Involvement in Their Children’s Education. Review of Educational Research. 3-42. Madriz, E. (2000). Focus groups in feminist research. In N. K. Denzin & Y. S. Lincoln (Eds. ), Handbook of qualitative research (2nd ed. ). (pp. 835-850). Thousand Oaks, CA: Sage Publications.

Extreme sports risky but worth it? Essay

Imagine the feeling of accomplishment, the adrenaline rush, and the overall thrill of participating in an extreme sport for the first time. Whether it be skydiving or successfully landing a jump on your snowboard or skis for the first time. Extreme sports are all about big risk, and big reward. To me there are four categories of extreme sports the ones performed in the air, water, on the ground, or on the snow. They can vary from mountain biking or jumping out of a plane with nothing but a parachute attached to your back. To some people, they see extreme sports as an unnecessary risk. But to others these high risk sports are there passion and they couldn’t see life without it. I remember the first time I went snowboarding and I didn’t see the point, I thought it was boring and I wondered how people could enjoy it. But this was only because I wasn’t good at it, and because of that I was frustrated. Once I made that very first run down the hill without falling, tha t was awesome, it was a huge confidence booster and it was kind of like hearing the Beatles for the first time, simply amazing. Looking back now I am very happy that I decided to get back on the board and teach myself how to ride because it is currently one of my most favourite things to do. I enjoy it so much because now when I am racing down a hill it feels so refreshing, regenerating, and rejuvenating. I still remember the first time I landed a jump and the thrill and rush that came with it, I just wanted to do it again and again, and at that point I wasn’t worried about any of the risks involved with landing that jump, because everything felt so†¦Ã¢â‚¬ ¦ worth it. Many people have been badly injured doing extreme sports, for example; Jeb Corliss who was base jumping in a wing suit in South Africa when he crashed into some rocks at 120 mph and suffered devastating injuries and several broken bones. He made a full recovery and went right back out to base jumping about 4 months after the accident. Kevin Pearce is a snowboarder who was trying to perfect a trick in the half-pipe ended up suffering a traumatic brain injury. Doctors weren’t sure that he would ever regain the ability to walk again. Not only did he learn to walk again, but in only two years he was back out on the slopes. Bethany Hamilton is a surfer who came face to face with death after she lost her left arm to a shark while surfing in Hawaii. She is now back out on the water surfing with only one arm. To these extreme athletes they have a passion for the sport  and they have gone through severe injuries in which they recovered or only have one arm. Yet even going through those experiences they still want to get back on their board or in the air with their wing-suit to continue to do what they love doing. They rather take the risk with their sport then stop the sport completely, because to them the benefits o utweigh the risks. The number one reason I think that people don’t try an extreme sport in their life is that they don’t want to be putting there selves at risk, because to them there is no reward, because they have never felt what its like to have an adrenaline rush or that they aren’t thrill seekers. All it takes is education on the sport and how to stay safe while doing the sport, what kind of gear is needed and what type of training they should go through beforehand. It is also important to know the risks and the dangers of what your doing and how to react to those types of situations. It is also important to know that you can never be too safe. I think that if we all get out one day and try something extreme or out of our comfort zones, afterwards we will like it and get the I want more kind of feeling. At that point I think the benefits of the extreme sport outweigh the risks.

