Trouble in Paradise with Comments free essay sample

Company joint venture in China is one of the regions shining success stories. So why is generai manager Mike Gravesthinking about pulling the plug on it? ROM Mike Gravess tall windows, which were draped in red veivet, the view of Shanghai was spectacular: the stately old Western-style buildings, the riot of modem skyscrapers, the familiar needle of the TV tower. But today Mike barely noticed it. Clenching a copy of his Chinese partners proposal for another acquisition it would be the companys fourth he paced the floor and replayed in his mind that mornings unsettling phone call. He had called his boss. Bill Windier, at headquarters in Ohio, hoping to get a nice quote to inject into the brief remarks he was to make at that days banquet celebrating the joint ventures tenth anniversary. But as he gave Windier a quick rundown of what he intended to say mostly about the joint ventures progress toward world-class qualityMike could sense his bosss growing frustration. We will write a custom essay sample on Trouble in Paradise with Comments or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Aboutfiveminutes into the call. Windier cut Mike off in midsentence. saying,Dont throw your shoulder out patting yourself on the back. Windier reminded Mike about the margins he was looking for across all of Heartland Spindles businesses. A 4% ROI is pathetic, Windier said. Weve been in there ten years, Mike. The numbers shouid look better by now. He said he was looking for a 20% ROI, adding that such a number could surely be achieved through greater efficiency and more automation. And in Windlers view, the company had at least 1,200 employees too many. That needs to be fixed, fast, he said. Mike knew his boss wouldnt take no for an answer, but he had also learned that his Chinese partners would never agree to drastic moves such as the layoffs suggested by Windier. It was beginning to look as though the five good years he had spent here as general manager might be destined to come to a pairrful end. Mike couldnt help but HBRs cases, which arefictional,present common managerial dilemmas and offer concrete solutions from experts. A CHANGED WORLD AUGUST 2003 H B R CASE STUDY †¢ T r o u b l e in P a r a d i s e wonder if those harsh v^ords from Ohio were a warning that his contract might not be renewed in six months. Then, to top things off, just as Mike had extricated himself from the phone conversation, this latest acquisition proposal had arrived from deputy general manager Qinlin Li. The top executive on the Chinese side of the joint venture, Qinlin had been with the JV since its inception. As before, there would be almost irresistible pressure to go along with the deal. The Chinese side would make it clear yet again that the delicate partnership depended on Mikes support for continuous expansion and protection of jobs. The timing couldnt have been worse: The last thing Windier would want was more growth initiatives eating into the profits. A knock on the heavy teak door snapped him out of his musings. Feng Chen, Mikes assistant and translator, informed him that his car was waiting. nior executives, Qinllns immediate subordinates, stood up and nodded their greetings. There was a burst of excited applause, and cameras flashed. Qinlin was accompanying three important government officials into the room. They approached Mikes table and politely bickered for several minutes over who should enjoy the most prominent seat at the table, as required by Chinese custom. At last, the eldest and most highly placed official accepted the seat of honor. Qinlin stepped up to the podium, above which hung a huge Chinese knot of red silk, the symbol of cooperation. There was an expectant hush as he tapped the microphone. Ladies and gentlemen Qinlin began,thank you for joining me to celebrate the tenth anniversary of Zhong-Lian Knitting Company Limited. Those who were vwith the company at the beginning remember the hardships we endured and the hard work we put in. Since the establishment of Zhong-Lian as a 50/50 joint venture between Suzhou First Textile Company and our U. S. partner. Heartland Spindle Company, Zhong-Lian has faced many difficulties and obstacles. But we succeeded Mike was listening to the translators words, but he could hear the passion in Qinlins voice. We turned a money-losing company into a money-making company, and we made great headway as a result of support from our government, efforts on the part of both parent companies, and all our managers and employees. Mike hadnt been there during the early days, but he knew the stories. He was the fourth GM sent by Heartland in ten years. His two most recent pre- Enhance Friendly Cooperation As the car pulled up outside the ShangriLa Hotel, Mike forced himself to smile at the red carpet lined with dozens of lavish flower baskets sent by local government officials, business partners, suppliers, customers, and even competitors. A marching band in full uniform stood at the hotel entrance, and above it stretched a bright red banner that said, in Chinese and English: Enhance Friendly Cooperation and Ensure Mutual Growth and Celebrate the Tenth Anniversary of Zhong-Lian Knitting Co. Ltd. Mike exchanged greetings with Qinlin, who had been there for an hour already and was still seeing to last-minute details. In the ballroom, an elegant young woman in a red silk qi-pao, a traditional dress for formal celebrations, escorted Mike to the round table that was front and center. T\vo Chinese se- Katherine Xin is a professor of management and holds the Micheiin Chair in Leadership and Human Resource Management at China Europe International Business School (CEIBS) in Shanghai; she is also the editor in chief of HBR China. Vladimir Pucik is a professor ofinternational human resources and strategy at the International Institute for Management Development (lMD) in Lausanne, Switzerland. 28 decessors had left before their threeyear assignments were complete, one for family reasons his wife couldnt adapt to China-and the other for a better job offer (allegedly). Mike, a veteran manager with 20 years of international experience, had lived and worked in Japan, Hong Kong, and Australia before Heartland sent him to Shanghai. Mikes toughest challenge at tbe outset was the language barrier. He wouldnt have survived without Feng Chens help. It didnt take long for Mike to learn what cha-bu-duo meant: almost okay. He hated that word! It was baffling to him: Even though his Chinese partners were intelligent and willing to work hard, they werent exactly obsessed with quality. They cut corners and hardly ever followed operating procedures to HARVARD BUSINESS REVIEW Trouble in Paradise †¢ H B R CASE S T U D Y It didnt make sense to him until months later, when Mike heard someone say, Keeping silent in a group is safer. You wont get in trouble if you dont do anything. But you will get in trouble if you make a mistake. We are experienced under this system, and we know how it works. At any rate, Mike was relieved when the equipment was set up even though it took two years and outside pressure from the provincial Environment Protection Bureau to make it happen. There was another burst of applause. Qinlins voice reverberated through the room. We have acquired three moneylosing state-owned enterprises and managed to earn an annual profit of between 5% and 6%, he said. The number of employees increased from 400 to 2,300 in the past decade. Given the slump of the textile industry in these years, Zhong-Lians achievement is remarkable. In the coming years, we will further enhance the company and maintain our growth momentum. Qinlin paused, and his eyes sparkled. Let me tell you another piece of good news, he said. We are preparing our fourth acquisition, which is expected to raise our production capacity by 40%. The number of our employees will grow to nearly 3gt;5oo. And all this will help us launch our next initiative: building our own national brand. An elegant young woman in a silk qi-pao escorted Mike What little appetite Mike had for the celebration vanished. He had long been to his table. But he was preoccupied by the Chinese executives trying to quash that kind of talk. Heartplans and what they would mean for profitability. land, he knew, would never support launching an apparel brand that would the letter. Buttons often fell off sweat- sewage disposal three months after he eat up resources and limit profits for ers before the garments were even started (he was astonished that his Chi- years. Qinlin knows this well, Mike shipped out of the factory. Cha-bu-duo nese partner hadnt updated it already), thought, so why is he raising expectais why Mike insisted on introducing his counterparts said, Okay, yan-jiu- tions in such a public way? Total Quality Management to Zhong- yan-jiu. T\vo months later, after Mikes Qinlin thanked the vice mayor and Lian and TQM was probably why the repeated prodding, the proposal made the other government officials without jV had been so successful. Mike had also it onto a meeting agenda. But at the whose wise supervision, in his effusive felt a small sense of satisfaction when meeting, the Chinese managers seemed words, the joint venture would not have he taught his Chinese colleagues a new reluctant to discuss the matter, and no made such great progress. The vice term: Six Sigma. one wanted to assume responsibility for mayor rose to speak and returned the Cha-bu-duo wasnt the only expres- solving the problem. When Mike asked compliments, praising Zhong-Lians consion Mike heard all too often. He also managers for feedback individually, tribution to the local economy esquickly got used ioyan-Jiu-yan-Jiu, which they all had ideas, many of them excel- pecially to maintaining employment means Lets review and discuss. When lent. He couldnt imagine why the man- levels and calling the joint venture a he proposed a new system to deal with agers hadnt spoken up at the meeting. flagship among the citys enterprises. A CHANGED WORLD AUGUST 200^1 H B R CASE S T U D Y †¢ Trouble in Paradise When it was Mikes turn, he too voiced the expected praise for the officials it was a ritual whose airy forms and steely seriousness had become almost second nature to him. But throughout his little speech, he felt he was hardly doing more than going through the motions. He was preoccupied by Qinlins plans and what they would mean for profitability. Later, the lazy Susan at each table was filled with eight cold dishes, eight hot dishes, and two showpiece dishes: a whole suckling pig and a whole braised mandarin fish in the shape of a squirrel. Qinlin, as the host of his table, proposed hildrens education at Concordia International School (the best in Shanghai). Life here was easy and comfortable a world away from what it would have been like back in Ohio. But Mikes tension returned when he thought about his meeting the next morning with the people at Hua-Ying, the potential acquisition. He wouldnt be living in Green Villa much longer if he signed off on that deal. Over dinner, Mike told Linda about the conversation with Windier. Dont they understand that the Chinese way of doing business is different from the American way? Linda asked create another one: Many jobs would disappear. The Chinese partners were much more concemed with creating jobs and keeping govemment ofificiaJs happy than with improving quality. They wanted to keep growing into new provinces and buying up unprofitable companies, even if