Supply Chain Management of the Adidas-Free-Samples-Myassignment

Question: Compose a report on Supply Chain Management of the Adidas. Answer: Presentation The report discusses the flexibly chain the executives arrangement of the Adidas. Adidas has been chosen for the report. It tells that how the gracefully anchor the board framework assists with expanding the income and benefit of the organization. Adidas is one of the greatest sportswear and adornments Manufacturer Company in Germany. Further, the report clarifies the key progressions of the flexibly chain the board and it additionally depicts the arranging procedure and MRP arrangement of the organization. It clarifies that how the organization is making systems to keep up an appropriate harmony between request arranging and request anticipating inside the association. Furthermore, it depicts that how the organization is keeping up stock framework in the association (Wang, Lai Shi, 2011). Adidas is a German worldwide organization headquartered is situated in Herzogenaurach, Bavaria. The organization is managing different sportswear items, for example, shoes, footwear, athletic gear, extras, and garments. It is the second biggest company on the planet and it is the greatest sportswear producer in the Europe. There are approx 53,731 workers are utilized in the association. In todays time, the organization is growing and thriving its business tasks and exercises around the world. Adolf Dassler is the organizer of the organization. It is the biggest organization estimated by the income. The organization is giving its sportswear items in excess of 63 nations around the globe (Dickson Fuss, 2011). The key streams in gracefully chain The gracefully chain the board assumes an essential job in Adidas. The flexibly chain the executives is the administration of streams. It is the oversight of the data, materials, and account as they move in a procedure and strategy from provider to maker, retailer, purchaser, and distributer. The gracefully bind the executives assists with keeping up coordination and organization among the various organizations. There are five significant streams include in flexibly chain the executives, for example, data stream, item stream, chance stream, esteem stream and money related stream and so on. It oversees and works stream of items and administrations in a successful way. There are different procedures utilized by the organization in gracefully fasten the executives to achieve the drawn out objectives and destinations of the firm. These strategies can be useful to assess and break down the dangers of the contenders around the globe. Adidas embraced an arrangement of announcing and scoring on its providers execution. Adidas is notable and rumored organization hence; different strategies are utilized by the organization (Mefford, 2011). Adidas flexibly chain the board (Source: Adidas gathering. Com, 2017) Item stream: It is identified with the item breakdown structure. The item stream alludes to the progression of items and merchandise from the maker to the buyers are called as item stream. Adidas is utilizing different procedures and approaches to stream the items and products in a compelling and effective way. Adidas creation framework is one of a kind and viable. It oversees and delivers different games items through Adidas creation framework. The principle point of the item stream is to diminish the expense of creation inside the association. It will likewise assist with expanding the quantity of clients in the worldwide market (Wang, Lai Shi, 2011). Through item stream, the organization can oversee and diminish the danger of inadequate selling items which may bring about injury to the clients. The organization additionally utilizes different security approaches to satisfy the objectives and destinations of the firm. The item stream process incorporates the mediation of the differ ent merchants, providers, clients, and vendors and so forth. Through item stream, the organization disposes of and lessens the go-betweens by acquiring the item and merchandise legitimately from the maker. Further, the organization utilizes balance scorecard way to deal with increment the quantity of clients inside the association (Hoejmose, Roehrich Grosvold, 2014). (Source: Adidas gathering, 2007) Data stream: This stream assumes an indispensable job to increase long haul objectives and destinations of the firm. It is an imperative to the gracefully chain the executives. It incorporates the interest, change request, buy, item depiction, input and questions of the clients. Data stream is the significant technique for the gracefully chain the board of Adidas. The organization gives its games items and frill at sensible costs to draw in the more purchasers around the globe. The workers give different sorts of data to the clients identified with the nature of the items. The organization gives one of a kind and satisfactory data to the clients to pull in more purchasers in the worldwide market (Stadtler, 2015). Income: The Company oversees viable income so as to meet the drawn out strategic vision of the organization. The income gives data about the money receipts and money installments of the Adidas. The organization is gathering the items from their customers to give adequate items to the purchasers around the globe. The clients address the costs of the sportswear items and accomplices to the makers. Along these lines, the organization can give alluring and one of a kind items to clients around the globe. The primary point of the Adidas is to satisfy the necessities and prerequisites of the purchasers over the world (Monczka, Handfield, R. B., Giunipero Patterson, 2015). Return stream: This stream does exclude the income and benefit of the Adidas. The organization utilizes compelling and coordinations strategies and techniques to deal with and deal with the arrival stream of the items. The organization restores the embellishments and sportswear items if the items are not according to the necessities and prerequisites of the clients. Hence, it is a significant strategy for the flexibly chain the executives (Ranganathan, Teo Dhaliwal, 2011). Suggestions to improve the key progressions of gracefully chain the board Presently it is suggested that Adidas is probably the greatest player on the planet. The organization should concentrate on the flexibly chain the executives framework so as to achieve the objectives and destinations of the firm. It should concentrate on the creation framework and return stream framework to improve and expand the income and benefit of the organization (Olugu, Wong Shaharoun, 2011). The make procedure examination Creation arranging process The organization utilizes successful creation arranging procedure to build the deals of the organization. The organization follows change process in which crude material and stocks are sent to the industrial facilities for assembling of the extras and sportswear items. The Adidas arranging process incorporates planning, checking, stacking, sequencing, and control exercises to make the flexibly chain the executives progressively successful and special. Further, venture asset arranging framework is utilized by the organization to use the assets. The organization keeps up coordination and correspondence with clients to draw in and hold more buyers in the worldwide market. Further, different programming is utilized by the organization to assess and examine the requirements and desires for the clients. Through the arranging procedure, the organization can dispose of and diminish the wastage (Brandenburg, Govindan, Sarkis Seuring, 2014). Creation arranging procedure of Adidas (Source: Akrani. G, 2013) Material necessity arranging process The material arranging process is a significant and first procedure of the Adidas. By utilizing material arranging process, the organization can give different kinds of sportswear items, for example, shoes, attire, adornments, and footwear. Further, ace creation planning plan is created and worked by the organization for the creation, stock, and staffing inside the association (Subramanian Ramanathan, 2012). The organization has built up a framework for keeping up the best possible stock level inside the association. The organization utilizes advanced and imaginative advances to improve the material arranging procedure of the Adidas. Alongside this, the organization utilizes bills of material to create the particular sportswear items and extras inside the association. The organization keeps up appropriate correspondence and cooperation with providers and makers to defeat on the rivals in the association. The material prerequisite arranging process is essential to screen and spotlight on the exercises and tasks of the organization (Hax, 2013). Support and proposal It has been suggested that the organization utilizes successful and interesting procedures to beat the contenders around the globe. Further, the organization should concentrate on the gracefully tie the executives framework to improve and expand the benefit and income of the organization. In todays period, the organization is confronting different difficulties and issues because of low quality. Thusly, Adidas must concentrate on the nature of the games items to build the quantity of clients around the globe. The organization should center and screen the exercises of the representatives to improve and upgrade the profitability and effectiveness of the association just as workers. Aside from this, the firm should concentrate on the creation procedure and material arranging procedure to oversee and control the exercises and tasks easily. Along these lines, the organization can increment and expand the degree of fulfillment of the clients in the worldwide market (Bosona Gebresenbet, 2013 ). The flexibly chain determining Request arranging and request guaging Adidas spotlights and screens on the interest arranging and request guaging to expand the benefit inside the association. Innovation assumes a necessary job to do successful flexibly chain arranging and estimating. By utilizing compelling arranging and guaging, the organization can keep up successful gracefully chain the board in the association. The organization additionally utilizes item standardized identifications to build the offer of the sportswear and extras items inside the association. Further, Adidas utilizes guaging methods to foresee the future dangers an

Pocahontas free essay sample

My mom used to call me Pocahontas when I was more youthful. It was a proper and charming title, I figure; I would watch the Disney adjustment enthusiastically, continually finding new significance in each scene, continually wishing that I could be courageous and sharp, much the same as this authentic cartoon. The tale of this free-lively Powhatan princess and profligate never stopped to astound me as a five-year old. As of late for some explanation, the since quite a while ago overlooked epithet developed once more, and I had an awesome time of sentimentality for those occasions when I used to live in a universe of pretend. As a kid, I was interested about all that I saw; the patio was a different universe that must be investigated. I looked for wonder in the most quotidian things; I asked why the grass woke up each morning in a shiny cloak of dew, and why I couldn’t be sparkly at 6 A.M. This interest transformed into a hunger for information that could be extinguished at scho ol. I despite everything consider training a journey for illumination, which is the reason I have chosen to apply to this college. I accept that this foundation can be my managing compass on this excursion that I should take, as an understudy, however as an individual going into adulthood. Being that I am going to begin that odyssey from youth to that next piece of my life, I was astonished that my mom had so impassively considered me that Algonquian moniker that I heard as often as possible as a wide-looked at young lady. At the point when I asked her for what valid reason she recalled that it, she just grinned and disclosed to me that all through my procedure of applying to school, she had recognized the sparkle of interest clearly once more; a similar one I had at five years of age when I saw Pocahontas just because and like her, I had a first experience with a various society. As a youngster migrant, I saw my family’s sudden migration to this new world as an undertaking. I don’t think I understood that my family abandoned everything to make sure about a superior future for me, something they could just dream of in my local land, Colombia. My naivete blinded me from the monetary and passionate hardship that they experienced as a�aliens’ those initial not many years. Yet, as I developed more seasoned, I figured out how to value all that they did. I understood that all that they did was to lift me up so I could get a handle on that slippery thing, the American dream. My parent’s little day by day undertakings resembled dewdrops on the most slender piece of sod; I figured out how to discover wonder in my parent’s every day and outstanding perseverance. I regarded this determination and fearlessness and each time I heard my mom call me Pocahontas, I felt as though there may be a portion of those characteristics in me as well. The sound of the epithet would in a split second cause me to feel increasingly significant, by on e way or another like I had a spot on the planet, even as a little kid. I felt that possibly one day I would develop into somebody like her, somebody who might have any kind of effect. Maybe I would be associated with accomplishing something so strong that would at the same time make elderly people men who passed on for convention turn over in their graves and sow the seeds of progress. Maybe I could help individuals in need speak loudly that are so frequently unheard, overpowered by the stunning quietness of obliviousness and detest. Obviously these are grandiose objectives for a kindergartener, however by and large I accept that in reality a children’s vivified film gave me my first exercises of the significance of assorted variety and the capacity of making change on the planet. I am as a rule exceptionally honest when I state that I despite everything feel like that open five-year old now and again, particularly now as I am going to send off a bit of myself to choose my f uture. In any case, the way that I had indeed expected my young nom de plume took me back to the past. Thinking back seventeen years of life, I understand that Pocahontas, not the energized character or the one out of a minuscule vignette in a history reading material, yet her soul, has consistently been with me. That soul is with me now, as I am going to investigate a mind-blowing remainder, beginning with this one stage towards edification.

