Swot Analysis On Foreign Direct Investments

The retail industry in India is predicted to increase at a phase of 14 by 2013. The initiative for allowing FDI was first taken in 2006. Since 2006 54 FDI permissions have been received by the government of India and a cash inflow of Rs 901.64 crore in the form of investments into the nation. Retailing includes all forms of business involving sale of products and services to the end users. Retailing includes a retailers commonly a store or a service establishment, dealing with consumers who are purchasing goods and services for their own use rather than for resale. Wal-Mart, Best Buy and other familiar organizations are retailers. Retailing is dependent more on how the trade deals straight with consumers. Retail banking, service based shops; coffee shops are also retailers. With the commencement of online retailing, retailers are no more worried about place of stores. E-retailing has emerged. Consumers are always hungry for modern ways of shopping. Indian retail sector is increasing fast and its employment potential is growing faster. The retail scene is changing really fast. Retailers are rethinking about the best prices they can get goods with. Retail sector in India is also catalyst for the pickup of stalling tactics of below the line marketing used by major retail players such as Spencer, big bazaar, reliance fresh etc. For increasing customers by creating point values of sales displays. So we can say that India is an emerging land of FDI and going to be one of the quickest growing regions of the future.
Key terms: FDI, Retail markets, Gross Domestic Product, International, Policies, and infrastructure development.
Introduction: As per the current regulatory policies, retail trading (except under single-brand product retailing, FDI up to 100 per cent, under the Government route) is allowed in India. To say it short, for a company to be able to get foreign investments, goods sold by it to the general public should only be of a ‘unique-brand’; this condition being in addition to a few other conditions to be stick to. That explains why we do not have a Harrods in Delhi. India being a trademark to World Trade Organization’s General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade sector to foreign funds. There were initial priorities towards opening up of retail sector arising from fear of job losses, procurement from international market, competition and loss of entrepreneurial opportunities. In the series of action, the government in a sequence of moves has opened up the retail sector slowly to Foreign Direct Investment (“FDI”). In 1997, FDI including in cash and carry (wholesale) with 100 percent ownership was permitted under the Government approval route. It was given a green signal in an automatic route in 2006. 100 percent investment in unique brand retail marketing was also allowed in 2006. FDI in Multi-Brand retailing is prohibited in India. Allowing FDI in multi brand retail can bring about Supply Chain Improvement, Investment in Technology, Manpower and Skill development, Tourism Development, Greater Sourcing from India, up gradation in Agriculture, Efficient Small and Medium Scale Industries, “With around 13% contribution to GDP and 7% employment of the national workforce, retailing no doubt is a strong pillar of the Indian economy. What it requires is more corporate backed retail operations that have started to emerge over the past couple of years.”(Arvind Singhal, chief executive, KSA Technopak)
Determinants of FDI Policies In India
Looking up into the literature survey the major requirements of the foreign investment are technologies, infrastructure and labor skills, If in the case these requirements are not identified it becomes difficult to elaborate different patterns in the geographical pattern of FDI at the world capita income, relative to outbound and inbound FDI (Hummels and Stern, 1994).
There are large numbers of government incentives that can be taken into consideration as key factors, besides that there are other factors that determine the corporate plans of international market place. There are factors that influence major part of the investors; factors may be institutional, historical and cultural factors (Martin and Velazquez, 1997). Examiners examined that there are wide varieties of determinants of FDI in the past. There were several studies conducted on determinants of FDI towards the choosing of a group of descriptive attributes that are more useful and most important factors affecting FDI. Study by researchers elucidate that there are differences in factor costs and market size to the FDI spot (Markusen and Maskus, 1999). This shows us the prominence of market size and its wide spread for foreign organizations which are functioning as big industries. Companies score cannot be judged by the beforehand without achievements in the market. They are measured in terms of GDP, GDP per capita and growth of GDP. To put this in simple English the FDI of a company is defined by the investments made by the company in other country than that in a company is based in.
Government of India (GOI) has announced the policy of FDI that governs the foreign investment in India as the provision of Foreign Exchange Management Act (FEMA) 1999.
Policies of FDI related to Retail market: It is advisable to check the Press Note 4 of 2006 issued by DIPP and compound FDI Policy issued in October 2010 (DIPP, 2010) which include the sector specific guidelines for FDI in relation to the conduct of trading activities.
FDI allows export trading and wholesale marketing with 100% cash and carry. Subject to Press Note 3 (2006 Series) FDI can stretch up to 51% of the total with a single brand sales and marketing. The policies don’t allow FDI to promote Multi Brand Marketing. According to `Wheel of Retailing’ theory, medians in one retail market give rise to a new one. But in India we find that several markets go in hand and hand. The following are some of the formats adopted by various players:
Table 2. Retail formats
Adapted from: “Indian Retail: On the Fast Track”, KPMG and FICCI, 2005
Entry Options for Foreign Players prior to FDI Policy
Before Jan 24, 2006, FDI was not allowed by the government of India, but the investors had been operation in the country in other forms. Some of the opening steps used by the Foreign Investors are discussed below:-
1. Franchise Agreements: This is an easiest path to enter in to the Indian market. In franchising and commission agents’ services, FDI Foreign investors can invest in the product based companies with the approval from the Reserve Bank of India, until and unless prohibited by the FDI act. This is a most general mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route.

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2. Cash And Carry Wholesale Trading: FDI was allowed at a full stretch in the wholesale trading which concentrates on a large scale distribution to the wholesale market to help the local manufactures. The wholesaler deals with the small retail businesses but not with the direct consumers. Metro AG of Germany was the first to enter India using this process.
3. Strategic Licensing Agreements: Some foreign companies give exclusive licenses and distribution rights to local companies. Using these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodland’s Pvt. Ltd
4. Manufacturing and Wholly Owned Subsidiaries: The international brands such as Nike, Reebok, Adidas etc., have whole manufacturing unit using the subsidiaries and are treated as Indian companies and are allowed to retail. These manufacturers are authorized to sell products to Indian consumers by franchising, distributing to the existing retailers, self-outlets etc. For example Nike has entered into India in agreement with Sierra Enterprises but now Nike is wholly owned subsidized, Nike India Private Limited.
FDI in Single Brand Retail
The Government has not categorically defined the meaning of “Single Brand” anywhere neither in any of its circulars or any notifications. In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note 3 that
(1) Multi brand products would be sold (i.e., retail of goods of multi-brand even if produced by the same manufacturer would be allowed).
(2) Products should be sold under the same brand internationally.
(3) Single-brand product retail would only cover products which are branded during manufacturing.
(4) Any addition to product categories to be sold under “single-brand” would require fresh approval from the government.
While the phrase ‘single brand’ has not been defined, it implies that foreign companies would be allowed to sell products sold internationally under a ‘single brand’, viz., Reebok, Nokia, and Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would be allowed. Going a step further, we determine the concept of ‘single brand’ and the associated conditions:
FDI in ‘Single brand’ retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate outlets. Concerns for the Government for only Partially Allowing FDI in Retail Sector A number of concerns were expressed with regard to partial opening of the retail sector for FDI. The Hon’ble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on ‘Foreign and Domestic Investment in Retail Sector’, laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included:
It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up.
Rationale behind Allowing FDI in Retail Sector
FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of single-brand retail was adopted to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India. FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196.46 million under the category of single brand retailing was received between April 2006 and September 2010, comprising 0.16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloons Retail (India) Ltd ended 4.84% up at Rs 441 on the Bombay Stock Exchange. Shares of Shopper’s Stop Ltd rose 2.02% and Trent Ltd, 3.19%. The exchange’s key index rose 173.04 points, or 0.99%, to 17,614.48. But this is very less as compared to what it would have been had FDI up to 100% been allowed in India for single brand. (Nabael Mancheri, 2010) The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner – foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate India’s intentions in liberalising this sector in a phased manner. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation. (Discussion Paper on FDI, 2010) Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade.
Industrial organizations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multi-brand retailers and shopping malls) favor a phased approach toward liberalizing FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with. The international retail players such as Wal-Mart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Wal-Mart, Germany’s Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalization of FDI rules on multi-brand retail for some time. (Nabael Mancheri,2010) the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of ‘big’ money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers.(Sarthak Sarin,2010)
SWOT Analysis
SWOT analysis is instrumental for evaluating present day retail industry in India. SWOT analysis is a study prepared discussing about the strengths, weaknesses, opportunities and threats of retail industry.
Strengths
An enormous young employed people with average age of 24 years, nuclear families in urban areas, regarded as a basic social unit, with laterally growing working woman population and evolving as prospects in the service sector would be the vital progression carters of the structured retail sector in India.
It has also funded to fat size reserves in the real estate sector with main national and worldwide players financing in federalizing the structure and construction of the retailing business.
Customers will have right to use to superior range of transnational quality goods.
Employment openings directly and indirectly have been improved. Farmers get enhanced rates for their goods though enrichment of price added food chain.
Growth in price and consumer desires is vital aspects.
Growth in spending for extravagant items is also vital.
Huge domestic market with a growing middle class and customers with purchasing power.
The governments of states like Delhi and National Capital Region (NCR) are very positive about allowing the use of land for commercial development thus escalate the accessibility of land for retail space.
The progression of sachet revolution develops for getting to the foot of the pyramid.
The magnitude of Indian organized retail industry touched Rs.1,30,000 crore in 2006.
The styles that are motivating the development of the retail sector in India are small share of organized retailing and dropping real estate rates.
Ranked second in Global Retail Development Index of 30 developing nations drawn up by AT Kearney.
The annual progress of departmental stores is estimated at 24%.
The profits of bigger organized retail segments are numerous. The customers get a superior product at discounted price. So customers get worth for their cash.
Typicality of consumers in terms of diverse tastes and demand for extensive collection of goods.
Opportunities
When the model picks up, due to demonstration effect, there will be a complete renovation of domestic retail trade.
International retail titans take India as crucial market. It is ranked fifth most appealing retail market. The organized retail sector is estimated to raise stronger than GDP growth in the next five years catalyzed by shifting ways of life, proliferation in income and advantageous demographic shape. Food and clothing retailing are crucial factors of growth.
Indian retail industry has been regarded as of the most dynamic and fast advancing business with several companies arriving in the market.
Indian retail industry can be one of the biggest industries in terms of quantities of workforces and institutions.
Countryside retailing is still untouched in Indian market.
Threats
One of the chief obstacles to the evolution of modern retail formats are the supply chain management concerns. No key modifications are required in the supply chain for FMCG goods; these are well established and effective. For perishables, the structure is too difficult. Government guidelines, absence of ample groundwork and insufficient venture are the potential blockages for retail corporations. The supply chain for agro goods is less complex than the net foodstuffs. But agro goods have an exclusive problem of non-standardization.
It’s challenging to focus on all segments of society.
Hyper and super markets trying to offer purchaser with -worth, diversity and quantity.
Large primary investment is essential to manage with other establishments and contest with them.
Labor guidelines are also neglected in the organized retails.
The absence of even tax system for organized retailing is also one of the hurdles.
Poor infrastructure is prospective to be a hurdle in the evolution of organized retails.
Concern of vehicle parking in urban regions is grave worry.
Segment is unable to engage retail workforce on contract basis.
The unorganized sector has supremacy above the organized sector in India due to low investment requirements.
Retail nowadays has transformed from marketing a good or a service to marketing a hope, an aspiration and especially an practice that a consumer would like to repeat.
Weakness
Will primarily satisfy rich and middle class consumers located in metros and will not cater bulk consumption merchandises for consumers in rural regions and insignificant towns.
Retail chains are so far, to be established with appropriate range of products mix for the mall outlets. Present day retailing is about investigating and graphing the marketplace, keeping options open, reasonable costs and retaining buyers too.
Insignificant outlets are also one of the flaws in the Indian retailing. 96% of the outlets are smaller than 500 sq.ft. The retail chains are also minor than those in the developed nations.
The quick expansion of retail sector is the severe upgrading in the accessibility of retail space. But the present scenario in prices, retail real estate hires have amplified extraordinarily, which may cause few retailing business houses to be unavailable. Retail corporations have to spend great rents which are obstacles in the chance of profits.
The capacity of sales in Indian retailing is also very little. India has huge population in the globe and an expeditious growing economy.
The impact of retail on Indian economy is:
Employment Generation
Retailing offers occupation to 8% labor in India, because it is highly effort demanding. It has also capable to create eight million more jobs, directly and indirectly.
Development of small scale units
Retailing also aids small scale units to freely access of the market. They provide a stage for small scale unit’s goods. Retailing in India funds 4 lakh moderate handicraft industries.
Growth of real estate
The necessity of space is one of the main burdens, so the real estate has also risen over the previous years. In coming days the Indian economy and real estate sector would be shaping into organized retail estate sector.
Conclusion
Contemporary ways of shopping have been all the time attracting Indians. The retail sector in India is rapidly progressing and the employment potential is mounting day by day. The attitudes of the retailers towards suppliers have been changing so as to extract the best pricing from the suppliers. This secret for all the titans of retail market are planning to invest into the Indian retail sector. India is one the fastest growing economies of the world, by agreeing to FDI in the retail sector there would be a considerable pouring into India’s GDP and economic development. This would also aid the integrating of the Indian retail market with the global retail market. FDI would not only give Indians employment but help Indians to get better wages, incentives and lifestyle, which the present retail market has been unsuccessful in providing. Entry of FDI into Indian market would enhance Indian scenario for supply chain, technology, manpower and skill development. FDI would also catalyze the growth of small and medium scale industries.
 

Sports Direct SWOT and Organisational Analysis

Introduction
In the evolving
market today, it is necessary for an organization to be unique if it desires
sustainability. It is important for an organization to develop such missions
and policies which assist in the progression of an organization and to bring their
theories into practice (Gottlieb, 2007). The most effective way to do that is by
implementing methods that aim to bring change. The report is focused on what
strategies are adapted by an organization for the live up to its requirements
and accomplish its missions. The organization which is enlightened in this
report is the SportDirect.com, this British sports goods Retailer was
established in 1982 by Michael James Wallace commonly known as Mike.