turning them around took years. But expansion would require significant additional resources that Heartland Spindle clearly wasnt ready to commit. And now there would be pressure to create a new company to market a national brand, again a drain on cash. So what do you think youre going to do? Linda asked. Im meeting with executives from Hua-Ying tomorrow morning. Maybe theyll surprise me with an operation that wont take forever to turn aroundthatd be the best case, Mike said. After that, Ill have to talk to Qinlin and the others about Heartlands concerns. But I know how that conversation will play out. Theyll say Heartland is being shortsighted and that the JVs history of turning around money-losing businesses should prove that we just need to be more patient. I wish Bill and the rest back in the States had a better understanding of how things work here. I was skeptical myself at the beginning. Remember when wefirstgot here and 1 was fuming at the business expenses? Seemed like every executive on the payroll was wining and dining some key partner or contact. And Robert OReilly, our controller, came to me shouting that our Chinese partner spent money like water. But, gradually, we both figured out that those expenses were paying off for us. The Chinese ritual of sharing food-nurturing ^i/anx(-is so powerful in making deals that it became one of our hidden assets. Im afraid we wont get those kinds of results if we focus only on cutting costs and laying off workers, as Ohio wants us to do. Life here was easy and comfortable-a world awayfrom what it was like back in Ohio. But Mike knew he wouldnt be here much longer if he signed off on that acquisition deal. a toast. Then he emptied his glass as a sign of his sincerity and joy. Glasses clinked; champagne and Coke bubbled. But Mike had become so attuned to the subtleties of these gatherings that he immediately noticed the response of the officials: Instead of emptying their glasses, they merely took sips. Mike supposed that they must have heard about his opposition, muted though it had been, to the expansion ideas. him sympathetically. Its not all about squeezingthe most out of your workers here. They value stability and long-term employment. Youd think Heartland wouldVe been prepared for this sort of performance. Its not like youre losing money, like so many JVs here do. Just last week on the course, Christie and Maya told me that their husbands businesses hadnt turned a profit yet I know, but that doesnt seem to be good enough any more, Mike said. He recounted Bills suggestions about layoffs and investing in more automated equipment. He knew that he would soon have to broach these subjects with his Chinese partners. Mikes biggest problem was that he could see both sides. Heartland wanted to reposition itself in the U. S. arketselling at discount stores wasnt profitable enough. But to enable Heartland to make the jump to high-end retailers, the joint venture would have to meet much higher standards of quality. Those old dyeing machines, for instance, would have to go; they had cost the company a lot of money over the last few years, not just in shipping and handling charges for returned products but also in terms of the companys reputation. New machines would fix that problem, but theyd Living in Style sitting in the backseat of the company car, Mike felt his tension ease when his driver, Lao Li, turned into his neighborhood. The car slipped by a row of cypresses and passed a perfectly manicured golf course. Designed in European country style, the elegant Green Villa was an ideal residence for expatriates. Mike loved this village its extensive recreational amenities, itsfirst-classservice. At very little cost, for example, Mikes family had hired a live-in domestic helper who happened to be a superior cook. His wife, Linda, played golf three times a week with her friends in the village, and she had recently taken up yoga. The company paid $7,800 a month to rent the familys home; it also paid for a chauffeur, a nanny, and the PowerPoint and Green Tea The chief executive of Hua-Ying, Genfa Wang, sent his own limousine to pick up Mike and Qinlin as a symbol of his HARVARD BUSINESS REVIEW 30 Trouble in Paradise †¢ H B R CASE S T U D Y sincerity and hospitality. Genfa and his top managers were waiting at the gate when the car pulled up, and one of the men stepped forward to open the car door. Genfa greeted Mike, Qinlin, and Feng Chen with,My honor! IVlyhonor! It is a great pleasure to have you here with us. Thefirstbuilding they entered looked fairly clean, but the conference room carpet was pocked with cigarette bums. Not exactly a high-class operation, Mike thought. Up on the third floor, there was a disagreeable odor-no flush. He could just imagine the state of the plumbing. And hadnt leaky pipes been responsible for the initial spread of SARS into cities in Hong Kong? He was sure he had read something like that. His unease grew. What other hidden risks were lurking in this facility? There was no way he was going to be able to agree to this acquisition, he thought. But he was pleasantly surprised to see seven cups of Bi Luo Chun tea, one of the best Chinese green teas, on an ele- ant redwood table. And a minute later, Genfa pulled out a laptop and began making his presentation using PowerPoint slides. Mike was shocked. He hadnt expected such sophistication from a company this size, especially a company that seemed to lack modem sanitary facilities. Genfa, sensing Mikes reaction, said proudly,My nephew gave me training on this high-tech stuff. He is a college graduate, a vice GM of our company in charge of technology and engineering. Great, Mike thought with exasperation. There were probably a few relatives on the board, too. But his mood swung back during Genfas 40-nunute presentation as the CEO spoke precisely and clearly about the numbers-it was obvious he was shrewd about the market. Mike was intrigued. At the second building, his earlier impressions were reinforced: The machines in here looked old and shabby. Some workers were busy, but others were idly waiting for a product deliv- ery. Bales of goods were stacked high in one comer, and Mike stumbled over a box as he picked his way through the dim light. When he noticed that the record sheets on the desk and walls were handwritten, his heart sank: So much for high tech. On his way home that night in his own companys car, Mike gazed out the window, trying to figure out what to do next. Should he recommend the acquisition to Bill? Should he propose rejecting the deal and thus probably bring an end to the partnership? The idea of buying out the JV had occurred to him, but it clearly wouldnt work, not with the Chinese partner dreaming of a national brand. When the Audi came to a stop outside Mikes house, he hadnt reached any conclusions. He knew he was going to have another sleepless night at Green Villa. Can Mike keep the joint venture from unraveling? Four commentators offer expert advice. Right now, youre reading about the newest Spend a few weeks with us, and youll be creating Ready to find your edge in the world of business? 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First, he needs to develop a clearer vision of Heartland Spindles-and its partners-strategic goals in China, Second, he needs to assemble a much stronger team for the company. Third, he needs to consider alternatives to the traditional 50/50 joint venture. And, finally, he needs to move outside his personal comfort zone as a manager. The lack of a clear, shared strategy is the most glaring problem in this case. Is Heartland chiefly interested in China as a low-cost production baseforU. S, exports? Or is it hoping to win a share ofthe domestic market? If so, which segment is Heartland focusing o n a n d based on what competitive edge? Without a clear strategy, its impossible to choose the right structure for and extent of cooperation with a foreign partner. Conversely, when your intent is clear and reasonable, you can get past a surprising number of obstacles. When Michelin started discussions in Shanghai with Chinas largest tire manufacturer, we were clear that we intended to develop a major center there for the world tire industry and that we would therefore have to bring our best technology. To protect that technology, we would need control ofthe venture, which initially seemed impossible to achieve from a legal standpoint. As it turned out, we got control because the municipality shared the goal and recognized the necessity. Perhaps there once was a clear strategy that has been forgotten overthe course often years and several changes in management. Mike should study the contracts and, more important, have discussions with the original sponsors ofthe deal. If he can learnthe initial intentions, he might find a positive starting point for rebuilding a spirit of cooperation vwith his partner. This brings me to my second point: the importance of mobilizing a team of people to further the JVs strategy. Political officials are going to be a big part ofthat team; they have a stronger influence on economic life in China than Mike might realize. He must reach out to them and understand their goals. It is not a matter of good dinners and dubious expenses left to the Chinese staff. Success will depend on the personal involvement of top executives. I cannot overstress how crucial relationships are in China, Only when individuals know and understand each other can they develop the level of cooperation required for success, Mike should convince his boss to be the one who owns the relationship with a key officiai-the vice mayor, say. Yes, this will add a layer of complexity, but success in China is as much about time as it is about money. This is the most important fact for Mike to impress upon the leadership back at headquarters. Our CEO, Edouard Michelin, is in the habit of coming to China two or three times a year, with a flexible agenda, and that does a great deal to develop and support our operations here. Mike also needs to think creatively about alternatives to the traditional 50/50 joint venture. For instance, if Heartland Spindle is focused on exports and profitability, it might make more sense to have a minority share in the venture. Heartland would bring knowhow to the table and would purchase the export production, leaving the Chinese partner to manage productivity and profit levels. That would protect Heartlands margins and reduce its investment, yielding a higher return on assets. The point is that this situation might require a creative solution, and that brings me to my final concern. Mike needs to move out of his comfort zone and learn to strategize and negotiate in a highly dynamic environment. He should be the one taking the initiative, not reacting in surprise to the ideas and actions of others. Ericjugieris the chairman ofMichelin (China) Investment in Shanghai. 