My Long-Overdue CPW Recap

My Long-Overdue CPW Recap So I did pretty much everything I said I was going to do at CPW, but I was fairly negligent in documenting my adventures in photos. Alas. Well, Ill show you what I have The early hours of Thursday found me at the registration desk, shown here with Anthony. This was a special moment for me, because this time last year Anthony was simply one of my favorite 09 prefrosh and now hes a full-blown MIT student, workin the CPW reg desk. Very cool. It wouldnt be a good entry without a picture of Jojo and Diane, who rocked the reg desk next to us for many hours. After 11 hours at the reg desk, I headed over to Thursday nights opening ceremony. The bloggers kicked it off with the top ten(ish) reasons to choose MIT. Heres what you guys looked like from the stage (can you find yourself?). Then Marilee spoke for awhile about how and why we chose you. Following the badass Massachusetts Institute of Techno hack, I got someone to snap this pic of me with Mollie and Jessie. The infamous festival followed the CPW Welcome. Jenny and I were so tired that we mostly just sat in the bleachers and watched the various events unfold. I snapped this pic of the salsa dancers sometime around 11PM. Laura demonstrates how fun it is to work the registration desk at midnight. McGreggor strikes the hot model pose and prepares to beam Laura with his laser eyes. I left soon thereafter and went to bed. After another morning of registration desk duties, I headed over to Friday afternoons academic / athletics / arts fairs, where I found Mollie (decked out in full cheerleader garb) hanging out with Timur (MIT 10). After the fairs, I hit Lobby 7 to see Resonance perform. They sounded amazing, and Borski (above) showed off his graceful dance moves. [video] Steph (06) is super happy that her sister Katie (10) has decided to come to MIT. Later that night, I got to meet many of you at the Meet The Bloggers Party. I finally got to meet Colin (MIT 10) whose application I read back in the fall. (Thanks TheKeri for taking the picture!) Nance and Marilee were popular attendees. I dont know what I was thinking on Saturday, but I forgot to take pictures until the closing ceremony. This is what you guys looked like from stage Later that night was the Battle Of The Bands. We had a fantastic time playing for you guys; I think Tim crowd-surfing was a personal CPW highlight. The Hong Kong Regulars (above) performed after us. [video] I snapped a picture with Shaye Storm, the Master of Ceremonies for BOTB. Seriously, Shaye and his ZBT brothers (Bryan is one) are some of the nicest guys you will ever meet. Heres a pic of me with my friend Valery (08) from the Meet The Bloggers Party. I saved it for last because introducing his Virtual CPW Project is a great way to conclude this entry, especially for those admits who were not able to attend. Click here to check it out!

Personal Statement - Free Essay Example

Sample details Pages: 3 Words: 854 Downloads: 2 Date added: 2019/10/10 Did you like this example? In the text below a lot has been stated that is in accordance to the invitational fellowship. My goals both long-term, as well as short-term goals, have been said, my research interests relative to cancer prevention and control. My career goals have been stated below as well as how the cancer prevention fellowship program will aid in the achievement of my goals. My research interests are centered on the understanding of the genomic and epigenetic changes that are associated with endocrine and central nervous system cancer growth and metastases. My goal is to identify novel molecular and genetic markers that would aid in the development and optimization of diagnostic techniques and treatments for endocrine cancers. I aim to contribute to the implementation and adoption of novel diagnostic techniques through future clinical trials. Advancing on our understanding of the molecular basis of brain tumors will not only allow the development of new diagnostic and prognostic markers but also contribute to the discovery of novel therapeutic targets with the goal of developing new treatment methods Don’t waste time! Our writers will create an original "Personal Statement" essay for you Create order My research interests also extend to study the long-term effects of cancer treatment and endocrine-therapy order to improve the quality of life of brain tumor survivors.My goals are to commit to the research about the early detection and recognition of neuroendocrine disturbances to increase the quality of care and efficiency of treatment of cancer survivors that are at a higher risk of premature death. Also, I would like to further our understanding of the correlation of genetic background with predisposed genetic susceptible towards specific cancer treatments.I would like to commit to efforts to further elucidate the role of genetic variability in the occurrence of related neuroendocrine disturbances My educational and research experience have provided me with a solid basis in multiple biological disciplines including biochemistry, pathology, plant biology, cancer biology, microbiology, and genetics. I have attended graduate school at Cornell University. I will graduate in 2017 with my Ph.D. in Plant Pathology with concentrations in Microbiology, Plant-Microbe Biology, and Plant Biochemistry. My graduate research has been centered on the characterization and identification of novel hormone receptors in Arabidopsis thaliana and has led to two publications as the primary author.   Upon entry to my graduate program, I was awarded the State University of New York Graduate Diversity Fellowship. Additionally, I was awarded the National Science Foundation (NSF) East Asia and Pacific Summer Institutes fellowship in 2015. The joint NSF and Japan Society for the Promotion of Science (JSPS) fellowship allowed me to develop an international research project in Japan. I believe internationa l research collaborations are essential in resolving global health issues. My volunteer experience in the American Cancer Society and Umass Memorial HealthAlliance Hospital has been an enriching experience and has helped cement my decision to pursue biomedical research. During my final year of my graduate studies, I was awarded the National Cancer Institutes Cancer Research Intern Summer Fellowship. My research project at the NCI was granted an extension allowing me to stay at the NIH until the fall. My current project is centered on understanding the molecular mechanisms involved in the regulation of chromosome segregation. High fidelity chromosome segregation is essential for cell growth. Errors in the process result in aneuploidy, developmental disorders, and cancers. My research goal to uncover the mechanism by which polo-like kinase Cdc5 regulators the cellular and physiological function of centromere-specific histone H3 variant Cse4. My aim is to define the role of Cse4 phosphorylation by Cdc5 in chromosome segregation. I am completing my internship at the NCI. After the completion of my internship, I will be taking a position at the American Cancer Society. My graduate student research project has allowed me to mentor multiple student interns through the NSF-funded Plant Genome Research Program (PGRP) at Boyce Thompson Institute and Cornell University. My research project included interns of all races, ethnicities, backgrounds, and genders. The PGRP internship program allowed me to help students develop their semi-independent research project. It was an enriching opportunity to help students pursue higher education. Through seeking this fellowship, I wish to continue my commitment to mentorship programs at the NIH to educate the next generation of scientists. The Cancer Prevention Fellowship Program offers a unique avenue in which I can begin my career in biomedical sciences and cancer biology. My future career goals pertain to being a research director and professor in the fields of oncology and neurobiology. I hope to one day lead a laboratory in brain tumor research. I firmly believe that I can contribute to advancements in the field of cancer biology if given the opportunity and the tools to do so.   The program will give me a chance to expand on my research experiences. Collaborative research environment of the NIH will further my leadership skills and communication skills, which are vital skills in the field of medicine. Through my work at the NCI, I aim to generate research worthy of publishing in the highest quality of journals, which would not only help me further my long-term goals to pursue a successful career in biomedical research but also allow me to contribute to the field of neuro-oncology.

Redox Titration Definition (Chemistry)

A redox titration is a titration of a reducing agent by an oxidizing agent or titration of an oxidizing agent by a reducing agent. Typically, this type of titration involves a redox indicator or a potentiometer. Example Set-Up For example, a redox titration may be set up by treating an iodine solution with a reducing agent to form the iodide. A starch solution can then be used as a color-change indicator to detect the titration endpoint. In this case, the solution begins blue and disappears at the endpoint when the iodine is all reacted. Types of Redox Titrations Redox titrations are named according to the titrant that is used: Bromometry uses a bromine (Br2) titrant.Cerimetry employs cerium(IV) salts.Dichrometry uses potassium dichromate.Iodometry uses iodine (I2).Permanganometry uses potassium permanganate.