Start up business in Saudi Arabia challenges of finding finance

Start up business in Saudi Arabia challenges of finding finance Background overview Entrepreneurs share similar problems in terms of access to sufficient capital to start their business, ability to attract customers, developing a sufficient cash flow to sustain their venture and a variety of other issues that are involved in the process of developing a business (Zahra Wright 2011, pp. 67-83).Advertising We will write a custom dissertation sample on Start up business in Saudi Arabia: challenges of finding finance. specifically for you for only $16.05 $11/page Learn More In this section the various methods of capital access available to entrepreneurs within Saudi Arabia, and the difficulties that are associated with the process of obtaining sufficient funds to start a profitable business venture will be analyzed. Considering the fact that it is one of the wealthiest nations in the world, and part of the G20 group of states, the low rate of growth for its entrepreneurial sector engenders a number of questions that necessit ates further research and analysis. It is expected that this section will act as the basis behind an assessment that would create effective suggestions as to how entrepreneurs within the country can best respond to various financial opportunities and challenges. Saudi Arabian Economy and SME SMEs in Saudi Arabia A majority of the start up businesses in Saudi Arabia are in form of SMEs. Within the study Leading the way (2005, pp. 78-79), it was explained that in most market economies, small to medium scale enterprises (SMEs) make up the bulk of a countrys enterprises. This constitutes 80 to 90 percent of local businesses (Leading the way 2005, pp. 78-79). Such an orientation can also be seen in the case of Saudi Arabia, wherein SMEs make up 92 percent of local businesses within the country, and employ up to 80 percent of the workforce (Leading the way 2005, pp. 78-79). H.M. King Abdullah bin Abdul Aziz Al-Saud himself has been quoted as stating that entrepreneurs are the backbone of the Saudi Arabian economy and are instrumental towards its continued growth and prosperity (Kayed Hassan 2010, pp. 379-413). (Kayed Hassan 2010, pp. 379-413)Advertising Looking for dissertation on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It must be noted that despite the fact that SMEs constitute 92 percent of local businesses, they are still overshadowed by the countrys oil and natural gas industry which accounts for 90 percent of export earnings, 45 percent of the GDP and 80 percent of the governments budget revenues (Kayed Hassan 2010, pp. 379-413). This is in sharp contrast to the situation found in countries such as the U.S., U.K., China and other industrialized countries where local SMEs makeup more than 70 percent of GDP, 60 to 70 percent of local government revenue and 75 percent of export earnings (Kayed Hassan 2010, pp. 379-413). While Saudi Arabias status as an oil exporter does entail a d ecidedly different economic structure, it must be noted that given the non-renewable state of its oil reserves, it is absolutely necessary to implement some measure of encouraging the development of start up businesses in order to have a strong local economy in place that is not dependent on resource that will inevitably dry up (Lindsey 2011, pp. 1). Entrepreneurial Growth Rate (Saudi Arabia 2012, pp. 1-18) (Outlook for 2011-15: Economic policy outlook 2010, pp. 7-9) Unfortunately, an examination of the development of local industries within the country reveals that entrepreneurial growth has remained low at 3.3 to 3.5 percent annually, with the much lauded Saudi Fast Growth 100 group (a listing of the top 100 locally owned corporations that were started by entrepreneurs) gaining a combined annual revenue of $2.4 billion equivalent to $9 billion Saudi Riyals) with 90 percent of their revenue originating from within Saudi Arabia itself (Outlook for 2011-15: Economic policy outlook 2 010, pp. 7-9). While $2.4 billion may seem like a significant sum for the accumulated revenue of the top 100 companies within Saudi Arabia, this pales in comparison to the hundreds of billions accumulated by the top 100 companies started by entrepreneurs in countries such as the U.S., U.K, and China. Even a developing country such as the Philippines has a local SME industry where the top 100 companies started by entrepreneurs reach revenues of $10 billion or more.Advertising We will write a custom dissertation sample on Start up business in Saudi Arabia: challenges of finding finance. specifically for you for only $16.05 $11/page Learn More The fact that the revenue of these companies mostly originate from within the Saudi Arabian economy itself rather than through international exports shows how relatively young the companies started by local entrepreneurs are within country considering the fact that focusing on local instead of external markets is one of the first stages of entrepreneurial activity. Such factors can be considered indicative of a major problem existing within the Saudi Arabian entrepreneurial landscape which can be connected to the lack of sufficient access to funding for local entrepreneurs in order to sufficiently grow their businesses to a level that can be considered internationally competitive. Saudi Arabia’s economy According to Economic Structure and Context (2012, pp. 16-17), Saudi Arabia’s economy is heavily dependent on its oil reserves. This is because oil is the major export commodity in this economy. Additionally, the oil industry provides employment to a majority of the citizens. This implies that this economy is susceptible to the volatile oil prices in the world market, and any changes in the production of oil by the oil industry. To address this vulnerability, the government has acquired a number of foreign assets which help in cushioning the economy against changes in the oil prices, w hich affect the economy adversely. For this reason, the economy is able to withstand shocks in the oil world market provided that it is not for an extended period (Chapter 2: Economic Outlook 2011, pp. 15-23). It must be pointed that the government continues to be the major player in the economy. This implies that the economy is not fully liberalised. However, the government is at the forefront in encouraging entrepreneurship with a view to increasing employment opportunities for the youth, who form the bulk of the kingdom’s population. This increased employment level, as a result of increase in private investment, will have the effect of enhancing the standard of living in the kingdom (Economic Structure and Context 2012, pp. 16-17). Government’s involvement in the economy has helped in improving the standards of living for the Saudi nationals (Jacknis 2011, pp. 107-116). However, this involvement has repercussions that include: distortion of the market, subdued produ ctivity, and discourage competition.Advertising Looking for dissertation on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It can be said that the government’s dominance in the economy has lowered the efficiency of the economy. Nonetheless, the government has been working towards liberalization of the economy and complying with international treaties, with a view to improving the economy. The Saudi government has also embarked on the privatisation of the some sectors of the economy including: telecommunication, water and aviation. The major objective of this privatization has been to attract foreign investment in the economy. This will serve as the much needed boost to propel the economy to a higher growth trajectory. Moreover, the government has also increased public expenditure as a stimulus for economic growth. This increased public expenditure has been instrumental in facilitating the growth of Saudi economic cities that has acted as an incentive for the entrepreneurs (Economic Structure and Context 2012, pp. 16-17). Literature Review This section explores various aspects related to the finan cing of entrepreneurial ventures within Saudi Arabia, the way in which financial institutions and loan processes operate, as well as the current state of key funding sources in relation to their counterparts in other countries. It is expected that through an examination of such aspects of the Saudi Arabian entrepreneurial and financing sectors of the economy, a greater degree of understanding regarding the current state of venture financing and the processes involved in it will be developed. The Financing of Business Ventures within Saudi Arabia One of the oddest discrepancies that has come up during the research process is that despite the fact that Saudi Arabia is widely recognized as a leader in promoting and supporting entrepreneurial activities, it actually has a financial sector that is not as conducive towards small to medium business loans as one might expect (Ahmad 2011, pp. 610-614). It is usually the case that if a country is known for supporting entrepreneurial activity, this would in turn result in a commensurate effect on its local banking sector wherein loans for small to medium scale enterprises and ventures would be more readily given. However, this is not the case and in fact it is actually more difficult to obtain these types of loans within Saudi Arabia as compared to other countries within the same region (i.e. the U.A.E, Egypt, Jordan, Israel etc.) as well as in countries such as China, the U.K. and the U.S (Ahmad 2011, pp. 610-614). In order to address this rather odd disparity, an examination was conducted as to how small and medium scale enterprises were normally funded and how did this type of funding differ from what can be seen in other countries. It was seen that in the case of Saudi Arabia, the family played a crucial role in the funding and development of start up business ventures wherein more than 75% of local businesses started by entrepreneurs were a result of family members contributing towards the initial starting capital o f the entrepreneur and actively gave advice regarding the proper management of the business (Constraints on Development: Small Businesses in Saudi Arabia 1992, pp. 333-351). In fact, it was noted by researchers in the report Constraints on Development: Small Businesses in Saudi Arabia (1992, pp. 333-341) that it is the strong interfamily ties within the countrys culture that limits the export market of Saudi Arabia due to the development of a business culture, wherein it has become preferable to deal with family members or friends of the family when it comes to joint business ventures and business opportunities, which in effect severely curtails the ability of a business to expand beyond its current market due to the inherent hesitance in dealing with the unfamiliar (Constraints on Development: Small Businesses in Saudi Arabia 1992, pp. 333-351). Going back to the issue of family and its connection to the financing of small to medium scale enterprises, what must be understood is tha t the proliferation of family as one of the primary methods of financing entrepreneurial business ventures has actually resulted in the local banking sector developing in such a way that they cater more towards large scale enterprises or higher tier medium scale businesses as compared to small or lower tier medium scale companies (Chapter 4: Business Environment 2012, pp. 27-33). The problem with this is that this in effect isolates a large percentage of the local population who do not have access to considerable family funds to start their business. Such a situation is in stark contrast to the way in which the banking sector in other countries such as China, the U.S., the U.K. and even in certain sectors in the Middle East work, since it is often seen that investing in entrepreneurs creates numerous beneficial actions (i.e. better local economy, greater amount of deposits, helping out what could potentially develop into a larger enterprise etc.) which banks generally think of as sa fe bets when it comes to loans, especially when it comes to the attitude of entrepreneurs to pay back what they owe on even if a particular business did not turn out as successful as expected (S.T. 2000, pp. 42) (Mahdi1998, pp. 1970-1971). It is often the case that such individuals within Saudi Arabia have to rely on their own personal savings as their primary method of creating start-up capital, which is an incredibly laborious and time consuming process, which would of course slow down the process of entrepreneurial activity within any country that utilizes such a system (Chapter 4: Business Environment 2012, pp. 27-33). Evidence of this can be seen in Saudi Arabias 3.3 to 3.5 percent annual entrepreneurial growths, which shows the negative impact that the current loan system has on creating better entrepreneurial activities within the country (Chapter 4: Business Environment 2012, pp. 27-33). The inherent weakness of the family fund system currently utilized by a vast majority of entrepreneurs is that when it comes to expanding the business beyond its current form and structure, this is when family members at times balk and refuse to or are unable to provide the necessary funds for the development of the business beyond its current form (Siddiqi 2008, pp. 44). The reason behind this is a plethora of issues ranging from the belief that after a business has been established, an individual should be responsible for its own expansion or that expansion itself is potentially risky without sufficient added benefits (Siddiqi 2008, pp. 44). As a result, this curtails the potential for various entrepreneurial ventures to expand to foreign locations and this is evidenced by the fact that nearly 90% of all local entrepreneurial revenue is derived from within the Saudi economy alone instead of through outside ventures (Siddiqi 2008, pp. 44). It must also be noted that another problem with the family based method of funding is that it actively promotes insufficient marke t examinations and a more lax behaviour when it comes to developing processes that are more efficient and less costly (Robson, 2005pp. 40-42). Based on the study by Constraints on Development: Small Businesses in Saudi Arabia (1992, pp. 340), it was noted that family based methods of funding were considered a relatively safe and easy method of funding for a business, which did not have the same stringent procedures and viability checks that are necessary when it comes to a bank loan (Footwear Industry Profile: Saudi Arabia 2012, pp. 1-29). As such, entrepreneurs under this particular system are less likely to favor processes that maximized the usage of capital and utilized more efficient methods of operations due to the rather easy way in which funds could be obtained to run a business (Constraints on Development: Small Businesses in Saudi Arabia 1992, pp. 333-351). This, Baqadir, Patrick, Burns (2011, pp. 551-559) remark, is one of the main reasons why plenty of businesses fail wi thin the first year of operation in Saudi Arabia, since it is usually the stringent process of loan evaluation seen in most banks that encourages entrepreneurs to think ‘outside the box’, resulting in financial success and ingenuity (Baqadir, Patrick, Burns 2011, pp. 551-561). Though not particularly as relevant, it must be noted that there is also another socially based reason as to why certain entrepreneurs are experiencing a higher degree of difficulty when it comes to finding sufficient capital: declining rates of marriage (Pope 2002, pp. 2). With the development of new internal policies within the Kingdom of Saudi Arabia comes an era where women have started to become more empowered. This is evidenced by the fact that nearly 54% of all university graduates within Saudi Arabia are women and that a growing percentage of them have started to focus on their own careers and the development of the family business rather than enter into a prospective marriage (Pope 2002, pp. 2). As a result, with declining marriage rates comes a distinct decline in access to sufficient capital by bachelors since it is the intermarriage between families that often times enhances the ability of an entrepreneur to access sufficient capital to establish his own business. Public Aid Programs Aside from the aforementioned traditional methods of funding that exist within the context of the Saudi Arabian culture, there also exist other methods of funding that are more in line with what is normally seen in other countries. The first of these methods of funding is the KAFALAH fund which is a $200 million fund that acts as a protection net against loan defaults meant to encourage local banks to lend to entrepreneurs (Country analysis report: Saudi Arabia 2011, pp. 1-68). The reason why KAFALA fund was created in the first place was due to the fact that between 2001 to 2009 local banks experienced increasing levels of loan defaulters (Country analysis report: Saudi Arabia 2011 , pp. 1-68). One of the main reasons behind this was simply the fact that entrepreneurs at the time lacked the necessary skills and capabilities to properly market their products, develop their businesses and enhance operations which inevitably resulted in the collapse of their ventures (Country analysis report: Saudi Arabia 2011, pp. 1-68). This was an endemic problem during that time until it was addressed by H.M. King Abdullah bin Abdul Aziz Al-Saud in the form of the king Abdullah University of Science and Technology (KAUST), the King Saud University (KSU) and various other educational institutions that focused on the creation, support and development of entrepreneurs within Saudi Arabia. It was through such programs that, in the words of H.M. King Abdullah bin Abdul Aziz Al-Saud, a new type of entrepreneur entered into the Saudi Arabian market economy Country analysis report: Saudi Arabia 2011, pp. 1-68). Such individuals were better informed, better prepared and more likely to create fewer mistakes as compared to their predecessors. Unfortunately, various Islamic banks were still reeling from the amount of loan defaults hence the necessity of creating stimulus funds in order to encourage lending (Apparel Retail Industry Profile: Saudi Arabia 2012, pp.1-25). Despite this, it was noted by various Saudi entrepreneurs that such activities were still insufficient, many of whom were of the opinion that it should be the government itself that should facilitate access to funds for entrepreneurs rather than having to go through the laborious and often times unfruitful process of filing for a bank loan (Dairy Industry Profile: Saudi Arabia 2012, pp. 1-32). One manifestation of such a necessity came in the form of the government sponsored AlAhli Small Business Program which is a type of loan/training program enabling entrepreneurs to gain access to a variety of funding sources that are in cooperation with the National Commercial Bank while at the same time provides training courses and various types of support systems so as to enable these potential entrepreneurs to develop the necessary skills, mindsets and abilities to effectively run their fledgling businesses (Country Update 2012, pp. 1-5). Other sources of funds also exist, which are there to address the problem of developing a funding program for young Saudi men and women that are underprivileged yet still would like to be entrepreneurs. For this particular scenario, the centennial fund exists which provides 50,000 200,000 SAR in funds for particular business ventures which is payable within 5 years. Similar to the AlAhli Small