A Study on Impact of Fdi on Service Sector Essay Example for Free

A Study on Impact of Fdi on Service Sector Essay The study aims to analyze the growth dynamics of the FDI. It intends to see whether the growth in FDI has any significant impact on the service sector growth and also investigates whether a growth in this sector causes the GDP to grow, also analyzes the significance of the FDI Inflows in Indian service sector. The study also looks into the sub-sectoral dynamics and indicates towards the fact that the trade, hotels and restaurants, transport. storage and communications sub-sector contributes the most in the growth of Indian service sector. FDI to developing countries in the 1990s was the leading source of external financing. It is one of the most important component of national development strategies for most of the countries in the world and an important source of non-debt inflows for attaining competitive efficiency by creating a meaningful network of global interconnections. FDI provide opportunities to host countries to enhance their economic development and opens new opportunities to home countries to optimize their earnings by employing their ideal resources. India ranks fifteenth in the services output and it provides employment to around 23% of the total workforce in the country. The various sectors under the Services Sector in India are construction, trade, hotels, transport, restaurant, communication and storage, social and personal services, community, insurance, financing, business services, and real estate. Meaning: FDI stands for Foreign Direct Investment, a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Classifications of Foreign Direct Investment FDI is classified depending on the direction of flow of money. * Outward FDI:Any investment made by a country in other countries will account for outward FDI. Where as, all the FDIs invested by other countries in that country is called inward FDI. Outward FDI, also referred to as direct investment abroad, is backed by the government against all associated risk. * Inward FDI : Inward FDI occurs when foreign capital is invested in local resources. The factors propelling the growth of inward FDI include tax breaks, low interest rates and grants. FDI is classified depending on how the subsidiary company works in par with the parent investors. * Vertical: Vertical FDIs happen when a corporation owns some share of the foreign enterprise. The local enterprise could either be supplying the input or selling finished goods to the parent corporation. The subsidiary here helps the parent company to grow more. * Horizontal: When the MNCs kick off similar business operations in different countries it becomes horizontal Foreign Direct Investment. It is actually a cloning that is happening here. Both the countries enjoy the same share of growth. FDI IN INDIA After getting independence in 1947, the government of India envisioned a socialist approach based on the USSR system to developing the country’s economy. The last decade of the 20th century witnessed a drastic increase in foreign direct investment (FDI), accompanied by a marked change in the attitude of most developing countries towards inward investment. FDI flows have grown in importance relative to other forms of international capital flows, and the resulting production has increased as a share of world output.. FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development during recession. This money has allowed India to focus on the areas that may have needed economic attention and address various problems that continue to challenge the country. The factors that attracted investment in India are stable economic policies, availability of cheap and quality human resources, and opportunities of new unexplored markets. Mostly FDI are flowing in service sector and manufacturing sector recorded very low investments. The investments in service sector enhanced the benefit of flow of funds to the home country. Presently India is contributing about 17% of world total population but the share of GDP to world GDP is 2%. India has been ranked at the second place in global foreign direct investments in 2010 and will continue to remain among the top five attractive destinations for international investors during 2010-12 period, according to United Nations Conference on Trade and Development (UNCTAD) in a report on world investment prospects titled, World Investment Prospects Survey 2009-2012. According to the fact sheet on foreign direct investment dated October 2010. Mauritius is the highest FDI investment in equity inflows with 42% of the total inflow followed by Singapore, USA, UK and Netherlands with 9%, 7%, 5% and 4% respectively. Service sector is the highest FDI attracting inflows with 21% of the total inflows, followed by computer software and hardware, telecommunication and housing and real estate with 9%, 8%, 7% and 7% inflows respectively. A report released in February 2010 by Leeds University Business School, commissioned by UK Trade ;amp; Investment (UKTI), ranks India among the top three countries where British companies can do better business during 2012-14. According to Ernst and Youngs 2010 European Attractiveness Survey, India is ranked as the fourth most attractive foreign direct investment destination in 2010.