32 HARVARD BUSINESS REVIEW Can Mike Keep the Joint Venture from Unraveling? †¢ H B R CASE COMMENTARY I ts never easy making joint ventures work, especially when the strategic objectives of the partners diverge. Zhong-Lian Knitting has had a very successful ten years, during which the partners have been able to work out their differences. But this jV may well have outlived its usefulness. land Spindle is focused on short-to mediumterm financial returns and on transforming Zhong-Lian into a high-quality manufacturer. No amount of discussion is going to reconcile their differences. If he concludes that the status quo is not viable, Mike must ask himself a second question: How can he restructure or exit the JV in a way that makes sense for Heartland? To answer, he must take into account any termination or exit clauses in the joint venture agreement He must also determine whether Heartland needs to have an ownership interest in the JV to continue the commercial relationship with it and whether Suzhou is financially able to buyout Heartlands interest in the JV Mike would be well advised to investigate several options in parallel. They could include selling some or all of Heartlands interest to Suzhou. A phased exit in which Heartland reduces its ownership stake overtime could make sense if Heartland wants to minimize disruption in the relationship; it might also make it easier for Suzhou to raise capital (if this is a constraint). AIternatively, Mike could explore the sale of Heartlands interest to a more compatible third party. The partners might also wish to consider an IPO, assuming that Zhong-Lian is sufficiently developed to make this option realistic. An IPO would give Heartland an exit while providing the joint venture access to capital to continue its growth. A third question Mike should be asking is. What is Heartlands overall joint venture strategy, not just in China but also in other markets? Heartland should consider establishing a portfolio of joint venture relationships in China and other low-cost regions. That would allow the company to diversify its sourcing relationships, reducing the risk associated with any one partner. It would also allow Heartland to upgrade its skills in establishing and managing international joint ventures. Perhaps if Mikes boss became involved in negotiating a few international jVs, he would acquire a better appreciation for the challenges involved in managing such relationships. Zhong-Lian is similar to many other joint ventures in that its problems are partly due to its success. I am reminded of the jV created in the early 1980S by Merck and the Swedish pharmaceutical company Astra to help Astra enter the U. S. market. It operated successfully for more than a decade; by the late 1990S, various analysts estimated it to be worth up to $10 billion, largely because of sales of the blockbuster drug Prilosec. But the parties increasingly found that their objectives were incompatible. Merck wanted to continue benefiting from Astras current products and RD pipeline, but Astra needed control over its U. S. operations to pursue its vision of becoming a leading global pharmaceutical company. The partners eventually agreed to restructure the venture so that Dieter Turowski Is a managing director in Mergers Acquisitions at Morgan Stanley in London. Heartland should consider establishing a portfolio of joint ventures. That would reduce the risk associated with any one partner. Astra had control, and Merck would receive payments based on the sales of future products. Zhong-Lian and its Chinese parent, Suzhou First Textile, may be at a similar crossroads. To determine his next step, Mike Craves needs to answer a fundamental question: Have the partnersstrategic interests moved so far apart that the JV no longer makes sense in its currentform? The answer apDears to be yes. Suzhou is focused on expansion within China and on developing a national brand; this strategy will continue to put pressure on the ventures financial performance. Heart- A CHANGED WORLD AUGUST 2003 3 H B R CASE C O M M E N T A R Y †¢ Can Mike Keep the Joint Venture from Unraveling? H eartland Spindle entered the China market at the same time many multinationals did, about a decade ago, seeing the same enormous opportunity. The market was huge and there was undercapacity in many segments and industries, so high margins seemed assured. But that was a shortsighted and static view of the ma rket. As the multinationals rushed in and productivity quickly improved, the immediate result was a dramatic expansion of capacity, and margins deteriorated. In very short order. he companiesexpectations about revenues and profits became obsolete. and products with very strong brands. My first advice to Mike Craves would be to study the industry structure closely and determine whether a 20% return on investment is theoretically possible for Zhong-Lians products. The nextquestion is whetherthis joint venture is in a position to capture the highest margin in its industry. Does it have a unique business model, perhaps, based on some core competence? Maybe it can leverage its channel or its brand back in the United States or in other developed markets. Or perhaps Heartland can make the venture a bigger part of its global strategy, exploiting the regions labor costs and productivity edge to reconfigure its worldwide production strategy. If Mike doesnt discover a unique business model that will generate a 20% ROI, he needs to inform his boss that its time to exit. But if he believes such a return is achievable, he needs to restructure the jV to get there. If Heartland doesntwantto make any more of an investment in the venture, it could bring in a private shareholder or other marketdriven companies to buy the governments shares. Mike also needs to ensure that he is linking compensation packages to performance. Ive observed that employees in China-especially senior managers-respond very,very wellto pay-for-performance plans. Its been my experience that Chinese organizations are quite adaptable to other cultures. The problem here, and perhaps for many companies, is that real assimilation cantoccurunlessthe two partners are working toward the same goals. Zhong-Lian is under the strong influence of the government, and, as a result, it is doing exactly what should be expected: creating jobs and boosting revenue rather than profits. The minute Mike starts to create a market-driven and value-creation-driven connpany-largely by rewarding senior managers for gains in those directions-things will start to change. The joint venture is already one of the success stories on the Chinese business landscape. Ifthe venture is restructured and incentives are aligned with higher performance, it might even meet the expectations Heartland has set for it. Manyforeign executives said that if they were to move into China again, they would do so through a solely owned business, not a joint venture. Heartland also went the usual route of entering China by means of a joint venture. Many multinationals chose this path because of regulation requirements, others because of their unfamiliarity with the Chinese business landscape. Many of them have come to regret that decision. In a McKinsey survey of executives of foreign companies in China three years ago, a great number of respondents said that if they were to move into China again, they would do so through a solely owned business, not a joint venture. The main reason was that the partners often dont share the same vision or philosophy, and the disparity in the viewpoints hampers performance. The survey also found that morethanhalfofthejointventures in China are not working properly. David Xu is a principal In Zhong-Lians case, the problem does not seem to be the cultural difference so much as the difference in the two partners* visions and definitions of success. One question, then, is whether Heartlands high-margin vision is sensible. The textile industry in China is extremely competitive and will be for the foreseeable future because the entry barriers are low. The margins in textiles are therefore typically very low, except for special textiles at management consulting firm McKinsey Company in Shanghai. HARVARD BUSINESS REVIEW Can Mike Keep the joint Venture from Unraveling? †¢ HBR CASE COMMENTARY ment unless it improves the bottom line, wants to improve quality, and sees no benefit to creating a Chinese brand because it views China as a low-cost manufacturing platform rather than a market. In the absence of congruent performance objectives, the joint venture has no underlying strategic logic. Thus the partners immediately need to Lets look atthe Chinese marketfirst. Many revisit both their older and continuing reaforeign companies are finding it tough to sons for staying together. Ifthe partners cangenerate acceptable profits there. Even the not agree on a minimally acceptable ROI or Japanese, historically the biggest investors, that such a goal is a top priority, they should are seeing their lowest returns in China. (And think about exiting the venture. when the Japanese do invest, the size oftheir Finally, Mike is part of the problem. It is subsidiaries tends to be smaller; they dont absolutely stunning that he learned on the employ anywhere near the number of people day ofthe anniversary banquet that his partZhong-Lian Knitting does. ner wanted to make another acquisition. EiChina is also becoming a more expensive place to do business. Betweeni992 and 2001, the consumer price index in the United States increased by 1. 27times; in Shanghai, it went up 2. 21 times. Wage rates in Shanghai more than tripled between 1991 and 2000. Its not surprising that more and more competitive Japanese corporations have begun to pull out of the market-they are a ther the Chin ese partner is out of control or Mike is out of touch. How much time is Mike spending with the partner? Has he grown too comfortable in paradise? Mike needs to be proactive. Rather than simply waiting for his Chinese partner to hand him the names of acquisition candidates, for instance, he could develop specific acquisition criteria with his partner or even M ike Craves needs to start by acknowledging that his boss is correct: A 4% ROI is not enough for most foreign investors after ten years. So where is the problem? Is it in the Chinese market itself? Is it with the partnership agreement? Or is it with Mike? Id argue that all three contribute to this dilemma. Paul W. Beamish is the director ofthe Asian Management Institute at the Richard Ivey School of Business ofthe University of Western Ontario in London, Oritario. One ofthe largest costs in many joint ventures is the expatriate manager package. Perhaps he could save by reducing the number of expats. little further along the exit curve than Bill Windier is. Next,the partnership. In any international joint venture, the partners must share congruent performance measures. That is certainly not the case here. While both partners have an explicitgoalthattheJV be profitable, they differ widely in terms of what constitutes an acceptable financial return. Furthermore, some oftheir nonfinancial goals forthe JV seem to have evolved and have only now become explicit. The Chinese partner is happy with achieving a 5 to 6% profit and % being viewed asa local hero. It wants togrow the scope of the jV and establish a national brand. The U. S. partner wants a 20% ROI, will consider growth only if it improves profitability, has no interest in creating employconduct some investigations himself He should also look for additional ways of improving the JVs profitability. One of the largest costs in many joint ventures in China is the expatriate manager package. He could save money by reducing the number of expats, perhaps by promoting local managers. Lots of smart people are available. Various factors have contributed to the current situation, some of which such as the condition ofthe Chinese market-Mike cannot control. He needs to concentrate on the things he can change: the relationship between the U. S. and Chinese partners and his own managerial behavior.