Business Program, the Centennial fund also provides training and development services but it also provides a mentoring program wherein experienced entrepreneurs help in guiding people who make use of the fund, through a 3 year mentoring program designed to increase the success of their business. Other more gender specific funds come in the form of the Prince Sul tan bin Abdulaziz fund for nurturing women entrepreneurs (Country Update 2012, pp. 1-5). As its name implies, this fund focuses specifically on providing women entrepreneurs with the necessary funds and training to undertake a variety of entrepreneurial ventures. Banking There are several banking institutions within Saudi Arabia that do in fact provide small business loans to start up business such as Al Rajhi Banking Investment Corp., the Riyadh Bank, the National Commercial Bank etc (Economic Growth: Outlook 2012, pp. 4-6). It must be noted though that due to the high degree of loan default experienced by these banks from 2001 to 2009 the loan process often involves considerable amounts of paperwork and at times recommendations from well established businessmen in order to gain approval for particular loans (Economic Growth: Outlook 2012, pp. 4-6). This in effect shuts out various entrepreneurs who do not have the same amount of clout or the connections necessary to show that the y can be trusted to pay back the loan. Additionally, the entrepreneurs have to go through other hurdles in form of government sponsored programs, which act as intermediaries between the bank and the entrepreneur and acts as a safety net in case of loan default. While this section has shown that there exists, quite literally, a plethora of funding and training opportunities for local entrepreneurs to start their own business ventures, what it does not show is that most of the funding and training opportunities are oriented towards the development of localized business opportunities and neglect to encompass a wider range of potential ventures through international markets. The study of Mortland (2009, p 19) which examined the funding and training opportunities that are currently in place within Saudi Arabia reveals that most of the revenue derived from entrepreneurial activity within the country is primarily as a result of derived income from local markets (Mortland 2009, p. 19). Ther e are relatively few cases of entrepreneurs which focus on international trade with one of the reasons being that despite the presence of funding programs with associated training schemes, these programs actually encourage and focus on developing entrepreneurs to focus on developing local market (Mortland 2009, p. 19). They propagate the notion that international business ventures are somewhat risky. This engenders a business culture that is more internally focused rather than externally adaptive. In cases where an entrepreneur is actively seeking funds to expand their business venture with a view to engaging in international trade, their loan requests are often turned down. Banks tend to agree to loans of this nature when requested by large firms or conglomerations. This in effect shuts out small entrepreneurs from international trade which is an important aspect of developing a local business. Venture Capitalists within Saudi Arabia Another of the problems faced by entrepreneurs w ithin Saudi Arabia is the distinct lack of venture capitalists within the country. An examination of data obtained from 2010 reveals that Saudi Arabia has the lowest ranking of any G20 country in terms of venture capital funding with only $5 million being invested by venture capitalists in local businesses at the time. Studies such as those in the Country analysis report: Saudi Arabia (2011, pp. 1 68 ) reveal that venture capital funding is an important facilitator of entrepreneurial activity since it acts as a method of funding outside of the regular methods facilitated through bank loans (Country analysis report: Saudi Arabia 2011, pp. 1-68). With entrepreneurs and the venture capitalists sharing the risks that come with developing a particular business venture this actually results in the sharing of ideas, better internal management of operations and funds and the creation of new lines of business which helps to considerably expand the venture beyond what the entrepreneur would have been capable of doing alone. As seen in the case of the U.S. and U.K., venture capital investments have helped to create a solid foundation for the development of numerous businesses which has actually encouraged entrepreneurial activity due to the potential that venture capitalists may choose to invest with a particular venture thus enabling it to expand based on the plans of the entrepreneur. The lack of venture capital funding in the case of Saudi Arabia helps to explain the relatively low growth seen in the development of new entrepreneurial ventures; since an external source of capital without the accompanying financial indebtedness associated with a bank loans would have definitely encouraged the development of a sufficiently strong entrepreneurial sector within the country (Country analysis report: Saudi Arabia 2011, pp. 1-68). One way of explaining the lack of venture capital funding can be seen in Chapter 4: Business Environment (2012, pp. 27-33) of Saudi Arabiaâ€℠¢s business forecast report which explored various aspects of financing within Saudi Arabia. Chapter 4: Business Environment (2012, pp. 27-33) shows that the concept of venture capital funding is relatively new within Saudi Arabia since it is a development that has only occurred within the past few decades within various other countries (Chapter 4: Business Environment 2012, pp. 27-33). Since Saudi Arabia has developed in an entirely different way as compared to other countries such as the U.S. due its emphasis on Shariah law in its banking and finance sector this would of course result in the creation of distinctly different financial instruments for funding business ventures within the country (Chapter 4: Business Environment 2012, pp. 27-33). This is especially true when taking into consideration the fact that â€Å"family funds† are still one of the primary methods of funding a business within the country and external methods of funding not associated with either the stat e or a bank are still viewed with a certain degree of distrust by the local business culture. Aside from that, most entrepreneurs within Saudi Arabia have no idea what a venture capital fund is or how it even operates, thus its level of acceptability and implementation within the context of the local economy is also rather low (Chapter 4: Business Environment 2012, pp. 27-33). Furthermore, since the venture capital sector of the Saudi Arabian economy is still within its relative infancy this means that the road shows, presentations, exhibits and forums normally associated with venture capital firms as seen in the context of the U.S. and the U.K. are relatively absent (Chapter 4: Business Environment 2012, pp. 27-33). This means that venture capitalists can neither show what methods of financing they can offer to entrepreneurs and neither can prospective entrepreneurs show their business ventures to venture capitalists (Chapter 4: Business Environment 2012, pp. 27-33). In the end, th is creates a situation that is not at all conducive towards the development of any form of venture capital financing operation within the Saudi Arabia and explains why the amount of venture capital funding is so low within the country despite the size of its economy. Entrepreneurs in Saudi Arabia and the local Stock Market Aside from venture capital investments, another alternative to financing the expansion of a business venture has been through the use of the stock market. In regions such as the U.S., U.K., and several parts of Asia, posting their company on the local stock market has been an effective method by which entrepreneurs of mid-sized corporations have been able to garner sufficient funds in a rather efficient manner. Unfortunately, in the case of Saudi Arabia, it has been noted that despite the fact that the local stock market has actually improved by 50% as a source of funding for businesses, most of this has been primarily isolated to large scale enterprises and has b arely been used to finance start up businesses (Bradley 2005, pp. 1- 22). One of the reasons behind this is the apparent lack of a specific market that can cater for the needs of the start up businesses. Consequently, this prevents various Saudi entrepreneurs from accessing needed funds for expansion as compared to their counterparts within the G20 countries. From a certain perspective, it can be assumed that due to the current predilection of Saudi entrepreneurs to view the stock market as a novelty exclusively for the rich rather than alternative method of funding, resulting to a situation in which the ability of the stock market to raise capital for the entrepreneurs is greatly hampered. Studies such as those seen in the report â€Å"Saudi Arabia business forecast report Q3 2012† (2012, pp. 1-51) have indicated that despite the 90% rise in the usage of Saudi Arabian stock market, start up businesses continue to have a relatively low profile in it due to an insufficient amo unt of information regarding the process of registration, compliance and how the stock market works in general (Saudi Arabia business forecast report Q3 2012 2012, pp. 1-51) It is based on this that the report recommends a greater degree of government assistance in the form of information campaigns so as to educate local entrepreneurs regarding the various advantages of posting their company on the stock market (Saudi Arabia business forecast report Q3 2012 2012, pp. 1-51). Common problems that prevent Saudi entrepreneurs from obtaining finance. Hussain and Yaqub (2010, pp. 22-28) note that as it is common when an entrepreneur wants to access loan from a financial institutions, the financial institutions subject the entrepreneur through a series of checks. This entails giving a business plan that shows the ability of the business to repay loans. In situations in which the business plan does not depict the ability of the business to generate the revenue that can support the repayment of the loan, the request is turned down. The challenge sometimes is not in developing business plan, but rather the ability to write a good business plan that highlights the major strengths of the business. From this section it can be seen that entrepreneurs have limited sources of capital (Hussain and Yaqub 2010, pp. 22-28). The few sources of capital that exists are meant for large-scale businesses, and not necessarily for the upcoming entrepreneurs. As it has been highlighted, most entrepreneurs obtain the much needed capital from their ‘families’. This implies that those entrepreneurs who come from families that are not well-off find it more difficult to procure the much needed capital. Additionally, it can be inferred that the financial institutions are not very friendly to the upcoming entrepreneurs and, unless the government institutes measures to facilitate easier access to loan for the entrepreneurs, the level of growth of the private investments will continue to be low. SOURCES OF FINANCE CHALLENGES Families Most ladies are getting educated and becoming very independent and they don’t want to get married. Some families are not very well-off such that they can facilitate financing for the entrepreneurs. Banks They prefer dealing with large scale businesses as opposed to financing small scale businesses. The banks ask for a lot of requirement from the entrepreneurs seeking loans for capital. Public Aid Programs Apparently the fund does not provide enough resources that can provide the much needed capital to the entrepreneurs. Venture capitalist Lack of venture capitalists in Saudi Arabia that can provide the much needed capital to the entrepreneurs Local stock market It is biased in favour of large scale enterprises as opposed to the upcoming business ventures Methodology Aims Wahyuni (2012, pp. 69-80) contends that a research should have objectives. In this regard this research is supposed to consider the f ollowing objectives. Firstly, the research is supposed to investigate the sources of finance for start-up businesses in Saudi Arabia. Furthermore, the research will also look into the bottlenecks that the entrepreneurs face when it comes to accessing sources of finance. The other objective will be to explore the various opportunities and challenges, which the entrepreneurs have to face when it comes to accessing finance from the financial institutions. In order to achieve those objectives the research will seek to address the following questions: Where do the successful business starters in Saudi Arabia get their capital from? What challenges do business start-ups encounter when financing their ventures? What can business start-ups do to avoid failure when sourcing out capital for their ventures? Study Design Given the nature of this research, the most appropriate research design that will be adopted for this paper is the qualitative research (Bansal Corley 2012, pp. 509-513). Th is will enable the researcher to have open ended questions that will help in generating of information regarding the challenges which the entrepreneurs face in Saudi Arabia. Moreover, the use of qualitative research method enables the researcher to have fewer participants which enable a more thorough approach to be adopted. Additionally, the information will be derived from both the primary and secondary sources. The sample participants for this study will be drawn from those individuals who have been involve in business venture in Saudi Arabia, and those who have been involved in the bank’s lending system. This will aid in getting the necessary information regarding the challenges that Saudi entrepreneurs face in an attempt to obtain finance for their fledgling businesses. The number of participants will be limited to thirty individuals from the cities of Jeddah and Mecca. This is because qualitative research uses a limited number of participants (Bansal Corley 2012, pp. 50 9-513). Furthermore, the participants must have attempted to get financing from the financial institutions and failed. The participant must exclusively own or owned a business venture. Another condition for the participant is that they must have complied with the regulations regarding application for financing, including submitting a business plan. It must also be acknowledged that if any information leaks to the financial institutions it might result to victimization of those participants. For this reason, the information should be kept securely so that it cannot be accessed by people who might victimize the participants. Data Collection Process As indicated earlier, the participants for this study will be drawn from both the entrepreneurial side and the banks’ lending system. Some of the questions which could be posed to the individuals in the banking sector will be on the number of loan requests by the entrepreneurs that were rejected and those that were accepted. The rese archer will also probe those participants so that he can have a glimpse at the reasons that led to either the cancellation or the acceptance of those loan requests. It must also be noted that the participants will be interviewed individually to enhance the confidentiality of the research. The participants will be instrumental in helping to unravel the challenges that the entrepreneurs face when it comes to accessing finance. Additionally, the questions that will be presented to the participants will be open-ended to enhance the ability of the research to generate a lot of information. Reliability of the interview data will be tested by comparing the variables under study with similar variables from previous studies while the validity will be tested by determining the extent to which the information concurs with global financing approaches. The interviews will be conducted on weekends to ensure that most of the participants will not be held up in their jobs, which could preclude them from attending the sessions. Another important thing which will be highlighted to the participants pertains to the confidentiality of their responses. This will encourage the participants to be more genuine with their responses. The preferred study technique for this research will be cross-sectional. This will be informed by the fact that this study is meant to unravel information which can be used in future when carrying out research on the same issue (Wahyuni 2012, pp. 69-80). Additionally, the time as well as the resources allocated for this research are vey limited and does not allow for the use of longitudinal technique. The data collected from this research will be analysed using data reduction techniques. This entails sifting through the data to determine those that are relevant to the issue being considered. Reference List Ahmad, S 2011, Businesswomen in the Kingdom of Saudi Arabia: Characteristic, growth patterns and progression in a regional context, Equality, Diversity Inclusion, 30, 7, pp. 610-614, Business Source Premier, EBSCOhost. Apparel Retail Industry Profile: Saudi Arabia 2012, Apparel Retail Industry Profile: Saudi Arabia, pp. 1-25, Business Source Premier, EBSCOhost. Bansal, P, Corley, K 2012, Publishing in AMJ -Part 7: Whats Different about Qualitative Research?, Academy of Management Journal, pp. 509-513, June, Business Source Complete, EBSCOhost. Baqadir, A, Patrick, F, Burns, G 2011, Addressing the skills gap in Saudi Arabia: Does vocational education address the needs of private sector employers?, Journal Of Vocational Education Training, 63, 4, pp. 551-561, Academic Search Premier, EBSCOhost. Bradley, J R 2005, Saudi Arabia Exposed: Inside A Kingdom In Crisis, Palgrave Macmillan, eBook Collection (EBSCOhost), EBSCOhost. Chapter 2: Economic Outlook 2011, Saudi Arabia Business Forecast Report, 3, pp. 15-23, Business Source Complete, EBSCOhost. Chapter 4: Business Environment 2012, Saudi Arabia Business Forecast Report, 2, pp. 27-3 3, Business Source Premier, EBSCOhost. 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Outlook for 2011-15pp. Economi c policy outlook 2010, Country Report. Saudi Arabia, pp. 7-9, Business Source Premier, EBSCOhost. Pope, H 2002, For Saudi Women, Running a Business Is a Veiled Initiative. (cover story), Wall Street Journal Eastern Edition, 2 January, MasterFILE Premier, EBSCOhost. Robson, V 2005, Business behind the veil, MEED: Middle East Economic Digest, 49, 25, pp. 40-42, International Security Counter Terrorism Reference Center, EBSCOhost. Saudi Arabia 2012, Political Risk Yearbook: Saudi Arabia Country Report, pp. 1-18, Business Source Premier, EBSCOhost. Saudi Arabia business forecast report Q3 2012 2012, Saudi Arabia Business Forecast Report, 3, pp. 1-51, Business Source Premier, EBSCOhost. Siddiqi, M 2008, Saudi Arabia: Bucking the global trend?, Middle East, 392, p. 44, MasterFILE Premier, EBSCOhost. S.T. 2000, Striking out on their own, MEED: Middle East Economic Digest, 44, 37, p. 42, International Security Counter Terrorism Reference Center, EBSCOhost. Wahyuni, D 2012, The Research D esign Maze: Understanding Paradigms, Cases, Methods and Methodologies, Journal Of Applied Management Accounting Research, 10, 1, pp. 69-80, Business Source Complete, EBSCOhost. Zahra, S, Wright, M 2011, Entrepreneurships Next Act, Academy Of Management Perspectives, 25, 4, pp. 67-83, Business Source Premier, EBSCOhost.