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The report
highlights the concepts of transferable skills and how they are important to be
implemented for the fulfilment of organization’s missions. Furthermore, the
report is based on the values, mission statement, strategies and aims and
objectives of the organization SportsDirect.com. The company is currently
operating worldwide and has 670 store across the globe, 470 of which are only operating
in the UK. The clothes and accessories that the company trades and offers are
all related to sports. The report also focuses on the customer expectations
regarding this organization and what role do the employees play in it.
Literature Review
According to
Gottlieb (2006) the steps that can help an organization to evolve and add value
to their products is by planning the goals that are to be achieved, plan out
the target market, engage with the known and unknown people for the recognition
of brand, create plans and strategies to implement and by supervising progress
and upholding the relations with stakeholders. It must be the core strategy of
an organization to add value to their products which can be done by being in
good terms with the community (Barnes, 2001). It is believed by Gottlieb and
Panepento (2008) that when an organization is motivated to achieve its targets,
it strives to make its vision and mission statement strong and is able to do
more with less when faced with the hard times.
Customer Analysis
Customer
identification is very important for a business. By identifying who are their
customers, a company can easily then advertises their products accordingly.
With the help of knowing their targeted people, Sportsdirect.com can be able to
only channel their products to them. Selling sports gear and items such as
trainers for runners shows that their target customers will be people either
into sportswear, sports, health and fitness as well as casual wear.
The chief focus
of an organization must be to satisfy its customer’s need and to find out
different ways to attract the customers (Zeithaml et al., 2006). The company SportsDirect.com has never been much
able to fulfil the desires of its customers. Providing best customer services
has never been the focus of the company. The employees there look just as
confused as the customers. The company has lack of order in the workplace which
does not satisfy the people as they come to shop for the relaxation of mind and
to get what they desire but after taking in the disturbed service it all goes
away (Wallop, 2015). It has also been in the lists of complaints by the customers
that there wasn’t even any a place to sit in the shoe area making everyone
think how to try the trainers they want? (Portas, 2013)
Apart from all
these issues that the Sports Direct possesses, the main thing that satisfies
the customers at maximum and makes them ignore all the negative parts is that
the company offers the expensive brands in lowest possible price which is satisfactory
for the customers. According to Ojasalo (2001) managing of customer’s
expectations in the professional area is the main duty of the workers and it is
the main task of the managers to spread awareness regarding customer
satisfaction in the workplace.
SWOT Analysis
The SWOT analysis is used to thoroughly detect the strengths, opportunities, weaknesses and threats to determine the situation of an organization. By this internal analysis the company can focus on its internal operations and functions and come up with new ideas to progress.
Strengths 
The strengths of
the company Sports Direct include the wide network of stores all over the
world. It is a liable brand which has been operating over decades. The company
has tied up with the most famous brands as Adidas, Reebok and Nike which is one
of a solid strength. The staff in Sports Direct tends to stay put with the
organization because the get paid with high bonuses and gets additional
benefit.  
Weaknesses
The slow growth
in market share is one of the most notable weakness of the company. The company
has always been working in low profit margins which can have a great effect on
the future profitability. The lack of customer dealing skills in workers within
the organization is also a potential weakness by which an organization can face
great loss in profitability and competitive advantage. 
Opportunities
The company
tends to acquire brands across Europe which is a great opportunity in order to
reach more customers. The increasing economic problems in Europe provide an
opportunity to Sports Direct to lay its foundation in Western and Eastern
Europe. It is chiefly important for the brand to expand because the stores in
UK have been settled for over decades which gives it a broad opportunity to
reach out for more customers in different countries and attract the brand
conscious customers so that the company can be stable and sustained. 
Threats
The functioning
of the company can be affected by the continuously fluctuating policies in
Europe. The evolution in technology is also causing problems for the company
and more advancement in it can be a potential threat for the company. If
advanced technology is used by the rivals of Sports Direct, it can be a great
threat to its progress.
Employee Roles and Responsibilities
The employees
roles and responsibilities matters the most for the functioning of an
organization. The moods and expectations of the customers depend upon the
attitudes of the employees. If the employees work responsibly with the role
they are allocated with then there would be lesser problems relating to
customers in the workplace. The employees in Sports Direct are famous for their
confused behavior, though the customers are attracted to the cheaper prices of
the desired brands but also get disappointed by the employee behavior towards
them. The company provides flexible working hours to the employees. The Sports
Direct has been striving to change the policies related to employment. It is
important to recognize the needs of the employees so that they can concentrate
more on their roles and responsibilities towards the company.
Training and Development programs in organizations
Training and
development programs provide opportunities to the organizations to train the
minds of employees according to their targets and missions (Noe, 2002). If the
employees are trained according to the intensity of desired goals of the
organization they can live up to the expectations of the organization and this
can result in better performance. Most of the employees that apply to work in
organizations aren’t much aware of what the organization is targeting at, the
fresh and young employees lack workplace skills which are important to be
delivered to them. By the help of training and development programs the company
can bring each and every employee to the same level of intellect.
The idea of
training and development in an organization shows the workers that they are
valuable which motivates them to participate actively in these programs
consequently creating workplace a better environment to work in (Noe, 2002).
Staff members should have exposure the information related to the safety,
administration etc. When a training program is properly structured it helps an
organization to operate comprehensively (Jehanzeb and Bashir, 2013). The
workers in an organization must be treated as valuable assets and the managers
must know how to deal with them and take the required work from them. Thus, the
training and development programs have a great value towards organizations
which the company must invest in.
Customer Service Assistant
The primary
point of interaction between the customers and the firm is through the customer
service assistant. The first person that the customer communicates and gets
interacted is the customer service assistant which gives out information about
the brands on sale by the company. The customers approach these assistants in
order to get advices, information relating the brands and products, to complain
or return any purchased item. This job is done in person, online or by
telephonic contact.
The customer
service assistants provide online help to the customers who demand it while
making purchases. The main role of this job is to handle the complaints by the
customers it is a great responsibility to thoroughly go through the complaints
and try to resolve it or transfer it to the responsible area. It is important
the customer service assistant listens to the issues calmly and don’t react in
a harsh way either on phone, online or in face as a bad behavior can be an
element of destruction for the company’s image and reputation. In Sports
Direct, the role and duty of the customer service assistant is quite hard, they
are ought to carry out a lot of work because the managers there are quite
skilled and knows how to make employees work (Wallop, 2015). Though the customer’s
assistants of this company have observed to be as confused as the customers but
they do have patience and politeness in their attitudes (Portas, 2013). In some
companies it is important to note down and make a report of the very own
activities performed all day, this helps in the supervising of both the person
on job and the progress of the company.
The skills that
are required to be a good customer service assistant includes being polite with
the customers, being capable of handling the sudden situations and ability
resolving issues rapidly so that the customers don’t have to wait. Further, the
person must be aware of the information technology and administrative skills in
order to carry out the tasks which are to be done using online services. Also,
the person has to be attentive and have good customer service skills.
Recommendation
Further are the
recommendations for the company to focus on in order to address the weaknesses
and threats. By focusing on the recommendations Sports Direct can easily gain
competitive advantage. Firstly, the company must focus on the training and development
programs and invest in this area in order to deliver the aims and targets of
the company to the employees so that each of them would have similar skills and
can deliver efficient work. Secondly, the company must focus upon expanding
more outside the Europe due to the increasing issues in its economy the company
is facing loss in market share. Furthermore, the company must consider
increasing the wages of the customer’s service assistants so that they would be
motivated to work hard and strive for the progression of the company. It is
also necessary for the company to arrange sitting areas in the shoe department
in most of the stores so that people would not complain about the absence of
place to sit and try shoes on.
Conclusion
In conclusion, the company must thrive to overcome its weaknesses and threats in order to rise as an exceptional brand. Sports Direct must establish itself and evaluate exceptional strategies address the issues in the workplace. If the company focuses on the training and develop program more it can acquire sustainability. The stability for the company lies within the strategies it implements for its success. Thus, the theories and policies of the company must be brought to practice so that this could result in excess profitability and be a way to achieve competitive advantage as well. Sports Direct can achieve its motives by focusing on the recommended ideas.
References
Barnes,
J.G., 2001. Secrets of customer
relationship management: It’s all about how you make them feel. McGraw-Hill
Companies.Gottlieb,
H. and Panepento, P., 2008. Doing More With Less in Hard Times. The Chronicle of PhilanthropyGottlieb,
H., 2003. Founders’ Syndrome? Who Me. Internet:
http://www. help4nonprofits. com/NP_Bd_FoundersSyndrome_Art. htm, 7, p.2009.Gottlieb,
H., 2006. Introduction to community engagement. Community-Driven Institute Library.Gottlieb,
H., 2007. 3 statements that can change the world: mission/vision/values. 3 Statements That Can Change the
World: Mission/Vision/Values.Jehanzeb,
K. and Bashir, N.A., 2013. Training and development program and its benefits to
employee and organization: A conceptual study. Training and Development, 5(2).Noe,
R.A., 2002. Employee training and development.Ojasalo,
J., 2001. Managing customer expectations in professional services. Managing Service Quality: An
International Journal, 11(3),
pp.200-212.Portas.
M. 2013. Mary Portas visits Sports Direct. [ONLINE] Available
at: http://www.telegraph.co.uk/journalists/mary-portas/9987818/Mary-Portas-visits-Sports-Direct.html. [Accessed 29 March 2017].Ulrich,
D., 2013. Human resource
champions: The next agenda for adding value and delivering results. Harvard
Business Press.Wallop.
H. 2015. The Secrets of Sports Direct review: along with cheap
trainers, Sports Direct is also known for its giant mugs – the customers.
[ONLINE] Available at: https://www.theguardian.com/tv-and-radio/2015/apr/28/the-secrets-of-sports-direct-review. [Accessed 29 March 2017].Zeithaml,
V.A., Bitner, M.J. and Gremler, D.D., 2006. Services marketing: Integrating
customer focus across the firm.
 

Foreign Direct Investment and East Asia: Exemplary Economic Performance

Thesis Statement:
East Asian countries have served as host countries for various multinational organizations. These organizations invest in the human capital and technology of  East Asian countries. As a result, the once underdeveloped countries can flourish into developed ones.
Research Question:
How does foreign direct investment promote economic growth in East Asia?
Introduction:
East Asia once represented one of the poorest regions in the world. However rapid growth, during the 2000s, helped advance the development of the region. Foreign direct investments (FDIs) have played a major role in East Asian economic growth. Dunning (1981) comprehensively defines FDIs as: “ the existence of multinational enterprises, a firm in one country with certain ownership advantages would open a subsidiary in another country with locational advantages and both advantages can best be captured by internalizing production via direct investment.” In essence, capital-abundant countries create an inflow of resources into capital-scarce countries.

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Gholami, Tom Lee and Heshmati (2003) specify the following growth theories as promoters of economic growth, as it relates to FDIs: capital investment(classical model), technical progress (neoclassical models), accumulation of human capital and externalities (new growth theory). According to Kurtishi-Kastrati (2013), the classical model is an older one that indicated a one-way flow of capital from developed to underdeveloped countries. Contrarily, FDI is a two-way flow between developed and underdeveloped countries. Secondly, Mahembe and Odhiambo (2014) shared that the neoclassical growth model assumes that economic growth is produced by the accumulation of exogenous development factors. It has been shown that through this process, capital accumulation directly contributes to economic growth concerning the share of capital in the national production. 
Lastly, the new growth model postulates that economic growth is driven by two main factors: the stock of human capital and technological changes (Romer, 1986, 1990 and 1994; Lucas, 1988). Nair-Reichert and Weinhold (2001:154) also argue that this growth model looks at the long-term and can lead to economic growth, driven by technology transfer, spillover and diffusion effects. Thus, it would then appear that the relationship between FDIs and economic growth is interdependent. This paper will seek to examine how these development resources, based on the theories presented, continue to promote economic growth in East Asia.
Outline:
Main Points With Supporting Details:
1)     East Asian economies recognized the need for diversification, after the collapse of the Soviet Union.
a)      After the collapse of the Soviet Union, upon which many East Asian countries relied for technical support, they realized that there was a need for a regional bloc.
b)     East Asia is now supported by both informal and formal integration.
2)     Free-trade agreements were a necessary component, in the placement of subsidiary organizations in East Asia.
a)      Krasner’s Hegemonic Stability theory suggests that trade openness provides smaller states with more welfare benefits.
b)     The Japanese-East Asian trade relationship, with reference to FDIs, demonstrates the positive impact of trade liberalization.
3)     Foreign direct investment into human capital and technology results in the promotion of economic growth through production-efficiency that spills over into other sectors of the East Asian economy.
a)      Sarel (1996) mentions that the rate of labor participation can be increased for a while and will increase production, but it can obviously not increase indefinitely. And, ultimately, more growth in capital than in labor leads to decreasing returns on capital, resulting in a fall in output growth, even if capital continues to grow at a constant rate. Therefore an economy needs to continually improve its technology and human capital in order to achieve sustainable growth.
b)     Spillover from foreign direct investments continues the promotion of economic growth. The biggest spillover, affected by production-efficiency, is encountered in East Asian import and export markets.
Conclusion:  Foreign direct investments create East Asian economic growth through  a combination of trade openness ,along with, foreign direct investments into human capital and technology.
Bibliography