How true is it that stocks are a good investment

How true is it that stocks are a good investment Introduction Economists view stock as the original or initial capital of goods, equipment or money that investors bring into the business when it is being founded. Stock is however different from the assets of a business because the assets depreciate in value while stock doesn’t.Advertising We will write a custom article sample on How true is it that stocks are a good investment? specifically for you for only $16.05 $11/page Learn More Stock also acts as security to the lenders of the business for example the creditors and the financial institutions. Investment on stock is so widespread and popular to many companies and many investors because of the belief that they have good returns especially over a long period of time. Many companies have invested on stock believing that it has good returns. Most of the investors however are blind when investing and they do not act rationally especially while investing on stocks. This means that they always expect so much and tend to concentrate more on the returns without exploring all the risks involved in investing in stocks for a long period of time. These kinds of investors are said to be irrationally optimistic. A good investment in stock will lead to high and profitable returns from equities and bonds. Stocks have a standard deviation throughout the investment period and this will affect the level of returns from equity. This means that their value change from time to time depending with the market for example stocks listed on stock exchange always have their values fluctuating and therefore their returns are so uncertain and unpredictable Investors are always optimistic that investing in stock in the long run will lead to high equity returns because they will adjust to inflation levels and that as much as they are risky, they offer a high rate of return. This argument has been practically justified by the United States Markets and investors. Over the past twenty years there United Sta tes Markets and even Markets in many other countries have invested in stocks and there have been high returns of equity of more than five percent with a consistency of almost twenty years despite all the risks involved. This showed that an investment in stock for a long time would overcome all the risks and be profitable. An investor can therefore argue that stock is a good investment in the long run Most companies invest in stock because they believe that the returns from stock will be higher than the rate of inflation in the market and therefore there will be high returns. This belief has been justified by the constant real and high returns that have been experienced in many markets of different countries for example the United States of America and the increase in equity ownership over a long period of time.Advertising Looking for article on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As much as stock may bring low returns in the short run period, investors are still optimistic that long run period is the best period to invest on stocks because it overcomes any hindrances that would have occurred in the short run and that would have reduced the level of return of stock either in the short or long run. Even though the returns from equity are very high and attractive , investors cannot rely on stocks to perform well as an investment even in the long run. The overall returns from stock is however less profitable than many other investment projects and therefore investors should explore other projects rather than be tempted to invest in stock by the high returns of equity Conclusion It is true that stock is generally a good investment for optimistic investors in the long run. It is however not advisable to concentrate on investment of stock solely because they are very risky and the long run is always not certain and the returns are probably not as much as and therefore it is advisable to invest on stock just when the market is profitable in enough to bring good returns even with the presence of risks

Harlem Renaissance Poets Essay Example | Topics and Well Written Essays - 750 words - 6

Harlem Renaissance Poets - Essay Example His experienced as Cuban refugee and a Cuban-American has influenced many people their daily lives. In addition, his work has been included in many anthologies, which include Paper Dance: 55 Latino poets (2002). It is not easy to imagine the composition of the Inferno, Canto I as having its beginning in such a mood of passionate exaltation and devotion to the memory of a dead person. And with the contrast with Virgil’s, it is clear that the final year of Dante life as the busy but contested one undisturbed by civil disputes. This could be a misleading picture, of course, and in any case it is not relevant to the fact that Dante left unfinished at his death plays on vitally the same poetic, emotional, and intellectual registers as its Italian precursor s. double consciousness is also expressed in Virgil Suà ¡rez poem. The double consciousness is more revealed in the closing section of Part II â€Å"by the mother-in-law tongue within a fiery circle of kerosene and watching as they stung themselves†. This contradicts some the whole nature and themes in which the poem is written about. To begin with, Dantes Hell is an indication of a threatening vestibule that is a home to the souls, which are undecided on whether to do good or evil. It is, thus, clear that the angels who did not take any side during the fight between Lucifer and Michael in the bible reside here. The entrance of Hell marks the beginning of darkness and unidentifiable shades, which do not bear any color in their symbolization of lifelessness (Molefi, 2004). These lifeless shades are what Dante uses in comparison to â€Å"‘dead leaves fluttering to the ground in autumn’, weightless and lifeless, as when falling leaves ‘detach themselves’ from the tree of life. All the souls descend ‘one-by-one’, like leaves falling ‘first one and then the other’† (Dante 112-117). In this instance, we find that the simile employed by

16th century Empires Essay Example | Topics and Well Written Essays - 1500 words

16th century Empires - Essay Example To put the comparison in perspective, it has to be noted that religion dominated the public sphere of almost all civilization in the world be it among Europeans, Middle Easters, Andeans or Mesoamericans during the 15th century. Whether it be a the theistic god of the Christian or the pantheistic god of the Andeans and Mesoamericans, religion played a major role in their society. The extent of religious influence however on the policies that govern its empire varies with each civilization. There are civilizations or societies whose imperialistic thrust may be primarily motivated or at least veiled by religion such as the European Spaniards, and there are also societies or civilizations who adopted a more pragmatist approach toward its expansionary ambition such as Incas of the Andeans. We can cite as a classic example the Spaniards in 1521 who were at the height of its religious fervor sending its missionaries to pagan countries to hear the word of God from the Catholic church. Ferdin and Magelland, the leader of the expeditionary Spanish Fleet was in fact looking for spices in the exotic world but used religion to subjugate the natives of the Philippines when it landed in Mactan. It did not tell the natives that they were really there looking for spices and other items for trade but rather used the cross and the sword to justify their presence. What followed is a more than 300 years of colonial rule characterized by theocracy to usurp the country of its natural resources. Compared to the Incans who were dominant among the Andeans during its height in the 15th century, the Incans as representative of the Andeans were more pragmatic in its approach in gaining material resources to sustain its empire. From periods 1438 to 1533, the Andeans used a wide variety of method to sustain herself that ranged from conquest to peaceful assimilation that would integrate territories that they

The Importance of Ethics to Sustainable Growth in Engineering Research Paper - 1

The Importance of Ethics to Sustainable Growth in Engineering Enterprise - Research Paper Example Findings reveal that China’s rules and regulations related to ethical standards are not implemented strictly but it has given more importance to CSR programmes. UK on the other hand has ignored CSR programmes but is successful in incorporating various employee training programmes. While UK companies apply technology to monitor whether ethics are practised in the workplace, Chinese companies use compliance programmes. Theft of asset is a serious problem in UK while the problem of deficiency of stringent laws causes lack of ethical practices in workplace. Chief CSR officer is given the responsibility of making profit making decisions and monitoring ethical standards. The green officer along with board members takes the authoritative decisions in the company. Employees both in UK and China want ethical code of conducts in the office. However, Chinese employees believe that small firms are unable to properly implement ethics in the workplace. According to Daft (2012), data analysis is a process of evaluating the study on the basis of findings and literature review. The project is primarily based on secondary data accompanied by the interview conducted on six Chinese Engineering Companies. The secondary data is collected from journals and books of eminent authors. The primary data in the form of questionnaire survey aims at providing knowledge regarding the existing conditions of the company’s policies and the perspectives of the employees about ethical standards. Since work culture in UK represents the work environment in western companies and China represents eastern work culture, wide contrasts are noted in the study. It has been observed in the UK that titles like â€Å"chartered engineer†, â€Å"engineering technicians†, â€Å"information and communications technology technicians† and â€Å"incorporated engineer† are granted by the Engineering Council UK (Basart, Farrà ºs and Serra, 2015). The incorporated engineers of UK are