The Fashion Channel Essays

The Fashion Channel Essays The Fashion Channel Essay The Fashion Channel Essay After analyzing the proposed scenarios it is recommend TFH adopting Scenario-3: Focuses on both Factionists and Shoppers/Planners segments. 2. The recommendation is based on the scenarios analysis and the decision matrix outcome. The main reason for this selection would be Its superior projected net profit over the other scenarios margin) as well as Its source. For this approach, revenue increases from both premiership and CPM. A diversified revenue source reduces risk of meeting revenue projection and risk of losing cable striation support due to ratings decrease. Another Important aspect Is that Its a well balanced solution between two desired phenomena: differentiation from competitors and creating a loyal customer base which are less likely to shift to competitors programs. Targeting shows to a narrow (and profitable) segment of viewers would brand the network as a premium fashion provider, a channel that Is focused only on delivering high quality and do not intends to satisfies all. A positive by product of this approach would be higher customer retention which has higher monetary value than the casual viewer (acquiring a new costumer is estimated to cost about 5 time more than retaining one). Note that although scenario-2 as well delivers these values it incurs higher risk due to its aggressive and narrow market Finally, although the channel is still generating a healthy profit segmentation. And therefore one would be reluctant to changes, this suggested graduate, less drastic change would help management to stand behind it from other business aspects such finance, accounting, operation and shareholder value.

5 Must Haves for an Effective Cover Letter

5 Must Haves for an Effective Cover Letter We know how it goes. You can format and revise your resume all day long, but when it comes to writing an effective cover letter, you sit there looking at a blank Word document and wondering where to start. When you break down the anatomy of a great cover letter, it’s really just an extension of your resume that gets specific about why you’re interested in the position and what makes you qualified to fill it.The team at  ResumeSpice, a resume writing and career coaching service developed by recruiters, has put together a list of five things to keep in mind when putting together a great cover letter.  1. Appropriate length, formatting, and fontsJust like your resume, you don’t want to over stylize your cover letter or go crazy with the fonts. Pick a professional font that’s easy-to-read and keep everything left-aligned.Your cover letter is not a manifesto. It’s a brief introduction that can give a better sense of who you are. We recommend that ità ¢â‚¬â„¢s no longer than a page – stick to 3-4 paragraphs.  2. An appropriate addresseeA cover letter is meant to draw the hiring manager or recruiter in, so beginning your letter with â€Å"To Whom It May Concern,† puts distance between you and the reader.You can ask your recruiter for the hiring manager’s name – or if you don’t have a recruiter, do a little research on LinkedIn. And if that doesn’t work, call into the company and ask who is hiring for that role. But don’t give your name – most hiring managers frown upon candidates calling in, so make sure your call stays under the radar.3. EnthusiasmYou applied to the position for a reason. Look at the job description and pick out what excited you about it. If you felt like you were a perfect match, say it! You might write something like, â€Å"As a communications professional with over eight years of experience in PR, the PR Advisor role felt like it was written just for m e.†4. A NarrativeThis is the meat of your cover letter. This is where you’ll write about why you’re interested in the position, what makes you a great fit, and what you can specifically bring to the table. For this piece, it’s helpful to again look back at the job description and pick 2-3 items that you have strong experience in.If you’re applying for a communications job, part of your narrative may read like this: â€Å"My ability to communicate with every stakeholder, as well as my extensive experience with PR crisis management make me a strong candidate for the Communications Director role.†5. Focuses on the employee’s needsWe can’t stress this enough – your cover letter is not really about you. Sure, it’s about your skills, accomplishments, and experience that make you a great fit, but it’s really about how all of that will benefit the employer. To that end, stay away from anything that mentions your own personal gain should you work there. For example, you’ll want to nix anything in your cover letter that sounds like: â€Å"I’ve always wanted to work in a management role, so this opportunity is a perfect way to achieve my goals.†Putting together a strong cover letter can be a difficult task if you’ve never written one before. Make sure you keep your cover letter relevant to the job and the employer, but don’t be afraid to be yourself and show your excitement about the company or the position. Happy writing!About ResumeSpice:ResumeSpice is an online career services company, offering a comprehensive menu of career services to help job seekers land the job of their dreams. From resume writing to cover letter, interviewing, LinkedIn, and career coaching services, job seekers are able to select from a suite of options that meet their needs. ResumeSpice was developed by recruiters based on first-hand knowledge of what recruiters, hiring managers, and H R professionals are really looking for in a successful candidate. For more information, visit  www.resumespice.com.