Blomström , M, and A Kokko.2003. “The Economics of Foreign Direct Investment Incentives.” NBER Working Paper Series Working Paper 9489.
Dunning,J. 1981.“International Production and Multinational Enterprises”. London: George Allen and Unwin.
Gholami, Roghieh; Lee, Sang-Yong Tom; and Heshmati, Almas, “The Casual Relationship Between Information and Communication Technology (ICT) and Foreign Direct Investment (FDI)” (2003).ECIS 2003 Proceedings. 72. http://aisel.aisnet.org/ecis2003/72
Kurtishi-Kastrati, S. 2013. “Impact of FDI on economic growth: An overview of the main theories of FDI and empirical research.” European Scientific Journal 9 (7): 57.
Lucas, R. 1988. “On the mechanics of economic development.” Journal of Monetary Economics, 22 : 342
Mahembe, E, and N Odhiambo . 2014. “Foreign  Direct Investment And Economic Growth: A Theoretical Framework.” Journal of Governance and Regulation 3 (2).
Nair-Reichert, U. and Weinhold, D. 2001. “Causality tests for cross-country panels: A new look at FDI and economic growth in developing countries.” Oxford Bulletin of Economics and Statistics 63(2): 153-171. 38
Overseas Research Department,. 2003.” Prospects for Free Trade Agreements in East Asia.” Japan External Trade Organization (JETRO): pp1-29.
Peng, D, . 2000. “The Changing Nature of East Asia as an Economic Region.” Pacific Affairs 73 (2):pp. 171-191.
Reichert, UN, and D Weinhold . 2001.”Causality Tests for Cross‐Country Panels: A New Look at FDI and Economic Growth in Developing Countries.” Oxford Bulletin of Economics and Statistics 63 (2).
Romer, P. M. 1986. “Increasing returns and long-run growth.” Journal of Political Economy, 94:1002-1037. 44.
Romer, P.M. 1990. “Endogenous technological change.” Journal of Political Economy, 98, S71- S102. 45.
Romer, P. M. 1994.“The origin of endogenous growth.” Journal of Economic Perspectives, 8(1): 3- 22.
Sarel, M,.1996.”Growth in East Asia What We Can and What We Cannot Infer.” Economic Issues 1
Urata, S, and K Kiyota .2005. “The Impacts of an East Asia Free Trade Agreement on Foreign Trade in East Asia.” International Trade in East Asia, NBER-East Asia Seminar on Economics 14.
Urata, S, . 2014. “Japan’s Trade Policy with Asia.” Japan, Public Policy Review 10 (1):pp.1-31.
Zhang, KH, . 2001. “Does Foreign Direct Investment Promote Economic Growth? Evidence From East Asia and Latin America.” Contemporary Economic Policy 19 (2).

 

Direct Transfer Of Money And Securities Finance Essay

Financial market is mechanism that allows people transfer of capital between savers and those who need capital takes place. It also is a place where allows people to buy and sell financial such as stocks and bonds. In addition to supporting previously issued financial assets in exchange for loans and financial markets through the promotion of financial assets from the sale of newly issued loans. Examples of financial markets including the New York Stock Exchange (resale of previously issued shares), the U.S. government bond market (resale of previously issued bonds), the U.S. Treasury Auctions (sales of new issues of Treasury bills). Financial institution is an institution, its main source of profit through the trading of financial assets. Examples of these financial institutions, including discount brokers (such as Charles Schwab and associates), banks, insurance companies, as well as more complex functions, such as Merrill Lynch’s financial institutions.

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Moreover , financial market can be found in almost every country in the world. There are some very small, only a small number of participants, while others – such as the New York Stock Exchange (NYSE) and the foreign exchange market -,trillion dollars in daily trading. Therefore , there are three ways available transfer of capital in the financial market that’s direct transfer of money and securities , investment banking house , and financial intermediaries.
DIRECT TRANSFER OF MONEY AND SECURITIES
This types of transfer of capital occur when a business sells its stock or bond directly to savers without going through any type of financial institution. From a tax-deferred retirement plan or account type of asset to another. Direct transfer is not considered distribution, so there is no income or subject to any penalty tax in advance the layout. This transfer type is usually no electronic checks are cut from one custodian to another. The business delivers its securities to savers , who in turn give the firm the money it needs.
INVESTMENT BANKING HOUSE
An investment bank not same with the commercial bank or retail banks, investment bank does not take deposit. This is an organization that underwrites and distributes new investment securities and help businesses obtain financing. An investment bank is one type of financial institution that assists individuals, governments and corporation in raising capital by underwriting and or acting as the client’s agent in the issuance of securities. Investment banks also help companies mergers and acquisitions, and provide services such as market making, derivatives, fixed income instruments, foreign exchange, commodities, and asset securitization support services. Other than that , the company can sells its stocks or bonds to the investment bank , which in turn sells these same securities to savers.
FINANCIAL INTERMEDIARIES
Financial intermediaries are specialized financial firms that facilitate the transfer of funds from savers to demander of capital. Some of the financial intermediaries are bank such as commercials banks , insurance companies , investment companies. Financial intermediaries are simply transfer money and securities between and saver . They literally create new financial products. The function of financial intermediaries includes reduce the transaction cost. For the liquidity services , it can saving deposits . financial intermediaries also provide online banking to pay the bills. Besides of that , the intermediary obtains funds from savers in exchange for its own securities. The intermediary then uses this money to purchase and then hold businesses securities. The existence of intermediaries greatly increases the efficiency of money and capital markets.
Moreover . there have a few of categories of financial intermediaries. The categories of financial intermediaries are depository institutions, contractual savings institutions and investment companies.
The depository institution has been divided into depository institution and non-depository institution. Deposit-taking institution in the United States financial institutions such as savings banks, commercial banks, savings and loan associations, or credit unions, in the law to allow the currency to accept deposits from consumers. Federal depository institution is subject to the Federal Deposit Insurance Corporation (FDIC).
COMMERCIAL BANKS
Commercial bank or business banks are financial institutions and intermediaries type. This is a bank to provide transactions, savings and money market accounts and time deposits accepted. Commercial bank also is the traditional department stores of finance serve a wide variety of savers and borrowers. It’s also expanding the services provided by the range, including food and beverage services and insurance stocks. These commercial banks are institution that run to make a profit and owned by a group of individuals. Actually, commercial banks have some different from investment banks. This is because commercial banks offer loans, while investment banks help companies raise funds from other parties.
SAVINGS AND LOAN ASSOCIATIONS(S&Ls)
A savings and loan association that’s association that similar to bank is a financial institution which specializes in accepting savings deposits and making mortgage loans. They served personal savings and the supply of residential and commercial mortgage borrowers, they also take the fund from many small savers and lend this money to home buyer and also other type of borrowers. In addition, savings and loan association have more expertise in analyzing credit, setting up loans, and making collections than individual savers, so they reduce the costs and increase the availability of real estate loans.
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CREDIT UNIONS
Credit union is a cooperative financial institutions owned and controlled by its members, to promote conservation, provide credit at reasonable prices, and provide other financial services to its member. their member savings are loaned only to other member , generally for auto purchases , home improvement loans , and home mortgages. Credit unions are often the cheapest source of funds available to individual borrowers.
Next, contractual savings institutions included life insurance companies and pension funds. Life insurance companies provides insurance for you and your family’s in order to create peace of mind. Life insurance is a policy that people buy from a life insurance company, it can be a basis of protection and financial stability after one’s death. Its function is to help beneficiaries financially after the owner of the policy dies. They taking saving in the form of annual premiums, invest these funds in stocks , bonds , real estate, and mortgages and finally make payments to the beneficiaries of the insured parties.
Other than that , pension fund is a scheme, fund or plan to provide retirement income. This kind of fund is established by employers and organizations to their worker and administered primarily by the trust departments of commercial banks or by life insurance companies. There is two kind of for pension funds, that’s defined benefit plans and defined contribution plans. For defined benefit plans , the employer specifies or guarantees the level of benefits the employee will receive when they retires. For defined contribution plans , the employer make specified or defined the payments into plans. When the employee retires , they are determined by the amount of asset in the plan.
The third kind of financial intermediaries is investment companies. There have 2 kinds of investment companies that are financial companies and mutual funds. Financial companies is an organization that provides loans for both businesses and consumers. Finance companies also purchase unpaid customer accounts at a discount from merchants and collect the payments due from customers. They also grant small loans directly to their consumers at a relatively high rate of interest. However , there is some differences between financial companies and bank. they unlike with a bank, finance company do not accept deposits from the public. But , finance company may draw funding from banks and various other money market resources. For mutual funds, mutual funds is an open-ended fund operated by a corporations that accept money from savers and then use these funds to buy stocks , long -term bonds, or short -term debt instruments issued by businesses or government units. Different funds are designed to meet the objectives of different type of savers. For most mutual funds, shareholders are free to sell their shares at any time, although the mutual fund share prices fluctuate daily, after the securities held by the fund depend on the performance
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CONCLUSION
In short , we know clearly about the financial market information. Financial market is mechanism that allows people transfer of capital between savers and those who need capital takes place.Inside the market we know what are they doing and contribute to our. Other of that , I also can know the function of financial intermediaries and also have what categories inside the financial intermediaries. There are many types in financial intermediaries, I get to know each of them clearly and also a few ways of transfer the funds and after this we know which type of investment are most suitable and better of us.
 

Is Perception Direct, Indirect, or Neither?

In the epistemology of perception there are three main positions an individual can take, these are indirect realism, direct realism and idealism. For this essay my interest is in the question of whether perception is indirect or direct, therefore I will not to refer to idealism, and other ideas which deny the existence of a mind-independent world. I will begin by presenting indirect realism and Locke’s account of this. I will argue that the main problem with indirect realism is the fact that it leads to scepticism and therefore no real knowledge of the nature of the external world. In order to overcome these problems, I will argue in favour of direct realism, focusing on Reid. I will also provide objections to direct realism, and attempt to offer solutions to these, showing how perception is direct.

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Indirect realism is the belief that we are directly aware of mind-dependent sense-data and this represents the external world. Therefore, we perceive sense-data immediately and indirectly perceive mind-independent physical objects through this sense-data. My main objection to indirect realism, is that it leads to scepticism about the nature of the external world and from this we cannot have any real knowledge.

Scepticism results from indirect realism because if we are to accept this view, then all we are aware of and know about is sense-data. This means I cannot have immediate access to the external world and ‘reality’. We are led to the question of, if I cannot have access to the external world, how can I determine how accurate the representation of it is in my mind? Thus, it seems that we have no way of determining whether our sense-data is an accurate representation of the real external world.

We can present this objection through the cinema analogy. Imagine that you have been locked in a cinema your whole life. Inside the cinema films are always on, they tell you about the outside world, however you are not able to check if these films are accurate representations. In fact, the films are accurate, and you never doubt this. Is it fair to say that, through these films, you know what the world outside the cinema is like?

Those who follow indirect realism, would say that we are like the character in the analogy. We are trapped inside a cinema with no real way of discovering whether the images presented are genuine representations of the external world. This is a weakness of indirect realism, as it highlights how because we have no real way to discover whether the images presented to us (through sense-data) are genuine representations, we become sceptical of the external world and are unable to have true knowledge.

As an indirect realist Locke argues that we can know what the external world is like, even though we perceive it through ideas (sense-data). Locke defines sense-data as ideas and says that an idea is ‘that term […] for whatsoever is the object of the understanding when a man thinks’ (Huemer, 202: 32). An idea is whatever is in your mind when you are thinking about a certain thing. For Locke some of our ideas represent qualities which are in the objects we perceive, although some ideas are not in the object we perceive but instead in us. For example, when we look at a box the cube shape we perceive is in the box, however when we pick up a cold ice cube, the coldness is not in the ice cube but in us.

Regarding my main criticism against indirect realism, Locke provides four main arguments which he believes show that we can be sure that external objects exist and therefore we can be sure that our ideas accurately represent the external world.

Firstly, anyone without a specific sense (e.g. of sight) does not have the ideas which belong to that sense (e.g. seeing). Secondly, in some cases, you cannot avoid having certain ideas in your mind. Locke uses the example of looking towards the sun, you are unable to avoid the ideas which the sun produces. However, when your eyes are shut, you can recall in your mind the idea of light, which formally existed in your memory; showing that in some ways we can control what we remember. This shows that there is a difference between the ideas produced by memory and those which force themselves upon you (those you cannot avoid having). For Locke this is reason to believe that perceptual ideas do come from the external world.

Thirdly, ‘many of those ideas are produced in us with pain, which afterwards we remember with the least offence.’ (Huemer, 202: 35). Highlighting how when we physically touch hot objects they hurt us. Whereas, when we remember touching something hot, the idea of heat does not cause pain. Showing us that there is a difference between the idea when it appears as a result of an external cause and when it appears as a result of us recollecting it.

Finally, ‘our senses, in many cases bear witness to the truth of each other’s report, concerning the existence of sensible things without us.’ (Huemer, 202: 35). This emphasizes the point that our senses validate each other. For example, if you see an object from one angle, then move, you will see it from a different angle and it will consequently look different. If you see a fire, you are able to touch it, giving us reason to think there are real objects in the external world causing our sensations.

Even though it can be seen that Locke provides four strong arguments for the existence of external objects, this was not a necessary step for him to take. There is no need to argue for the existence of the external objects because we already perceive the existence of these objects, we are instantly aware of their existence and therefore do not need to be convinced of it. Therefore, perception is direct, we are directly aware of external objects. This argument against Locke and indirect realism is similar to that argued by Reid.

Reid explains three elements he believes to be present in every perception. Firstly, ‘It is impossible to perceive an object without having some notion or conception of that which we perceive.’ (Huemer, 202: 51); this means that we cannot perceive something which we had no prior knowledge of. For example, you cannot perceive a horse without having some sort of image or idea of a horse to begin with. Reid’s second point is that we must have a strong and ‘irresistible conviction’ (Huemer, 202: 52) and this must always be present for us to be certain that we perceive something.

Reid discusses cases where this ‘irresistible conviction’ is not necessarily present and therefore we doubt whether we perceive an object or not. An example of this are stars which begin to shine as the light of the sun begins to disappear or when a ship begins to appear in the distance. This conviction or belief must be immediate and not the effect of reasoning, ‘we ask no argument for the existence of the object, but that we perceive it; perception commands our belief upon its own authority’ (Huemer, 2002: 53).