Problem Diagnosis Using Organisational Behaviour Concepts Business Essay

Problem Diagnosis Using Organisational Behaviour Concepts Business Essay There are several significant concepts which are used when managing the workplace in changing business environment. The workplace environment becomes more complex in which the complexity of interactions, relationships and processes often makes difficult to understand. In the organization, managers are required to be effective in organizing, decisive, and maintain good relationship with employees (Kimball 1997). According to the case analysis, practise of empowerment is used as the new tool by Becker for the hotel to be more effective and implement the capacity of employees to make decisions and to be innovative in the working environment. On the other hand there are certain situations where employees were not familiar with change in the management. Focuses on issues and problems of implementing empowerment within the organization. Motivation refers to the forces acting on and coming from within a person that account, in part, for the wilful direction of ones efforts towards the achievement of specific goals (Dennis Michael) According to the case, in the past Regency Grand Hotel was one of the most prestigious hotels in Thailand and the employees enjoyed working. Example: The hotel provided good welfare benefits and good salary rates to the employees. End of the year employees were given a salary increment regardless of the hotels overall performance. This could be due to personal relationships to build a more close relationship with the employees. Employees were motivated and they enjoyed working with the current general manager. Motivation theories are very important in the corporate world. Primarily motivation theories are divided into two types. (Dennis Michael) Theory 1: Content theory This focuses on identifying the specific factors that motivate people internally which contributes to strengthen and direct the behaviours of employees within the organization. (Dennis Michael) Content theories focus on specific factors that motivate people. McGregors Theory X and Theory Y and Herzbergs Motivation-Hygiene Theory will be discussed linked to the case. 3.1 McGregors Theory X and Theory Y Douglas McGregor proposed two different motivational theories. Managers tend to believe one or the other and treat their employees accordingly.   Theory X states that employees dislike and try to avoid work, and must be coerced into doing it. Most workers lack ambition and value job security more than anything else. According to the case the employees were rewarded with a yearend bonus regardless of the hotels overall performance, may be due to lack of motivation which the manager saw in his subordinates to work within the organization. Due to that we can identify that employees were satisfied and job security was ensured and also for it to become a prestigious hotel the efficiency of the fellow employees would have been a reason. 3.2 Herzbergs Motivation-Hygiene Theory According to Herzberg, job satisfaction and dissatisfaction exist in the corporate world. Hygiene factors could cause an employee to become unhappy with their job. Lack of motivation could bring out job dissatisfaction such as pay, job security, and physical work environment. On the other hand Motivation can increase job satisfaction by providing recognition for their achievements and more responsibilitys. Change Internal and external factors affect the organization towards the complexity and changing situations. Mostly, people do not accept and understand the benefits in changing the management. Organization needs to consider the internal and external factors in implementing a new strategic management. It is important to develop strategy to help employees learning about the change (Cameron Quinn) Managers are also required to develop good communication within its employees since people may come from different cultural background, skills, age, and gender (Holden 2001). These differences will create barriers in communication based on different values and perceptions. The effective management of workplace in organization requires an understanding of leadership and motivation in managing the workplace on performing the job and being motivated to do so. (Holden 2001) In the case with the change of ownership there will be a change in the organizations business practises. Its important that the existing employees are aware of the change and that they should adopt according to the change. For that there should be trainings, workshops organized by the management in order to make them understand about the change. Without effective diagnosis, managers may believe that the problem is significantly different than it is, and the change alternative may be ineffective in resolving the problem. (Dennis Michael) In organizational development one should recognize; The need for change Diagnose problems Develop change alternatives Implementation of change Reinforcement of change Evaluation of change Implementing further change actions 4.1 Delegating authority When delegating authority Becker did not explain properly what are the responsibilities of the employees. As stated in the case he did not give a criterion to differentiate minor and major issues which arose in the organization. Proper organization structure was not implemented. 