Theories of Corporate Personality Free Essays

string(92) " that corporations are simply legal fictions, created and sustained by an act of the state\." Theories of Corporate Personality MANAS AGARWAL 5th Semester BA LL. B (B) School of Law Christ University Bangalore INDEX * Research Methodology * Introduction * The Common Law Perspectives * Fiction Theory * Concession Theory * The Purpose Theory * Bracket Theory * Realist Theory * Why Corporations? * Corporate Personality And Limited Liability Cases: * Macaura v. Northern Assurance Co. We will write a custom essay sample on Theories of Corporate Personality or any similar topic only for you Order Now * Lee v. Lee’s Air Farming * Salomon v. Salomon Co. ACKNOWLEDGEMENT I Manas Agarwal of B. A. LL. B (Hons. ) is really grateful to Ms. Fincy V, without whose help and corporation this project would not have been possible. I am also grateful to the National Law School India University (N. L. S. I. U) Library staff and the Knowledge Centre, Christ University staff, whose cooperation is appreciable. I think this kind of assignments lead to the overall development of the students and I am looking forward to take up such assignments in future. RESEARCH METHODOLOGY †¢ SCOPE AND FOCUS: – This research paper essentially seeks to study and criticise the different theories of corporate personality considering the jurisprudential conflicts. †¢ RESEARCH OBJECTIVES: – The principal objective of our research is to study and criticise the different theories of corporate personality and the concepts under it. * Another objective of our research is to find conflicts between the various theories relying on various judgments. †¢ RESEARCH QUESTIONS: – * What is the difference between various theories of corporate personalities. * The meaning and limits of a corporate personality. †¢ METHOD OF ANALYSIS: – This project has its basis on the following methods of analysis:- DESCRIPTIVE: – The first task is to comprehensively study and critize the jurisprudential theories of corporate personalities. ANALYTICAL: – Further these concepts and observations can be analyzed. The valuable knowledge that is gained from studying the commentaries must be used to understand the evolution of the theories and the law itself in terms of some cases. †¢ MODE OF CITATION :- The researcher(s) has used a uniform mode of citation in this paper. Introduction There is an interesting conflict between philosophic theories as to the nature of corporate personality and the insurgent demand of economic forces for a further recognition of those form of organisation which seem so essential to modern life. The grant of legal personality is clearly within the gift of the state, for it may be refused to natural persons. In the case of natural person, however, it is clear that law grants legal personality to a physical entity existing in space and possessing what (for lack of better term) we describe as human personality. While philosophy may find difficulty in analyzing or describing the real nature of human personality, few of us doubt that we exist, and we compensate for our defective analysis by an intuitive understanding of our own nature which, however inadequate it may be, at least gives a substratum on which to build. As far as legal personality is concerned, there is no very significant difference between that granted to human beings and that to non-human beings such as groups or other entity. The decision of House of Lords in Salomon v A Salomon Co. Ltd had a lasting influence in corporation law. It is often credited with the principle of separate legal entity of the corporation distinct from the members. Though there is no doubt that the Salomon case had play a significant role in company law, the decision in this case was hardly the origin of the separate legal entity principle. The legal entity of beings other than the human has long been recognized prior to 1897, in which the Salomon case was decided. The jurisprudence theories on juristic person had been established since the early Roman law to justify the existence of legal person other than the human. The State, religious bodies and education institutions had long been recognized as having legal entity distinct from the members. The acceptance of the corporate personality of a company basically means that another non-human entity is recognized to assume a legal entity. This can be seen from the many theories of jurisprudence on corporate personality. Majority of the principal jurisprudence theories on corporate personality contended that the legal entity of the corporation is artificial. The fiction, concession, symbolist and purpose theories supported the contention that existence of corporation as a legal person is not real. It only exists because the law of the state recognized it as legal person and it is recognized either for certain purpose or objectives. The fiction theory, for example, clearly stated that the existence of corporation as a legal person is purely fiction and that the rights attached to it totally depend on how much the law imputes upon it by fiction. The Common Law Perspectives Generally, there are two types of person which the law recognized, namely the natural and artificial person. The former is confined merely for human beings while the latter is generally referred to any being other than human being which the law recognized as having duties and rights . One of the most recognized artificial persons is the corporation. Legal scholars, particularly the jurists, have always explored the issue on the recognition of corporation as a legal person. In the study of jurisprudence, the separate legal personality of corporation is based upon theories, which are concentrated upon the philosophical explanation of the existence of personality in beings other than human individuals. W. Friedman stated that: â€Å"All law exists for the sake of liberty inherent in each individual; therefore the original concept of personality must coincide with the idea of man. † Even though there are many theories which attempted to explain the nature of corporate personality, none of them is said to be dominant. It is claimed that while each theory contains elements of truth, none can by itself sufficiently interpret the phenomenon of juristic person. Nonetheless, there are five principal theories, which are used to explain corporate personality, namely, the fiction theory, realist theory, the purpose theory, the bracket theory and the concession theory. Fiction Theory The fiction theory holds that corporations are simply legal fictions, created and sustained by an act of the state. You read "Theories of Corporate Personality" in category "Essay examples" They are endowed with corporate personality simply because this is a convenient form through which the natural persons behind the corporation may conduct their business. According to this theory, the legal personality of entities other than human beings is the result of a fiction. Hence, not being a human being, corporation cannot be a real person and cannot have any personality on its own. Originally, the outward form that corporate bodies are fictitious personality was directed at ecclesiastic bodies. The doctrine was used to explain that the ecclesiastic colleges or universities could not be excommunicated or be guilty of a delict as they have neither a body nor a will. The famous case of Salomon v A Salomon Co Ltd is a proof of the English court adoption of the fiction theory. In this case, Lord Halsbury stated that the important question to decide was whether in truth an artificial creation of the legislature had been validly constituted. It was held that as the company had fulfilled requirements of the Companies Act, the company becomes a person at law, independent and distinct from its members. Despite its instrumental conception of the corporation, the fiction theory still affords a sufficient basis for according corporations legal rights. Indeed, it is on the basis of the fiction that corporations are persons that they possess the legal rights they do, such as private property rights. However the fiction theory affords no basis for the recognition of moral rights of corporations. On the fiction view, â€Å"corporations, as creatures of the State, have only those rights granted them by the State. † The personality the corporation enjoys is not inherent in it but as conceded by the state. Due to the close connection made in this theory as regards to relation of legal personality and the power of the state, fiction theory was claimed to be similar to the theory of sovereignty of state which is also known as the concession theory. Concession Theory A group of persons wanting to create a corporation will have to execute documents and comply with requirements set by the state before being given corporate personality; merely a privilege; state may provide causes for which the privilege may be withdrawn. It maintains that the law is the only source from which the legal personality may flow. The law lays down certain conditions which creates the legal personality of a corporation. Corporate form is therefore a concession given by the state. The concession theory is basically linked with the philosophy of the sovereign national state. It is said to be essentially a product of the rise of the national state at a time when there were rivals between religious congregations and organizations of feudal origin for the claim of national state to complete sovereignty. Under the concession theory, the state is considered to be in the same level as the human being and as such, it can confer on or withdraw legal personality from other groups and associations within its jurisdictions as an attribute of its sovereignty. Hence, a juristic person is merely a concession or creation of the state. Concession theory is often regarded as the offspring of the fiction theory as it has similar claim that the corporations within the state have no legal personality except as it is conceded by the state. Exponents of the fiction theory, for example, Savigny, Dicey and Salmond are found to support this theory. Nonetheless, it is that while the fiction theory is ultimately a philosophical theory that a corporation is merely a name and a thing of the intellect, the concession theory is indifferent as regards to the question of the reality of a corporation in that it focuses on the sources of which the legal power is derived. Dicey took the view that sovereignty is merely a legal conception which indicates the law-making power unrestricted by any legal limits. The Purpose Theory This theory is also known as the theory of Zweckvermogen. Similar to the fiction and concession theories, it declares that only human beings can be a person and have rights. Entities other human is regarded as an artificial person and merely function as a legal device for protecting or giving effect to some real purpose. As corporations are not human, they can merely be regarded as juristic or artificial person. Under this theory, juristic person is no person at all but merely as a â€Å"subject less† property destined for a particular purpose and that there is ownership but no owner. The juristic person is not constructed round a group of person but based on the object and purpose. The property of the juristic person does not belong to anybody but it may be dedicated and legally bound by certain objects. This theory rationalized the existence of many charitable corporations or organizations, such as trade unions, which have been recognized as legal persons for certain purposes and have continuing fund. It is also closely linked with the legal system which regard the institution of public law and the endowment of private law as legal personalities. Bracket Theory According this theory, a company consisting of its members or shareholders exists and it is inconvenient to refer always to all of them, a bracket is placed around them to which a name is given but in order to understand the real position we must remove the bracket. The real status is given in realist theory. Realist Theory On the realist view, the corporation is more than a legal fiction, and more than simply an agreement between its shareholders. It is an autonomous institution with a demonstrable extra-legal existence, analogous in some respects to a self-governing state. Like the contract theory, the realist theory recognises that the shareholders of a corporation delegate the powers of control over their property to the corporation’s management so that the property can be pooled towards a unified purpose. Unlike under the contract theory, however, the shareholders are seen more as investors in the corporation than owners of it. This is why managers owe fiduciary duties not simply to the shareholders, but to the corporate person as a whole. Of the three theories, only the realist theory seems capable in principle of supporting moral rights for corporations, because only it grants them a real social existence apart from the concession of the state or the agreement of their shareholders. However it seems that the realist theory of corporate personality has fallen out of favour amongst modern academic writers. This may be because it seems to accurately describe only a limited subset of corporations. Many types of corporations which have assumed greater importance since the realist view gained prominence, including holding companies and trustee companies, sit uneasily within the realist framework. Nevertheless it is believed that the realist theory is potentially the most useful of the three set out above, so long as the subset of corporations to which it most accurately applies can be sufficiently delineated. By itself the theory seems incapable of providing any basis for such delineation. If the realist conception of the corporation is to be salvaged at all, its assumptions must be explicated by some other theory. Why Corporations? The above survey of the theories of corporate personality has revealed no complete conception of the corporation which justifies the recognition of moral rights of corporate persons. To some extent, this is hardly surprising. Corporate personality is a legal concept based on purely commercial considerations: The concept of the juridical person is convenient to the conduct of business by providing for extended â€Å"life† and a limitation on liability, not to mention the right to own property and enter into contracts, which the law reserves to people. But laws might be fashioned to give corporations the same power to own property and sign valid contracts without terming them persons. There is therefore no reason why the types of bodies (if any) which deserve to be endowed with collective rights should coincide with those organisations allotted the status of persons by the law for purely instrumental reasons. For instance, corporations are classified as legal persons, but partnerships are not. Yet there is no obvious reason why the mere act of incorporation by a partnership should endow it with moral rights which it did not possess before. The intuition which many lawyers seem to possess that corporations do possess rights can be explained as a psychological response to the â€Å"unified normative vocabulary† with which natural and corporate persons are described. That is, the personification of the corporation leads lawyers to indiscriminately apply concepts to it which are rightly applicable only to natural persons. However although this may be a convenient mode of analysis, it is clearly not conceptually consistent for rights to be accorded to bodies corporate (and to no other collectivities) purely because they bear that designation. Nevertheless, that is precisely what propose should be done. The rationale is that the present paper is not simply a normative, but also a descriptive study. It is apparent that corporate persons are already recognised as more appropriate bearers of rights than non-incorporated bodies under Australian law. It is for this reason that they have property and other common law rights which non-incorporated bodies lack. It is likely, therefore, that any extension of the rights recognised of collectivities under our law will employ this existing category. To extend the recognition of rights to non-incorporated bodies would require the recognition of a third type of personhood hitherto unknown to the law. However desirable this may be, it is not a realistic proposal for law reform. Corporate Personality And Limited Liability Corporate personality refers to the fact that as far as the law is concerned a company personality really exists apart and different from its owners. As a result of this, a company can sue and be sued in its own name, hold its own property and crucially – be liable for its own debts. It is this concept that enables limited liability for shareholders to occur as the debts belong to the legal entity of the company and not to the shareholders in that company. Corporate legal personality arose from the activities of organisations such as religious orders and local authorities which were granted rights by the government to hold property and sue and be sued in their own right and not to have to rely on the rights of the members behind the organisation. Over time the concept began to be applied to commercial ventures with a public interest element such as rail building ventures and colonial trading businesses. However, modern company law only began in the mid-nineteenth century when a series of Companies Acts were passed which allowed ordinary individuals to form registered companies with limited liability. The way in which corporate personality and limited liability link together is best expressed by examining the key cases:- Salomon v Salomon ; Co. Mr Salomon carried on a business as a leather merchant. In 1892 he formed the company Salomon ; Co. Ltd. Mr Salomon, his wife and five of his children held one share each in the company. The members of the family held the shares for Mr Salomon because the Companies Acts required at that time that there be seven shareholders. Mr Salomon was also the Managing Director of the company. The newly incorporated company purchased the soletrading leather business. The leather business was valued by MrSalomon at ? 39,000. This was not an attempt at a fair valuation; rather it represented Mr Salomon’s confidence in the continued success of the business. The price was paid in ? 0,000 worth of debentures (a debenture is a written acknowledgement of debt like a mortgage – see Chapter 7) giving a charge over all the company’s assets (this means the debt is secured over the company’s assets and Mr Salomon could, if he is not repaid his debt, take the company’s assets and sell them to get his money back), plus ? 20,000 in ? 1 shares and ? 9,000 cash. Mr Salomon also at this point paid off all the sole trading business creditors in full. Mr Salomon t hus held 20,001 shares in the company, with his family holding the six remaining shares. He was also, because of the debenture, a secured creditor. However, things did not go well for the leather business and within a year Mr Salomon had to sell his debenture to save the business. This did not have the desired effect and the company was placed in insolvent liquidation (i. e. it had too little money to pay its debts) and a liquidator was appointed (a court appointed official who sells off the remaining assets and distributes the proceeds to those who are owed money by the company, see Chapter 16). The liquidator alleged that the company was but a sham and a mere ‘alias’ or agent for Mr Salomon and that Mr Salomon was therefore personally liable for the debts of the company. The Court of Appeal agreed, finding that the shareholders had to be a bona fide association who intended to go into business and not just hold shares to comply with the Companies Acts. The House of Lords disagreed and found that- the fact that some of the shareholders are only holding shares as a technicality was irrelevant; the registration procedure could be used by an individual to carry on what was in effect aone-man business a company formed in compliance with the regulations of the Companies Acts is a separate person and not the agent or trustee of its controller. As a result, the debts of the company were its own and not those of the members. The members’ liability was limited to the amount prescribed in the Companies Act – i. e. the amount they invested. The decision also confirmed that the use of debentures instead of shares can further protect investors. Macaura v Northern Assurance Co. Mr Macaura owned an estate and some timber. He agreed to sell all the timber on the estate in return for the entire issued share capital of Irish Canadian Saw Mills Ltd. The timber, which amounted to almost the entire assets of the company, wasthen stored on the estate. On 6 February 1922 Mr Macaura insured the timber in his own name. Two weeks later a fire destroyed allthe timber on the estate. Mr Macaura tried to claim under theinsurance policy. The insurance company refused to pay outarguing that he had no insurable interest in the timber as the timber belonged to the company. Allegations of fraud were also made against Mr Macaura but never proven. Eventually in 1925 theissue arrived before the House of Lords who found that: The timber belonged to the company and not Mr Macaura Mr Macaura, even though he owned all the shares in the company, had no insurable interest in the property of the company just as corporate personality facilitates limited liability by having the debts belong to the corporation and not the members, it also means that the company’s assets belong to it and not to the shareholders. More modern examples of the Salomon principle and the Macaura problem can be seen in cases such as Barings Plc (In Liquidation) v Coopers ; Lybrand (No. 4) [2002] 2 BCLC 364. In that case a loss suffered by a parent company as a result of a loss at its subsidiary (a company in which it held all the shares) was not actionable by the parent – the subsidiary was the proper plaintiff. In essence you can’t have it both ways – limited liability has huge advantages for shareholders but it also means that the company is a separate legal entity with its own property, rights and obligations. Lee v Lee’s Air Farming Mr Lee incorporated a company, Lee’s Air Farming Limited, in August 1954 in which he owned all the shares. Mr Lee was also the sole ‘Governing Director’ for life. Thus, as with Mr Salomon, he was in essence a sole trader who now operated through a corporation. Mr Lee was also employed as chief pilot of the company. In March 1956, while Mr Lee was working, the company plane he was flying stalled and crashed. Mr Lee was killed in the crash leaving a widow and four infant children. The company as part of its statutory obligations had been paying an insurance policy to cover claims brought under the Workers’ Compensation Act. The widow claimed she was entitled to compensation under the Act as the widow of a ‘worker’. The issue went first to the New Zealand Court of Appeal who found that he was not a ‘worker’ within the meaning of the Act and so no compensation was payable. The case was appealed to the Privy Council in London. They found that: the company and Mr Lee were distinct legal entities and therefore capable of entering into legal relations with one another as such they had entered into a contractual relationship for him to be employed as the chief pilot of the company he could in his role of Governing Director give himself order as chief pilot. It was therefore a master and servant relationship and as such he fitted the definition of ‘worker’ under the Act. The widow was therefore entitled to compensation. Separate legal personality and limited liability are not the same thing. Limited liability is the logical consequence of the existence of a separate personality. The legal existence of a company (corporation) means it can be responsible for its own debts. The shareholders will lose their initial investment in the company but they will not be responsible for the debts of the company. Just as humans can have restrictions imposed on their legal personality (as in the case of children) a company can have legal personality without limited liability if that is how it is conferred by the statute. CONCLUSION person is not artificial or fictitious but real and natural. The realist also contended that the From the discussion on jurisprudence theories of corporate personality by G. W Paton, it is observed that main arguments lie between the fiction and realist theories. The fiction theory claimed that the entity of corporation as a legal person is merely fictitious and only exist with the intendment of the law. On the other hand, from the realist point of view, the entity of the corporation as a legal law merely has the power to recognize a legal entity or refuse to recognize it but the law has no power to create an entity. Referring to the English company law case law, it can be seen that in most cases, the court adopted the fiction theory. Salomon v A Salomon Co Ltd is the most obvious example. It is also observed that fiction theory provide the most acceptable reasoning in justifying the circumstances whereby court lifted the corporate veil of corporation. If the entity of the corporation is real, then the court would not have the right to decide the circumstances where there is separate legal entity of the corporation should be set aside. No human being has the right to decide circumstances whereby the entity of another human being should be set aside. Only law has such privilege. Nonetheless, the realist contention that the corporation obtain its entity as a legal person not because the law granted it to them but because it is generated through its day to day transaction which are later accepted and recognized by law also seem acceptable. Bibliography * A Text Book of Jurisprudence, 2nd Ed, by G. W. Paton * Corporate personality in the 20th century edited by Ross Grantham * Manupatra. com * Legalservicesindia. com * Westlaw. com ——————————————– [ 1 ]. Cf. A. Kocourek, Jural Relations (2nd ed. ), 57. [ 2 ]. Stokes, M. â€Å"Company Law and Legal Theory† in Twining, W. ed). Legal Theory and the Common Law. Basil Blackwell, Oxford, 1986, 155, 162. [ 3 ]. Salomon v A Salomon Co Ltd [1897] AC 22 [ 4 ]. First National Bank v Bellotti (1978) 435 US 765 [ 5 ]. Mark, G. Op. cit. 1472. [ 6 ]. cf. Mills v Mills (1938) 60 CLR 150 [ 7 ]. Woytash, J. â€Å"We M ust Stop Viewing Corporations as People† (1978) 64 ABAJ 814 [ 8 ]. Dan-Cohen, M. Rights, Persons, and Organizations. University of California Press, Berkeley, 1986, 5. [ 9 ]. Salomon v Salomon Co. [1897] AC 22 [ 10 ]. Macaura v Northern Assurance Co. [1925] AC 619 [ 11 ]. Lee v Lee’s Air Farming [1961] AC 12 How to cite Theories of Corporate Personality, Essay examples