Here it can be noted that it is Reid’s third point which separates him from Locke. Unlike Locke, Reid believes that we are immediately convinced that objects exist, and no amount of reasoning will make us more convinced. Therefore, because we are immediately convinced of the existence of these objects, we can be sure that these represent the nature of the external world and that this provides us with true knowledge.

There are eight main arguments against direct realism, I will focus on the argument from hallucination as this is viewed as one of the most powerful argument against direct realism.

Consider a drunk man who “sees” flying pigs, it is argued that, he is ‘immediately’ aware of something. However, no physical flying pigs are present. Since the drunk man is immediately aware of something, that, that he is immediately aware of must be something other than an external physical object (as no flying pigs are physically present). However, there is no or no significant difference between the objects we are aware of in hallucination or in veridical perception.

Those who are in favour of the argument from hallucination, argue that given this inability to distinguish between objects in hallucination or in veridical perception, we have reason to believe that, because objects of hallucination are not external physical objects, then objects of our immediate awareness are similarly not external physical objects. Consequently, this leads to direct realism being proved as false.

Le Morvan sets out a response to the argument from hallucination. Le Morvan states ‘The argument from hallucination may […] be the most powerful argument against direct realism, but it fails to refute it.’ (Le Morvan, 2004: 227). Le Morvan asks us to imagine that sense-data is the object of immediate awareness in hallucination; this however does not mean that we must ‘accept that they are also the objects of immediate awareness in (veridical) perception.’ (Le Morvan, 2004: 227).

A supporter of this argument states ‘that if x and y are phenomenally indistinguishable, x and y are ontologically indistinguishable.’ (Le Morvan, 2004: 227). Le Morvan asks ‘why suppose that phenomenology is such a reliable guide to ontology?’ (Le Morvan, 2004: 227). Phenomenology can be seen to not be a reliable guide to ontology, Le Morvan highlights counter-examples to this point. For example, ‘Could not a papier mâché rock appear phenomenally indistinguishable from a real rock?’ (Le Morvan, 2004: 227).

Another point is that even if (for example) an animal-like sense-datum appears as phenomenally indistinguishable from a real animal, this does not provide us with a convincing reason to believe that the objects of hallucination are the same as those in veridical perception.

Le Morvan makes a second point, asking us to suppose that the drunk man is immediately aware of something, and no physical flying pigs appear to him. If no physical flying pig appear (point one), but the drunk is immediately aware of something (point two), we do not need to conclude from this that, sense-data are the objects of immediate awareness in hallucinations (point three). Le Morvan states that this ‘neither follows deductively from [point one] and [point two], nor is it the only (viable) explanation’ (Le Morvan, 2004: 227). Therefore, the argument from hallucination fails to disprove direct realism.

To conclude, I believe that perception is not indirect, as this causes us to be sceptical of the external world (we cannot be sure if external objects exist) and does not allow us to have real knowledge, all we are aware of and know is sense-data. As an indirect realist Locke puts forward four arguments which explain how we can be sure that external objects do exist. However, I believe and follow Reid’s line of thinking, that this was an unnecessary step for Locke, we do not need to prove the existence of external objects because we are immediately aware of their existence and no amount of reasoning will convince us more. Therefore, perception is direct because we are directly and immediately aware of external objects.

The argument from hallucination provides an attack against direct realism, however it fails, this is because even if an object of hallucination appears phenomenally indistinguishable from those in veridical perception, it does not mean that they are the same. There are counter-examples which prove this point wrong (e.g. papier mâché example). Also, it does not follow deductively that just because something is perceived in the case of hallucinations, that this must be sense-data. Consequently, this attack fails, and we can be still left with the belief that perception is direct, we are directly aware of external objects. 

Bibliography –

Huemer, Michael, 2002, Epistemology: Contemporary Readings, London: Routledge

Le Morvan, Pierre, 2004, Arguments Against Direct Realism and How to Counter Them, The American Philosophical Quarterly 41(3)

 

Fresh Direct PESTEL, SWOT and Porter’s Five

INTRODUCTION
Direct food is an online order taker for the delivery of fresh goods to their customers. They promise to provide delivery to their customers at very next day. They are operating in more than 48 states in U.S.A. in New York, they came with the saying “the new way to shop for food.” as they are providing online business, they do not have to pay for the rent for the land. the quality is obtained by SAP software. They are highly dealing on cleanliness, healthy and safety. they are meeting the highly customer quality demands.
The key for the success of Fresh Direct is the system efficiency. each department of the food, bring ingredients e.g. milk, beef, chicken from the shorter distance. they also sold restaurant worthy foods. its processing facility at Manhattan customer is its cost effective operational design. the delivery goes via refrigerated truck.
The minimum order should be of $50. it has $60 Million start up cost. they are hoping to turn on the daily profit. Fairway is the partner of the Fresh Direct. it is working on the basis of low price. then they have collaborated with Donaldson Lukfin & Jenrette. They are focusing on mergers and acquisitions. there is a constant change in management. they are changing after small periods.
They are hoping to capture 5% of the grocery market of New York. the company is working on the basis of low cost marketing strategy. they are working on the strategy of eliminating middlemen. they believe that customers would accept a limited package brand.
Fresh Direct food’s website provides a number of fresh foods as well as abundance of information. people in the city preferred to shop from here, as they do not have to carry the grocery with them. they ccan have all the items at their homes just after one click.
INDUSTRIAL ANALYSIS
PESTLE FRAMEWORK
1- Political Factors
Fresh Direct’s performance is heavily influenced by political and legislative conditions in those countries, including the European Union (EU). For labor law, the government encourages retailers to offer a combination of employment opportunities for flexible jobs, lower wages and local basis a highly skilled, better paid and central. Fresh Direct believes that retail trade has a large impact on employment and the factors of people, being an inherently local industry and labor intensive.
2- Economical Factors
The international business continues to grow, the company remains highly dependent on the U.S.A market. Therefore, Fresh Direct would be seriously affected by a slowdown in the market for U.S.A
3- Social Factors
Current trends indicate that U.S customers have moved to the “single” and “bulk” purchases, which is due to social changes. Demographic changes such as aging factor, the increase of women employees and a decrease in preparing meals at home means that U.S.A retailers focuses on value-added products & services. Consumers are increasingly aware of health problems, and attitudes toward food are constantly changing.

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4- Technological Feature
The influenced that plays a major role towards development of many products from Fresh Direct. New technologies benefit both customers and company increases customer satisfaction as the assets are available, services can be more personalized and more convenient. The commercial launch of the Efficient Consumer Response, the initiative provided that change as this company is dealing with online services, it is necessary for the company to focus on latest technology.
5- Environmental Factors
main theme of society threatens food retailers has been the to act socially responsible. the government for sustainable to reduce waste, reduce resource consumption and minimize
6- Legislative Factors
Code of Practice should set out the prohibition of many current practices, such as requiring payments to suppliers and prices agreed retroactively change without notice.
PORTER’s FIVE FORCES MODEL
1- Threat of New Entrants
it has a strong barrier to new firms to enter the grocery market. For example, it becomes quite, since the. Differentiation achieved by Fresh Direct and Ads in their aggressive tactics seen in operation in product development, promotional activities and a better distribution.
2- Bargaining Power of Suppliers
This strength represents the authority of the contractor that can be prejudiced by the major superstore manacles and the dread of bringing up the rear business to large supermarkets. Providers are vulnerable by the upward capability of huge merchant to starting place their foodstuffs from out of the country at subordinate prices. The affiliation with vendors may have similar effects on limiting strategic freedom to influence the company and their margins. The forces of bloodthirsty contention have condensed earnings margins for superstore cuffs and suppliers.
3- Bargaining Power of Customers
Porter’s theory that the products that become standard or undifferentiated, the lower the cost of change, and therefore, more power to the buyers pays Porter, M. (1980). On low prices, better choices, the constant stream of promotions in stores allows brands like Fresh Direct to manage and retain their customer base.
4- Threat of Substitutes
General replacement can decrease the command for meticulous manufactured goods, as there is a danger of clientele toggle to substitute. In the food industry this can be seen as a product-by-product or the replacement of the require and was additional destabilized by new-fangled tendency such as how diminutive convenience store chains are up-and-coming in the manufacturing. In this case, Fresh Direct, Ads and Sainsbury’s are annoying to get your hands on obtainable small-scale procedure and the opening of local towns and city centers.
5- Bargaining Power of Competitors
The food environment has knowledgeable momentous enlargement in the dimension and market ascendancy of the principal players, with better stores, increasing retail concentration and the use of a wide range of formats, now are the salient features of the sector. As declare higher than, the obtain power of the provisions engineering to put on the market is concentrated in the hands of a comparatively diminutive number of put up for sale bargain hunter. This highly competitive market has encouraged a rapid level of development, leading to a situation in which the U.S.A retail grocery had to be innovative to maintain and increase its market share.
CRITICAL SUCCESS FACTORS
It is essential to take into account the internal operational efficiency Fresh Direct in how to identify critical success factors of the company in the sector of food retailing.
1 – Brand and Reputation
Fresh Direct is a trademark and also serves as the central strategic advantage. manufactured goods expansion and overhaul development of the companionship have been re-engineered in order to smooth the progress of improved running of product living sequence and supplementary competent accomplishment of the full assortment of products to customers. Fresh Direct innovative ways to get better the purchaser shopping knowledge, as well as its labors to broaden your horizons the economics and indemnity have also capitalized on the physically powerful brand reputation.
2 – IT Integration
Fresh Direct’s operations have become necessities, not luxuries. Inventory control systems, keep all records of stocks and deliveries and analyze commerce communication are the salvation of the companionship. TI has grown beyond its traditional role in supporting and have acquired a central role in formulating business strategy. Extranet system used by the company, allowing Fresh Direct to use the Internet to create information flows proprietary and custom between the company and its business partners.
3 – Supplier Management
Fresh Direct, like many other supermarket companies, the sources of their products from foreign manufacturers are more competitive in price and volumes. As a most important merchant advertising miscellaneous manufactured goods range. As a result, it is the strategy of the company and the main focal point of the company have unique relationships with suppliers.
INTERNAL ANALYSIS
COMPETITORS OF FRESH DIRECT
YourGrocer.com
your Grocer is a first competitor of Fresh Direct. it was developed on the strategy of bulk-buying. it offers a limit advantage that you can only purchase in the form of bulk. delivery is done in different time slots according to the location of the customers.
PeaPod
peapod is a strong competitor of Fresh Direct.in many metropolian areas, Peapod provides online delivery and shopping services. it was founded in 1989 by two brothers Andrew and Thomas Parkinson. it has grown to be one of leading America’s Internet grocers. Peapod somewhat owns subsidiary of international food provider Royal Ahold, and also works in collaboration with Ahold USA supermarket companies which includes Stop & Shop and Giant Food.
in 2007, it started to provide online shopping to its customers. it had a central distribution model in every market.
NetGrocer
it was founded in 1996, and it says it is the first super market which provides non perishable goods to its customers. it is very difficult to find non perishable goods in the market. it serves in 48 states of the U.S.A markets. its customers are busy families and urban dwellers. it works 24 hours a day. and directly provide goods at their homes.
Other Challenges
the most new threat is that Amazon.com has also entered in the field of dry goods delivery. it has threatened all other online super retails. however, it would also be difficult for the Amazon to compete in this giant market. as they might have problem of grocery delivery failure.
CORE COMPETENCIES
The company’s main objective is to recognize that competition between companies is as much a race for the competition as it is for the marketplace situation and souk authority. Consequently, the purpose for the organization of Fresh Direct is to focus on competencies that really affect competitive advantage.
Competition leads to levels of performance of an activity or process that is much better than their competitors. Benchmarking can help to understand the presentation principles and what comprise high-quality or appalling presentation. On the other hand, Fresh Direct will be crucial to look at the type level.
Through a long period of operations, Fresh Direct’s core competencies have to be fixed. Fresh Direct has to adapt to the rapidly changing new circumstances and opportunities, so that their basic skills determination encompass to adapt and change. The example was when the company launched its loyalty card and went to the bench.
SWOT ANALYSIS
1 – Strengths
It is working in 48 states of U.S.A. This has led to its brand and financial strength to become strengths in themselves. This has led to many more shops under construction in the country and abroad, leading to geographical force. The introduction of Fresh Direct Express and Fresh Direct metro led to show strength in flexibility. they have a heavy brand reputation.
2- Weaknesses
SWOT analysis of Fresh Direct is bound to reveal some shortcomings. One example of many, is the amount of fossil fuel used in its transportation network. With rising oil prices, Fresh Direct has to keep a close watch on transport costs. Another weakness comes from the dependence on market Fresh Direct supermarkets in the U.S.A. Therefore, it is increasing its foreign media and the sale of other assets. it has not a consistent C.E.O. which may be danger for the company success.
3- Opportunities
Major new opportunities for Fresh Direct, like all businesses, is in the online arena, and a SWOT analysis of Fresh Direct should focus on this field. Fresh Direct has already had much success online, having become the Amazon threat into an opportunity by selling books at less prices. Fresh Direct, the biggest problem in search of opportunity is possible to decide exactly which ones to followthey can also operate in other countries, as well as Asian ountries. another opportunity may be diversity of the product.
4- Threats
Possible threats to Fresh Direct include fluctuations in the stock market and tax increases. Most companies are concerned about taxes, and have a goal of reducing the tax burden. But probably the biggest threat is the innovation of supermarkets, including YourGrocer, NetGrocer and Peapod etc. there may be an increase in the number of customers.
GENERIC STRATEGIES
Generic strategies are characterized by the response of an individual retail industry structure. For a retail giant such as Fresh Direct, to obtain a sustainable competitive advantage must go after moreover one of three general strategies, urbanized by Porter.
This strategy is based on Fresh Direct’s costs so well that they can have a significant competitive advantage.
If Fresh Direct uses another strategy of differentiation, products with unique features that customers value. Fresh Direct will be able to build brand loyalty of their offers, and therefore, lack of elasticity of prices by buyers.
The last strategy approach may be a cost leadership or differentiation strategy address a narrow market, centered. To perform a cost leadership strategy focuses Fresh Direct to create internal efficiencies that will help them to resist external pressures. Therefore, it seems reasonable to think that Fresh Direct have frequent interactions with governmental and regulatory and environmental supplier. According to this framework, Fresh Direct can also choose to limit their products to the market in general, therefore remain a focus strategy or niche. Fresh Direct is following a move toward of cost management or demarcation, what’s more in a specific marketplace or specific products. The danger of some against the association is annoying to do each and every one three and become what is known as caught in the middle. In the case of Fresh Direct is not suitable, since it has a clear commerce approach with a clearly defined market segment.
Product Development: Diversification
Changes in the business environment can create a demand for new products and services to the detriment of the benefit. An scoff matrix also suggests that if you expand new foodstuffs for existing markets, then a manufactured goods expansion approach has to be well thought-out by the stage of management a production. In mounting and diversifying the product mix of Fresh Direct, is also crucial to the internal development when developing new products. The nature and quantity of diversification should also be well thought-out in family member to the explanation of company approach and portfolio diversity. Following the changing needs of Fresh Direct customers can bring in new-fangled manufactured goods appearance. This may necessitate supplementary concentration to R & D, consequential in supplementary expenditure.
The put on the market manufacturing is understanding overcapacity and ground-breaking products and services is the greatest competitive advantage. Therefore, innovation has to be the main driver of product development for Fresh Direct. For example, Fresh Direct can build up a collection of dissimilar store arrangement in the U.S.A, each intended to make available a dissimilar shopping knowledge. While most of Eastern Europe and outlets in the Far East are hypermarkets, Fresh Direct can also develop different types of stores in these markets. This value added by the uniqueness Fresh Direct eventually lead to a price premium. The organization of technical modernism is all the time more involved in tactical conclusion manufacture. Fresh Direct has to take advantage of its strengths and diminish its inside weak spot in order to achieve a sustained competitive advantage.
MARKET OBJECTIVES AND STRATEGIES IMPLEMENTATION
Frameworks and tools for structuring the strategy are key to evaluating the commerce circumstances. The risk and worth trade-offs are completed unambiguous, resulting in tangible proposals to add value and reduce risk. Explicit action plans, including the need to plan to be developed by Fresh Direct as the strategic alternative.
Generic strategies discussed above, Fresh Direct is likely to employ two strategic options are also likely to be primary targets of the market to focus on market development through partnerships and diversification through the development of new products.
Marketplace approach development, combined expansion and strategic alliances
When toward the inside new marketplace such as China and Japan can hand out as a key driver of revenue growth and company expansion strategy. Fresh Direct interests in Japan is likely to grow in time, as markets in Asia are showing increased consumer spending and a greater tendency to retail. This new-fangled market are also demographically far above the ground occasion markets.
In the case of Fresh Direct, one of the strategic options suggested in international partnerships with local retailers in the Asian markets. Be well thought-out as a method of expansion and can be taught to take advantage of existing possessions and competition. By entering into joint ventures or alliances, in order to achieve greater economies of scale and market presence, Fresh Direct will be based on local knowledge and extensive experience of running the family, while adding together its own succession supply, item for consumption progress and operation skills to make available better accumulate shopping understanding to clients. On the other hand, prearranged the mammoth impending weighing machine and complication of these markets, may experience that Fresh Direct is the most important delivery service is not necessarily an advantage. The success of the partnership fall under three most important accomplishment criteria: sustainability, satisfactoriness and probability. Sustainability refers to whether a approach speak to the circumstances underneath which the companionship is in commission. This is the judgment of this expansion approach of market development. Suitability is connected to the expected benefits of the strategy, the level of risk and the possible reaction of stakeholders. Roads will be well thought-out if Fresh Direct has the possessions and cleverness to execute the approach.
BEST STRATEGY
The success of Fresh Direct shows how service delivery and effective brand can come to go beyond the splash of a emblem on a announcement. It had promoted commanding individuality by making their perception into a disease retiling and the spending on civilization outs from side to side various channels: educational support, supporting argument, and the customer experience and product additional room.
In a altering commerce surroundings, with the weight of high-end participant Fresh Direct have to assume new-fangled approach for development or diversification of to be had ones in order to continue its principal market position in a marketplace of retail by now in place. The companionship must regularly adapt to speedily changing circumstances. strategy formulation, therefore, be regarded as a continuous learning process, which includes learning about the objectives, the consequence of promising proceedings towards these goals and how to put into practice and put into effect these actions. The excellence of a put together strategy and momentum of its implementation thus directly dependent on the quality of cognitive and behavioral learning processes Fresh Direct.
In large organizations like Fresh Direct strategy must be analyzed and applied at various levels within the hierarchy. These dissimilar levels of approach should be connected and reciprocally compassionate. Fresh Direct’s approach at the corporate level defines the business in which Fresh Direct will struggle, in a way that focus possessions to exchange the antagonism at a dissimilar bloodthirsty benefit.
 