5. Culture   According to the case the Regency was able to merge with a large American chain that was very keen on expanding its operations into Thailand. With the new ownership the current general manager decided to take early retirement. There is nothing more valuable than local knowledge or understanding culture of a particular organization when merging with an organization. It is important to be aware of the culture and business practices especially when changing ownership with a different country. Organizational culture is referred to, a code of attitudes, norms and values and the way an individual thinks. It determines how we see ourselves and how we see the world. Culture can be either right or wrong inherited about individual behaviour. Organization culture affects the way strategy is determined, how goals are established and how the organization operates. (Marie Roger, 2008) With the retirement of the current general manager a new general manger from the US was appointed to the Regency. According to the case, John Becker the newly appointed general manager has 10 years of management experience in the hotel industry and was selected because of his previous success. The case states that in his previous achievements he took over organizations with poor profitability and poor morale and managed to succeed in achieving desired objectives. Organizational culture can be different from one country to another. The success of an organizational culture has to do with external and internal factors (Marie Roger, 2008). With the change of the ownership one should identify the cultural variations from one organization to another or from country to country. Considering the culture in Thailand and in the US the business practices can be completely different there can be a cross cultural affect within the organization. Cross culture explains the behaviour of people in organizations around the world and describes and compares organizational behaviour across countries and cultures seeking to understand and improve the interaction of its subordinates (Adler, 2002: 11). Identifying organizational culture 6.1 Corporate Culture in the US The worlds third largest country both in size and population, the United States is a nation moving forward rapidly and successfully with its unique cultural diversity. Today, the US is considered to have the strongest and most technologically powerful economy. (Communicaid Group Ltd. 2009) In the US people are more work oriented where individualism and equality are two main important aspects in the US corporate culture which has a significant effect on their business etiquettes (Cameron Robert). In the US performance is more important and individuals will be rewarded according to their achievements this is why individualism is important in the US. American business culture is task oriented. Paying attention to guidelines and rules dictated by business policies, laws and procedures is important in the US. 6.2 Corporate Culture in Thailand Thai people are mo re relationship oriented when doing business. International business practices are widely accepted for Thai business person. In general, Thais are naturally friendly and open-minded; however, there are some practices and values to be considered (Thailand Business Guide, 2010) Thai business people can accept new ideas quickly. Thai people are calm and quite. Thais take confrontation extremely seriously. In the west you loosing temper may be familiar and accepted where in Thailand its not accepted. There is nothing worse than an upset, impatient employer who is making demand on Thais. Acting this way will serve no purpose other than alienate. (Thailand Business Guide, 2010) 6.3 Cross Culture (United States Thailand) According to the research carried out its clear that from one country to another their business practises diverge. Culture in one country can be different from one another. What is suitable in the US will not be applicable in Thailand. Certain practises used by Becker will not be applicable in Thailand. His success in previous organizations can be a failure in the Regency. Understanding organizational culture at all levels is important because the culture points out both appropriate and inappropriate behaviours of the employees. According to the case Becker wanted his employees to think out of the box. He expected the employees to be creative, innovative and to make judgments to satisfy guest needs. Throughout my research I identified that being innovative and creative will help to achieve organizational goals. The culture Becker previously worked is a culture based on innovation and creativity. With his new placement in a different country (culture) he implemented the same theory assuming he will succeed. Contrary to the culture in Thailand and the US, the