EU communication strategy and the euro implementation Essay

EU communication strategy and the euro implementation - Essay Example f Sweden, this came in the form of a referendum that declined adoption of the unified currency, choosing instead to maintain its national identity and sovereignty and viewing adoption as a barrier to the country’s continued progress and prosperity. In the case of Slovakia, however, adoption was openly embraced, and the process undertaken as flawlessly as possible, supported by the national perception that the adoption of the euro will bring about economic stability and prosperity made possible by a single European market. The difference between the two countries is borne by the discrepancies in public perception about the prospects of euro adoption. This study examines the circumstances which circumscribed each case, the nature, strategies, and activities of the information campaign undertaken by the EC in each country. In comparing the communication campaigns in these two Member States, insights are gathered on the importance of an organized and well implemented information programme in forming favourable public perception and preparation of the citizenry for the transition, for the overall successful adoption of the euro. Chapter 1 introduces the topic of research and the context within which it shall be addressed. It presents the thesis statement sought to be substantiated, and explains the general methodology of arriving at the solution. The Chapter describes the approach that this dissertation takes in the course of arriving at a solution that leads to either the confirmation or negation of the thesis statement. The analysis is conducted according to the Integrative Framework for Effective Communication by Van den Putte, the particulars of which are explained in this Chapter. The topic of the dissertation is on the EU communication strategy and the euro implementation. The main research topic is approached through a comparative examination of the communication strategies employed in two countries, namely Sweden and Slovakia, in order to determine

Critically evaluate the claim that childrens early grammars are based Essay

Critically evaluate the claim that childrens early grammars are based around lexically specific schemas - Essay Example The Verb Island hypotheses (Tomasello, 1992) was formulated to explain the lexical-centered application of grammatical rules in children’s utterances. The development of children’s acquisition of linguistic skills has been under investigation for a long while. However, no theory has received universal approbation. The arguement that young children’s verbs are independent, each developing its own mini-syntax unrelated to other verbs (Tomasello, 1992,2000) though well known in the academia, has also been criticized. According to Tomasello in the insular stage of development, children have inventory specific lexical schemas each used only for the specific predicates. This schemas are independent and do not form a grammatical pattern. It is in a later stage of growth, children develop abstract systems of construction of inter-related verbal patterns. These early absence of grammatical representations are attested by a number of recent studies. The children’s early grammatical constructions are ordered around concrete lexical material. These lexical constructions consist of a term showing relation, often a verb and an open slot meant to be filled by various elements. (Tomasello 1992,2000; Pine and Lieven 1993; Dabrowska 2000;Israel, Johnson and Brooks 2000).The short sentences are from a diary study adopted from Tomasello (1992:285ff). The utterances are from his 2-year-old daughter. The formational mechanism of the utterances shows that they are determined on the occurrence of specific lexical words. They are made up of an element with an open slot that is completed by a noun like expression. The given table identifies the following pattern: That’s_____, More_____, ______get-it. The early child parlance is marked by such lexically specific constructions. In all the multiple word combinations made by Tomasello’s 2-year-old daughter, it is possible to trace this predilection for the lexical centered speech formation. The

Ethics even in the Worst Circumstances Essay Example | Topics and Well Written Essays - 250 words

Ethics even in the Worst Circumstances - Essay Example This philosophy was clearly exemplified by one parent, a former FBI agent, who urged his son to turn himself in and face the legal consequences for the murders his son admittedly committed. The current essay aims to proffer pertinent issues that surround ethics even in the worst circumstances. A story written by the Associated Press and published in The Augusta Chronicle narrated the story of John Cook, a former FBI agent, who was faced with the confounding ethical dilemma of duty, prevailing on doing the right things, and respecting the moral law despite knowing that it is his son, Andrew Cook, who is to be convicted. The initial reaction for parents when children face challenges and trials in life is to be supportive and to provide whatever assistance is necessary. In this case, Andrew Cook committed murders of two university students, supposedly for no apparent reasons (Associated Press par. 11). When his father confronted him to determine the veracity of the allegations, Andrew admitted he murdered those students. Despite the pain and the initial natural response to protect his son from impending conviction, his concept of good will prevailed, consistent with Kant’s philosophy. The story clearly indicates that the concept of doing right, conformity to morality and legal rules, codes of conduct and proper behavior, is universal. Parents could not hide their children who erred from justice. In worst circumstances, no one could hide from the law: not even a former FBI agent could protect his son from the imposition of justice. In the end, justice will still

Week 3-Terence Coursework Example | Topics and Well Written Essays - 2000 words

Week 3-Terence - Coursework Example The main reason for these companies to adopt this technology is to have them make decisions that favor the entire global market. Having a globally distributed team comes with the challenge of mistrust among some team members. However, there are some factors that the management can rely on to create trust among these team players in different parts of the world (Allison, 2013). The first factor to be considered is having directed and reflected knowledge to be shared among the team members. Directed messages will always tell the exact information being conveyed. Due to this, members trust their fellows since there are no irrelevant stories to hide the reality. Having the information that the team share reflected in some reference point also boosts trust. Social communication is another factor that is helpful in building trust in team members who will never meet face-to-face. In this level of communication the workers will discuss informal factors such as how their holidays or weekend were spent. In the process of doing this they get to know each other more and the trust is created. For example, a worker based in America can chat with his fellow in Asia discussing the summer holidays. In the process, these workers will trust each other (Carmody, 2012). The ability of the team to combine resources despite the distance between them is also crucial for trust to exist. In this case, the team members at different points in the world they operate from get to coordinate themselves and share what the team needs to accomplish its goals. If they can do this then eventually the members will create trust among themselves (Chesebro, 2012). One of the new technologies that organizations are nowadays adopting to improve communication among their team members who are globally distributed is the groove virtual office. The technology relies on the ability of the Microsoft software that can connect many servers from different parts

Ecological Services Coursework Example | Topics and Well Written Essays - 500 words

Ecological Services - Coursework Example Access to green vegetation to both rural and urban inhabitants and availability of inherent medicinal resources is one of the benefits of naturally occurring resources. The concept also entails natural processes such as pollination of crops and climatic regulation. Ecological system concept includes enhancement of stable and vibrant economy in the form of raw materials for industrial processes, provision of recreational facilities such as tourism. Finally, the concept entails benefits associated with educational and cultural paybacks, wellness and motivation from interrelating with nature. In summary, the concept of ecological systems can be summed up into major functionalities such as regulation, provision, and cultural aspects in the process of adding value to individuals. The processes mentioned entail the most basic functions of the ecosystem in entirety. From the â€Å"Ecological Services of Rivers,† the most important services include the formation of the bacterial bodies and human bodies. From the lecture notes, it is stated, â€Å"Humans are comprised of nearly 60 percent water by aggregate measure, and we depend on water, not only for our endurance, but for our benefit.† The implication of this is that humans cannot survive without water. Water gives life to humans because it aids even in the formation of the body cells of humans. According to the lecture notes, it is intimated â€Å"All life forms, from unicellular bacteria to multi-cellular plants and animals, contain water.† Humans are the multi-cellular being and are dependent on water for the basic formation of cells and composition of the body. Another vital service is the provision of food to the living organisms including humans. Food can only be available when pollination takes place in plants. The plants also purify the environment, therefore, providing a favorable environment for undertaking of economic

Week 3-Terence Coursework Example | Topics and Well Written Essays - 2000 words

Week 3-Terence - Coursework Example The main reason for these companies to adopt this technology is to have them make decisions that favor the entire global market. Having a globally distributed team comes with the challenge of mistrust among some team members. However, there are some factors that the management can rely on to create trust among these team players in different parts of the world (Allison, 2013). The first factor to be considered is having directed and reflected knowledge to be shared among the team members. Directed messages will always tell the exact information being conveyed. Due to this, members trust their fellows since there are no irrelevant stories to hide the reality. Having the information that the team share reflected in some reference point also boosts trust. Social communication is another factor that is helpful in building trust in team members who will never meet face-to-face. In this level of communication the workers will discuss informal factors such as how their holidays or weekend were spent. In the process of doing this they get to know each other more and the trust is created. For example, a worker based in America can chat with his fellow in Asia discussing the summer holidays. In the process, these workers will trust each other (Carmody, 2012). The ability of the team to combine resources despite the distance between them is also crucial for trust to exist. In this case, the team members at different points in the world they operate from get to coordinate themselves and share what the team needs to accomplish its goals. If they can do this then eventually the members will create trust among themselves (Chesebro, 2012). One of the new technologies that organizations are nowadays adopting to improve communication among their team members who are globally distributed is the groove virtual office. The technology relies on the ability of the Microsoft software that can connect many servers from different parts

Organization theory concepts Essay Example | Topics and Well Written Essays - 2000 words