The Financial Markets: Direct And Indirect Transfers

In economics, a financial market refers to a media that allows people to buy, sell, create and exchange financial securities such as share and bonds, commodities such as basic agricultural goods and precious metals, and other fungible items of value at low transaction costs and at prices that reflect the efficient-market.
Both general markets where many commodities are traded and specialized markets where only one commodity is traded exist in financial market. Markets work by placing many interested buyers and sellers in one media, thus making it easier for them to find each other. The financial markets can be divided into different types such as capital markets commodity markets, money markets, insurance market and foreign exchange market.

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A saver refers to the one who deposit their money in bank, invest in company share and pays premium to an insurance company with objective to earn interest, dividend and profit. They aim also to accumulate their fund for future investment and expenses. However, a borrower just the reverse to saver. A borrower borrowed the money from saver by financial market to fulfill their need and need to effort the interest charge or give the dividend to saver.
In a well-functioning economy, capital will flow efficiency from saver to borrower. The transfer of fund can make by three different ways such as direct transfer, indirect transfer through investment bankers and indirect transfer through financial intermediary.
2.0 Body
2.1 Direct transfer
The first way is through direct transfer. It refers to a transfer of assets from one type of tax-deferred retirement plan or account to borrower. Direct transfers are not considered to be distributions and not taxable as income or subject to any penalties for early distribution. Most transfers take several days to complete, although this process is now generally faster in the electronic than in the past. Direct rollovers from qualified plans are a form of direct transfer. It occurs when firms direct sell their stock or bond to saver without going through any financial institution
The advantages of direct transfer are direct transfers convenience and simple to trade between borrower and saver. The reason is when both borrower and saver agree with the term and condition, the transaction will be in process. Besides, it will be save time and cost. The reason is the transaction can complete online, just taking few days to complete and there is no high commission to pay for intermediate.
Even though it is a lot of advantages using this method, there also bring some disadvantages to both parties. The savers will face lack of professional consultation from expertise. This will lead to the saver making wrong investment, facing loss the money and cheat by the business. Beside, the business will also facing less efficiency when direct transfer the securities. The reason is there is no expertise to help them promote the securities and it may not planning well when issuance of securities.
2.2 Indirect transfer through investment bankers
The second way is indirect transfer through investment bankers. Investment bank refers to a financial institution that helps individuals and corporations to raising their capital by underwriting. They also act as the client’s agent when issuance of securities such as stock and bond. An investment bank may also help organization involved in mergers and acquisitions and provides ancillary services. In investment banking there are two main which are trading securities for cash or other securities and promotion of the securities.
In this way, the investment banker assumes the risk of selling a new security issue at a satisfactory price. This is called underwriting. An underwrite serve as a middleman and facilitates the issuance of securities. The company’s securities and saver’s money will pass through the investment banking house. The investment banker will buy the entire issue of securities from the company that needs of financial capital. Then investment bank will turn sells these same securities to savers at a higher price. However, the investment bank taking the risk when they buy and hold the company’s a security for certain time and it may not resell to savers for as much as they paid after a period of time. The reason is new securities are involved and company receives the proceed of the sale, this is called a primary market transaction. Besides, the investment banker also advises firms on the details of selling securities.
The advantages for this method are the business will get professional suggestion from expertise about the details of selling securities. The business can raise the capital more efficient, the reason is the investment banker will buy over the securities and hold to sell for savers. This will help to business dispense with the pending time to wait saver transfer the money.
The disadvantages for this method are the business may face depress in price of securities. The reason is when the business need capital emergency, the investment banker will depress the price of securities in order to make more money. The savers may also face receive inaccuracy information from investment banker. The reason is the investment banker wants to resell the hold securities, they may give inaccuracy information to the saver.
2.3 Indirect transfer through financial intermediary
The third way is indirect transfer through financial intermediary. Financial intermediary consists of “channeling funds between surplus and deficit agents”. A financial intermediary is a financial institution that connects surplus and deficit agents. The classic example of a financial intermediary is a bank that transforms bank deposits into bank loans. Insurance companies, credit unions, pension fund and mutual funds also include as financial intermediary. Insurance defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. Credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members. Pension fund is any plan, fund, or scheme which provides retirement income. Mutual fund is a professionally-managed type of collective investment scheme that pools money from many investors to buy securities
Through the process of financial intermediation, certain assets or liabilities are transformed into different assets or liabilities. As such, financial intermediaries channel funds from savers to those borrowers. As example, saver will save the surplus money in bank and get the deposit certificate, the bank will use the money to borrow to borrower by term of mortgage.
Financial intermediaries provide important advantages to savers. Lending through an intermediary is usually less risky than lending directly. The major reason for reduced risk is that a financial intermediary can diversify. Financial intermediary will give many loans to different borrower. When mistake happen, the financial intermediary can cover by others loan interest. But if savers borrow direct to business, the risk will face by individual. Another reason is financial intermediary specialize in lending and better predict which of the people able to repay compare to individual savers.
Second advantage financial intermediaries give savers is liquidity. Liquidity is the ability to convert assets into form money quickly. A house is an illiquid asset; selling one can take a great deal of time. If an individual saver has lent money directly to another person, the loan can also be an illiquid asset.
Third advantage financial intermediaries give savers is cost advantage. Using financial intermediaries can reduce the costs of borrowing. The reason is there are a lot of borrowings complete in financial intermediaries, it can lead to economic of scale and save cost for savers.
3.0 Conclusion
 

Direct and Indirect Speech

Direct and Indirect Speech
Cartoon Strip

Eureka
Phonica
Eureka
Phonica
Eureka

Do you know that what has been said can be stated in two ways – direct speech and indirect speech?
Direct speech means the exact words that have been spoken. Indirect speech means what is said is stated in our own words, so it differs somewhat from what was actually said.
When the speech changes from direct to indirect, the tense, person and adverb may change.
Indirect speech is presented in the form of an assertive sentence. Four kinds of sentences are presented in direct speech – assertive, interrogative, commands and requests and exclamatory.
The reporting verbs also change, depending on the kind of sentence.

Launch Pad
In this chapter, we shall learn

how to interchange direct and indirect speech

Taking Off
Note to Teacher
As direct and indirect speech has already been taught prepare flash cards with a sentence in direct speech on one side and the same sentence in indirect speech on the other side. Example : 1) Baiju said, ” I am going home.” 2) Baiju said that he was going out.
Divide the class into pairs and provide 2 flash cards to each group.
Student A will read out the sentence in direct speech to student B.
Student B will change the speech.
Student A will turn the card over and check whether the sentence is correct. If it is correct, Student B will score one point.
Each pair can exchange their cards with other pairs and score more points.
Tell them that we can state what has been said in two ways – direct speech and indirect speech.
We can state what people have said in two ways.
We can state the exact words that were spoken. This is known as direct speech Example :

” Happy birthday, Ronita !” said the children.
” Why do you wish to consult me?” asked the lawyer.
” Give me an explanation right now,” demanded her father.
” I will have to set out tomorrow,” said Marco Polo.

Or
We can state what was said in our own words. This is known as indirect speech or reported speech. Example:

The children greeted Ronita on her birthday.
The lawyer wanted to know why I wished to consult him.
Her father demanded an explanation right then.
Marco Polo said that he would have to set out the next day.

Direct Speech – Points to Note

The exact words of the speaker are placed within double inverted commas. A comma is placed immediately before the quoted words.
Depending on the kind of sentence the end mark is a full stop, a question mark or a mark of exclamation.
The first word within quotation marks begins with a capital letter.

Assertive Sentences
Read the following sentences:
Ram said, ” I am reading this book.”
Ram said that he was reading that book.
Changes take place in the person ( ‘I’ changes to ‘he’), tense (‘am reading’ changes to ‘was reading’) and adverb (‘this’ changes to ‘that’) when the speech changes from direct to indirect.
‘said to’ changes to ‘told’. Example:
He said to his sister, ” You can buy the gift.”
He told his sister that she could buy the gift.
If a universal truth is stated in direct speech, the tense does not change in reported speech. Example:
She said, ” Honey is sweet.”
She said that honey is sweet.
If the reporting verb is in the present tense in indirect speech, the reported speech is also in the present tense. Example:
He says, ” The old house seems to be haunted.”
He says that the old house seems to be haunted.
If the verb in direct speech is in the simple past tense, the verb in reported speech also remains in the simple past tense. Example:
She said, ” I went home.”
She said that she went home.
If the verb in direct speech is in the past tense and the time of action is mentioned, the verb changes to past perfect tense in reported speech. Example:
She said, ” I went home at midnight.”
She said that she had gone home at midnight.
Changes in adverbs are as follows:

Direct speech

Indirect speech

now

then

here

there

this

that

these

those

ago

before

thus

so

today

that day

yesterday

the day before/ the previous day

tomorrow

the next/ following day

tonight

that night

last week

the previous week/ the week before

here

there

next week

the following week

Info Orbit

When an assertive sentence changes from direct to indirect there are changes in the person, tense and adverb.
The comma after ‘said’ is replaced with ‘that’.
‘said to’ changes to ‘told’.
If a universal truth is stated in reported speech the tense does not change
If the reporting verb is in the present tense, the tense in reported speech does not change.
If the past tense is used in the reported speech in direct speech, it will remain unchanged in indirect speech.
If the past tense is used in reported speech in direct speech and the time of the action is mentioned, the simple past tense will change to past perfect tense

Practice Pulsars
I. Change from direct to indirect speech:

” There is no need to leave tonight,” she said to her friend.
He said, ” The sun is shining brightly.”
She said to her father, ” I know you are angry with me.”
The scientist said, ” They will conduct experiments in this laboratory.”
The princess said to the minister, ” We have to reach a decision tomorrow.”
The teacher said to the class, ” All of you are aware that the earth moves round the sun.”
Every morning my father says, ” It is a new day and I am thankful to be alive.”
Mother said , ” Today may be a very hot day .”
He said to me, ” I am reminding you that time and tide wait for none.”
The coach said, ” At this time, next week, the result of the match will be declared.”