existing employees were used to a different organizational culture from the culture Becker worked previously. According to the case, under the previous management the responsibilities of the employees were to ensure that the instructions from their managers are carried our diligently and conscientiously. Innovation and creativity were discouraged. Indeed, employees were punished for their mistakes and discouraged from trying out ideas that had not been approved by management. As a result, employees were afraid to be innovative and to take risks. This can be due to the normal organizational culture carried out in the industry in Thailand. We assume that they were more task oriented. Team work was not encouraged and individual achievement was encouraged. An organizations culture also determines the way in which employees are rewarded. (Business Management Group, Inc) But without considering the performance of the employees everyone was rewarded with a yearend bonus. Because of this there can be dissatisfaction and un-equality among employees. Management tends to focus on a dominant source of motivation, such as pay, status, or opportunity for personal growth and achievement. The accessibility of management and the ways in which decisions are made are reflections of an organizations culture as well. (Business Management Group, Inc) Empowerment Empowerment can be defined as a term used to express the ways in which employees can make independent decisions without consulting their superiors. Employee empowerment can begin with training and converting a whole company to an empowerment model. Conversely it may merely mean giving employees the ability to make some decisions on their own (Murrell   Meredith) According to the case Becker is a strong believer in empowerment. He believes empowerment increases employee motivation, performance and job satisfaction. He expects employees to go beyond guidelines and make work more effective. According to Becker employee empowerment has always been a successful tool for him in the corporate culture. He believes that by introducing empowerment to the new organization will replicate his previous success in the industry. Implementing empowerment might not work in the new place where it will be difficult to change ones perception and employees will not like to deviate from his/her believes, attitudes and routines. Since empowerment is new to the existing employees they might not understand what Becker is expecting unless he should provide certain trainings to educate his subordinates. On the other hand empowerment will encourage the employees to be innovative, creative and make judgments. Managers believe when they delegate jobs, they are empowering their employees; empowerment is more than simple delegation. It is giving the employees the authority, training and resources to make decisions within defined boundaries. Through these actions, employees gain the power and potential to both grow and strengthen the company  (Weiss, W. H.) Existing employees at Regency had to go through administrative control which result more bureaucratic procedures in the organization. The front-counter employees needed to seek approval from their manager before they could upgrade guests to another category of room. The front-counter manager would then have to write and submit a report to the general manager justifying the upgrade With Beckers implementation of empowerment, the employees will have to follow his instruction if not there will be a contradictory between the employees and the general manager. In the previous management employees were punished for mistakes and they did not have the freedom to be innovative or creative or make decisions on their own. With Beckers new plan the employees might hesitate to adopt directly according to the change if relevant training and briefing isnt done appropriately. So Becker should communicate fully in order to build confidence among the fellow employees. 7.1 Advantages of implementing Empowerment at the Regency Gives more freedom for the employees to be innovative, creative and make decisions End output will be more effective More flexibility within the organization Motivated employees creates a good working environment 7.2 Disadvantages of implementing Empowerment at the Regency Fear about job security when the lower level employees in the organization have power/authority the existing managers will have a fear of losing their jobs. Employees might use the power un-necessarily There will be more people involved in the decision making process which might take more time and disagreement will rise resulting divergence. (Murrell   Meredith) Problems and symptoms Employees had lack of confidence High employee turnover rates within the organization due to delegation of authority With the implement of the new plan Becker did not monitor the progress of the new plan implemented Becker did not have alternatives if the plan of implementing empowerment failed Becker failed to identify/study the corporate culture of Thailand didnt study the culture before implementing new tools to