Marketing Mix Definition And Concept

Marketing Mix Definition And Concept According to Laura Lake the marketing mix is a mixture of marketing tools that are used to please customers and company objectives. Customers frequently call the marketing mix the offering. Basically offer is controlled by the following variables often referred as the four Ps in marketing: Product Price Place (Distribution) Promotion By exercising the variations of these four components you have the capability to reach multiple consumers within your target market. According to Jed C. Jones the term marketing mix is defined as the marketing Mix refers to the main elements that ought to be attended to in order to correctly market a product. They are also well-known as The 4 Ps of Marketing, the marketing mix is very helpful, and is a guideline for understanding the fundamentals of what makes a good marketing campaign. 3.1.2 Variables of Marketing Mix: Product: The marketing mix concept has its heredity from the 1950s U.S. corporate marketing planet, and the practice of marketing has obviously developed tremendously since this expression was invented. One of the alterations is that, there are a lot more services accessible nowadays, such as those obtainable through online and the difference between product and service has become more fuzzy (e.g., is a Web based software application a product or a service ). Moreover Product here refers to as products or services. The product you propose needs to be able to meet a definite, vacant market demand. Or else you need to be able to create a market niche via building a muscular brand. Price: The price you set for your market offering plays a big role in its marketability. Pricing for offerings that are further commonly available in the market is more flexible (Elastic), and its implication says that unit sales will move up or down further responsively in replication to the price modification. In contrast, those products that have usually more limited availability in the market (but with strong demand) are more inelastic, meaning that price changes will not affect unit sales to a large extent The price elasticity of the offering can be found through various market testing methods. Place: It usually refers to any way that the customer can attain a product. Provision of a product can come about via any number of distribution channels, for instance in a retail store, via mail, via downloadable files, on a cruise ship, in a hair salon, etc. The easiness and options through which one can make your product available to your customers will have an effect on your sales volume. Promotion: It is basically concerned with any vehicle you use for getting people be familiar with more about your offering. Advertising, Public relations, Point-of-sale displays, and word-of-mouth promotion are all conventional ways for promotion. Promotion is basically a way of concluding the information gap between would-be sellers and would-be buyers. Ones choice of a promotional strategy will be dependent upon the budget, the type of offering you are promoting, and availability of the said promotional vehicle. The marketing mix serves as an outstanding criterion for continually examining that you are covering all of the bases in your marketing campaign. Mass Media: It refers jointly to all the media technologies, including the Internet, television, newspapers, and radio, which are used for mass communications, and to the organizations which control these technologies. Mass media play an important role in determining public perceptions on a variety of important issues, both through the information that is distributed through them, and through the interpretations they place upon this information. The also play a large role in shaping recent culture, by selecting and representing a particular set of beliefs, values, and traditions (an entire way of life), as a reality. That is, by portraying a certain interpretation of reality, they shape reality to be more in line with that interpretation. Contemporary research demonstrates a growing level of concentration of media ownership, with many media industries already highly concentrated and dominated by a very small number of firms. Direct Marketing: It is a type of advertising that reaches its target audience without using conventional formal channels of advertising, such as TV, newspapers or radio. Businesses stay in touch straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct Advertising is a sub-discipline and a kind of marketing. There are two main definitional types which differentiate it from other types of marketing. The first is that it sends its point directly to the clients, without the use of intervening commercial communication media. The second characteristic is the core theory of successful Advertising driving a precise call to action. This aspect of direct marketing involves a stress on measurable, trackable positive responses from consumers (known simply as response in the industry) apart from of medium. 3.1.3 Marketing Mix Management by Peter Grant: According to Peter Grant Marketing Mix Management is the successful business enterprise which will flourish through the aggressive and pre-planned execution of a complete Marketing Mix strategy in approaching revenues. Identify Audience or Vertical Market to Penetrate Assign Marketing Mix Resources that Accommodate Audience in Communications Process Implement Plan The objective is to use both active and passive mechanisms to emphasize the impression rate, (or number of times that your audience perceives that it remembers), your corporate communications message to your target audience, leading to bigger revenues. To be really successful, all areas of the Marketing Mix need to be pre-planned and then executed in a timely and disciplined fashion. The World Wide Web, correctly handled, can identify and address both in a passive and active mode, both current and future clients. Marketing Mix Definitions and Action Steps Pro-activity Discipline Actions / Results Active / Passive Web Site Crosses all boundaries in passive / active communications. Great freedom by potential clients in accessing your information. Active Direct Sales Face-to-Face contact. Builds rapport, leads to proposals. Active Telesales Phone solicitation to identified customers; leads to rapport building and eventual appointment for a Direct Sales call. Active Telemarketing Identifying potential customers through qualifying needs to have a problem solved that could be addressed through your particular product or solution. Passive Direct Mail Lists by maintaining an internal client database (from inquiries generated from advertising or from telemarketing/telesales calls. Lists from purchased list service. Mass mailing service (ValPak, SuperCoups). E-Mail nickname lists from inquiries. We do not recommend spamming. Fax blast to internally generated lists. Postcard mailing for cost-effective contact frequency. Passive Advertising / Promotions Target vertical market associations that purchase your product or service. Ensure that your core corporate communications look (logo, slogan, and graphical look) is repeated in any advertisement. Vertical Market trade show participation Complimentary Introductory Program exists within your communications goals. Consistent Corporate Communications look to all of your marketing efforts (Logo, stationary, brochures, advertisements, etc.). This acts to reinforce your impressions rate. Passive Public Relations Monthly Press Release and Backgrounder to all vertical market associations. Monthly release to horizontal / territory markets to build perception and retention of your core products, services and corporate identity. The execution of the above Marketing Mix objectives in a timely and well-focused manner should ensure the relative success of any enterprise that has done appropriate market research to determine the viability of its concept. 3.1.4 How to select the finest marketing mix: pros, cons, and tips for telling people about your business includes connected article on how people get business tutorial: How to Select the Best Marketing Mix: Your marketing campaign is that set of actions that you use to get the word out get the right people or group to know what you do, who you are, and where to find you. (Then your sales campaign takes over and change prospects into customers.) You can try to wing it. But going through the same planning procedure as larger companies before launching the marketing campaign will pay off perhaps by reducing the costs, and almost surely in getting better results for the similar investment of time and money. During the past some years advice is there for the software developers, physical therapists, dance instructors, dog trainers, and other small, usually service-oriented businesses on setting up their personal marketing campaigns. Here what campaigns are all about, and how you can create your marketing work for you. WHOS YOUR CUSTOMER? One cant hit a target if he/she doesnt know what youre aiming at or where the target is. So before one define the marketing campaign, do the homework: * Clearly recognize your products and services. For Instance: neon art and signage; pre-school day care by ex-teachers. * Describe your business goals, and then set the prices or rates. How much totality of business do you want? What mix of products and services do you would like to sell? * Recognize the prospect base by income, geography, age, type of organization or individual, and line of business (for instance, nonprofit organizations with yearly revenues of $100,000 to $750,000). Cons: Can be costly; needs a lot of time and effort. Not right for a number of people or businesses. Tips: Learn to qualify prospects rapidly. Follow up promptly with mailings, letterings, samples, chiefly in response to specific requests. Keep good accounts; consider using a contact-management program. Events. Attending, participating in, or reveal. Examples: trade shows, conferences, and seminars. Pros: Very good for exposure. If you dont show, often highly affordable. Cons: Very volatile results; can be time-consuming and draining, with expensive travel expenses. Tips: Prepare. Pick a small number of shows in your field to attend on a regular basis. Meet as many people as probable to grow contacts. Collateral. Materials that you print up and hand out. For Example: brochures, newsletters, pamphlets, reprints, coupons, fliers, and business cards. Pros: Can be cheap, especially if the pieces can provide many purposes and you make them using desktop publishing. Cons: Can be costly putting together a desktop-publishing system. Can take a lot of time, until you get the hang of it. Needs episodic updating; inventory needs to be managed cautiously. Tips: Think cautiously before over committing to a costly item that will go out of date. Look for pieces that can be their personal mailer. Other diverse advertising specialties. Instances: bumper stickers, coffee mugs, key rings, calendars, and other gewgaws; skywriting and blimps; contests, surveys, and joint marketing efforts. Pros: Can help drawing the attention; gives you a simple way to depart your name and address with prospects. * Expect to spend an average of an hour a day, each day, in marketing. * Always be ready. Answer the phone with a smiling, positive voice; always carry business cards. * Do follow-up promptly. * Remember that marketing rarely has immediate results. It can take months, or even years, to set up yourself. * Dont spend the money you dont have. * Use outside services sensibly mostly where you desire to save time or where special-purpose gear is needed. No two campaigns will be similar. Even though your business may be alike as somebody elses, you may have a different philosophy, budget, or capacity to take on advertising, public speaking or phone calls. Only experience will educate you whom marketing approaches works best for you, in terms of your aptitude to do them and in delivering consequences. 3.1.5 Marketing mix customization and customizability by Marc Logman: According to Marc Logman businesses looking for customized methods of designing, pricing, selling, and delivering their wares can do it themselves or leave it up to the customer. We are sailing out of the century and into the next with our marketing techniques in full-scale transformation. Top-down marketing is changing into bottom-up. Transaction marketing is changing into relationship marketing. One-way or broadcast marketing is changing to an interactive style to support a dialogue with the client and mass marketing is changing to a customized, one-on-one way of reaching individual customers. Because of fierce rivalry, long-standing competitive advantages often are no longer sustainable. The policy is to be followed, says dAveni (1994), is one of nonstop market annoyance in order to generate impermanent competitive advantages. Hamel and Prahalad (1994) propose that firms should look almost endlessly for new openings. In the middle of such dizzying change, companies must be able to create real-time decisions, so their planning and tactics horizons frequently become shorter. To be flexible and highly receptive to market moves, a top-down approach in which business plan decisions precede tactical and planning decisions often no longer supports. Companies should be able to become accustomed to their tactics immediately. In the same background, a firms communication approach becomes more and more bottom-up. Rather than determining target group (who?) and communication aim (what?) before deciding on the instrument (how?), specific methods of communicating, such as by means of the Internet, are leading to the recognition of who and what. Moreover, many writers assert that a paradigm shift is happening from transaction marketing to relationship marketing. Firms are beginning to understand that keeping current customers may be more significant than trying to attract new ones. In the computer business, different hardware specifications may be developed by the customer. Menu options offer choices of hard disk capacity, processing speed, software drivers, and so on. Capacity can be extended; new cards can further be added. Software firms are also developing innovative tools that allow the user to perform several operations more efficiently. Power quest recently introduced the package Partition magic, which allows users to divide their hard disks more effectively. Business-to-business markets, in which suppliers sell products to the manufacturer, are using both customization options. Some manufacturers, such as the auto makers, hold suppliers accountable for integrating their products into the final version. Others tend to favor buoying customizable products from the supplier and become accustomed on their own. In the second case, manufacturers often rely on competent integration-engineering division. The Laboratory of Production Technologies of Siemens in Belgium transform the basic technology into integrated solutions that fit completely into the production lines of different Siemens divisions. Purchase Price Offering the price discounts is one of the most