This rollercoaster we call life free essay sample

Of course it is true; Everyone has experienced it, everyone has lived it. The unfortunate truth is, I have always hated rollercoasters. The fortunate truth is, the great thing about roller coasters, is that there is always a seat next to me; a seat for my sister, Abby. The first time I rode a rollercoaster it was my dad next to me. As soon as the bar locked us in, my face felt hot, and tears began to pool in the corners of my eyes, and roll down my cheeks. As we jerked to a start my vision was completely blurred. Our car began the slow suicide mission up the first hill I was heaving, with sounds like hiccups escaping my chest. The mother sitting behind us, with her son year younger then me put her hand on my shoulder wanting to help, but she could not. As soon as it stopped I ran with my tear- stricken face back to my mom. We will write a custom essay sample on This rollercoaster we call life or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Abby was there too, and laughed. It is something no one else would have done. But she laughed, and told me I was stupid. I laughed too. When she sang at her middle school graduation it was the most beautiful thing I had ever heard. I cried because I was so proud of her. She used to be so shy, but now she was on stage belting out notes I had never heard her hit before. When our parents divorced, Abby and I sat and cried, and buried our faces in our pillows. But we got through it. Freshman year was tough. I was battling swimming everyday, school, my dad was gone, and my mom was there, but not at the same time. I got so sick of the same routine, that I started to hurt myself. But Abby knew, and she told me, and she told me again that I was being stupid. Because, I can not hide anything from her, because she is on this ride with me, right next to me. Which is why, today, for one of the first time, it has to be me to tell her that she is being stupid. Because, she is slipping away, but I cannot let her, because, selfishly, that would mean I would have to go this alone. I know what is happening though, I read her journal. She was calling herself fat for eating more than 500 calories, her goal. But I went through it too. It is her freshman year, now. Because we are on the same ride, just with a different view; a different perspective; we are different people. Which is why, I know to get back to the top, she needs help. Just like roller coaster cars fall freely, but rely on a metal chain to pull them back up. I love Abby so much. She is my sister, and she is the best, most courageous, funniest, closest to perfect person I have ever met. Now, I love rollercoasters. I do not know why, but I think it is because the thrill rather than the fall is what I think more about now.

Schindlers List Essays

Schindlers List Essays Schindlers List Essay Schindlers List Essay Essay Topic: Film Schindlers list was a challenge for the films director Steven Spielberg; he had to get across the pain, suffering and tragedy that the Jews went through. But could he manage to get this across successfully? The opening sequence sets the mood for the film as it gives you a good idea of the dramatic, devastating scenes you are about to see. The film begins in colour; this shows that there is still life and hope for the Jews. The Hebrew prayer shows the worry that the Jews are going through, but they are all grouping together holding hands during the prayer. It also shows the emotion and seriousness of the holocaust. The burning candle is a symbol of the Jews life gradually disappearing into nothing, the gradual disintegration of the Jewish community; it also shows the hope of the Jews fading to nothing. The effect of the film beginning in colour then changing into black and white was to be a symbol of the Jews life; the colour shows the Jews hope fading to black and white to show the mass killing. It also brings home how grim and dismal life was in the 1940s. It then returns to colour to show that the horror is over and that they can try and get on with their damaged life after 4,086,000 Jews were killed. During the end of the film Spielberg uses people that went through the trauma of the holocaust in the 1940s, this adds more feeling to the film. The film is chaotic, people are running frantically as the Germans carelessly shoot at them for being Jewish, a little girl in a red coat manages to escape, coming as a surprise halfway through the film. The colour brings your attention to the little girl, it also represents the blood lost during the holocaust. You later see the girl amongst a pile of dead bodies ready to be burnt. This shows that each individual had a life and even children who were innocent were killed. The music that was played throughout the film plays a big part in getting across the emotion and feelings during the holocaust. At the beginning the Germans are at an officers club. They play tango dance music, showing the frivolous lifestyle that the Germans lead, dancing, smoking, drinking etc. At the snow shoveling scene where the Jews are working, there are violins playing, implying great emotion, sadness and suffering. From the beginning the difference between the Jews was highlighted by the Nazis arm bands, and badges. The symbol is the Star of David and the Nazis have a Swastika. The Jews identity was taken away from them, womens hair was shaved off, this made them feel inferior and humiliated. Men and women were treated very differently in the camps. The men were given harder, manual labour in the camps, but the women were most likely to be sent to the gas chambers. To try and avoid this terrible death they would prick their fingers and put the blood on their cheeks to try and make themselves look more attractive so that they would be given work. The Nazis also treated their own women in a demeaning manner, treating them more like objects than people. During the film there is quite a lot of dramatic irony three examples are: Oskar Schindler discussing the aftermath of the war, planning to make lots of money by working the Jews. He says that the Germans will leave with trunk loads of money. We know that the Germans lose the war and many were executed for war crimes. Before the Jews are separated into ghettos a woman says Things cant possibly get any worse. We know that things do get much worse before they enter the camp. Children are told they are going to be taken on a day trip. They leave happy, singing and smiling. Not knowing that they will be gassed. You are a Jew and I am a German Oskar Schindler says this to Stern. This means that Schindler doesnt care what race/religion Stern belongs to. He just wants his help keeping the Jews alive and working. One more, just one more This is said by Oskar at the end of the war. He feels upset and angry that he could have saved more Jews, if he had given them all his money. There were many dramatic moments throughout the film, two of these being: The Jews belongings were being taken from their bodies after they were killed, such as gold fillings and jewellery; this showed not only the amount of Jews being killed but the German greed and lack of emotion for the amount of murdered Jews. The Jews were that desperate to stop the Germans getting their jewellery that they ate their rings and necklaces. The Germans were also jealous that the Jews were fairly wealthy. Children were also gassed in the camps, they were young and innocent. The children were none the wiser and were told that they were going on a trip. They were happy but misled. This shows the reality that not only adults were killed but children as well, and that familys were destroyed and separated.

How to Write a Professional Letter of Acknowledgment

How to Write a Professional Letter of Acknowledgment The purpose of letters of acknowledgment is to provide proof that you have received specific documents  or a specific type of request. Letters of acknowledgment are often used for anything involved in a legal process. Elements of the Letter As with any  business or professional correspondence, you should begin your letter with a few specific and expected elements: Your name, address, and the date on the top rightThe name of the person to whom you are addressing the letter on the top left on the line below your addressThe company name (if appropriate)The address of the firm or individualA subject line that briefly states the purpose of the letter in bold (such as Legal Case No. 24)An opening salutation, such as Dear Mr. Smith When you are beginning the letter of acknowledgment, start with a brief sentence stating that this is, indeed, a letter of acknowledgment. Some phrases you can use include: I hereby acknowledge the receipt of the following documents...I am acknowledging receipt of...We will make sure that the person responsible receives these materials immediately upon returning to the office. The remainder of the letter should include the body text, where you explain in one or two paragraphs what, specifically, you are acknowledging. At the end of the body of the letter, you can offer your help if needed, such as: If  I may be of further assistance, please do not hesitate to contact me. End the letter with a standard closing, such as: Sincerely, Mr. Joe Smith, XX Firm. Sample Letter It can be helpful to view a sample letter template. Feel free to copy the format below for your letter of  acknowledgment. Though it does not print as such in this article, note that you should generally make your address and the date flush right. Joseph SmithAcme Trading Company5555 S. Main StreetAnywhere, California 90001​​March 25, 2018​​​Re:  Ã¢â‚¬â€¹Legal Case No. 24Dear ______:Because Mr. Doug Jones is out of the office for the next two weeks I am acknowledging receipt of your letter dated March 20, 2018. It will be brought to his attention immediately upon his return.If I may be of any assistance during Mr. Jones absence, please do not hesitate to call.Yours sincerely,Joseph Smith Sign the letter under the closing, Yours sincerely, just above your name. Other Considerations The letter of acknowledgment provides documentation that you have received the letter, order, or complaint from the other party. Should the matter become a legal or business disagreement, your letter of acknowledgment shows proof that you did respond to the request from the other party. If you are unfamiliar with business letter style, take the time to learn the basic format for writing  business letters, and review the  different types of business letters. This will help you refine your skills for specific business purposes such as making inquiries, adjusting claims, and writing cover letters.