the organization he is not a good consultative leader Assumptions were made without any prove based on personal judgement Employees who displayed initiative and made good decisions in satisfying the needs of the guests rarely received positive feedback from the superiors Becker did not take in to account the feedback he got from several managers the body language (nodding their heads) meant a disagreement to some extent Delegated authority without considering the impairment which will occur within the organization Proper organization structure was not implemented employees didnt know to whom they should report. Lack of organizing, planning and controlling Solutions 9.1 Having alternatives Empowerment is not the only tool to motivate employees in the corporate world.   By using performance appraisals, superiors can praise and recognize the employees at Regency who displayed good innovative and good decisions to satisfy customers. Employees like been appreciated and like to hear the superiors say that they have done a good job. Reward systems for their accomplishments such as incentives, salary increments, yearend bonus for good performers and promotions can be used to motivate employees rather than only using empowerment. A manager should always be transparent and should not be biased when evaluating ones performance. 9.2 Conduct research When implementing a new plan one should always study the culture and identify the need for change. According to the case, Regency was a profit making organization and the need for change was not necessarily important. Without studying the culture Becker implemented empowerment in to the organization based on his personal judgements. To motivate employees at Regency, Empowerment was not the appropriate tool. If prior research was conducted Becker would have introduced different tools to motivate employees. Its very important understand that corporate culture can vary from one country to another. 9.3 Conduct Trainings With the implementation of empowerment employees at Regency was not aware of what exactly they should do and was afraid to be innovative and to take risks due to the bureaucratic procedures conducted by the past management. In order to build confidence in employees, trainings, workshops such as Employee Performance Management trainings can be conducted to educate them about how important empowerment is to succeed in the corporate world. 9.4 Observe the employees By observing the employee superiors can identify what employees should stop doing, what employees should continue doing and what employees should start doing and write reports about relevant employees in order to be more effective and achieve desired goals. 9.5 Have a proper organization structure Becker had lack or planning, organizing and monitoring. He did not monitor after implementing the new plan. Once a new plan has been implemented its important to monitor the progress to see whether it has been effective throughout the organization structure. Close relationship with the employees According to the research Thai people are more relationship oriented so its important that Becker should have a more close relationship with the subordinates. Having meetings at least twice a week is important in order to build up a good relationship. Its important to listen to your subordinates. Active listening guarantees that the other party understood him or her. It is a necessary part of any exchange to motivate employees. 9.7 Decrease employee turnover To decrease employee turnover in future superiors existing should consult ex-employees and discuss the reasons for leaving and make decisions to avoid turnover in future and try to maintain a lower number of employee turnover within the organization. Implement better hiring decisions to fill in the existing gaps. 9.8 Keep employees up-to-date Its important to keep the employees informed about all changes that may affect them. When implementing tools within the organization its important that you make them aware about every single rule and regulation in order to avoid stress and un-efficiency. Recommendation Considering the above solutions the most appropriate recommendation is to first identify the difference between organizational cultures and when implementing new business practises its important to train and provide sufficient information to the employees in an organization. Conclusion The purpose of this report was to diagnose the problems in this case using organisational behaviour concepts and recommend solutions to overcome or minimise the problems and symptoms in this case. There are several solutions identified in order to minimise the problems and symptoms occurred during the implementation of empowerment at the Regency. Using several organizational behaviour concepts to diagnose the problems at the Regency, such as motivation, organizational culture, employee empowerment, crosses cultural effect and change. The report found out that what may be applicable in one culture will not always be applicable/suitable in a different organizational culture. Empowerment was not effective in Thailand though it was effective and gave excellent results in the US. There are a number of contradictory findings among different authors and therefore due to a lack of clear findings at this stage it is not possible to definitively state whether empowerment is the only method of motivating the workforce. Monitoring the progress once a new plan is implemented will greatly increase efficiency and productivity within the organisation. Having alternatives will have a great deal to do with the organizations progress and how it handles the various unexpected situations such as employee turnover and low profitability. Planning, organizing and monitoring the organization are important tools in order to succeed.