popular ways to customize prices. Criteria for discounting often includes a customers sales volume, its sales history (such as being loyal or not), and the time of purchase. High-volume customers might get special discounts, users of old product versions might get discounts on new product versions, and so on. Another way to customize prices is through customizing the product, with additional product option leading to higher prices. Communication According to Logman (1996) points out that, especially in todays rapidly changing business environment, customers may have different information needs. Some might want to be informed about new product versions, whereas the others are interested in information about possible upgrades of old product description. The Price-sensitive customers may be interested to some extent in promotional information, whereas the quality-sensitive customers may be interested in product information. To meet the individual information needs, a firm can either communicate directly to the customers or adjust its information (such as through direct mail) or else it can offer a customizable information system that allows customers to find the preferred information easily. The World Wide Web is the most salient instance of the latter framework, with clientele selecting from corporate Web sites. Distribution and Logistics Customers now have much more freedom in choosing the logistics and methods of distribution to fit their detailed requirements. They can determine when, where, and how they want goods to be delivered; they can even state the manner in which they want goods to be handled before and after the delivery. Gilmore and Pine (1997) refer to this as the representation requirements. After-Sales Support and Costs Like many products, services can also be bundled into a customized service parcel. In numerous industries, customized augmented solution that includes both product and service are offered. In b to-b markets, such as in the mainframe computer business, sales contracts frequently cover agreements on product maintenance, substitution, and so on. By using a remote control system that permits diagnosis and possible remedy of product defects from a distance, customers after-sales costs may be condensed. Nashuatec does make use of such a system in the fax business. The Web provides another chance in this direction. By transferring video images of a product performance, product failures can be detected. After-sales costs, to some extent, can be customized by end users. Someone who buys a fresh car may decide to opt for lower energy costs by driving at a reasonably price rate of speed. A company may manufacture a copy machine that is simple for customers to maintain and repair themselves. Service costs are thereby condensed and the customers after sales cost perceptions may be positively influenced. CUSTOMIZED OR CUSTOMIZABLE: A TRADE-OFF? Businesses clearly have two alternatives when it comes to producing and marketing a product or a service: either going for the customize marketing mix instruments or let the customers themselves do it. The choice depends on numerous considerations. Finally, a firm must think about the independencies and interdependencies of its marketing mix decision. Can it present customized final product while offering a customizable information network for after-sales communication? Does price customizability results from product customizability? Can experienced computer users design their personal PCs from a list of options of standard components at a price that seems suitable to them? Will customizing methods of distribution affects price? With marketing practices in such a flux, companies are ever looking for innovative solutions to customize their ways of offering products and services. Using the framework provided here allows marketing practitioners to assess different customization options for their marketing mix instruments. But some warnings are in order. When a firm chooses to customize the marketing mix at its own, it should take care to make sure that its marketing policy is transparent and clear-cut to customers. Offering inconsistent solutions to diverse people may be seen as giving special treatment to some while discriminating against others and offering inexpert customers a do-it-yourself customizable product or service might be able to result in confusion, dissatisfaction, or even in a disaster. Along with the advances in technology that facilitate both customization and customizability comes with a new array of challenges. But careful decisions based on a proper framework for assessing the options can result in a marketing mix that draws closer to providing everything to every customer. 3.2 Brand Equity: 3.2.1 Brand Equity Definition Concept: According to Philip Kotler and Gary Armstrong, Brand Equity is defined as how much is a brand worth of? Brand equity refers towards the value of the brand. Brand equity does not develop immediately. A brand needs to be cautiously nurtured and marketed so customers feel real value and trust regarding that brand. Nike, Adidas, Harrods, all have high brand equity. These brands command high awareness and consumer loyalty. But how much are these brands really worth? It is hard to put a value on these brands. But how much is a pair of Nike trainers worth without the logo on it? According to Scott D. White, Brand equity can be defined in many diverse ways. He has developed an easy, yet dominant definition of brand equity. For a brand to be strong it must achieves two things over time: i.e. retain current customers and attract new ones. To the amount, a brand does these things well, it grows stronger versus opposition, and delivers more earnings to its owners. Flouting down the definition of brand equity into its two components, one can more easily determine a dependable way to measure the brand equity, and to track changes in brand equity over time. The components of retention, brand equity, and attraction of customers, stem from people experiences with and perceptions of a brand. The ability to keep customers is largely experiential. A high equity brand displays stronger levels of customer satisfaction and loyalty. History has shown that customers will continue to buy a brand that can offer them their moneys worth. The ability to create a center of attention for new customers is largely perceptual. Because consumers do not have actual brand experience and they must go by what they hear, see and judge about a brand. The two primary ways through market receives this information is by messages controlled by marketing, such as the advertising and PR efforts and as well as uncontrolled messages such as the press stories and word of mouth. 3.2.2 Brand Equity Variables: 3.2.2.1 Brand Awareness: Brand awareness is a marketing concept that measures customers knowledge of a brands existence. At the aggregate level, it refers to the amount of consumers who know of the brand. Measurement driven conceptualization: Brand awareness is the degree to which a brand is associated with a particular product and is documented by potential and existing consumers either positively or negatively. Formation of brand awareness is the main goal of advertising at the beginning of any products life cycle in the target markets. In fact, brand awareness has influence on the buying behavior of a buyer. All of these calculations are at best approximations. A better complete understanding of the brand can occur if numerous measures are used. Brand equity is the positive effect of the brand on the differentiation between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received. 3.2.2.2 Brand Association: Brand Associations are not the benefits, but they are the images and symbols associated with a brand or a brand benefit. For instance- The Nike Swoosh, Nokia sound, the Film Stars as with Lux, signature tune the Ting-ting-ta-ding with Britannia, Blue color with the Pepsi, etc. Associations are not the reasons-to-buy but provide contacts and differentiation that is not replicable. It is relating perceived qualities of a brand to a known unit. For example- Hyatt Hotel is linked with the luxury and comfort; BMW is linked with sophistication, and superior engineering. The most popular brand associations are with the possessors of a brand, such as Mr. Bill Gates and Microsoft, Reliance and Dhirubhai Ambani. Brand associations are formed on the following basis: Customers contact with the organization and its employees; Advertisements; Word of mouth publicity; Price at which the brand is sold; Celebrity/big entity association; Quality of the product; Products and schemes offered by competitors; Product class/category to which the brand belongs; POP ( Point of purchase) displays; etc Positive brand associations can be developed if the product which the brand depicts is durable, and desirable. The consumers must be persuaded that the brand owns the features and attributes that can satisfy their needs. This can lead to consumers having a positive impression about the product. Positive brand association helps a business to gain goodwill, and hinders the competitors entry into the market. Brand association is anything which is deeply seated in consumers mind about the brand. Brand should be linked with something positive that can help customers to relate your brand being positive. Brand associations are the qualities of brand which come into customers mind when the brand is talked about. It is associated with the implicit and explicit meanings which a customer relates or associates with a specific brand name. Brand association can also be defined as the extent to which a specific product/service is familiar within its product/service or category. While selecting a brand name, it is necessary that the name chosen should emphasize a significant attribute or benefit that forms its product positioning. For example Power book. 3.2.2.3 Brand Impression/ Perception: Brand perception is actually how the public (the ones you are relating to) sights the product. Its the desired team shirt a football fan wears on Sundays. Bands poster hung in a teenagers room. An opinion voiced to a buddy. Brand experiences and perceptions are developed over time through a mixture of sources, including: Previous experience with the brand Interactions with sales, customer service, and other employees Recommendations from friends and colleagues Reviews by reputable sources Advertising Brand managers need to know that how consumers perceive and select the brands in specific product categories and market segments. One also need to know that what is important to consumers when making a brand decision, where consumers get the information about products and services, and what consumers think about your brand. 3.2.2.4 Brand Attachment: Brand attachment is what you vie for. It is critical not only to get your target customers make a purchase from you, but also to make them empathize with your brand. People are often inclined to award things with human characteristics and emotions. That is precisely what you want them to do. Making your brand more personal and you will get a chance to win your consumers lifelong loyalty and passion. Brands are shaped to distinct products from their competitors and join their consumers to them by building up their loyalty. Product promotion cannot be a easy and dull process of making profit. In order to have success, it has to affect both the rational and emotional aspects of human nature. A product selling, based only on their normal benefits and qualities, is not probable any more. As a high competition level makes it to be so. Therefore, brands need somewhat more to attract customers to their products. 3.2.3 Brands and brand equity: definition and management by Lisa Wood: According to Lisa Wood, an attempt to define the relationship between consumers and brands produced the term brand equity in the marketing literature. The idea behind brand equity has been debated both in the accounting and marketing literatures, and has also highlighted the importance of having a long-term focus within the brand management. Although there have been major moves by companies to be strategic in the way that the brands are managed, a lack of common terminology and philosophy within n between disciplines persists and may deter communication. Brand equity, like the concepts of brand and the added value has been discussed in the section headed the brand construct has proliferated into numerous meanings. Accountants tend to describe brand equity differently from marketers, with the idea being defined both in terms of the relationship between consumer and brand or as something that accrues to the brand owner (the company-oriented definitions). According to Feldwick (1996) simplifies the diversity of approaches, by providing a classification of different meanings of brand equity as the total value of a brand as a separable asset ; Â ± when it is sold, or included on a balance sheet; A measure of the strength of consumers attachment to a brand A description of the associations and beliefs the consumer has about the brand. The first of these is often known as brand valuation or brand value, and is the meaning generally accepted by financial accountants. The concept of measuring the customers level of attachment to a brand is known as brand strength (synonymous of brand loyalty). The third could be called the brand image, though Feldwick (1996) did use the term brand description. When the marketers use the term brand equity they tend to mean the brand description or the brand strength. Brand strength and brand description at times referred to as the customer brand equity to distinguish them from asset valuation meaning. Brand description is different because it would not be expected to be quantified, whereas the brand strength and brand value are considered quantifiable (though the methods of quantification are not covered by this article). Brand value may be thought to be separate as it refers to the actual or notional business transaction, while the other two focuses on the customer. There is an unspecified relationship between interpretations of the brand equity. This connection implies the causal chain. 3.2.4 Managing Brand Equity in Rapidly Changing Markets by Carol Holding: Several years ago, brand equity received the ultimate accolade in a capitalist society: a dollar value- sometimes listed with other intangible assets in the annual report. The highest valued brand today is Coca Cola. Its value according to Financial World is $39 billion. Thats the extra margin people will pay to get the real thing over a generic brand. On the other hand, IBMs brand, though third in value this year, was by one estimate actually negative last year. In other words, if you put the IBM logo on the product, it actually reduced the value of that product versus an unknown brand. Both of these companies, Coca Cola and IBM, have gone through enormous change, yet one managed to build its equity and one lost it. Though each companys management decisions and style had something to do with the outcomes, they also faced different types of rapid change, one far