II. Change from indirect to direct

The captain told his men that they must not underestimate the enemy.
Taruna said that she had no idea how the accident had taken place the previous evening.
Usri told the children that all that glitters is not gold.
Ginny said that long, long ago there was a continent called Atlantis.
Raman said that the following day he would sit down with them and make a plan.
The milkman told the lady that the milk was watery as the cow had drunk a lot of water that morning.
She says that fifteen minutes of meditation every morning keeps her calm for the rest of the day.
Mrs Das told her neighbour that she had gone to Kolkata two years before.
Vinita said that those photographs were more precious than gold to her.
Old Mrs Vincent was of the opinion that a house was better than a flat.

Interrogative sentences

When questions are changed to reported speech, the word order becomes the same as that of an assertive sentence. Example:

Karan said, ” When will the match begin?”
Karan asked when the match would begin.

The reporting verb in reported speech is asked, inquired or inquired of, wanted to know etc. Example:

Savita said, ” Where is Peter?”
Savita asked where Peter was. or Savita inquired where Peter was.
Damien said to Rahul, ” Are you absolutely sure?”
Damien wanted to know if Rahul was absolutely sure. or Damien inquired of Rahul if he was absolutely sure.
Flash tip :1. ‘said’ changes to ‘asked’ or ‘inquired’. ‘said to’ changes to ‘asked’ or ‘inquired of’.
2. ‘enquired’/ ‘enquired of’ may be used instead of ‘inquired’/’inquired of’.

If the question can be answered with ‘yes’ or ‘no’, if or whether follows the reporting verb. Example:

Rama said, ” Can I use that pen?”
Rama asked if she could use that pen.

If the question cannot be answered with ‘yes’ or ‘no’, the reporting verb is followed by question words like when, what, which, where and how. Example:

Rama said, ” When did this happen?”
Rama asked when it happened.

There are changes in the person, tense and adverbs just like in the assertive sentences.

Info Orbit
When questions are changed to reported speech, the word order becomes the same as that of an assertive sentence.
The reporting verb in reported speech is asked, inquired or inquired of, wanted to know etc.
If the question can be answered with ‘yes’ or ‘no’, if or whether follows the reporting verb.
If the question cannot be answered with ‘yes’ or ‘no’, the reporting verb is followed by question words like when, what, which, where and how.
Practice Pulsar
III. Change the speech

Damini said, ” Can you explain the sum now?”
Rajiv asked Poonam, ” What are these stacks of paper for?”
” Have you enjoyed yourselves today?” said the instructor.
Minu inquired, ” Tom, why are you packing your bag?”
The children said, ” Will you take us to the zoo next week?”
He said, ” How much further do we have to travel?”
She asked whether they were ready to go for a walk that evening.
Shyam asked me why I was laughing so much.
Fanny wanted to know who lived in the old house on the hill.
The headman asked if anyone had worked for that company a year back.
The detective enquired of the witness if he had seen the man in the photograph.
Akhilesh wished to know how many of his classmates would go for a picnic.

Commands and Requests
Read the given sentences:
1.She said, ” Please tie your seat belt.”
She requested me to tie my seatbelt.
2. She said, ” Buy the necessities before the sun sets.”
She ordered him to buy the necessities before the sun set.
3. She said, ” Let us organise a party.”
She suggested that they should organise a party.
The reporting verb is requested, told, asked, suggested etc.
The main verb in direct speech changes to an infinitive in indirect speech. ‘tie’ in sentence 1 changes to ‘to tie’, and ‘buy’ in sentence 2 changes to ‘to buy’.
Even when the person who is being addressed is not mentioned in direct speech, we have to mention the person in indirect speech. Example :
He said, ” Please sit down.”
He requested her to sit down.
When the direct speech begins with ‘let’, the reporting verb changes to suggested and the main verb is preceded by ‘should’ in reported speech. In sentence 3 organise changes to should organise.
Info Orbit
The reporting verb is requested, told, asked, suggested etc.
The main verb in direct speech changes to an infinitive in indirect speech.
Even when the person who is being addressed is not mentioned in direct speech, we have to mention the person in indirect speech.
When the direct speech begins with ‘let’, the reporting verb changes to suggested and the main verb is preceded by ‘should’ in reported speech.
Practice Pulsar
IV. Change the speech:

” Keep the vase on the table, Sima, ” she said.
” Make sure that you have enough water,” the guide said.
” Please do not make so much noise,” said the official to the visitors.
” Let us clean the compound, ” said the monitor.
” Switch off the fans and lights before you leave,” he said.
” Kindly contribute generously,” said the child at the door.
She ordered the children to cross the road cautiously.
They requested us to wait for a few hours before lodging a complaint.
The man told us to take a right turn to reach the bakery.
We suggested to the old people that they should visit the orphanage once a week.
The officer ordered the men to take up their positions.
He requested her to take off her shoes outside the temple.

Exclamations and Exclamatory Sentences
Read the given sentences:
He said, ” Alas! I have lost everything.”
He exclaimed in sorrow that he had lost everything.

The reporting verb ‘said’ in direct speech changes to ‘exclaimed’ in reported speech.
The emotion that is expressed by the exclamation in direct speech is stated in reported speech. So ‘Alas!’ is replaced by ‘exclaimed in sorrow’.

She said, ” How hot the day is!”
She exclaimed that the day was very hot.
When an exclamatory sentence in direct speech begins with ‘How’ or ‘What’, it is usually replaced with ‘very’ in reported speech.
Info Orbit
The reporting verb ‘said’ in direct speech changes to ‘exclaimed’ in reported speech.
The emotion that is expressed by the exclamation in direct speech is stated in reported speech.
Practice Pulsar
V. Change the speech

He said, ” Hurrah! I have won the lottery.”
She said, ” What a pretty little girl you are!”
The lady said, ” What a fool I have been!”
He said, ” Oh! This is the best car I have seen.”
He said, ” O God! Forgive me for what I have done.
The teacher congratulated him, saying that he had done very well.
Wendy exclaimed that the bed was very comfortable.
Madan exclaimed in joy that he was free at last.
The jackal exclaimed that the crow had a very sweet voice.
Ms Parekh exclaimed in grief that her brother was responsible for his own downfall.
Ellen exclaimed that the weather was very chilly.
Brendan exclaimed that it was a great pity that they had missed the show.

Word Zoomer
Reported Speech : Indirect speech is also known as reported speech. When direct speech changes to reported speech usually the first and second person change to the third person, the present tense changes to the past tense and the adverbs showing nearness in time and position are replaced by adverbs that show distance in time and position.
Direct Speech : The words that are actually said. These are placed within quotation marks.
Reporting verb : The verb that introduces direct speech or reported speech. For e.g. said, exclaimed, asked, whispered, requested and commanded.
Touch Down
When assertive sentences in direct speech are changed to indirect speech

there are changes in the person, tense and adverb.
the comma after ‘said’ is replaced with ‘that’.
‘said to’ changes to ‘told’.
if a universal truth is stated in reported speech the tense does not change
if the reporting verb is in the present tense, the tense in reported speech does not change.
if the past tense is used in the reported speech in direct speech, it will remain unchanged in indirect speech.
if the past tense is used in reported speech in direct speech and the time of the action is mentioned, the simple past tense will change to past perfect tense

When interrogative sentences in direct speech are changed to indirect speech

the word order becomes the same as that of an assertive sentence.
the reporting verb in reported speech is asked, inquired or inquired of, wanted to know etc.
if the question can be answered with ‘yes’ or ‘no’, if or whether follows the reporting verb.
if the question cannot be answered with ‘yes’ or ‘no’, the reporting verb is followed by question words like when, what, which, where and how.

When requests and commands in direct speech are changed to indirect speech

the reporting verb is requested, told, asked, suggested etc.
the main verb in direct speech changes to an infinitive in indirect speech.
even when the person who is being addressed is not mentioned in direct speech, we have to mention the person in indirect speech.
when the direct speech begins with ‘let’, the reporting verb changes to suggested and the main verb is preceded by ‘should’ in reported speech.

When exclamations and exclamatory sentences are changed to indirect speech

the reporting verb ‘said’ in direct speech changes to ‘exclaimed’ in reported speech.
the emotion that is expressed by the exclamation in direct speech is stated in reported speech.

Flash tip : The shortest letters are said to have been exchanged between Victor Hugo and his publisher. When ‘Les Miserables’ was released Victor Hugo wanted to know if it was well-received or not, so he sent a letter to his publisher with only ‘?’ written on it. The publisher’s response also consisted of a single punctuation mark – !
Star Exercise
I. Each of the following sentences contains an error. Correct the sentences.

Rani said to Praveen that she would go over to his house that day.
Brinda said that it was almost ten o’ clock now.
She asked that if the baker’s boy had delivered the bread.
Sandeep said that the earth was round.
Mohan said, ” Sandeep you are absolutely right.”
Deepa said, ” How cute the puppies look.”
Anand said ” You can leave the room now.”
” Do not look so sad”, said my friend.

II. Read the dialogue given below and fill in the blanks:

Akram
Nibha
Akram
Nibha
Akram
Nibha

Why are you looking so worried?
My father has been transferred to a new place.
Don’t you want to go with him?
I do, but I shall miss all my friends.
What a lucky girl you are ! You will be seeing a new place and making new friends.
I am feeling much better. Thank you.

Akram asked Nibha (1) …………………………….. Nibha replied that her father (2)…………………………..
Akram then inquired if (3) …………………………. with him. Nibha said that she did, but (4)…………………… Akram exclaimed that (5) …………………………. because she would be seeing (6) …………………………… Nibha thanked him because (7) …………………..
Comet Exercise
Choose the correct alternative
Shalini and Malini were twins. One day, while taking a walk Shalini said, ” I don’t think (1. we have taken the right path / we had taking the right path/ we had taken the right path).”
Malini looked around and found nothing wrong. Why had Shalini made such a comment? She felt that her sister (2. has made a mistake /had made a mistake /is making a mistake.)
Shalini pointed to a tree. ” (3.What do you have to say about it? / What did she have to say about it?/ What did you have to say about it? ) “
Malini (4.asked/exclaimed/ told) that it was (5. a very huge tree/ very huge trees/ a huge tree).
Shalini sighed, ” You lack observation powers. We walk here every day. Have you seen it before?”
Malini answered, ” No, I have not. ( 6.I think we took a wrong turning / I am thinking we took a wrong turning/ I have thought we took a wrong turning) near the bazaar.”
Shalini (7.asked/ requested/ exclaimed) an old man (8. if he can help them / if he could help them / whether he could helps them).
The old man guided them back and (9. advised/ commanded/ requested) them to be careful in future.
Shalini and Malini assured him that (10. yes/ they would be more careful/ they will be more careful).
 

Foreign Direct Investment in Singapore

Chapter 1: Introduction
Singapore was a commercial trading centre in the early 19th century and today it has since attained a remarkable transformation into one of the most globally integrated economies in the world, achieving total mechanism and service trading performing triple or more its gross national product and inward Foreign Direct Investment (FDI) stock index among the developing market.
Foreign direct investment (FDI) has an exceptional and emerging role internationally. It acquired the primary role in both theoretically and practically, which can be observed in different economic, social, cultural, political, finance, and technological dimensions of the world.
Objective of Study
The objective of this project is to study into the national strategies adopted by Singapore, so far, focusing on their nature and outcomes. A critical assessment will be made on the current challenges ahead, and appropriate strategic options identified. Singapore, to a large extend has relied on foreign MNCs to drive its own industrialization and growth. What is beyond doubt is that Singapore’s unique ability to attract and retain FDI has undoubtedly been a key ingredient of its economic success. Therefore, it is worthwhile to investigate the determinants of Singapore’s FDI inflows.
Scope of Study
In this paper, we examine the interrelations among the variables FDI, the entry modes, the benefits and costs, government policies and the liberalization of FDI. The study of the relationship addresses a few points: Mainly, how dependent is Singapore on FDI? How are the imports and exports of MNCs affecting Singapore’s FDI inflows? What are the factors being driven by the shift of FDI towards services? What is the main driving force of FDI? Is there a contribution and/or positive link between higher GDP and FDI? Does trade liberalization foster FDI in emerging countries/markets?
The overall objective of the study is to determine the efforts that Singapore makes to attract inward FDI, the successful and unsuccessful outcomes and the future developments of FDI in Singapore.
The remainder of the study is organized as follows: In Chapter 2, the trends, source, patterns and forms of FDI is being introduced. Chapter 3 explains the reasons why firms choose foreign direct investment instead of exporting, the trade barriers involved and the other forms of entry modes. In Chapter 4, the connection between Singapore and FDI is being analyzed. Chapter 5 presents the benefits and costs of FDI while Chapter 6 briefly discusses the economic growth in the different industrial sectors and how the culture of Singapore affects inwards FDI. In Chapter 7, it describes government intervention and its policies. Chapter 8 involves the discussion of the liberalization of FDI and MAI. And lastly, Chapter 9 comprehends the findings of the future developments of FDI in Singapore and Chapter 10 ends the study with conclusions.
Methodology
This project is based on secondary research. Data were extracted and researched from various sources from the internet, report findings, ebooks, ejournals, newspapers, textbooks, and databases from the National Library. The actual figures of the FDI are applied to the project to act as evidence. The research is mainly focused in Singapore to highlight the attractiveness of this country and why is it a popular FDI destination.
Limitation of study
With respect to the analysis and data, there were some limitations that might affect the accuracy of the study – The limited data on the impact of liberalization on Singapore, examples of recent FDI in Singapore, statistical information about the forms and type of entry strategies that FDI or local companies adopted, made this research time consuming and challenging.
Chapter 2: Theories of FDI
Forms of FDI
In recent years, the internationalisation of firms has assumed two new features. First, firms increasingly enter foreign markets by acquiring a local producer also known as merger & acquisition. Secondly, opening a new subsidiary also known as greenfield investment.
Researches suggest that the majority of cross border investments take place in the form of mergers and acquisitions rather than greenfield investments. It is estimated that about 40- 80% of all FDI inflows were in the form of M&As simply because many firms prefer to acquire existing assets which are quicker to execute than Greenfield investments as they are an establishment of a wholly new operation. Also, the outstanding fact that the modern business world’s market evolves rapidly hence firms opt for the easier and perhaps the less risky option- to acquire desired assets than to build them from scratch. Desired assets could include brand name, customer loyalty, trademarks/patents, distribution systems, etc.