Bakery Business Plan Jollys Java And Bakery

Bakery Business Plan Jollys Java And Bakery Jollys Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners industry experience and mild competitive climate in the area. JJB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists. The Company JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners. Mr. Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. Mr. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups. The company intends to hire two full-time pastry bakers and six part-time baristas to handle customer service and day to day operations. Products and Services JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. The Market The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. JJB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Financial Considerations JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required. JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. JJB should break even by the fourth month of its operation as it steadily increases its sales. Profits for this time period are expected to be approximately $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems. Company Summary JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to the partners industry experience and mild competitive climate in the area. 2.1 Company Ownership JJB is incorporated in the state of Washington. It is equally owned by its two partners. 2.2 Company History JJB is a start-up company. Financing will come from the partners capital and a ten-year SBA loan. The following chart and table illustrate the companys projected initial start-up costs. Products JJB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. JJB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. Market Analysis Summary JJBs focus is on meeting the demand of a regular local resident customer base, as well as a significant level of tourist traffic from nearby highways. 4.1 Market Segmentation JJB focuses on the middle- and upper-income markets. These market segments consume the majority of coffee and espresso products. Local Residents JJB wants to establish a large regular customer base. This will establish a healthy, consistent revenue base to ensure stability of the business. Tourists Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. 4.1.1 Market Analysis The chart and table below outline the total market potential of the above described customer segments. 4.2 Target Market Segment Strategy The dominant target market for JJB is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market. 4.2.1 Market Needs Because Washington has a cool climate for eight months out of the year, hot coffee products are very much in demand. During the remaining warmer four months of the year, iced coffee products are in significantly high demand, along with a slower but consistent demand for hot coffee products. Much of the days activity occurs in the morning hours before ten a.m., with a relatively steady flow for the remainder of the day. 4.3 Service Business Analysis The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the immediate area, JJB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment. 4.3.1 Competition and Buying Patterns Competition in the local area is somewhat sparse and does not provide nearly the level of product quality and customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They desire a unique, classy experience. Leading competitors purchase and roast high quality, whole-bean coffees and, along with Italian-style espresso beverages, cold-blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, sell these items primarily through company-operated retail stores. In addition to sales through company-operated retail stores, leading competitors sell coffee and tea products through other channels of distribution (specialty operations). Larger chains vary their product mix depending upon the size of each store and its location. Larger stores carry a broad selection of whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee- and espresso-making equipment and accessories such as coffee grinders, coffee makers, espresso machines, coffee filters, storage containers, travel tumblers and mugs. Smaller stores and kiosks typically sell a full line of coffee beverages, a more limited selection of whole-bean coffees, and a few accessories such as travel tumblers and logo