Essay and a Dissertation Assignment Example | Topics and Well Written Essays - 1500 words

Essay and a Dissertation - Assignment Example Smith (2004) describes "the primary function of an essay is to improve skills in argumentation, or the process of reasoning methodically" in schools and universities. Dissertations are named differently cross borders and cross academic institutions for example; they are called extended essay, and thesis (White, 2007 p.1), and they are referred to as a long piece of independent work presented by most undergraduate business and management degree students ( White, 2007 p.1) as their final assessed work. Dissertations work requires in depth research in areas of independent work of students that unlike essay students create their own question for study and work with experienced advisor to find answers to overall research topics (Smith, 2004) and it has to be presented in acceptable academic standards (White, 2007). The most distinction of dissertation should be named as its requirement of originality (Smith, 2004). The conditions that topics could be accessed for suitability listed by Brian White can be summarized in more condensed list of three areas as; (a) interest (b) suitability and (c) resources. The simple measurement mechanism can be introduced by measuring scale of (a) robust, (b) fit and (c) unfit rating against the summarized three areas. Interest is unfit since my knowledge, experience and course of study has been around human resources, leadership and this topic requires macro and micro economic studies and geopolitical knowledge and interest. Furthermore, the suitability of topic can be examined by depth and breath of topic and accessibility and availability of resources and information. The next hundred years into future and the breadth of area of competition between Europe and China reveal the unfitted topic for a dissertation work of graduate school. Finally resources required to complete this topic is out of reach of any graduate student due to the breadths therefore it is called for unfit topic for dissertation work. 2. The introduction of Enterprise-Wide Resource Management in my company. This topic is overall fit since the topic meets the requirements of all three areas of suitability. It is interesting as it

Adults Returning to College Essay Example | Topics and Well Written Essays - 1000 words

Adults Returning to College - Essay Example 'Adults returning to college', is essentially a transition beyond the ordinary.Foremost, it is a social conversion for the adult; jumping into an era that was, at least theoretically, long gone. It is time travel in a very crude and possibly uncomfortable way. Regardless of the academic value and professional excellence that education may provide, the impact of identifying with the fact that the peers shall no longer be of the same age group, a feeling of being a misfit is created. This generates a social challenge that can only coped with successfully if time and understanding friends stick by. Other than that, one should remember the primary concern for re-entering the college. It may be for educational superiority, for professional excellence, for career searching, or merely to relive a once imagined dream. Whatever the preference, it should, by all means, supersede the social challenge.Another relevant issue is that of changed domestic commitments. Years back, when one would have been single, independent and free of domestic liability, college could have seemed much more feasible. However, with a job, a spouse and a couple of children (who themselves require adequate education), the picture seems in a totally different frame. This one factor alone probably deters many middle-aged individuals from returning to college - the myth of not being able to cope with family and studies together is just too strong to be broken with ease. With the work-at-hand and other personal commitment in modern times, the time spent with the family is already less than desired in many cases. Considering college in such circumstances becomes a real challenge. An associated problem to the one just mentioned, which only those can appreciate to the fullest who have gone through it, is child bearing and rearing. Largely for working single parents and even with professionally occupied couples, adequate care giving for their children is always a thwarted goal - something they feel to be missing out on every day of their life. Add college studies to this, and you can just forget about giving your child any time at all; at least till where they assume! However, for infants and even slightly older children, many community colleges offers daycare centers and customized child care services that actually help the student (whatever the age) to organize their course work and manage their domestic life in a better manner than they were doing before. A feeling of being intellectually rusty is another great demeanor for those who seek to go back to college at a later stage. Somehow, they rate intellect and creativity to youth; quite ironically, youngsters consider elders as more intelligible on the simple premise of maturity. This stark contrast, however, affects the adults more adversely than it does the young ones. For one, the youth feel that they might grow up one day to 'that' particular level of maturity. Whereas the elder person does not have that hope, as he has been through both phases and knows his/her correct standing. According to the Education and Employment Information Center, "Adult learners tend to be highly motivated and tend to approach learning in a mature manner". The psychological issue of being inferior, an under-achiever and out of sorts is also a hidden yet potent factor. Even if a person has the ability to learn and excel, the factor of being 'left behind' one's own friends, and to be amongst those of a different era gives rise to a series of timid ideas and mediocre feelings about