Organization theory concepts - Essay Example The book under review is known as â€Å"Organization Theory; Challenges and Perspectives† by John McAuley, Joanne Duberly and Phil Johnson. The various chapters of the book are put into perspective in the subsequent paragraphs. Despite the few complex terms and concepts in this book, the book is generally informative and recommended to academics or students who needs to get in-depth knowledge on the issues surrounding organization theory. The primary goal for the establishment of the organizational theory is to allow managers to function effectively by leading all stakeholders of the organization towards attainment of the strategic goals and objectives of the organization. Each chapter of the book is discussed with the aim to identifying key concepts concerning organization theory as well as difficulties that exists in a bid to understand the paper. ... It is in order that simple terms are used so that the readers can fully comprehend the various concepts that are discussed in the chapter. Chapter 2 This chapter delves in describing the modernism, a key social movement within the organization theory. Modernism has great impact on the development of the various organization practices. Modernism avers that all the conflicts within the organization can be managed effectively through the various conflict resolution mechanisms that exist within the organization. Modernism champions for new ways of handling various concepts of the organization. It requires that organization should be managed in a dynamic way and each issue within the organization should be handled uniquely as opposed to having a rigid way of handling every issue within the organization (McAuley, Duberly and Johnson, 2007). Modernism requires that management adopts both a people centered approach and task centered approach in managing the affairs of the organization. Accor ding to modernist, an organization is a subsystem with various subsystems which when pieced together forms the organization. McAuley, Duberly and Johnson (2007) aver that for an organization to be run effectively, it is important that there is a clear structure, chain of command, and accountability. As such, it is important that bureaucracy be adopted in order to achieve efficiency within the organization. Besides pursuit of bureaucracy in handling the various issue of the organization, it is important that scientific concepts such as leadership or conflict resolution models be also incorporated. Difficulties It is worth noting that this chapter is exhaustive and various arguments have been well thought and discussed in simple terms for the benefit all readers who might find the chapters

Metaphysics and Realism Proponents St. Essay Example for Free

Metaphysics and Realism Proponents St. Essay Definition: *Realism may be defined as any philosophical position that asserts: 1. The objective existence of the world and beings an it and relatives between these beings independents on human knowledge and desires: 2. The knowability of these objects as they are in themselves 3. The need for conformity to the objective reality in man’s conduct *Realisms an educational philosophy which advocates that education should be concerned with the realities of life and should prepare a person for his/her duties in life. Ontology (Reality) for realism is a world of things. Epistemology (how we know) realists use their senses of observation Axiology of realism (values) is the laws of nature that can be revealed through the application of scientific reason Proponents: *John Milton believe that education must prepare one for life in the real world *Francois Rabelaisadvocated that all forms of studies be made pleasant, with games and sports being utilized toward the physical development of the child and for practical development of the child and for practical application later in life. Michael de Montaigneaccording to him, the aim of education, is not to produce scholars and professionals but to prepare a young boy to live the life of a gentleman in the world of affairs John Amos Comeniusfirst educator who advocated the use of visual aids in classroom teaching Francis Baconaccording to him, knowledge of nature is the only real and fruitful knowledge and should be the basis of all scientific progress. Richard Mulcaster he advocated that all teaching processes should be adopted to the pupils and that the mother tongue or vernacular should be used to instruct pupils aged 6 to 12. *Wolfgang Ratkeadvocated the use of vernacular as the medium of instruction as the child need no longer learn the language and thus can concentrate wholly on the lesson being studied. *Aristotle is the foremost proponent of realism, as Plato student, had his philosophical beginning rooted in platonic idealism, yet developed his own regarding the nature of reality later on. Aristotelian realism proposes that ideas can free float without having matter, whereas matter cannot exist without some semblance of form, and this form is independent of mental cognizance. *Religious realism was put forth by Thomas Aquinas in the 13th century stating that true reasoning lies with supreme reasoned-God—and that by aligning our rational minds with his tenets,we too can understand the universe and the nature of reality In more modern time’s philosophers such as Francis Baco, John Locke and later G. E. Moore and Ayn Rand forwarded theories regarding moral realism. Political realismproponents were Otto Von Bismarck and Carl Von Clausewitz. Moderate realism proponents St. Thomas Aquinas and John of Salisburyheld that universals exist only in the mind of God. Implication of Realism AIM The aim of education is to provide the students with the essential knowledge he will need to survive in the natural world. According to John Luis Vives aducation should develop personality Rabelais,was for the development of a whole man Milton believed that education was to prepare for actual living CURRICULUM The realists believe that the most efficient and effective way to find out reality is to study it through organized, separate, and systematically arranged subject matter. This is called the subject matter approach to curriculum which is composed of two basic components†¦the body of knowledge and the appropriate pedagogy to fit in the readiness of the learner. METHODOLOGY The teacher is expected to be skilled in both the subject matter that he teaches and the method of teaching it to students. The school task is primarily on intellectual one. In the elementary level, emphasis is on the development of skills for reading, writing, arithmetic, and study habits In the secondary and collegiate level,students will be required to recall, explain, compare, interpret and make inferences.