mugs. During fiscal year 2000, industry retail sales mix by product type was approximately 73% beverages, 14% food items, eight percent whole-bean coffees, and five percent coffee-making equipment and accessories. Technologically savvy competitors make fresh coffee and coffee-related products conveniently available via mail order and online. Additionally, mail order catalogs offering coffees, certain food items, and select coffee-making equipment and accessories, have been made available by a few larger competitors. Websites offering online stores that allow customers to browse for and purchase coffee, gifts, and other items via the Internet have become more commonplace as well. Strategy and Implementation Summary JJB will succeed by offering consumers high quality coffee, espresso, and bakery products with personal service at a competitive price. 5.1 Competitive Edge JJBs competitive edge is the relatively low level of competition in the local area in this particular niche. 5.2 Sales Strategy As the chart and table show, JJB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. Sales Forecast 2001 2002 2003 Unit Sales Espresso Drinks 135,000 148,500 163,350 Pastry Items 86,000 94,600 104,060 Other 0 0 0 Total Unit Sales 221,000 243,100 267,410 Unit Prices 2001 2002 2003 Espresso Drinks $3.00 $3.15 $3.31 Pastry Items $1.00 $1.05 $1.10 Other $0.00 $0.00 $0.00 Sales Espresso Drinks $405,000 $467,775 $540,280 Pastry Items $86,000 $99,330 $114,726 Other $0 $0 $0 Total Sales $491,000 $567,105 $655,006 Direct Unit Costs 2001 2002 2003 Espresso Drinks $0.25 $0.26 $0.28 Pastry Items $0.50 $0.53 $0.55 Other $0.00 $0.00 $0.00 Direct Cost of Sales Espresso Drinks $33,750 $38,981 $45,023 Pastry Items $43,000 $49,665 $57,363 Other $0 $0 $0 Subtotal Direct Cost of Sales $76,750 $88,646 $102,386 Management Summary Austin Patterson has extensive experience in sales, marketing, and management, and was vice president of marketing with both Jansonne Jansonne and Burper Foods. David Fields brings experience in the area of finance and administration, including a stint as chief financial officer with both Flaxfield Roasters and the national coffee store chain, BuzzCups. 6.1 Personnel Plan As the personnel plan shows, JJB expects to make significant investments in sales, sales support, and product development personnel. Personnel Plan 2001 2002 2003 Managers $100,000 $105,000 $110,250 Pastry Bakers $40,800 $42,840 $44,982 Baristas $120,000 $126,000 $132,300 Other $0 $0 $0 Total People 10 10 10 Total Payroll $260,800 $273,840 $287,532 Financial Plan JJB expects to raise $110,000 of its own capital, and to borrow $100,000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required. 7.1 Break-even Analysis JJBs Break-even Analysis is based on the average of the first-year figures for total sales by units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. JJB should break even by the fourth month of its operation as it steadily increases its sales. Break-even Analysis Monthly Units Break-even 17,255 Monthly Revenue Break-even $38,336 Assumptions: Average Per-Unit Revenue $2.22 Average Per-Unit Variable Cost $0.35 Estimated Monthly Fixed Cost $32,343 7.2 Projected Profit and Loss As the Profit and Loss table shows, JJB expects to continue its steady growth in profitability over the next three years of operations. Pro Forma Profit and Loss 2001 2002 2003 Sales $491,000 $567,105 $655,006 Direct Cost of Sales $76,750 $88,646 $102,386 Other $0 $0 $0 Total Cost of Sales $76,750 $88,646 $102,386 Gross Margin $414,250 $478,459 $552,620 Gross Margin % 84.37% 84.37% 84.37% Expenses Payroll $260,800 $273,840 $287,532 Sales and Marketing and Other Expenses $27,000 $35,200 $71,460 Depreciation $60,000 $69,000 $79,350 Utilities $1,200 $1,260 $1,323 Payroll Taxes $39,120 $41,076 $43,130 Other $0 $0 $0 Total Operating Expenses $388,120 $420,376 $482,795 Profit Before Interest and Taxes $26,130 $58,083 $69,825 EBITDA $86,130 $127,083 $149,175 Interest Expense $10,000 $9,500 $8,250 Taxes Incurred $3,111 $12,146 $15,650 Net Profit $13,019 $36,437 $45,925 Net Profit/Sales 2.65% 6.43% 7.01% 7.3 Projected Cash Flow The cash flow projection shows that provisions for ongoing expenses are adequate to meet JJBs needs as the business generates cash flow sufficient to support operations. Pro Forma Cash Flow 2001 2002 2003 Cash Received Cash from Operations Cash Sales $491,000 $567,105 $655,006 Subtotal Cash from Operations $491,000 $567,105 $655,006 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $491,000 $567,105 $655,006 Expenditures 2001 2002 2003 Expenditures from Operations Cash Spending $260,800 $273,840 $287,532 Bill Payments $143,607 $186,964 $237,731 Subtotal Spent on Operations $404,407 $460,804 $525,263 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $10,000 $15,000 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $20,000 $20,000 Dividends $0 $0 $0 Subtotal Cash Spent $404,407 $490,804 $560,263 Net Cash Flow $86,593 $76,301 $94,744 Cash Balance $156,593 $232,894 $327,637 7.4 Balance Sheet The following is a projected Balance Sheet for JJB. Pro Forma Balance