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Typically, firms adopt this approach as means of making a quick entry into a market or establishing a market presence. For instance, in 2000, cement manufacturer, CEMEX acquire Southland to enter the into U.S growing construction market. Lastly, firms believe that through M&As it enables an increase in the efficiency of an acquired unit by transferring capital, technology, management skills, etc. – like how CEMEX transferred its technological know how to Southland after the acquisition.
The shift towards Services
FDI is increasing shifting away from manufacturing and extractive industries and towards services. As service industries were largely national, are becoming transnational recently. The shift to services is being driven by: the general move in many developed countries towards service as the composition of FDI in services have changed, it is mainly concentrated on trade and financial services. In addition, the fact that many services need to be produced where they are consumed. There is also a liberalization of policies governing FDI in services. Lastly, the rise of internet based global telecommunications networks. For instance, Dell’s call answering centres are located in India.
The services sector has been the bulwark of the economy, providing stability and contributing significantly to GDP growth. Figure 2.1 shows that the services sector accounted for about two-thirds of real GDP growth in the 1990s. Further studies also showed that the global FDI stock in the services sector had more than quadrupled during the period 1990-2002. As a result of more rapid growth in this sector than in the other sectors, services accounted for about 60% of the global stock of inward FDI in 2002, compared to less than 50% a decade earlier.
Services now account for the largest share of the inward FDI stock in many countries, and Foreign-affiliate service providers play an important role in a growing number of services. Most service FDI has been domestic-market seeking, in such traditional services as finance, tourism and trading, or in industries that have only recently opened up to the private sector, such as electricity, water or telecommunications.
Employment in services has also been much less vulnerable to cyclical economic fluctuations than employment in manufacturing. During periods of economic slowdown as shown in Figure 2.2, manufacturing employment fell by an average of 5% in contrast to the employment growth of 3% in the services sector. While in 1996, employment in manufacturing grew only 2% as compared to 5% in services.
Realizing the importance, the government takes measures to ensure world-class standards of service excellence and leadership, such as introducing schemes, activities, programmes and even institutes – aimed at enhancing service levels, capabilities, mindsets and leadership. Examples include the Singapore Service Star, the Excellent Service Award (EXSA), Go The Extra Mile for Service (GEMS), Public Service for the 21st Century movement (PS21), The Institute of Service Excellence at SMU (ISES) and Certified Service Professional programme by WDA.
Gradual development over time has garnered its interdependence involving the manufacturing sector. In the long run, manufacturing and services group will replicate each other and allow firms to share the development of new knowledge-based products. However, many countries have difficulty quantifying FDI flows in services sectors. Determining trade in services is complicated given that services are not traded at a distinct entry or exit points, but rather across four modes of supply. While quantifying investment in services presents further challenges due to the complex nature of FDI definitions.
While FDI in services remains more restricted, both developed and developing countries have taken steps to open up their service industries. In fact, starting from a higher level of restrictiveness, developing countries tended to liberalize their service industries at an even more rapid pace than developed countries over the past decade. The competitive impact of FDI entry on service supply conditions depend considerably on initial conditions in a host country, especially the level of economic and service development, market structure of service and the regulatory framework.
Entry strategy and strategic alliances
Any firm contemplating foreign expansion must first struggle with the issue of which foreign market to enter, when (late or early entry) and on what scale to enter (large or small scale entry) and lastly, which entry mode to use. Basic entry decisions are ultimately based on the assessment of a nation’s long run growth and profit potential. It is noted that the attractiveness of a country as a political market for an international business depends on balancing the benefits, costs and risks. Benefits include the ability to leverage products and competencies- both technological and management know-how, realizing location economies, and experience effects. Costs include trade barriers, transportation costs, import quotas, tariffs, etc. While the risks involve are political and economic risks. All of these are associated with doing business in that country.
Other factors like the size of the market, the present wealth of consumers (purchasing power) and the likely future wealth of consumers are dependent upon economic growth rates. For example, India which is relatively poor is growing rapidly. Economies which are well developed, with relatively low inflation rates and private sector debts have an advantage over those without. Taking Singapore’s education system as an example- It is a big part of Singapore’s economic development strategy which attracted and encouraged many international educational establishments. Alternatively, weak economic growth in Indonesia is evidently a far less attractive market.
Once firms have decided to enter a foreign market, they have to choose the best mode of entry. Firms can use six different modes to enter foreign markets:

Exporting, being a temporary strategy is like a stepping stone in the international expansion process for most firms. In the past, Seagate was a well know example which concentrated its manufacturing operations in one location enables it to move down the experience curve and achieve location economies. However, Singapore has recently taken this approach to a higher level as the Singapore Cooperation Enterprise (SCE) collaborates with Hangzhou Xihu (Westlake) to export Singapore’s expertise in Hospitality and Tourism.
Turnkey projects, are popular because firms can continue with normal business operations while the contractor handle the time consuming and resource intensive projects for a foreign client. Singapore shipyard is reputable for handling sophisticated turnkey projects regardless of is complex requirements and other considerations. This industry is well known in the economic development for the last 40 years and will continue to play the critical role in our economy in order to achieve the goal for Singapore to become a leading international maritime link. Another example would be Sitra Holdings (International) Limited, the international producer of integrated wood based products and turnkey services, secured several turnkey design and build contracts in November 2009. Amongst these contracts, the single largest contract is worth S$3.24 million at the Marina Bay precinct.
Licensing, enables a firm to gain access into new markets otherwise inaccessible, hence to facilitate the growth of licensing activities in Singapore with additional focus on brand licensing, character licensing and know-how licensing, the Franchising and Licensing Association (FLA) aims to encourage the adoption of licensing as a growth strategy by producing a report to raise the awareness of how licensing can translate to income stream for companies.
Franchising, in Singapore has grown tremendously and is a preferred strategy for SMEs, as it involves minimal investment and staff, thus reducing costs. Local entrepreneurs have successfully made their mark internationally through franchising like BreadTalk, Charles & Keith, and OSIM. Larger companies can also make use of the networks of their established franchise partners to grow globally.
Joint ventures enable firms to share the benefit of the work process from a local subsidiary’s knowledge of the host country such as the competitors, culture, political and business systems and access to greater resources including staff specialized in technology, finance, and so on. In November 2009, QATARQatar Petroleum International (QPI) and Shell Eastern Petroleum Pte Ltd have sealed agreements in which QPI takes stakes in two Shell Chemicals joint ventures in Singapore. The deal, to be completed in December, Shell will sell its existing shareholdings in two companies to a new joint venture called QPI and Shell Petrochemicals (Singapore) Pte Ltd.
Establishing new wholly owned subsidiaries would be best adopted by firms pursuing the global and transnational strategies, for instance, Temasek Holdings (Private) Limited invested approximately S$900 million in Fraser & Neave Limited (“F&N”) through its wholly-owned subsidiary Seletar Investments Pte Ltd1 in December 2006. The investment would represent approximately 15 per cent of the total shares outstanding of F&N on a fully-diluted basis. This investment marks Temasek’s most substantial investment in the food and beverage space in recent years.