Porters National Competitive Advantage Diamond

Porters National Competitive Advantage Diamond Fraser Neave holding Bhd. was incorporated at year 1883 when founders John Fraser and David Chalmers Neave formed a company named Singapore Straits Aerated Water Company in Singapore. Few years later, FN was consolidated and enter the food beverage industry. FN has its own vision to become the leading total beverage company in Malaysia and the region and their mission is to be a world-class multinational enterprise providing superior returns to their shareholders, excellent value for their customers and a rewarding career for their employees. FN Company is one of the Malaysia well known beverage company which the famous product is the isotonic drinks 100plus launched at year 1984. FN produce wide range of beverage that can be classified as soft drinks, dairies, non-carbonated beverages as well as separate business property. They were launching the sweetened condensed filled milk in year 1973, and the acquisition of Nestlà ©s canned milk business in Thailand and Malaysia in year 2007. Other than that FN high quality canned milk was also gain excellent reputation in Malaysia. This product is largely use as beverage mixers in coffee, tea and chocolate drinks and now canned milk has successfully to export this product to more than 20 countries around the world. In addition, the halal certification offers strong reassurance to Muslim customers in the growing Halal markets in the Middle East and Africa. FN Company was awarded The Readers Digest Trusted Brand from year 2005 to 2008, Media Magazine Top 1000 Asian Brands 2007 and so on. It proves that their customer was confident when using their products since they are concern about their health and safety quality. FN Company was continuously improve their quality and brands to challenges the marketplace and to become the leader. FN Company is also well-known company that caring about the social environment and working environment. They implemented and executed various environmental stewardship and launched numerous recycling campaigns in schools to inculcate good environmental habits among young people and thus, create awareness on the importance of recycling. FN Company also set-up a RM1.2 million funds named Chairmans Award to promote educational excellence and to recognize high-achievers among children of FN Groups employees. FN Company has achieved a safety record of zero accident (no loss time accident) accumulated from 1 February 2007 to 21 September 2009 with a total 962 days or 2.3 million working hours. In terms of its environmental compliance incident and achieved zero environmental compliance status. PEST Mission: To be a world-class multinational enterprise providing superior returns to our shareholders, excellent value for our customers and a rewarding career for our employees. Vision: To become the leading total beverage company in Malaysia and the region. Every company has their mission and vision statement served as overall purpose of business. The mission and vision statement above are set by FN. There are external environmental issues have or will affect FN to achieve their mission. These external environmental issues are being categorized according to PEST(EL) model. PEST(EL) model is to analyze the external environment issues of company. It categorized environment issues into political, economic, social, technological, ecological and legal influences. Economic Improving growth prospect of Malaysia, Thailand and the region brings more income to FN as is signals economy are in good condition and peoples are willing to spend hence will increase sales in that particular region. The growth prospects include rising of Malaysia GDP in year 2010 that is approximately 10% compare to 4.5% in 2009 that rise from some major factor of manufacturing industry production with a double digit growth of 16.9% in year 2010. ASEAN countries are growing quick in their economy thus putting FN a favourable factor in growing of profits. FN has built up positive consumer sentiment to their product. For example 100PLUS, isotonic drink that is specialized for sportsmen to retain the metabolism. It is a concept well-built that it is voted number 1 isotonic drinks in Malaysia since its introduction in 1983. That well-built positive sentiment brings others drinks of FN to be well marketable. It is the consumer sentiment to the products enhanced the profitability factor of FN towards other competitor thus is at an advantage in the market. Political Government had put initiative to boost spending of consumer with new economic model (NEM), with this model being pursue, Malaysia economic boost as consumer purchasing power increases and are advised to spend. FN will get benefit by provide goods to be sold to the market hence boosting sales. FN products are all Halal hence are entitled for Halal Hub Tax Incentive. The incentive offered had decreased FN some percentage of tax liability to the government. It made FN more profitable compare to those companies which does not qualified for the incentive. Government has taken back some incentive in year 2009, the withdrawal of subsidy of fuel and sugar has put an impact to FN as most of the FN core businesses needed large amount of sugar which is dairies and soft drink business. The withdrawal of sugar subsidy lower the overall profit of the FN although there is a large improve a sales but the profit doesnt show much improvement as the sugar cost increases. Withdrawals of fuel did also impact on FN as the cost of their internal and external distribution cost increases thus reduces profit. Technological In the beginning of 2011, FN introduced new product, Ice Mountain and it has faster share gain among bottler waters player which established 5% market share in Malaysia. FN launched new beverage Zesta across Malaysia in October 2011.Zesta has remarkably great tasting berry soda flavored soda. It contents the Guarana tropical berries that originate from Amazon, South America. In addition, Guarana tropical berries invigorate the body and mind. Zesta is an extension of our already large array of FN beverages, a beverage that was initiated to complement our existing range of FN brands, creating a transition vehicle for our growing band of consumers, said Dato Ng Jui Sia, CEO of Fraser Neave Holdings Bhd. FN believes that Zesta is the illustration of growing trends for beverage enhanced soda. (Zesta 2011) Environmental Sichuan Earthquake of May 2008 has caused the raw material cost increase and companys profit is affected. Natural disaster is beyond expectation and control of the company. Profit before interest and tax in 2008 grew only 5%. This environmental factor has affected company to achieve their mission. Natural disaster would serve as obstacle that FN provide superior returns to shareholders. Porters 5 forces Today, Fraser Neave Holdings Bhd (FN) has extended business at more than 20 countries worldwide and established itself as a regional player. So that, FN need use Porters five forces model to analysis and understanding the nature of the competitive environment. FN has a lot of benefits from using Porters five forces model. They can ensure that management considers a wide range of potential impacts when devising strategy. They allow the division of the work in environmental analysis and make decision in time. Not only that, Porters five force also developing effective strategies to raise FN profitability, power, and competitive position in an industry. Porters five forces is divided into threat of entry, intensity of competitive rivalry, threat of substitute product, bargaining power of buyer and bargaining power of suppliers. Threat of entry Threat of entry is new entrants into market will bring extra capacity and intensify competition. The strength of the threat from new entrants will depend upon the strength of the barriers to entry and the likely response of existing competition to a new entrant. FN produce two new soft drink FN Clearly Citrus and Zesta were launched in soft drink market at year 2011. Zesta and FN Clearly Citrus are getting customer support and the new produces also have a higher demand from the buyer. Zesta sales would create other competitor have entered the soda market, it will make a threat for the FN affect the market sales. Therefore, FN should defensively competitor who are entered the soda market to creating barriers that new entrants to the market find difficult to overcome. This can ensure the Zesta sales would not affect and ensure the maximize shareholders wealth. FN able to occupy in the Malaysia soda market a very important role. FN have 90% product are using sugar to produce, so that sugars fees occupy more of the material cost. Early government distribution sugar subsidy to sugar supplier that FN can use a lower price to purchases sugar. This can save a lot of unnecessary expenses, so FN can use a lower price to sell them soft drink and dairy product. Government removes all sugar subsidies since year 2011 until now. The serious increase in sugar prices had a major impact, together with the global merchandise cost increase, and led to an inevitable 25 per cent price increase of Sweetened Condensed Milk. This change of government budget makes FN facing a great crisis and bargaining power of supplier. Bargaining power of supplier Bargaining power of suppliers definition with the stronger power of suppliers in an industry the more difficult it is for firms within that sector to make a profit. It is because suppliers can determine the terms and conditions on which business is conducted. When government removes the sugar subsidies, FN need to research and evaluation current sugar supplier what price they giving and analysis the inflation whether FN can accepted. FN should do more research to find another sugar supplier who can provide lower cost to them. FN also facing sugar quality are not same compare with current supplier when choosing a lower cost provided from another supplier. This would make the customer not satisfaction with FN soft drink and dairy product. If FN continue purchase with the current supplier, they should spend more cost with sugar. Then FN would increase selling price to cover back the losses. FN customer would choose another substitute product. Bargaining power of buyer Next, bargaining power of buyer also is a serious problem facing by FN. Bargaining power of buyer sense of the powerful buyer can force price cuts and quality improvement. The government remove sugar subsidy, FN material cost will increase and affect the product selling price to increase. But FN need to concentration of buyer so they cannot random to adjust the selling prince. Buyer also has full information about the soft drink and dairy product market. They should know which company product cheaper, more health and best quality. FN need to hold the customer so they would always improve quality of product and extrusion new product to attract customers attention. Measure FN is a best choice and first choice from customer. This threat is more difficult to control, because FN management need to concentration of buyer and also need to maximize the shareholders wealth. Threat of substitute product Porters 5 forces have indicated that the threat of substitute product is the other firms within the industry has offers similar product with similar benefits for the customer. This threat may affects the competitive environment of the company and influence our ability to achieve profitability. On FN Magnolia have offers Pasteurised Milk and Sterilised Milk. The range of the customers is children and adults. The Pasteurised Fresh Milk can be enjoyed chilled or warm, plain or mixed with other foods or beverages and they innovate into Lo-Fat Hi-Cal Milk provide less fat and more healthier of the Fresh Milk for our body. However, Marigold has offers HL Milk is low-fat milk No.1 in Malaysia. HL Milk has perfect balance of nutrients for everyone in the family and it consists high in calcium and protein, low in fat and lactose and fortified with 9 essential vitamins to supplement healthier lifestyle. Marigold HL Milk is first choice for the customers who are caring health conscious. FN should innovation their milk product provide more healthy to attract or retain consumer choices. Another competitor is Dutch Lady has provided a Dutch Lady Milk powder for satisfy customer needs who want mix it with other favorites coffee or tea and it has a rich and creamy taste and can mixes easily in hot or cold water. Furthermore, Dutch Lady also has provided different formulations to cater to children of different ages to promote their brain development and healthy growth. Therefore, most of the mother would choose Dutch Lady milk products of their children rather than choose FN milk products. FN SEASONS offers soft drink products are leaders in countrys most comprehensive range of consumer, catering to every occasion. The Soya range provides protein nourishment while the Chrysanthemum and Grass Jelly provides healthier refreshment with less sugar let FN SEASONS become best quality and healthy drinks. However, they less favors for the customer choose. YEOS have more favors, such as Lychee drink, Sugarcane drink, Bandung Rose drink, coconut juice, soursop drink and guava drink for the customer to choice. Thence, consumers who are Sugarcane drink lover may change its option to YEOS products. Intensity of competitive rivalry Intensity of competitive rivalry among competitors in the industry try to strive the competitive advantage over the rivals and drives the profit of the rivals firm to zero. The company can gains the competitive advantage by several ways, such as changing the pricing, improving the products differentiation with other and exploiting relationships with suppliers. If can gain more competitive advantage rather than other competitor can increase the profitability of the company. FN only have provided soft drink products and dairy products, appears less competitive advantage compare with others. Nowadays, people more have health conscious when they buying products may choice to buy the products which consists more nutrition. In food and beverage industry also have many company has provide more diet product to satisfied the requirements of the different customers. Like the Dutch Lady Low Fat Yoghurt is a healthy snack and it will enhance the absorption of nutrients, ensuring digestive system stays healthy. It contains Vitamin A,C and E, calcium and Active Live Cultures. In Addition, the Marigold have offer the Yogurt and cultured milk Vitagen which have consists nutrition products for the body. The Vitagen has billions of live probiotic cultures to help maintain a healthy digestive system. Probiotic cultures in VITAGEN can withstand bile and acidic stomach juices and reach the intestines alive to fight harmful bacteria in the intestines. Furthermore, the Yoghurt contains live and active cultureshelp digestion and promote a healthy digestive system and calcium for the development of strong bones and teeth. Marigold also has offers Jelly is a great-tasting double-layered jelly that is filled with fresh fruits. Its cool and refreshing taste makes it great for everyone in the family and contains no preservatives and is a healthy alternative to fruits after a hearty meal. This makes Marigold become Malaysias first and only pasteurised Jelly. This all is key reasons that the consumer may change favors to this type of products. To gain competitive advantage, FN should provide more nutrition products for the customers have