Corporate Strategy for Iranian Car Industry

Corporate Strategy for Iranian Car Industry Abstract The purpose of this research is to come across an effective and implemental strategy for Iranian car industry to become an export player in the Middle-East region. With consideration the importance of market development for international auto makers, the Middle-East market is evaluated and Iran as a case study is looked over in terms of its potential automobile market and developing opportunities in Iranian car industry to become a manufacturing partner for international players. Through out a review of Iranian economy and the position of auto sector in Iran economy, the difficulties of growth and development, the role of government- as the regulator- are discussed briefly and the effect of international auto makers -in the past and future- is analyzed. On this basis, we point out the main troubles of the current auto industrys structure and the government dilemma to set its policies. At the end we suggest a reform in the structure and strategy of both assemblers and suppliers to ent er to the international markets. Keywords: Operation strategy; Iran auto industry; Globalization, Regionalization, Industry study Introduction Irans economic performance has begun to improve slowly after a decade of recession which was caused by the long and costly war with Iraq and fluctuations in oil prices. In the decade ending in 1998, GDPs growth per capitals started to rise, although the average was only 3 percent per year. (Economic reports, the World Bank Group) The automotive industry, as one of Irans most promising industries, was the countrys fastest growing industry with the average annual growth of 27.2% between 1995 and 2000 which was 5.5 times of the country average industrial growth. (Economic Focus, Iran Daily News). The domestic vehicle production is growing quickly but it is highly protected, and only in highly exceptional circumstances can Iranians import cars from abroad. Locally produced cars have a reputation for poor quality and have contributed to the dangerously high pollution levels. Also, Iranian firms were not able to satisfy the domestic market in terms of quantity. Demand for automobiles, particularly passenger vehicles, far exceeds the supply. In fact, more than 450,000 people pre-purchase automobiles every year and wait approximately two years to receive them. As a result the government, which wants to raise unit production and improve domestic industry in line with industrialization program, hopes to stimulate competition as part of the effect to make the economy less dependent on oil. In order to follow the market reform plans and provide better circumstances for the countrys main industries such as petrochemical industry, textile and etc, President Khatami (since August 1997- 2005) in 1999, announced an ambitious program to privatize several major industries which included auto industry as a part of total restructuring of Iranian economy. Currently 13 public and privately owned auto maker exist in Iran. The largest vehicle manufacturing company is Iran Khodro with an average share of 60.90% percent of domestic vehicle production, as the main government-controlled carmaker and Saipa is the second one with 32.70%. Subsequent to the development program, automakers have been encouraged to review the way in which their strategies will be developed in the future and to extend a range of strategy options that might enhance their position. Consequently, most Iranian auto makers have been encouraged to join ventures or any other strategic alliances with foreign auto manufacturers to meet the increasing demand (www.ikco.com). On the other hand, in looking at the automobile market generally, during the past few years, it might be observed that after a period of growth from 1997 to 2000 -resulting from the exceptional boom in US economy and the upturn in Europe-but the automobile market especially in North America and Europe has entered a consolidation phase because of overcapacity. The market is mature in developed countries such as those of Western European countries and US market where nearly 90% of sales of new vehicles are now accounted by replacement purchases. Also, in Far East-Japan and South Korea-, overcapacity is a highly sensitive problem (REINAUD, 2001), whereas in Middle-East region, vehicle out put is 6% of total global output in comparison with 29% in Europe and 30.2% in US (carmakers Annual report,*DRI). Thus, some auto manufacturers might be looking for new methods to penetrate the auto market in Middle-East in order to gain more market share over their competitors. If these companies do become partners, Iran will be an option to emerge as a major regional car manufacturer, serving the Middle East beside Other countries in the region, particularly Egypt and Turkey which have substantial car assembly arrangements. The following companies have signed cooperative agreements and their products are either already on the market or are to be introduced in the near future: Frances Peugeot with Iran Khodro. Koreas Kia Motors with Saipa. Frances Citroen with Saipa. Korean Daewoo and Kerman Motors. Optimus of the UK with Renus. Proton of Malaysia with Zagros According to the French automaker Peugeot, Iran has one car for every 21 people. Turkey has one for every 12, while Western European countries and Japan have nearly one car for every 2 people (www.peugeot.com). That indicates market growth potential, and the reason that foreign car manufacturer might be interested in the Iranian auto market. In this research the current auto industry situation in Iran will be analyzed and it will be evaluated in relation to its future strategy consequent upon growth in terms of output quality and ability to serve the domestic market, but also to play a major rule in region and become a truly international car manufacturer and exporter in Middle-East. To achieve a rich understanding of the current situation and examine the environmental position to meet the research objectives, other developing countries auto industry examples like China, India and Turkey will be investigated and analyzed as examples, while the regional circumstances, business environment and other specific characters of Irans economy e.g. the role of government , economic condition and Irans regulations will be considered to find out the most appropriate strategy for Iran car industry. The research question for the chosen topic is What would be the most effective strategy for Iranian car industry to become a major player in the Middle-East market? From this research question, the following objectives would be appropriate to evaluate: To evaluate existing methods of development strategy in the Iranian auto industry, To identify the best possible methods of development strategy for domestic and foreign companies, To recommend how such a strategy can be implemented. The background of the research is set with a brief discussion on the changes have happened in the world of auto industry, the consequent of globalization, the dynamic and diversity of demand in auto market and the auto makers difficulties to respond to new market characteristics while maintain the ability to make profit. Our goal in this paper is to propose an efficient strategy to . The paper has the following structure. Section 2 gives the brief literature review. Section 3 analyses the competitors in automobile Middle East market. Section 4 introduces the Iranian auto industry case. Section 5 presents the growth and development problems in Iranian auto industry. Finally, section 6 is devoted to conclusions and future works. The remainder of this paper is organised as follows. Section 2 summarises the development of Iranian production and exports in the car industry compared to other major exporters in the world. It also explains why Iranian export growth has remained much below production growth. Section 3 develops the empirical export model and describes the variables and data. Then, the model is estimated in Section 4. Estimation results are analysed and a sensitivity analysis is proposed. Section 5 estimates the Iranian export potential with regard to the main foreign markets, while Section 6 concludes. Literature review History of globalization Humans have coined the word Globalization to describe widely traded activities that take place across the continents which are aided immensely by diminishing international trading regulations negotiated through the World Trade Organisation. Globalization is a combination of many -manufacturing, trade in services, supply chain management activities which have been affected positively by a fast technological development in few last decades. As Friedman (1999) argues, what is new today is the degree and intensity with which the word is being tied together in to a signal globalized market place and village. What is also new is the sheer number of people and countries able to partake of today globalized economy and information network, and to be affected by them this new era of globalization is turbocharged. As it can be observed, that this noticeable international integration is not just in economics, but in politics and cultures are as well. However, it needs to be recognised that the speed of these changes and growth of integration is different across the world. In some countries and regions the trend of globalization is rapidly increasing while in other parts the pace is much slower and globalisation is not welcomed at all. Nevertheless, regardless of the effects of globalisation no country can afford to ignore its impact on their political and economical circumstances. Likewise, the rate of change is different in various industries as is the strategic response of different business sectors to take advantages of exploiting new business opportunities. Although the merchandise trade, capital investment and labour migration started from 1850-1914, and the economy was more open than it is today in terms of the existing tariffs and trade barriers, but it was not globalized. Just the year following the Second World War and through reconstruction of war, the world has started to establish institutions to open up trades and ensure currency stability such as GATT and IMF, which caused massive increase in the economic growth level. According to Dicken (2003), world trade increased at an average annual rate of 6.7 per cent between 1948 and 1953. Between 1958 and 1963 the rate rose to 7.4 per cent and between 1963 and 1968 it accelerated further to 8.6 per cent. So people experienced a boom period up to 1970s when the first oil crisis has occurred. The United States, which suffered less during the Second World War, increased its foreign investment and after a while the US companies started to move into Western European countries and create interdependencies across world markets. Europe and Japan which mainly focused on rebuilding their economies after the war joined in this and also expanded their positions in the market place and on the economic map after the mid-1980s. (Hill, 2005) Also, because of the necessity of promoting global interdependencies, the United Nations was established to maintain world peace and security and so help the spread of industrialisation and world trade. The main drivers of globalization Apart from the history of globalization there were several main drive points that enhanced the process of globalisation. From the Johnson and Turners (2003) point of view one of the main globalization drivers was the changing economic paradigm. The new approach for managing economy was based on limitation the government role and neo-liberalism. Limiting the role of government provides the situations for businesses to progress and boom. As the Hill (2005) says, major changes occur as new economic and political institutions develop, with movement from traditional, non competitive institutions to competition-based capitalistic economies and democratic institution. So the market was relied on to force the pace of competition. Little by little the liberal economy became an external economic policy and the General Agreement of Tariffs and Trades (GATT) set up to support this philosophy. As a result of GATT and afterwards its successor organization- WTO-, there was a great reduction in tari ffs barriers and non-tariffs barriers for participating countries which help them established and spread their liberal economic policy. The second globalization driver is the spread of international governance and regulation. More international rules and policies developed for business environment, especially in regional level aimed at reducing the barriers in economic market among GATT contracting and WTO members. Also spreading e-commerce as a technological consequent has brought new issues in terms of traditional governance structure. Therefore, by passing the time and more international integration, the trade and market regulation were less under the national states control. According to Johnson and Turners (2003) argument finance and capital spread is another driver of globalization. Necessity of financial and capital movement following the market deregulation and economic liberalization has supported by national rules and has facilitated by technological development and ease the financial transactions. All might agree that the technological development, mainly in information technology and communication sector, has played an important role in globalization. However none of them is the cause of globalization, Dicken (2003) argued, without these technologies the current complex global economy system could not exist. Shrinking time and space by innovated technologies was a great opportunity to reorganization and redefinition the commercial and economical structure. Most of industrial sectors are affected by innovations and changes in technologies especially in manufacturing system with a high influence on value chain. Transportation technology has changed dramatically from 1840 to 1960 which was a development period from steam locomotives to high speed aircraft. Therefore, new transportation systems and their wide usage with cheaper prices have brought global shrinkage. Also in communication and its convergence with computer technology development has facilitated more effective networ ks within and between enterprises. All of these technological conveniences provide links across borders and spread globalization in economic term. Social and cultural convergence might be seen as a driver for globalization. The effect of mass media and usage of internet make the consumer preference more common in global market. As Johnson and Turner (2003) mentioned, similar taste of consumer in different parts of the market creates the opportunity to promote global product. So we can claim that the cultural and social similarities make the conditions available for globalization. Also transferring new technologies has brought about more products in greater varieties at lower costs and prices. Consequently standards of living and peoples expectations rise as well. Mode of entry and expansion methods In simple terms, globalization is an opportunity for companies to expand their market, their value chain and their business across borders. But the point is how effective can companies use these opportunities to make more profit and enjoy sustainable growth. What factors should they consider to make decision to choose an investment option to carry on their development strategy? Global supply chain and its dimensions Apart from different modes of entry available for firms to get advantages from globalization and to move across borders to expand their market, other advantages may be gained through developing global supply chains. The production of any good or service can be conceived as a production chain that is, as a transactionally linked sequence of functions in which each stage adds value to the process of production of goods and services. (Dicken, 2003) The firms try to differentiate their value chain in order to add more competences by using the advantages of each production chain requirement in different part of the world. However, build a global value chain might make it fragmented while the control and management of a global network is more difficult. From Dickens point of view there are three important dimensions in production networks: First is governance which means how they are coordinated and regulated. In the case which varying combinations and interrelationships of different kind of companies and firms might perform in a production network, As Dicken says, the market is the main organizer of external transactions, in contrast with the case which the entire network operated with a single firm and internal organizational structure governs transactions. (Dicken, 2003) The second important dimension in production network is spatiality and how they are conFigured geographically. By increasing the emergence of global production network, network organizing is changing from geographically concentrated to geographically dispersed. The third issue is territorial embeddedness the extent to which they are connected in to particular bounded political, institutional and social setting. (Dicken, 2003) information technology and other new technologies have made space and distances meaningless. Most types of capitals are mobile and all of them can easily move from one place to another. However transportation and communication technology has developed as well, capital does moves within spaceless world. Place is still an important issue, as firms are highly affected by the cultural, socio-political and institutional context of the territorial they are embedded. Therefore multinational firms try to take advantages of differences within regulations and socials in various places while, bringing different state with different regimes in count within a production network makes the situation more complex to control and to take benefits from. Since 1999 and strongly growth of globalization, the same as other important and effective phenomena, globalization has a positive view wave that strongly recommend it and a negative wave against it which moves from developing country to developed countries during these years. Arguments about globalization success or failures do not have any satisfactory result, while globalization can be observe and discussed to understand both negative and positive sides of it. Growth of regionalism Although the speed of globalization and integration in the world market has increased during past decades under the General Agreement on Tariff and Trade (GATT) and more recently by World Trade Organization (WTO), the regional agreement and the debate on the desirability of regionalism has grown as well. By the beginning of twentieth century most of the counties were part of a regional integration. However one might argue that the reason of regional integration is more political than economic explanation, it can not be ignored any more as almost 50 per cent of all world trade is within regional trade agreement. As a result of that, there is fear within WTO and other international institutions that regionalism takes the place of globalization and make a stumbling block toward further global trade integration. (Lung Van Tulder, 2004) Nevertheless there are different forms of regional integration and each of them affects global market more or less while the time of their integration pr ocess is various. The dynamics of automobile market Although some changes had happened in the composition and geography of automobile demand, the concentration of automobile industry in three major global regions face auto companies in these regions with the overcapacity problem. The highly market-oriented of automobile production caused its development be based on affluent consumer markets to achieve the economy of scale. But during the years, the automobile consumer markets in three developed region has developed as well. As Dicken argued in the Global Shift (2003), the changing demand for Automobiles has three major characteristics: It is highly cyclical. There are long term (secular) changes in demand. There are signs of increasing market segmentation and fragmentation. ( Dicken, 2003) The competitors Despite the fact that NAFTA, EU and Japan are the main developed region in both production and trade in auto industry sector, other countries have started restructuring this sector in line with their economic reform. The obvious example might be China and India which both are gaining a sustainable growth in the last decade. Also Turkey has emerged as a new automobile producer in line with other industrial changes aim to become qualified to join European Union. Turkish auto industry Turkey auto industry has been developing due to the well strategic planning applied by the Turkey government by the way in which they opened their country to the global world. They have started their industry as a montage (CKD or SKD) in 1960 and have turned it to manufacturing part after a few years in 1966 trough