Chapter 3: Country Focus – political economy and cultural factors of Singapore
Political and economic systems of Singapore
The Government of Singapore (GOS) is substantially consigned to maintaining an open economy and taking a leadership role strategize Singapore’s future economic development. The government do so by adopting a free enterprise, open door policy to attract foreign investors from all types of services sector involving finance, business, tourism, telecommunication and consultancy services.
As such, Singapore has exports hitting 186% of 2008 GDP. While Singapore’s stock of foreign direct investment (FDI) increased by 23.4% from $370.5 billion in 2006 to $457.0 billion in 2007. United States, Netherlands, United Kingdom, and Japan were the top sources of FDI in Singapore. Evidently, the high FDI index reflects Singapore’s role as a manufacturing base for foreign multinationals (MNCs) and as a financial, transportation, logistics, and trading hub. Also, with high real growth rate and low inflation played a great role in shaping the Singapore economy. Singapore is one of the most enterprising and dynamic economies in the world.
In this section, we compare Singapore’s recent trade performance with its performance in past crises, namely the 1997-1998 Asian Financial Crisis where many countries and industries were affected by the deep fall of exports during the recession and the 2001-2002 Dot-Com Bust where IT industries around the world were affected by the large scale cancellation of electronic orders due to the over-investments by IT firms.
In 2008 till present, Singapore is experiencing a slow down in the economy due to the US subprime crisis. The main issue is that the US Subprime Market is generating an extension of recessions in some economies and accelerating global recession in a way. Thus, Singapore’s total output of the country has decreased and the export of electronics goods has reduced significantly.
Differences in culture
The difference between international and domestic business is that countries are different. In this section, we will explore how differences in culture across and within countries can affect international business. The culture of a nation is the values that are shared among a group of people living together. While it is possible for a nation/state to have a uniform culture, this is not always the case. Multiple cultures can exist, and cultures can also cut across national borders. Taking Singapore as an example, where it is a multi-ethnic and multi-cultural society with the residential population in Singapore – 75% are ethnic Chinese, 17% ethnic Malays, 7% ethnic Indians and a small category of `Others’. Therefore foreign direct investors and managers need an understanding of the culture or cultures prevail in the countries where they do business in or intend to.
Culture, society, and the nation state
International business is different from national business because countries and societies are different. Societies differ because their cultures vary. Their cultures vary because of profound differences in social structure, religion, language, education, economic and political philosophies. 2 important implications flow from these differences:
The first is the need to develop cross- cultural literacy. There is a need not only to appreciate that cultural difference exist, but also to appreciate what such difference mean for international business. Therefore, one of the biggest dangers comforting a company is the danger of being ill-informed. Being ill-informed about the practices of another culture, any business is likely to fail. Doing business in different cultures requires adaption to embrace all aspects of an international firm’s operations in a foreign country. For instance, the way in which discussions are organized, the welfare of employees, the structure of a firm, the manner in which is the product is being promoted, the tenor of relations between the management and labour, and so on, are all sensitive to cultural differences. To overcome the danger of being ill-informed, the solution is for international business to consider employing local citizens to help them do business in a particular culture, while ensuring home-country executives work along side and understand the differences in culture and how it affects their business.
With the incorporation of large western MNCs, the Singapore work culture is a unique interaction of Asian and Western cultural exchanges. Where large western MNCs often exhibit predominantly western-style work culture, a greater influence of traditional Asian culture exists. Local firms are mainly influenced by cultural characteristics: collectivism, high power distance and high-uncertainty avoidance. Additionally, among the differences between US and Singapore’s working culture, local jargon is only one of the many. There are several other differences that are mainly caused by different circumstances and cultural values of the two nations. The bottom line is what works in one culture may not work in another.
A simple example illustrates how important cross cultural literacy can be. According to my lecturer, Mr. Rowland Sam, with his many years of experiences has shared with us how the Chinese in China who tend to be informal in nature, does not mix business and pleasure. The Chinese perceives their lunch/ tea breaks as an important factor in the lives as when it is lunch/ tea time, they would stop all work for that. Initially, Mr. Sam was taken aback as they have not finished their respective jobs or meet the deadline, but they would still go for their breaks. He then finally concluded that the breaks were the only time workers get to drink, eat and enjoy themselves after a long day’s work.
A second implication centres on the connection between culture and national competitive advantage. Fundamentally, the value systems and norms of a country influence the costs of doing business in that country which in turn influences the ability of firms to establish a competitive advantage in the global marketplace. For instance, the choice of countries in which to locate production facilities and do business; It makes little sense to base production facilities that require skilled expertise to operate, in a country where education is so poor, the pool of skilled and educated workers are unavailable, the degree of stratification of class is high and there are more than 2 linguistic groups.
But as important as culture is, it is probably less important than economic, political and legal systems in explaining differential economic growth between nations. Cultural differences are significant, but we should not overemphasize their importance in the economic sphere.
Other implications
Besides transferring of management and technological know-how, FDI also has the capabilities to bring environmental and social benefits to host country’s economies. However, there is a danger or probability that foreign owned enterprises would use FDI to “export” productions or equipments that are prohibited in their home countries due to their regulations and policies. Host countries that are keen on attracting FDI are especially prone to fall into this trap where the government would risk lowering or freezing regulatory standards. For example, MNEs moving equipments that considered to be environmentally unsuitable in their home country, to their subsidiaries in developing countries. The sort of environmental risk associated with FDI is being reflected.
Additionally, some micro-oriented problems such as the distributional changes and the need for industrial restructuring in the host economy, increases costs and inconveniences to the people. Fortunately, these problems can be salvaged when appropriate practices are pursued towards flexibility, couple with macroeconomic stability and the implementation on adequate legal and regulatory frameworks.
Not to mention that using FDI, the presence of financially strong foreign enterprises may not be sufficient to assist economic development when domestic legal, competition and environmental frameworks are weak or weakly enforced. Finally, like official development aid, FDI cannot be the foundation for solving poor countries’ development problems. With an average of 15% of capital formation in developing countries, FDI acts a complement to domestic fixed capital rather than a primary source of finance.
Likewise, while FDI may contribute significantly to human capital formation, the transfer of state-of-the-art technologies, enterprise restructuring and increased competition, it is the host country authorities that must undertake basic efforts to raise education levels, invest in infrastructure and improve the health of domestic business sectors.
The link between FDI inflows and accessibility of government information
In this section, we will find out to what extend does government information contribute to investors’ decision making and how does it influence FDI decision making. Firstly, with governments’ information, the quality of investors’ knowledge of the performance, operations and functions of companies in the target market can be further enhanced for better understanding, which enforces rules of equity and resource utilization, and promotes competition.
Secondly, by providing information, the government contributes data and perspectives on how investment projects can be best commenced and managed as foreign investors are able to obtain sufficient information from host governments in order to make informed decisions and meet obligations and commitments. Generally, it also helps build the country’s image. However, it is still possible for a country to receive lower FDI than its potential if it has a generally negative image, despite having a good resource base and strong economic fundamentals, taking Indonesia for instance. Apparently, a country’s image does affect investors’ perception and investment inflows. Hence it is a legitimate practice to use specialized and general forms of government information in order to build an affirmative image of a country. Also, reduces uncertainty about changes in policies and administrative practices in the business environment in the near future.
Finally, the accessibility of government information increases transparency of transactions, however there may be some concerns. Both the host country and investors may want to have access to information concerning each other as part of its policy-making processes and for regulatory purposes. The main objective of transparency with relation to FDI is to limit circumvention, boost the predictability and stability of the investment relationship, monitor performance and evasion of obligations by covert or indirect means.
Certain country characteristics are quote as attracting FDI, including substantial macroeconomic policy management, political freedom and stability, physical security, reliable legal frameworks, an open trading environment, competent institutions, and no or low corruption. Regulatory regimes based on transparency, predictability, and fairness is also important. But the potency of these conditions is dependent of the accessibility of information, especially government information, because foreign direct investors are affected by market failures due to their lack of adequate information due partly to geographical asymmetry of information accessibility (Portes and Rey, 2000).
Chapter 4: FDI strategy
Background to Singapore’s FDI strategy
Singapore’s assertive efforts to attain FDI for more support of its economic strategy have enabled the country to develop into a basis for multinational corporations (MNCs). Singapore’s investment promotion agency, the Economic Development Board (EDB), focuses on obtaining major investments in highly valued services and/or manufacturing activities, deepening its industrial and export structure, using selective interventions to capture cross-industry externalities and move away from labour intensive to capital-skill and technology-intensive activities, by acquiring and upgrading the modern technologies in highly internalized forms. This strategy allowed the country to concentrate in specific phases in the production process, depriving from the flow of innovation and investing lesser in its own innovative effort.
Singapore’s FDI policies were based on liberal entry and ownership conditions, easy access to expatriate skills and generous incentives for the activities that it was seeking to promote. The EDB was mainly set up to synchronize policy, offer incentives to lead foreign investors into targeted activities, acquire and construct industrial estates to attract MNCs. The public sector played an important role in launching and promoting activities selected by the government, acting as a catalyst to private investment or entering areas that were to risky for the private sector. Often it was the efficiency, effectiveness and flexibility of government response that gave Singapore the edge over competing host countries.
The importance of inward FDI to Singapore
FDI has played a crucial role through the years in accelerating the economic development in Singapore. Being a small country with no natural resources, Singapore had depended on leading international companies not only in bringing in capital funds to broaden her economic base, but also in upgrading the technology and skill content of her industries. Since FDI is one way that Singapore can tap foreign technology, therefore a substantial amount of capital is required to help generate GDP. Furthermore, exchange rate will also play a role in determining GDP. A slow appreciation of the currency will increase the confidence of those who are investing in Singapore and help to attract more investment. The Singapore dollar appreciation will also curb imported inflation.
The importance of FDI in Singapore is reflected in the country’s ratio of inward FDI stock to GDP: at 72%, the ratio is the highest in the world. That importance is also reflected in the fact that 90% of value added in Singapore’s electronics industry (remarkable growth in exports and income) is accounted for by foreign investors, and that FDI accounts for fully two-thirds of equity capital in the country’s manufacturing sector. In addition, Singapore’s productivity increased fastest in those industries in which FDI was concentrated. The rank correlation coefficients between increases in value added per worker and increases in FDI share and FDI level were .62 and .45.
Moreover, because foreign direct investors’ profits and outward remittances have tended to move in close tandem with the general performance of Singapore’s economy and the health of its balance of payments, while the economic risk taking function is also borne by those investors, time and again Singapore’s exceptional reliance on FDI has effectively cushioned its economy from the balance of payments and debt crises that have hurt many other developing economies.
Host Country policies
FDI is attracted to Singapore mainly due to Singapore’s favourable investment climate and strategic geographical location. Some other reasons include non-fiscal advantages, Singapore’s small domestic market combined with no tariffs on most imports and low corporate tax rates have made Singapore into a popular low-risk high-return FDI destination.
In general, corporate taxes, or taxes imposed on corporate income, is an important determinant of MNCs’ location decisions, just as individual income tax rates is an important determinant of where a person decides to work and live. Theoretically, other things equal, MNCs would prefer countries with lower corporate tax rates over countries with higher rates.
Furthermore, a wide range of new incentives have been added over the years to promote FDI inflows. Burdensome regulations and performance requirements for FDI can offset a generous package of tax incentives. However, in Singapore’s case, the restrictions and regulations governing both the entry and operation of foreign enterprises and personnel are minimal. Overall, foreign investors are subject to the same government regulations as local investors, and both have a lot of freedom in pursuing their profit objectives. In addition to the general absence of performance requirements, Singapore has also signed a large number of avoidance of double taxation agreements, which mutually protect countries for a specific time against war and non-commercial risks of expropriation and nationalization.
The four areas of Singapore’s government regulations in different areas relevant to foreign investors are the foreign exchange regime, equity ownership, performance requirements and human resources. First, the foreign exchange regime is highly liberal and freely allows repatriation of capital and remittance of profits, dividends, interests, royalty payments and technical licensing fees, as well as the free importation of goods and services for consumption, investment and production purposes. Second, foreign participation is permitted in most sectors of the economy except for some limitations in the monetary sector, areas of trained and skilled personnel. However, 100% foreign equity ownership is readily permitted. Third, there are no perform
 

Direct and Indirect Measurement for Undergrad and Graduates

The use of direct and indirect measures are not appropriate at the undergrad and graduate levels. As direct measures observe or examine student behaviors, attitudes, skills, or knowledge, indirect measures assess apparent learning and are used in addition to direct measures (Marquette, 2012-2013). Both methods can enhance student learning but not when used together. Curricular programs can also assess student development and learning through self-reporting than simply using direct measures (Marquette, 2012-2013).

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Indirect levels should focus more on other forms of reporting aside from surveys and student self-assessment as both have the highest percentage of usage. Incorporating more interviews, peer comparison or focus groups offers other ways of assessment and student interaction. It can also provide more detailed answers than true/false or multiple-choice survey offers. Direct measures currently use oral presentations, research papers, and locally developed exams or quizzes as a common assessment. However, more attention needs to be given to the low scoring methods listed in the table. Marquette programs used numerous measures and multiple learning outcomes (Marquette, 2012-2013) and there is a significant percentage difference in the commonly and seldom used measures. Therefore, portfolios, in-class discussions, and pre/post measures should be present more often at the graduate and undergraduate levels.
In looking to balance assessment at each learning level, recommendations can be proposed for change. At the program level, varied approaches in student learning assessment and can’t be combined in the program (Marquette, 2012-2013). Therefore, the first step would be to establish a standard or universal assessment to acquire data across all programs. This will help in providing more accurate results as each comparison would be equal. At the co-curricular level, one should include more direct measures in assessing student development and learning. Thus far, co-curricular programs are assessing this information from mostly indirect measures such as surveys and student self-assessments (Marquette, 2012-2013). More so, even with the current reported changes in this program reporting, there aren’t any changes to resources and minimal changes in professional development and monitoring.
Integrated Learning Outcomes
The original integrated core learning outcomes (ICLO) from Marquette that are measured using senior experience and capstone course assignments are listed below:

1

Apply the perspectives, concepts, and traditions of multiple disciplines to personal, professional, intellectual and societal challenges

2

Communicate in modes appropriate to various subjects and diverse audiences (oral and presentation).

3

Pursue an integration of knowledge into a comprehensive, transcendent vision of life

4

Act as responsible members of the global human family, with knowledge of, and respect for, individuals and cultures in their diversity

The four ICLO’s that are newly ranked in terms of importance and personal opinion is as follows:

1

Communicate in modes appropriate to various subjects and diverse audiences (oral and presentation).

2

Apply the perspectives, concepts, and traditions of multiple disciplines to personal, professional, intellectual and societal challenges

3

Act as responsible members of the global human family, with knowledge of, and respect for, individuals and cultures in their diversity

4

Pursue an integration of knowledge into a comprehensive, transcendent vision of life

The reason for the change in integrated learning outcomes is mainly due to the first ordering stemming from criterion. To address proficiency issues the second ICLO should be listed first. This integrated outcome was the most regularly assessed and 28 programs had coursework in relation to the oral and written outcomes (Marquette, 2012-2013). The first ICLO should be listed as the second ICLO as applying perspective concepts and traditions criterion should be completed after appropriate mode communications in audiences. The fourth ICLO should come third as diversity was highly valued and 94 percent of ratings were on the upper end of this scale. The third outcome, integration of knowledge into the vision of life outcome, should be ranked last. The reason stems from this outcome being the least assessed and the most challenging to engage (Marquette, 2012-2013).
Institutional Outcomes vs Graduating Senior Survey
The current institutional outcomes and graduating survey for Marquette University are listed below:

Institutional Outcomes

Graduating Survey

Pursue an integration of knowledge into a comprehensive, transcendent vision of life.

Write clearly and logically

Apply the knowledge and skills of an academic discipline, program, or profession to a career or graduate study

Analyze quantitative information

Utilize critical thinking and reflection to effect positive change in themselves, others and their communities.

Appropriately use the technology and tools of your field

Communicate in modes appropriate to various subjects and diverse audiences.

Locate evaluate and effectively use research and information resources

Exercise just, responsible and competent leadership in professional, intellectual, and social contexts.

Give effective oral presentations

Act for social justice within the diverse global human family

Use knowledge from the social sciences to understand individual and social behavior

 

Use scientific inquiry to understand problems and evaluate information

 

Appreciate the value of history in understanding the past and present

 

Enjoy works of literature

 

Appreciate great works of art, music, and drama

In matching elements from the graduating senior survey (GSS) to the specific core and institutional outcomes, the following new table was created.

Institutional Outcomes

Graduating Survey

Pursue an integration of knowledge into a comprehensive, transcendent vision of life.

Locate evaluate and effectively use research and information resources

Apply the knowledge and skills of an academic discipline, program, or profession to a career or graduate study

Appropriately use the technology and tools of your field

Utilize critical thinking and reflection to effect positive change in themselves, others and their communities.

Appreciate the value of history in recognizing the past and present

Communicate in modes appropriate to various subjects and diverse audiences.

Give valuable oral presentations

Exercise just, responsible and competent leadership in professional, intellectual, and social contexts.

Use knowledge from the social sciences to understand individual and social behavior

Act for social justice within the diverse global human family

Analyze quantitative data

Outcomes
The outcomes that are being well met are analyzing quantitative information and suitable technology usage tools in the field. Both outcomes have over fifty percent of seniors noting these outcomes had a great deal of contributions in their education (Marquette, 2012-2013). The outcomes that are needed for attention are appreciation in history’s value of understanding the present and past, as this result fell at the bottom with only 32 percent of seniors agreeing this topic stemmed from their Marquette education.
Recommendations
The proposed recommendations for change to address perceived proficiency issues are to focus more on the outcomes that score low or had no contribution to their Marquette education. Additionally, all scores should be much higher in every outcome under the column labeled a great deal. The highest percentage only made it a little over fifty percent. Therefore, the emphasis needs to contain more research and teaching in every outcome to decrease the proficiency issues. According to Marquette (2012-2013), “graduating seniors are most likely to credit their Marquette education with contributing to their ability to write, analyze quantitative information, and use technology” (p. 11). However, recognizing the past, and present history understanding issues, and evaluating data are what seniors are not crediting in their education from the university.
Conclusion
In conclusion, the use of direct and indirect measures are not appropriate at the undergrad and graduate levels. Indirect levels should focus more on other forms of reporting aside from surveys and student self-assessment and more attention needs to be given to the low scoring methods listed under direct levels. In the newly ranked four ICLO’s, the reason for the change is mainly due to the first ordering stemming from what was standard and not what is best. Furthermore, a new table was created from the graduating senior survey to the specific core and institutional outcomes. The proposed recommendations for change to address perceived proficiency issues are to focus more on the outcomes that score low or had no contribution to their Marquette education. Although the current methods are not fully using every measurement to the fullest in assessment reporting, it has helped students grow in their abilities to assume leadership responsibilities and apply what they have learned to their challenges (Marquette, 2012-2013).
References

Marquette University. (2012–2013). Institutional assessment report. Retrieved from http://www.marquette.edu/assessment/documents/InstitutionalAssessmentReport2012-13Final.pdf.