more choose. Porters national competitive advantage diamond Porters diamond model suggests that there are inherent reasons why some nations and industries within nations are more competitive than others on a global scale. The argument is that the national home base of an organisation provides organisations with specific factors which will potentially create competitive advantages on a global scale. (Michael Porter 1990) Porters diamond model consist of four conditions of national advantage which are factor conditions, demand conditions, related and supporting industries and firm strategy, structure and rivalry. Factor conditions Firstly, discuss about factor conditions. Factor condition is about important elements that exist in a company which lead to national competitive advantage. It can be country specific or industry specific. FN Dairies had constructed plant in Pulau Indah costs RM350 million and will be completed within the second half of 2011. The new plant promotes cutting edge green technology which would have huge gains in water, energy and environmental conservation. With existence of this plant, FN Dairies could be on the top list of worlds largest producers of canned milk. An increase in production line is an advantage of the company. FN had launched a new RM45 million polyethylene terephthalate (PET) monoblock production line which is the first in Asia Pacific. This able to done all the things in only one production line, for example blow bottles, fill and pack all carbonate soft drinks products. FN has the latest innovation and technology that bring advantage to them. With this latest technology, FN can enhance its operations by continuing improve production lines. FN can produce more products in effective and efficient way. In addition, the new machineries increase as the production lines increases. The warehouse management system has implemented to make operation work run smoothly. Besides, the introduction of new sales forecasting tools helps in manufacturing, if sales forecast is low, the manufacturer will produce less stock. Supply chain act as an important role in a business. Without supply, production would not be carried out. Improvement in supply chain lead to high efficiency of production and logistic by upgrade the systems. FN introduce higher level of operational automation and inventory management to ensure the manufacturing process has no error. Besides, the product quality management make sure that the products are in acceptable quality and safety measures are enhanced in order the product would not harm people. Demand conditions Secondly, the demand conditions state that if the local market for a product is larger and more demanding at home than in foreign markets, local firms potentially put more emphasis on improvements than foreign companies. This will potentially increase the global competitiveness of local exporting companies. FN non-carbonated portfolio has slightly increased from 25.4 per cent to 28 per cent in soft drinks business. This represent there is a growing demand for drinks. During the year, FN included fruit teas and juices to its range of soft drinks, and launch new drink called Zesta recently catering consumers of this segment. The ability to innovate, differentiate and manufacture new product lines will bring advantages such as gain more market share. FN Fruit Tree released five new flavours in bottle form which are orange, apple, lychee, blackcurrant and mango. As the demand increases, Fruit Tree has becoming one of the fastest growing categories in Malaysia. The new flavours are the extension to the Fruit Tree cans range and the research shows that consumer preference toward these flavours compared to other brand in the market. FN Holding Berhad has built a new warehouse in Kuching which triple larger than previous warehouse capacity to improve the quality of service and make sure delivery to customers is on time. Furthermore, it utilised advanced warehousing technology such as high selective racking, super flat flooring and Very Narrow Aisleway (VNA) trucks. Related and supporting industries Thirdly, the related and supporting industries mean that when local supporting industries and suppliers are competitive, home country companies will potentially get more cost efficient and receive more innovative products. In February 2010, 100PLUS signed a partnership agreement with AirAsia Berhad, officially sell 100PLUS on AirAsia flights which depart from Malaysia. AirAsia Berhad is a Malaysia top airlines company, being a partner of AirAsia Berhad has a real competitive advantage for FN. This agreement is a big step for division to extend business offshore. Passenger dehydration happened frequently in air travel, with 100PLUS the passenger can get over the dehydration. Support from AirAsia is like an advertisement effect, whenever there is a flight, there is an appearance of 100PLUS. Firm strategy, structure and rivalry Lastly, which are firm strategy, structure and rivalry. Structure and management system can affect competitiveness. FN is running beverage and dairies business in addition to food business too. FN buy 23.08 per cent share in Cocoaland Holdings Berhad. Cocoaland is a major snack food manufacturer in Malaysia. FN is diversifying the business risk to various subsidiaries. FN develop the food business to supplement beverage and dairies business. As the Malaysia grow into high income economy country, the consumption of middle income will increase and food business will be benefited. GE model 3 portfolio business Property Dairy product Soft drink GE business matrix Industry Attractiveness- Market growth rate Business Strength- Brand Strength High Medium Low High Investment/ Growth Soft drinkSelective Growth Selectivity Medium Selective Growth Dairy productSelectivity Harvest/Divest Property businessLow Selectivity Harvest/Divest Harvest/Divest Our business has divided into 3 portfolio and that are Soft Drinks, Dairy Product and Property. First of all we use the market growth rate as our industry attractiveness factors and brand strength as our business factors. Soft Drinks Our main soft drinks business portfolio will be classified at the classes of selective growth. Our company soft drink like 100plus and Zesta was popular in Malaysia; our brand has already helped our company bring certain level of stable income. Our business from year 2007 until 2011 has seems growth constantly that at year 2007 increase 9%,2008 11%, 2009 11%,2010 19% and 2011 grow 12%. At year 2011 the growth has slow down it is because the subsidy of sugar had removed by the government. The impact on FN is their production cost is increase and cause their profitability decline. The attractive of the beverage market will decline and potential competitor will have more consideration to decide whether to or not to enter into soft drink industry. Moreover, Sichuans earthquake causes the prices of the aluminum increase. That mean one of the main direct material has been affect again. Industry attractive will place at the medium due to the problem of sugar subsidy and the aluminum prices arise. Dairy Product Our dairy product will classified at the classes of selectivity. Our company dairy products have included sweetened condensed milk, evaporated milk, pasteurised milk, UHT milk, juice and ice cream. In year 2007, our revenue on dairy products has significant increase by 102% compare with year 2006 and subsequent increase 38% in year 2008. In year 2009 the revenue of the dairy product decline by 6%, but increase 5% in year 2010. Revenue has constant in year 2011 compare with year 2010. Our dairy product has classified at selectivity, with medium level of attractiveness and medium business strength on the dairy product. Although the product Milo are popular in the Malaysia, but Milo is not own by our company, we just a franchise on it. This will reduce our business strength due to our dairy product not a major player in the market. The dairy product will less attractive for investors consider investing because the deliberate the milk market will very costly. In addition, the cost of tec hnical for hire staff and the cost of technology for produce the dairy product also costly for subsequent production cost. Moreover, the dairy product license also difficult to get approval by the government. New entrant will find difficult to entry, because the market has been controlled and play by a few big competitor. These create barriers for the new entrant find difficult to entry. Property Our property business had generated more revenue in year 2007 compare with the year 2006 by 6%. Revenue for the year 2008 had decline by 24% compare to year 2007. In subsequent two year had increase by 65% and 20% in year 2009 and 2010, but decline again in year 2011. Our property business have classified at selectivity with high level of attractiveness and low business strength. Our company more concentrate in the soft drink product and has no hard to promote our property to the public, not many people know that our business has already enter into it. Our property business has not like our beverage business seemed so successful and our business strength in this industry is low. The property business has high profitability in this industry will attract more investor to entry. Our government encourage removing the old building and build more new business park in order to make our country more prosperity. Moreover, our property business is at growth stage because just introduce into in dustry so do not have strong business strength on the property business. Ratio analysis Revenue of continuing operation continues to grow from 2009 to 2010 by 11.2% and 2010 to 2011 7.6%. In 2010, the revenue is able to grow better than 2011 due to improved economic conditions. Malaysia Government has introduced New Economic Model 2010 helps to boost spending in Malaysia. Profit before interest and tax growth rate also decline from 2010 to 2011, 31% to 14%. The result was affected because of particular division wasnt doing well in 2011. Soft Drink Soft Drink division has current ratio of 1.77 and 1.99 for year 2010 and 2011. It indicated improvement in managing assets and liabilities. The growth momentum of soft drink division has continued. The division has been doing well over the years. It contributes the largest profit to FN. In 2010, the soft drink division was able to generate revenue 21% more compared to last year. Soft drink was delivering higher volume especially during festive periods such as Chinese New Year. In addition, sales volume of 100Plus Seasons have grew more than 20% and reflected strong consumption and growing popularity of the brands. 100Plus generated over 88% of market share in isotonic category and Seasons generated 27% market share of Asian drink category. While Badminton competition Thomas Cup was around, 100PLUS Thomas Cup 1 Million Support Campaign was held for Malaysian to show their support for Malaysian badminton team. Apart from that, the division served as distributor of Red Bull energy drinks in Malaysia and commenced from 1 April 2010. Soft drink volume was able to benefit from Red Bull which contributed 2.2% helps to improve the divisions beverage portfolio. (Annual Report 2010) Soft drink division grew only 16% from 2010 to 2011. The growth rate is eroded due to the reason of Malaysian government has withdrawn the subsidy of sugar and fuel. Therefore, raw material cost has increased and causes the profit margin diminished. Coca-Cola business exits the FN in September 2011 which also the reason of profit margin diminished. However, 100Plus and Seasons still generated volume growth 10% and 14% to benefits the division. 100Plus and Seasons are the leading brands in the division and continue to enhance the divisions beverage portfolio. 100Plus was being promoted continuously as 100PLUS New Thematic Launch in July 2011. Beside, FN SEASONS Nourishing You Malaysia National Consumer Contest held between March and April 2011 to create consumers awareness that Season as healthy brand. The division also has introduced new product, Ice Mountain in Malaysia and it is able to establish 5% market share. The division has enhanced the market share of Red Bull in energy drin ks from 40% to 46.8%. It is because RED BULL ENERGIZING MALAYSIA contest has conducted and grand prize is Proton Saga. In addition, division also has organized 1million Bottle Giveaway consumer promotion. (Annual 2011) Dairies Malaysia Dairies Malaysia division has current ratio 3.07 and 4.14 for year 2010 and 2011. The division has quite high current ratio for both years and year 2011 has higher current ratio because liabilities of division have been reduced. Overall sales volume has improved 7% from 2009 to 2010. The ongoing improvement on global economy had a positive impact on consumer sentiment and consumption. Profit before interest and tax of the division has improvement of 8.4% for the reason that division has enjoyed lower raw material cost during first half of the year. However, the positive effect is reversed by raw material cost was higher during second half of the year. Therefore, an increase in price of sweetened condensed and evaporated milk which causes demand diminished. Dairies Malaysia is having over 62% market share and condensed milk brand is able to strengthen its number 1 position with 24% market share. (Annual Report 2010) Dairies Malaysia doesnt doing well in 2011 because the sales volume has declined 15.2%. More than that, revenue and profit before interest tax also decline 6.6% and 45.8%. Malaysian Government has withdrawn subsidy of sugar which cause the price of sugar increased. Beside, global commodity costs have increased together with impact from sugar cost which cause price of Sweetened Condensed Milk increased by 25%. Price of Sweetened Condensed Milk created inflation pressures to consumers and caused the sales volume declined. Apart from that, the sugar subsidy withdrawn on selective basis by government and create unfair competitive environment to Sweetened Condensed Milk manufacturers. The division was still able to getting 60% market share for both Sweetened Condensed Milk and Evaporated Milk markets. (Annual Report 2011) Dairies Thailand Current ratio of division in year 2010 and 2011 are 3.35 and 2.87. The current ratio is considered relatively high but it has decreased because liabilities of division have increased. The sales volume of division has grown 10.6% but revenue only grew 6.6% in year 2010. However, profit before interest and tax has increased 16.6%. Rojana Industrial Estate was operated in December 2009, working as the biggest canned milk manufacturing plant in the region. In July 2010, Dairies Thailand relocated to its Rojana Warehouse Distribution Centre, placed 300 meters nearby to its Rojana dairy plant. Distribution Centre is located to run into the present capacity requirement of the Rojana Plant. It is able to upkeep business growth and future expansion for operations. The division was generating substantial savings of transportation cost. Carnation and TEA POT brands continued to contribute excellent performance to canned milk portfolio. Carnation Sweetened Beverage Creamer (SBC) and Carnation Evaporated Milk (EVAP) have sales growth of over 20 per cent. Carnation Sweetened Beverage Creamer captured market share of 29 per cent while Carnation Evaporated Milk grew three percentage points to record 73 per cent market share. In addition, Bear Brand Sterilized Milk was market leader which captured 98% market share in sterilized milk segment. (Annual Report 2010)<