licensing agreement and dealer-assembler with American and European firms. Gradually the government attempted to adapt an export-oriented strategy; consequently it started to liberalize the importation of cars gradually and reducing the tariffs. Meanwhile it provided some financial supports for upgrading themselves to international acceptable condition. But the main change which caused a revolution in Turkey car industry was the customs unionization agreement in 1995 with European Union which followed by a new restructuring in their auto industry. To harmonization the administrative and regulatory structure of the industry, Turkish government has established an accreditation council to prepare the documents for new adaptation the issues and procedures of exporting in line with European countries. However the Turkey supposed to complete the adaptation and remove all tariffs by 2001, they have not completed it yet and it seems the Turkeys auto industry has not well prepared for full liberalization. Although adaptation a new regime from Turkey government which obligate importing vehicle companies to prepare service facility and aftermarket parts for customers within a country was a great opportunity for domestic firms to become involved with providing spare parts and services. Even though it was not a stable macro environment after 1997-1998 Russian and Asian crisis and again December 2000 crisis, the restructuring program caused some investment in car companies in Turkey in order to support economy of scale and encourage them to developed more update types of automobiles. Turkish manufacturers have operated in two car segment; low medium and medium models and the produced cars have already been phased out in their country of origin, added that these segments account for 90 per cent of the Turkish market. (Duruiz, 2004) Governmental financial supports and investment on auto sectors attracted many foreign investors from 1995 onward, especially with aim to develop new generation cars and modernization the industry. Most of foreign car firms have gained relatively high share of the auto industry after liberalization to use the resources in Turkey and export to European countries through Turkey. Table 1 shows the main auto manufactures in Turkey and their share. As the effect of custom utilization agreement, the automotive sector had the 5th place in Turkey exporting in 2000, but the main effect has happened in component sector and it has increased relatively higher then auto sector export. It was also easier for component producer to upgrade their standard of their firms to get a competitive position in EU base on their lower labour wages. (Duruiz, 2004) Nevertheless Turkey has accepted liberalization in their trade but as they have not done the full integration, their case has become special. Mostly the Turkeys future economy highly depends on the European Union decision to accept it or not as a member of European Union which lead to change their economic structure with the support from the IMF and European Union. Indian auto industry Emerging of India in the world economy has been started by implementing liberalization and opened up most of the economic sectors to the global world in 1992. Looking historically at Indian car industry, it can be divided in four phase from the view point of Kim (2004). The starting point was in 1920s with assembly which was established by foreign companies. (General motor and Ford) It took two decades up to 1952 that Indian build up their domestic production firm. The governmental policy in auto sector is known as the main reason of no progress in productivity and technology in this sector for long period. (Kim, 2004) The third phase was started, after three decades, by making a join venture of Maruti Udyog -became nationalized in 1980- with the Suzuki motor company. According to this agreement a revolution had happened in Indian car industry. Increase the volume and standard was not just in auto makers but the change was occurred in the components industry as well. (Venkataramani, 1990) The main and last phase was started by Indian economic reform after 1992 under the guidance of the IMF and World Bank. As it was anticipated, deregulation of auto industry in 1993 and the expectation of market growth in India according to the population have attracted international auto makers to invest in India. According to the foreign existence it was a dramatically fell of domestic firms share in India. Investment of foreign car makers, which were mainly in the form of joint venture with domestic firms, caused there-restructuring in the Indians motor industry. Apart from promotion of new models with more stylish design, significant changes have happened in auto financing as well. Also numbers of component manufacturers invested in local firms to supply their assemblers. So Indian witnessed a fundamental change in the technology, infrastructure and managerial systems. (Kim, 2004) Despite of all expectations and anticipations about the fast economical growth after regulations in India and a positive view of auto makers about Indian market because of the sizable population of middle-class, the estimates about rising in demand did not turn to reality. Apart from the problems which multinationals generally face in new emerging countries such as undeveloped supplier base, weak infrastructure and undeveloped regulations (Kim, 2001), Indian environment seems more complicated for them. Although the population was far enough to support ten auto makers, the companies face with overcapacity. The lack of demand in both domestic and regional market has become the major problem for multinationals auto makers in India. In terms of export from India to the neighbour countries also, the multinational car makers have not achieved any remarkable result. However the main reason might be the economic situation and poverty of South Asian countries which limit the demand for passenger car, we should not ignore the political and economical relation of India with its neighbour. Despite the hopes after the South Asian Association for Region Cooperation (SAARC) in 1985 and the South Asian Preferential Trading Agreement (SAPTA) in 1995, there was no significant growth observed in the South Asian trade relationship. Although the auto industry in India has not succeeded as it was anticipated, the auto component industry has occurred high progress in quality, technology and international standards. Now, in collaborate with foreign companies, they have become competitive in international markets and auto makers in India use their Indian suppliers to supply their other operation plant around the world. Moreover, Indian government regulations disable multinational to import completely build automobiles to India. However the Indian government did not define any limitation for on foreign ownership, instead 123 per cent tariff rates on import cars were forced multinationals to set up their assembly plant fully within India. And a high tariff on finished components also was another issue that multinationals prefer to find their supplier within domestic firms. (Kim, 2004) Despite of all mentioned problem in India, multinational car makers seems still have a positive view about the Indian market. The potential existing market is there, but the matter is that when it will become visible. Chinese auto industry Following the economical reform in China, the Chinese policy makers focused on auto industry as a symbolic sector which shows the industrial development within a country. The need for technology and knowledge caused them looking for foreign partner to provide the required technology by setting up assembly plant which also generate and improve numbers of domestic firms as the suppliers to support the main assembly plants. So, in the mid-1980 three main cities of China (Beijing, Guangzhou and Shanghai) established a joint-venture with foreign auto makers supported by central and local government. (Thun, 2004) Each local government aimed to improve the local supplier network by its JV, but the assembly plants were looking for the better quality and lower price. Therefore in contrast with the local government and despite of geographical advantages of supplying from local firms, assemblers were dependence on outside supplier and most of them imported 100 per cent of the components from outside unless they were forced by Chinese government to increase their required components from domestic firms. But even after the time assemblers shifted from outside supplier to domestic firms, the local government aim to improve their local network were failed as the JV sourced their parts from other regions. Therefore, as of 2003, just Shanghai could relay on their local auto sector and even though it did not meet the international standards, it became a dominant firm in Chinese auto market. (Thun, 2004) The Shanghai success was the result of well support and strategic plans of local government and Shanghai Automobile industry corporation (SAIC). In 1984, when the Shanghai established a joint-venture with Volkswagen (VW), non of local firms were able to supply the required component for the assembling plant and after two years their share increased by just 2.7 per cent. (Li, 1997) No significant achievement after two years caused Shanghai municipal government began to re-evaluate the problems within the sector and the capacity of individual firms to solve these problems. (Thun, 2004) Consequent of problem solving process, they discovered two necessity preconditions to facilitate improvement in domestic firms. The first one was a reorganization of the municipal bureaucracy responsible for auto sector oversight. They have set up an Automobile Industry Leading Small Group in order to control the local actors. (Li, 1997) The second precondition was the capital accumulation and investment. To solve this problem the local government defined a localization tax and set up the localization office which was responsible to carry out a straightforward import-substitution policy for the imports in auto sector even from other Chinese regions. Also, the localization office checked out the list of imported components and their domestic firms which are capable of produce them successfully, then it provided a suitable investment capital as well as managing the firms relationship with the main assembler plant. (Thun, 2004) Apart from the local government programs, SAIC had its own way to support the Shanghai auto sector, however in some areas their activities overlappe Corporate Strategy for Iranian Car Industry Corporate Strategy for Iranian Car Industry Abstract The purpose of this research is to come across an effective and implemental strategy for Iranian car industry to become an export player in the Middle-East region. With consideration the importance of market development for international auto makers, the Middle-East market is evaluated and Iran as a case study is looked over in terms of its potential automobile market and developing opportunities in Iranian car industry to become a manufacturing partner for international players. Through out a review of Iranian economy and the position of auto sector in Iran economy, the difficulties of growth and development, the role of government- as the regulator- are discussed briefly and the effect of international auto makers -in the past and future- is analyzed. On this basis, we point out the main troubles of the current auto industrys structure and the government dilemma to set its policies. At the end we suggest a reform in the structure and strategy of both assemblers and suppliers to ent er to the international markets. Keywords: Operation strategy; Iran auto industry; Globalization, Regionalization, Industry study Introduction Irans economic performance has begun to improve slowly after a decade of recession which was caused by the long and costly war with Iraq and fluctuations in oil prices. In the decade ending in 1998, GDPs growth per capitals started to rise, although the average was only 3 percent per year. (Economic reports, the World Bank Group) The automotive industry, as one of Irans most promising industries, was the countrys fastest growing industry with the average annual growth of 27.2% between 1995 and 2000 which was 5.5 times of the country average industrial growth. (Economic Focus, Iran Daily News). The domestic vehicle production is growing quickly but it is highly protected, and only in highly exceptional circumstances can Iranians import cars from abroad. Locally produced cars have a reputation for poor quality and have contributed to the dangerously high pollution levels. Also, Iranian firms were not able to satisfy the domestic market in terms of quantity. Demand for automobiles, particularly passenger vehicles, far exceeds the supply. In fact, more than 450,000 people pre-purchase automobiles every year and wait approximately two years to receive them. As a result the government, which wants to raise unit production and improve domestic industry in line with industrialization program, hopes to stimulate competition as part of the effect to make the economy less dependent on oil. In order to follow the market reform plans and provide better circumstances for the countrys main industries such as petrochemical industry, textile and etc, President Khatami (since August 1997- 2005) in 1999, announced an ambitious program to privatize several major industries which included auto industry as a part of total restructuring of Iranian economy. Currently 13 public and privately owned auto maker exist in Iran. The largest vehicle manufacturing company is Iran Khodro with an average share of 60.90% percent of domestic vehicle production, as the main government-controlled carmaker and Saipa is the second one with 32.70%. Subsequent to the development program, automakers have been encouraged to review the way in which their strategies will be developed in the future and to extend a range of strategy options that might enhance their position. Consequently, most Iranian auto makers have been encouraged to join ventures or any other strategic alliances with foreign auto manufacturers to meet the increasing demand (www.ikco.com). On the other hand, in looking at the automobile market generally, during the past few years, it might be observed that after a period of growth from 1997 to 2000 -resulting from the exceptional boom in US economy and the upturn in Europe-but the automobile market especially in North America and Europe has entered a consolidation phase because of overcapacity. The market is mature in developed countries such as those of Western European countries and US market where nearly 90% of sales of new vehicles are now accounted by replacement purchases. Also, in Far East-Japan and South Korea-, overcapacity is a highly sensitive problem (REINAUD, 2001), whereas in Middle-East region, vehicle out put is 6% of total global output in comparison with 29% in Europe and 30.2% in US (carmakers Annual report,*DRI). Thus, some auto manufacturers might be looking for new methods to penetrate the auto market in Middle-East in order to gain more market share over their competitors. If these companies do become partners, Iran will be an option to emerge as a major regional car manufacturer, serving the Middle East beside Other countries in the region, particularly Egypt and Turkey which have substantial car assembly arrangements. The following companies have signed cooperative agreements and their products are either already on the market or are to be introduced in the near future: Frances Peugeot with Iran Khodro. Koreas Kia Motors with Saipa. Frances Citroen with Saipa. Korean Daewoo and Kerman Motors. Optimus of the UK with Renus. Proton of Malaysia with Zagros According to the French automaker Peugeot, Iran has one car for every 21 people. Turkey has one for every 12, while Western European countries and Japan have nearly one car for every 2 people (www.peugeot.com). That indicates market growth potential, and the reason that foreign car manufacturer might be interested in the Iranian auto market. In this research the current auto industry situation in Iran will be analyzed and it will be evaluated in relation to its future strategy consequent upon growth in terms of output quality and ability to serve the domestic market, but also to play a major rule in region and become a truly international car manufacturer and exporter in Middle-East. To achieve a rich understanding of the current situation and examine the environmental position to meet the research objectives, other developing countries auto industry examples like China, India and Turkey will be investigated and analyzed as examples, while the regional circumstances, business environment and other specific characters of Irans economy e.g. the role of government , economic condition and Irans regulations will be considered to find out the most appropriate strategy for Iran car industry. The research question for the chosen topic is What would be the most effective strategy for Iranian car industry to become a major player in the Middle-East market? From this research question, the following objectives would be appropriate to evaluate: To evaluate existing methods of development strategy in the Iranian auto industry, To identify the best possible methods of development strategy for domestic and foreign companies, To recommend how such a strategy can be implemented. The background of the research is set with a brief discussion on the changes have happened in the world of auto industry, the consequent of globalization, the dynamic and diversity of demand in auto market and the auto makers difficulties to respond to new market characteristics while maintain the ability to make profit. Our goal in this paper is to propose an efficient strategy to . The paper has the following structure. Section 2 gives the brief literature review. Section 3 analyses the competitors in automobile Middle East market. Section 4 introduces the Iranian auto industry case. Section 5 presents the growth and development problems in Iranian auto industry. Finally, section 6 is devoted to conclusions and future works. The remainder of this paper is organised as follows. Section 2 summarises the development of Iranian production and exports in the car industry compared to other major exporters in the world. It also explains why Iranian export growth has remained much below production growth. Section 3 develops the empirical export model and describes the variables and data. Then, the model is estimated in Section 4. Estimation results are analysed and a sensitivity analysis is proposed. Section 5 estimates the Iranian export potential with regard to the main foreign markets, while Section 6 concludes. Literature review History of globalization Humans have coined the word Globalization to describe widely traded activities that take place across the continents which are aided immensely by diminishing international trading regulations negotiated through the World Trade Organisation. Globalization is a combination of many -manufacturing, trade in services, supply chain management activities which have been affected positively by a fast technological development in few last decades. As Friedman (1999) argues, what is new today is the degree and intensity with which the word is being tied together in to a signal globalized market place and village. What is also new is the sheer number of people and countries able to partake of today globalized economy and information network, and to be affected by them this new era of globalization is turbocharged. As it can be observed, that this noticeable international integration is not just in economics, but in politics and cultures are as well. However, it needs to be recognised that the speed of these changes and growth of integration is different across the world. In some countries and regions the trend of globalization is rapidly increasing while in other parts the pace is much slower and globalisation is not welcomed at all. Nevertheless, regardless of the effects of globalisation no country can afford to ignore its impact on their political and economical circumstances. Likewise, the rate of change is different in various industries as is the strategic response of different business sectors to take advantages of exploiting new business opportunities. Although the merchandise trade, capital investment and labour migration started from 1850-1914, and the economy was more open than it is today in terms of the existing tariffs and trade barriers, but it was not globalized. Just the year following the Second World War and through reconstruction of war, the world has started to establish institutions to open up trades and ensure currency stability such as GATT and IMF, which caused massive increase in the economic growth level. According to Dicken (2003), world trade increased at an average annual rate of 6.7 per cent between 1948 and 1953. Between 1958 and 1963 the rate rose to 7.4 per cent and between 1963 and 1968 it accelerated further to 8.6 