Comparison of British Parliamentary Democracy and American Presidential

Comparison of British Parliamentary Democracy and American Presidential Democracy In declaring independence from Britain, the American Colonies sought to create a democracy that found its roots in Ancient Greece and Great Britain while improving on the flaws of each. The result was a presidential democracy that stood in contrast to the parliamentary democracy of Great Britain. Thus these, the two oldest, continuous democracies in existence present an interesting comparison. At the heart of any government is the constitution, and here we discover the first major difference between the American and British democratic systems. The Constitution has never been written in one conclusive and final document, but depends largely on practices accumulated over the years. â€Å"Its most important features are no part of its formal and legal structure and have little other sanction beyond use and precedent.† (Amery 1) This easily adaptable format differs sharply from the American Constitution, a formal organization written at the start of the Union and which created formal means by which the Constitution could be changed. Because the British Constitution is reliant upon tradition, the means whereby power is distributed has changed significantly since the first democratic customs. Initially power was vested in the monarchy, which relied upon input from the House of Lords to run the nation. As time progressed the power came to fall under the command of the House of Commons, and with no system of check and balances it came to reside in the ruling party. This system is â€Å"the modern embodiment of a fusion of governmental powers which has generally characterized British government.† (Moodie 15) In c... ...cmillan Press. 1993. 92-122 Denham, Andre and Mark Garnett. British think-tanks and the climate of opinion. London: UCL Press. 1998 Holliday, Ian. â€Å"Organised Interests After Thatcher†. Developments in British Politics. Ed. by Patrick Dunleavy, Andrew Gamble, Ian Holliday, and Gillian Peele. Houndmills: The Macmillan Press. 1993. 307-320 . Krieger, Joel. British Politics in the Global Age: Can Social Democracy Survive?. Oxford: Oxford University Press. 1999. Marsh, David. â€Å"The Media and Politics†. Developments in British Politics. Ed. by Patrick Dunleavy, Andrew Gamble, Ian Holliday, and Gillian Peele. Houndmills: The Macmillan Press. 1993. 332-349 Moodie, Graeme C. The Government of Great Britain. New York: Thomas U. Crowell Company. 1964. Pilkington, Colin. Issues in British Politics. New York: St. Martin’s Press. 1998

Parents Are the Best Teachers

Parents experience life with their children from the beginning of their lives. Hence, they have taught their children many lessons. They are definitely the first teachers of their children but they are not the best teachers. Firstly, parents are closest to their children so it’s difficult to teach their children strictly. For example, it’s time to do homework but their children don’t want to do so. They may wheedle their parents into letting them do it later. Parents always pamper their children so they permit them to do homework later. This increasingly spoils their children. Secondly, parents constantly shape their children interests to be similar to theirs. This makes their children difficult to develop their potential ability. For example, if the parents like music they may want their children to attend music class. Likewise, if the parents like art they may let their children attend art class. However, what if their children are interested in science? Last but not least, because of the differences of generation, parents’ points of view are somewhat narrower than their children’s. For example, their children want to go to some university which is far form their hometown in order to have more experience in live. In contrary, parents prefer their children to attend to university which is near their hometown because they think it is unsafe for them to live far form family. In conclusion, parents might be the good teachers but they are not the best ones. They can’t teach the children strictly, always tend to shape their interests and have the different points of view with their children. Fortunately, we have various teachers during our lives. Therefore, we can learn a lot from them They are also your guid they let you do what you want they also help ypu alot with yur studies and stuff they also make you food. and buy you clothes and whatever you want

What Is the IB Program, and What Are IB Classes

What Is the IB Program, and What Are IB Classes SAT / ACT Prep Online Guides and Tips One factor some students consider when choosing a high school is whether it has an International Baccalaureate program. Sometimes compared with the Advanced Placement (AP) program, the IB program allows students to take college-level courses while in high school. So what is International Baccalaureate? What is the IB Program and an IB Diploma, and why are IB classes worth taking?In this article, we introduce all things IB, including the diploma requirements and features of the exam. We also tell you whether you have to get an IB diploma in order to earn college credit for your IB classes. What Is IB? An Overview The International Baccalaureate (IB) program was designed in Switzerland in the 1960s. Its purpose was to give students around the world a chance to earn a rigorous, internationally recognized diploma, which they could then use for entry into universities. (You can read more about the history and philosophy of the IB program on the official IB website. ) To earn an IB diploma, you have to go to an IB-approved school and meet the requirements, including taking classes in the six subject groups, passing the IB exams, and completing three additional core requirements. But what if you don’t want to do the diploma? It's also possible to take a few IB classes without doing the full-blown diploma program, though each high school has its own policy on this. How Does College Credit Work for IB? IB exams are recognized for college credit in a way similar to how AP exams are used. You don’t have to earn the IB diploma to get credit for individual classes, as colleges give credit course by course. For example, check outStanford’s chart for IB credit. IB classes come in two forms: "higher level" and "standard level" (we will discuss this in more detail below). Some colleges only give credit for the higher-level classes (as Stanford does). Also,some colleges will completely waive general education requirements for students who have completed the full IB diploma.See the University of Utah’s policy here as an example. This means that a student with an IB diploma could totally skip gen ed classes and jump right into their major. This would obviously save a ton of time and money,and shows why getting the IB diploma can be a huge advantage. To find a school’s policy on IB credit, search for "[School Name] IB credit policy." Most universities have a dedicated web page for explaining their IB credit policy. What Are the Benefits of the IB Program? One of the chief benefits of the IB program is that it provides academic preparation for college. IB courses are known for being interdisciplinary, requiring a good deal of independent thinking, and assigning oral presentations and original research- all characteristics of college courses. Spoiler alert: college-level research involves a bit more work than just Googling something. Especially if you earn the full IB diploma, your IB courses will be a great way of showing that you have taken tough courses in a range of subjects,from math to English to history to science, and are able to manage college-level coursework. As we discussed before, colleges want to see that you've taken the most advanced classes available to you.And taking IB is a great way to do just that. In addition to getting preparation for college, you can get credit for college classes by passing IB exams. Again, you don’t need to complete the full IB diploma in order to earn credit, so if you don’t think you can fit the IB diploma into your schedule, it might still benefit you to take a few individual IB classes. Unfortunately, taking an IB exam isn’t cheap. There's a $172 registration fee as well as a $119 fee per exam. While this is a lot of money, it is much less than the tuition you would pay for the same intro-level college course. Many schools also have their own financial aid programs for IB. Learn more about IB costs here. What Are the 6Core Courses in the IB Program? To earn the full IB diploma, you have to take courses from six subjects, one each from groups 1-5, and either one from group 6 or a substitute from one of the other groups: Group 1: Studies in Language and Literature (most likely an English literature course if you’re an American student) Group 2: Language Acquisition (a foreign language course) Group 3: Individuals and Societies (history, economics, geography, other social sciences) Group 4: Experimental Sciences (biology, chemistry, physics, other sciences) Group 5: Mathematics Group 6: The Arts (dance, theater, visual arts, etc.) Between three and four subjects must be taken at the â€Å"higher level† (HL) and the rest at the â€Å"standard level† (SL) in order to earn the diploma. Higher-level courses are more challenging- IB recommends a minimum of 240 hours of instructional time for HL courses, and 150 hours for SL courses. Some schools handle the higher-level requirements by having students take the SL or AP version of a course first, and the HL version second, thereby forming a two-year sequence. For example, you might take AP English Literature as a junior, and then Higher-Level IB English as a senior. Also, note thatmany high schools with IB programs have recommended four-year plans to help students fit in all the requirements,since there's a lot to keep track of. Therefore, you won't necessarily have to do a bunch of schedule-planning on your own. If your school or a school you're interested in has an IB program, get in touch with the guidance counseling office to find out whether they have recommended IB class sequences. This can help you if you're deciding which high school to attend, or if you can’t decide whether you want to take IB classes or not. What Are IB Exams? For each of those six core classes, you also have to take an IB exam. IB exams are given in May (or November for southern hemisphere schools). They have two parts: an external assessment and internal assessment. The external assessment is the more traditional exam portion, and consists of two or three "papers," usually done on the same day or a few days in a row. A paper is essentially an exam section, and they usually have a combination of multiple-choice, short-answer, extended-response, and data- or case-analysis questions. You won't spend much time bubbling in answers on an IB exam. The papers are graded by independent examiners- similar to how AP exams are graded by certified AP graders. The internal assessments are done by the teacher. These can include oral presentations, practical work (such as a written lab report), or other written work. 5% or more of the internal assessments will also be graded by a moderator appointed by IB- and based on this moderation, the grading curve of that subject at the school will be set. IB exams are graded from 1 to 7, with 6 and 7 considered an A, and anything 4 and up generally considered a passingscore (though IB doesn’t set official passing grades). Most colleges give IB credit for scores of 5 and higher. To earn the IB diploma, you need to score an average of 4 on each exam to get the minimum 24 needed points. You canlearn more about IB examson the IB website. What Are the 3Core Requirements in the IB Program? In addition to IB classes and exams, there are three more core requirements students must complete to earn an IB diploma. Read about them below: #1: The Extended Essay This is an independent research essay of up to 4,000 words that's graded externally by IB. It has to be focused on one academic subjectand written on a topic that's been approved by IB. Students are awarded points toward their diploma based on how well they do on the essay. #2: Theory of Knowledge (TOK) Class This class teaches the nature of knowledge and builds skills in critical thinking. Students have to complete a presentation (graded by the teacher) and a 1,600-word essay (graded externally) to pass this course. #3: Creativity, Activity, Service (CAS) Lastly, students are required to participate in anactivity outside of class, either community service, athletics, or creative activities.For most students, their regular extracurricular activities and sports count for these hours, meaning that they don't need to add anything to their schedules in order to fulfill this requirement. IB vs AP: Key Similarities and Differences We have a complete rundown of AP vs IB in this post, which includes a guide to deciding between the two programs. That being said, here are some of the key similarities and differences between the two. What’s the Same? Both the AP and IB programs allow you to take a challenging course followed by an exam that you can earn college credit for. In some schools, they're even the same course (e.g. AP/IB French, AP/IB Biology, etc.). AP and IB are generally the most challenging courses available to high school students. Unless you're able to sign up for local college courses or do advanced independent projects and research, AB and IB are likely the best (and most convenient) way for you to begin preparing for college. What’s Different? Although both programs offer challenging courses for high school students, there are a lot of differences in how they do so. Popularity Advanced Placement is by far the more popular program.In 20142.3 million students took AP tests, and in 2017 this number rose to more than 2.7 million. By contrast,only about 160,000 students took IB exams in 2017. The diploma pass rate was 78.4%. Some families opt for the IB program over the AP program as it's rarer and can help set students apart in the admissions process. Diploma IB was designed as a diploma program (although, as we discussed above, it is possible to take just a few IB classes for college credit). Meanwhile,the AP program was designed around advanced classes- not a diploma. (That said, the AP has created a competitor to IB via the AP International Diploma, whichyou can read about here.) Class Curricula IB curricula are stricter for teachers. IB has certain required assignments your teacher has to grade, such as oral presentations, as part of the internal assessment. In contrast, AP teachers have a bit more freedom in how they may teach an AP course, just so long as they're effectively preparing students for the exam. Difficulty IB Higher Level courses are often considered more difficult than APs, whereas IB Standard Level courses are considered the same as or easier than APs. Keep in mind that how difficult a class is to pass at your school will vary depending on the teacher and his or her curriculum. Exam Content IB exams contain more writing and application of ideas, whereas APs are more about proving what you know. This is why AP exams have more multiple choice, while the IB exams feature more short-response questions, essays, and case studies. Cost IB exams are more expensive than AP tests since there's a registration fee and a fee per exam. For AP exams, you just pay for the exam, which is $94. Remember that these fees are much lower than college tuition for the same classes! College Credit Getting AP credit can be more straightforward since more US colleges are familiar with it and the College Board officially sets a passing grade (3 out of 5) while IB does not. Furthermore, because AP courses only come in one difficulty level, it can be easier for colleges to set credit policies for AP exams. For IB, colleges have to decide how they'll handle Standard Level and Higher Level courses. However, for both IB and AP, the higher your passing score is, the more likely you are to get credit for college. For example, an AP exam score of 5 nearly always earns credit, the same as an IB score of 7 does. Don't forget this when you're studying! What’s Next? You know a lot about IB- but what about AP? See our guide to what AP classes are and why you should take them. Also studying for the SAT or ACT? Figure out which exam you're more likely to do the best on! Get a timeline for studying for the SAT/ACT. Planning ahead will give you the opportunity to get a higher score on test day! Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