per cent. So people experienced a boom period up to 1970s when the first oil crisis has occurred. The United States, which suffered less during the Second World War, increased its foreign investment and after a while the US companies started to move into Western European countries and create interdependencies across world markets. Europe and Japan which mainly focused on rebuilding their economies after the war joined in this and also expanded their positions in the market place and on the economic map after the mid-1980s. (Hill, 2005) Also, because of the necessity of promoting global interdependencies, the United Nations was established to maintain world peace and security and so help the spread of industrialisation and world trade. The main drivers of globalization Apart from the history of globalization there were several main drive points that enhanced the process of globalisation. From the Johnson and Turners (2003) point of view one of the main globalization drivers was the changing economic paradigm. The new approach for managing economy was based on limitation the government role and neo-liberalism. Limiting the role of government provides the situations for businesses to progress and boom. As the Hill (2005) says, major changes occur as new economic and political institutions develop, with movement from traditional, non competitive institutions to competition-based capitalistic economies and democratic institution. So the market was relied on to force the pace of competition. Little by little the liberal economy became an external economic policy and the General Agreement of Tariffs and Trades (GATT) set up to support this philosophy. As a result of GATT and afterwards its successor organization- WTO-, there was a great reduction in tari ffs barriers and non-tariffs barriers for participating countries which help them established and spread their liberal economic policy. The second globalization driver is the spread of international governance and regulation. More international rules and policies developed for business environment, especially in regional level aimed at reducing the barriers in economic market among GATT contracting and WTO members. Also spreading e-commerce as a technological consequent has brought new issues in terms of traditional governance structure. Therefore, by passing the time and more international integration, the trade and market regulation were less under the national states control. According to Johnson and Turners (2003) argument finance and capital spread is another driver of globalization. Necessity of financial and capital movement following the market deregulation and economic liberalization has supported by national rules and has facilitated by technological development and ease the financial transactions. All might agree that the technological development, mainly in information technology and communication sector, has played an important role in globalization. However none of them is the cause of globalization, Dicken (2003) argued, without these technologies the current complex global economy system could not exist. Shrinking time and space by innovated technologies was a great opportunity to reorganization and redefinition the commercial and economical structure. Most of industrial sectors are affected by innovations and changes in technologies especially in manufacturing system with a high influence on value chain. Transportation technology has changed dramatically from 1840 to 1960 which was a development period from steam locomotives to high speed aircraft. Therefore, new transportation systems and their wide usage with cheaper prices have brought global shrinkage. Also in communication and its convergence with computer technology development has facilitated more effective networ ks within and between enterprises. All of these technological conveniences provide links across borders and spread globalization in economic term. Social and cultural convergence might be seen as a driver for globalization. The effect of mass media and usage of internet make the consumer preference more common in global market. As Johnson and Turner (2003) mentioned, similar taste of consumer in different parts of the market creates the opportunity to promote global product. So we can claim that the cultural and social similarities make the conditions available for globalization. Also transferring new technologies has brought about more products in greater varieties at lower costs and prices. Consequently standards of living and peoples expectations rise as well. Mode of entry and expansion methods In simple terms, globalization is an opportunity for companies to expand their market, their value chain and their business across borders. But the point is how effective can companies use these opportunities to make more profit and enjoy sustainable growth. What factors should they consider to make decision to choose an investment option to carry on their development strategy? Global supply chain and its dimensions Apart from different modes of entry available for firms to get advantages from globalization and to move across borders to expand their market, other advantages may be gained through developing global supply chains. The production of any good or service can be conceived as a production chain that is, as a transactionally linked sequence of functions in which each stage adds value to the process of production of goods and services. (Dicken, 2003) The firms try to differentiate their value chain in order to add more competences by using the advantages of each production chain requirement in different part of the world. However, build a global value chain might make it fragmented while the control and management of a global network is more difficult. From Dickens point of view there are three important dimensions in production networks: First is governance which means how they are coordinated and regulated. In the case which varying combinations and interrelationships of different kind of companies and firms might perform in a production network, As Dicken says, the market is the main organizer of external transactions, in contrast with the case which the entire network operated with a single firm and internal organizational structure governs transactions. (Dicken, 2003) The second important dimension in production network is spatiality and how they are conFigured geographically. By increasing the emergence of global production network, network organizing is changing from geographically concentrated to geographically dispersed. The third issue is territorial embeddedness the extent to which they are connected in to particular bounded political, institutional and social setting. (Dicken, 2003) information technology and other new technologies have made space and distances meaningless. Most types of capitals are mobile and all of them can easily move from one place to another. However transportation and communication technology has developed as well, capital does moves within spaceless world. Place is still an important issue, as firms are highly affected by the cultural, socio-political and institutional context of the territorial they are embedded. Therefore multinational firms try to take advantages of differences within regulations and socials in various places while, bringing different state with different regimes in count within a production network makes the situation more complex to control and to take benefits from. Since 1999 and strongly growth of globalization, the same as other important and effective phenomena, globalization has a positive view wave that strongly recommend it and a negative wave against it which moves from developing country to developed countries during these years. Arguments about globalization success or failures do not have any satisfactory result, while globalization can be observe and discussed to understand both negative and positive sides of it. Growth of regionalism Although the speed of globalization and integration in the world market has increased during past decades under the General Agreement on Tariff and Trade (GATT) and more recently by World Trade Organization (WTO), the regional agreement and the debate on the desirability of regionalism has grown as well. By the beginning of twentieth century most of the counties were part of a regional integration. However one might argue that the reason of regional integration is more political than economic explanation, it can not be ignored any more as almost 50 per cent of all world trade is within regional trade agreement. As a result of that, there is fear within WTO and other international institutions that regionalism takes the place of globalization and make a stumbling block toward further global trade integration. (Lung Van Tulder, 2004) Nevertheless there are different forms of regional integration and each of them affects global market more or less while the time of their integration pr ocess is various. The dynamics of automobile market Although some changes had happened in the composition and geography of automobile demand, the concentration of automobile industry in three major global regions face auto companies in these regions with the overcapacity problem. The highly market-oriented of automobile production caused its development be based on affluent consumer markets to achieve the economy of scale. But during the years, the automobile consumer markets in three developed region has developed as well. As Dicken argued in the Global Shift (2003), the changing demand for Automobiles has three major characteristics: It is highly cyclical. There are long term (secular) changes in demand. There are signs of increasing market segmentation and fragmentation. ( Dicken, 2003) The competitors Despite the fact that NAFTA, EU and Japan are the main developed region in both production and trade in auto industry sector, other countries have started restructuring this sector in line with their economic reform. The obvious example might be China and India which both are gaining a sustainable growth in the last decade. Also Turkey has emerged as a new automobile producer in line with other industrial changes aim to become qualified to join European Union. Turkish auto industry Turkey auto industry has been developing due to the well strategic planning applied by the Turkey government by the way in which they opened their country to the global world. They have started their industry as a montage (CKD or SKD) in 1960 and have turned it to manufacturing part after a few years in 1966 trough licensing agreement and dealer-assembler with American and European firms. Gradually the government attempted to adapt an export-oriented strategy; consequently it started to liberalize the importation of cars gradually and reducing the tariffs. Meanwhile it provided some financial supports for upgrading themselves to international acceptable condition. But the main change which caused a revolution in Turkey car industry was the customs unionization agreement in 1995 with European Union which followed by a new restructuring in their auto industry. To harmonization the administrative and regulatory structure of the industry, Turkish government has established an accreditation council to prepare the documents for new adaptation the issues and procedures of exporting in line with European countries. However the Turkey supposed to complete the adaptation and remove all tariffs by 2001, they have not completed it yet and it seems the Turkeys auto industry has not well prepared for full liberalization. Although adaptation a new regime from Turkey government which obligate importing vehicle companies to prepare service facility and aftermarket parts for customers within a country was a great opportunity for domestic firms to become involved with providing spare parts and services. Even though it was not a stable macro environment after 1997-1998 Russian and Asian crisis and again December 2000 crisis, the restructuring program caused some investment in car companies in Turkey in order to support economy of scale and encourage them to developed more update types of automobiles. Turkish manufacturers have operated in two car segment; low medium and medium models and the produced cars have already been phased out in their country of origin, added that these segments account for 90 per cent of the Turkish market. (Duruiz, 2004) Governmental financial supports and investment on auto sectors attracted many foreign investors from 1995 onward, especially with aim to develop new generation cars and modernization the industry. Most of foreign car firms have gained relatively high share of the auto industry after liberalization to use the resources in Turkey and export to European countries through Turkey. Table 1 shows the main auto manufactures in Turkey and their share. As the effect of custom utilization agreement, the automotive sector had the 5th place in Turkey exporting in 2000, but the main effect has happened in component sector and it has increased relatively higher then auto sector export. It was also easier for component producer to upgrade their standard of their firms to get a competitive position in EU base on their lower labour wages. (Duruiz, 2004) Nevertheless Turkey has accepted liberalization in their trade but as they have not done the full integration, their case has become special. Mostly the Turkeys future economy highly depends on the European Union decision to accept it or not as a member of European Union which lead to change their economic structure with the support from the IMF and European Union. Indian auto industry Emerging of India in the world economy has been started by implementing liberalization and opened up most of the economic sectors to the global world in 1992. Looking historically at Indian car industry, it can be divided in four phase from the view point of Kim (2004). The starting point was in 1920s with assembly which was established by foreign companies. (General motor and Ford) It took two decades up to 1952 that Indian build up their domestic production firm. The governmental policy in auto sector is known as the main reason of no progress in productivity and technology in this sector for long period. (Kim, 2004) The third phase was started, after three decades, by making a join venture of Maruti Udyog -became nationalized in 1980- with the Suzuki motor company. According to this agreement a revolution had happened in Indian car industry. Increase the volume and standard was not just in auto makers but the change was occurred in the components industry as well. (Venkataramani, 1990) The main and last phase was started by Indian economic reform after 1992 under the guidance of the IMF and World Bank. As it was anticipated, deregulation of auto industry in 1993 and the expectation of market growth in India according to the population have attracted international auto makers to invest in India. According to the foreign existence it was a dramatically fell of domestic firms share in India. Investment of foreign car makers, which were mainly in the form of joint venture with domestic firms, caused there-restructuring in the Indians motor industry. Apart from promotion of new models with more stylish design, significant changes have happened in auto financing as well. Also numbers of component manufacturers invested in local firms to supply their assemblers. So Indian witnessed a fundamental change in the technology, infrastructure and managerial systems. (Kim, 2004) Despite of all expectations and anticipations about the fast economical growth after regulations in India and a positive view of auto makers about Indian market because of the sizable population of middle-class, the estimates about rising in demand did not turn to reality. Apart from the problems which multinationals generally face in new emerging countries such as undeveloped supplier base, weak infrastructure and undeveloped regulations (Kim, 2001), Indian environment seems more complicated for them. Although the population was far enough to support ten auto makers, the companies face with overcapacity. The lack of demand in both domestic and regional market has become the major problem for multinationals auto makers in India. In terms of export from India to the neighbour countries also, the multinational car makers have not achieved any remarkable result. However the main reason might be the economic situation and poverty of South Asian countries which limit the demand for passenger car, we should not ignore the political and economical relation of India with its neighbour. Despite the hopes after the South Asian Association for Region Cooperation (SAARC) in 1985 and the South Asian Preferential Trading Agreement (SAPTA) in 1995, there was no significant growth observed in the South Asian trade relationship. Although the auto industry in India has not succeeded as it was anticipated, the auto component industry has occurred high progress in quality, technology and international standards. Now, in collaborate with foreign companies, they have become competitive in international markets and auto makers in India use their Indian suppliers to supply their other operation plant around the world. Moreover, Indian government regulations disable multinational to import completely build automobiles to India. However the Indian government did not define any limitation for on foreign ownership, instead 123 per cent tariff rates on import cars were forced multinationals to set up their assembly plant fully within India. And a high tariff on finished components also was another issue that multinationals prefer to find their supplier within domestic firms. (Kim, 2004) Despite of all mentioned problem in India, multinational car makers seems still have a positive view about the Indian market. The potential existing market is there, but the matter is that when it will become visible. Chinese auto industry Following the economical reform in China, the Chinese policy makers focused on auto industry as a symbolic sector which shows the industrial development within a country. The need for technology and knowledge caused them looking for foreign partner to provide the required technology by setting up assembly plant which also generate and improve numbers of domestic firms as the suppliers to support the main assembly plants. So, in the mid-1980 three main cities of China (Beijing, Guangzhou and Shanghai) established a joint-venture with foreign auto makers supported by central and local government. (Thun, 2004) Each local government aimed to improve the local supplier network by its JV, but the assembly plants were looking for the better quality and lower price. Therefore in contrast with the local government and despite of geographical advantages of supplying from local firms, assemblers were dependence on outside supplier and most of them imported 100 per cent of the components from outside unless they were forced by Chinese government to increase their required components from domestic firms. But even after the time assemblers shifted from outside supplier to domestic firms, the local government aim to improve their local network were failed as the JV sourced their parts from other regions. Therefore, as of 2003, just Shanghai could relay on their local auto sector and even though it did not meet the international standards, it became a dominant firm in Chinese auto market. (Thun, 2004) The Shanghai success was the result of well support and strategic plans of local government and Shanghai Automobile industry corporation (SAIC). In 1984, when the Shanghai established a joint-venture with Volkswagen (VW), non of local firms were able to supply the required component for the assembling plant and after two years their share increased by just 2.7 per cent. (Li, 1997) No significant achievement after two years caused Shanghai municipal government began to re-evaluate the problems within the sector and the capacity of individual firms to solve these problems. (Thun, 2004) Consequent of problem solving process, they discovered two necessity preconditions to facilitate improvement in domestic firms. The first one was a reorganization of the municipal bureaucracy responsible for auto sector oversight. They have set up an Automobile Industry Leading Small Group in order to control the local actors. (Li, 1997) The second precondition was the capital accumulation and investment. To solve this problem the local government defined a localization tax and set up the localization office which was responsible to carry out a straightforward import-substitution policy for the imports in auto sector even from other Chinese regions. Also, the localization office checked out the list of imported components and their domestic firms which are capable of produce them successfully, then it provided a suitable investment capital as well as managing the firms relationship with the main assembler plant. (Thun, 2004) Apart from the local government programs, SAIC had its own way to support the Shanghai auto sector, however in some areas their activities overlappe