To What Degree was Reconstruction after the Civil War successful essays

To What Degree was Reconstruction after the Civil War successful essays Reconstruction was successful politically in its attempts to solve the problems of how to deal with the newly freed slaves and how to bring the seceded states back into the Union after the Civil War; however, many of these methods were unsuccessful or had no effect socially or economically. Some solutions determined by Reconstruction included: the passage of the Thirteenth, Fourteenth, and Fifteenth Amendments; the Freedmens Bureau; the Reconstruction Act of 1837, the Civil Rights Act, and the Enforcement Act of 1870. In 1865, Congress ratified the Thirteenth Amendment, which stated that Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States. Simply put, the Thirteenth Amendment abolished slavery. The passage of this amendment was successful politically; however, many states did not readily enforce this law. Many even passed discriminatory laws known as black codes. These laws were seen by Republicans as the driving vehicle for the reconstitution of the Democratic Party in the South. The black codes placed numerous restrictions on African-Americans including the prohibition of blacks to carry weapons, serve on juries, testify against whites, marry whites, start their own businesses, and travel without permits. The Thirteenth Amendment allowed for the freedom of African-Americans, but they were far from equal. However, with the help of the Freedmens Bureau, former slaves began to slowly pull themselves back up. The Freedmens Bureau was created by Congress just before the war to aid refugees, freedmen, and Southerners who had been uprooted by the Civil War by furnishing supplies and medical services, establishing schools, distributing clothing, and much more. Although the Freedmens Bureau lasted only a short time, it did succeed in establishing and assisting numerous educational i...

Construction and operation of aircraft fluid systems Assignment

Construction and operation of aircraft fluid systems - Assignment Example Compressed air which is a mixture of all gases present in the atmosphere is suitable as a fluid for transmitting power in aircraft given its properties that closely match those of an ideal fluid. Air is unlimited in supply and practically costs nothing. Although it contains different gases, air is not poisonous (tbub.com 2013). Also, air does not burn in as much as it contains oxygen which supports combustion. Furthermore, it is chemically stable, easy to compress, and, in most cases, does not contain acids that may corrode airplane systems. Aircraft generally should be as light as possible, the main reason they are made of aluminium. By using air as a medium for transferring power, the aircraft’s weight remains low. If a liquid is used instead of air, the weight of the aircraft would be higher. Unlike it happens with liquids, air does not need a return line when used in a pneumatic system. While this is the case, air often contains moisture to the extent that if it is compres sed, the moisture tends to condense causing harm to the system. The water formed in the system may dilute lubricants, freeze during cold weather, and increase corrosion of system parts (tbub.com 2013). One other disadvantage of air as a transmission system is that it does not transmit power as easily as liquids (Experimental Aircraft 2013). In this respect, it is not very suitable for use in systems that demand precise control. Yet again, air is not suitable for use in transmitting power for heavy mechanical devices since it must be highly compressed to accumulate enough energy. In this respect, the system will have to include large air tanks and actuators which can work at extremely high pressures (Experimental Aircraft 2013). Q2 Explain the function and operation of aircraft pneumatic systems and their associated status indicators The pneumatic systems of an aircraft are also known as the vacuum pressure systems as noted by Lombardo (1998, p. 43). The pneumatic systems play a grea t role in the control of aircraft. They systems power instruments, control landing gear (during emergencies), provide air conditioning, doors, windows, and flaps. Compressed air is used for other functions as well. When the aircraft is flying at high altitudes where the air is too thin, the passengers depend on compressed air from the pneumatic system for their breath and comfort. In some airplanes, compressed air is used to ignite the jet engine. Compressed air is also used for deicing and anti-icing for the proper functioning of the aircraft. The vacuum pressure systems basically comprises an air compressor, pump, a system of distribution pipes, relief valves, air filter, vacuum regulator, gauge gyro instruments and air storage tanks or bottles, or cylinders (Nagabhushana & Sudha 2010, p. 80). Suction gauge gyro instruments include the attitude and heading indicators. In small aircraft, the pneumatic system includes instrumentation such as the gyro compass, turn coordinator, and a rtificial horizon. The Vacuum system with gauge gyro instruments Courtesy of Courtesy of www.flightlearnings.com The airplane pneumatic systems Courtesy of www.flightlearnings.com The pneumatic system works such that the air compressor draws air from the atmosphere and compresses it to the required pressure and volume. The air from the compressor is transported through

Rubber Band Model of Communication Essay Example | Topics and Well Written Essays - 750 words

Rubber Band Model of Communication - Essay Example The first scholar who attempted a communication model is Aristotle. Aristotelian view of communication influenced the perspectives of communication thinkers until the mid twentieth century. In the late 1940s, and through the 1950s and 1960s, a number of new communication models were advanced, most of them preserving the basic themes of the Aristotelian perspective. Later in 1949, Claude Shannon and Warren Weaver published a model that they called the "Mathematical Model of Communication." and later in 1954 he proposed an interactive model. In 1960 Berlo proposed the SMCR model. These models were considered the major linear models of communication. and Becker's Mosaic Model (1968). The others that invited attention of communication experts included the multidimensional models. The major contributions were Functional Model by Ruesch and Bateson (1951) and Transactional Model by Barnlund (1970). All these models contributed only to further the discussions and research of communication and proved different points of the communications process. (Jones & Jones, 1997) The Rubber Band Model of communication, as the term denotes uses the analogy of a rubber band. The elastic property of the rubber band is used to explain the communication process. ... The Rubber Band Model can be explained with the following diagrams. The figures Fig.1 and Fig.2 show the communication process as proposed by the Rubber Band model. Fig.1 shows a stretched rubber band. The black portion is the piece of rubber band and the dotted lines show it in the stretched position. If we consider the piece of rubber band as the message transmitted by the sender the stretched portion explains the transmission of the message. The elastic property of the rubber band can be attributed to the nature of the message, transmission process and the channel. If stretched further, the message will reach a different receiver. It requires a more elastic material (a strong rubber band or a lengthy one) to stretch to a considerable length. The process of communication is similar. If the message has to be reached to a wider audience it has to be powerful, or in other words a mediated communication has to take place which occurs only in mass communication. Similarly the stretched rubber band when released (See Fig.2) gets back to the previous destination, which also explains the feedback. Critique of the Rubber Band model of communication The Rubber Band model is a dynamic model when compared to the linear models of communication as it proves that message can be send to an intended direction. This helps to explain interpersonal communication as well as group communication. The elastic property of the rubber band and its analogy used in the model also explains the mass communication process. The model has significance as it also give explanation for the feedback in communication. The limitation of the model is that it makes the feedback compulsory. Works cited 1. Marsha Jones and Emma