Sheet 2001 2002 2003 Assets Current Assets Cash $156,593 $232,894 $327,637 Other Current Assets $12,000 $12,000 $12,000 Total Current Assets $168,593 $244,894 $339,637 Long-term Assets Long-term Assets $65,000 $85,000 $105,000 Accumulated Depreciation $60,000 $129,000 $208,350 Total Long-term Assets $5,000 ($44,000) ($103,350) Total Assets $173,593 $200,894 $236,287 Liabilities and Capital 2001 2002 2003 Current Liabilities Accounts Payable $14,574 $15,438 $19,907 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $14,574 $15,438 $19,907 Long-term Liabilities $100,000 $90,000 $75,000 Total Liabilities $114,574 $105,438 $94,907 Paid-in Capital $110,000 $110,000 $110,000 Retained Earnings ($64,000) ($50,981) ($14,544) Earnings $13,019 $36,437 $45,925 Total Capital $59,019 $95,456 $141,381 Total Liabilities and Capital $173,593 $200,894 $236,287 Net Worth $59,019 $95,456 $141,381 7.5 Business Ratios The following table represents key ratios for the retail bakery and coffee shop industry. These ratios are determined by the Standard Industry Classification (SIC) Index code 5812, Eating Places. Ratio Analysis 2001 2002 2003 Industry Profile Sales Growth 0.00% 15.50% 15.50% 7.60% Percent of Total Assets Other Current Assets 6.91% 5.97% 5.08% 35.60% Total Current Assets 97.12% 121.90% 143.74% 43.70% Long-term Assets 2.88% -21.90% -43.74% 56.30% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 8.40% 7.68% 8.42% 32.70% Long-term Liabilities 57.61% 44.80% 31.74% 28.50% Total Liabilities 66.00% 52.48% 40.17% 61.20% Net Worth 34.00% 47.52% 59.83% 38.80% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 84.37% 84.37% 84.37% 60.50% Selling, General Administrative Expenses 74.74% 71.43% 71.39% 39.80% Advertising Expenses 0.49% 1.76% 6.87% 3.20% Profit Before Interest and Taxes 5.32% 10.24% 10.66% 0.70% Main Ratios Current 11.57 15.86 17.06 0.98 Quick 11.57 15.86 17.06 0.65 Total Debt to Total Assets 66.00% 52.48% 40.17% 61.20% Pre-tax Return on Net Worth 27.33% 50.90% 43.55% 1.70% Pre-tax Return on Assets 9.29% 24.18% 26.06% 4.30% Additional Ratios 2001 2002 2003 Net Profit Margin 2.65% 6.43% 7.01% n.a Return on Equity 22.06% 38.17% 32.48% n.a Activity Ratios Accounts Payable Turnover 10.79 12.17 12.17 n.a Payment Days 27 29 27 n.a Total Asset Turnover 2.83 2.82 2.77 n.a Debt Ratios Debt to Net Worth 1.94 1.10 0.67 n.a Current Liab. to Liab. 0.13 0.15 0.21 n.a Liquidity Ratios Net Working Capital $154,019 $229,456 $319,731 n.a Interest Coverage 2.61 6.11 8.46 n.a Additional Ratios Assets to Sales 0.35 0.35 0.36 n.a Current Debt/Total Assets 8% 8% 8% n.a Acid Test 11.57 15.86 17.06 n.a Sales/Net Worth 8.32 5.94 4.63 n.a Dividend Payout 0.00 0.00 0.00 n.a

Cathedral of Marble Strands :: Creative Writing Examples

   Cathedral of Marble Strands    Richard Stewart lay stretched out on the cool stone. His handsome, youthful face was relaxed into a slight smile, eyes closed lazily. Richard's hand played unconsciously with his long black hair lying on the reddish surface . . . "Four slices of lemon . . . four cubes of sugar. . . and a straw," thought Richard, and pictured the glass in his mind. Without opening his eyes, he reached out and felt it in his hand. It was cool, and the droplets that condensed from the morning mist made it slippery. He raised his head off the ground and brought the straw to his lips. He took a long, slow draft, letting the taste settle in. It was slightly too sour to be perfect, but Richard didn't mind. One day he would discover the ultimate lemonade, but he was in no hurry. He lay there drinking it for a long time. Lemonade doesn't have to run out in heaven. Richard lay on a narrow ledge about five hundred feet up the face of a cliff. Above him, just under the low hanging clouds, a pair of eagles circled, wings motionless. Beneath, a green valley lay shrouded in the morning fog. The clouds concealed the sun and gave the valley the cool gray feel Richard wanted. Near the foot of the cliff, the valley was grassy, with an occasional shrub clinging to the rocky soil here and there. Blue flowers growing in sparse islands shone dimly where the easy wind blew away patches of fog. A wide stream slid from around the base of the cliff. It began somewhere in the mountains behind Richard and disappeared in the denser fog at the deeper part of the valley. There, where not even the tops of the trees were visible, an airy structure of white marble stretched its spires almost as high as the cliff Richard lay on. Four great arches rose, flanked a spiderweb of smaller ones, and met in a cluster of domes, towers and spires. Richard liked to call it the Cat hedral. Beyond, the valley lost itself where the whiteness of the sky met the fog on the ground. Richard stretched the hand that held the glass of lemonade over the edge and let it slip away. He listened for it's fall, but it went too far down to hear. He relaxed his mind, waiting for some idea to come to him.

Free Essay on Nathaniel Hawthornes Scarlet Letter - Three Scaffold Scenes :: Scarlet Letter essays

Three Scaffold scenes - Progression of Dimmesdale In The Scarlet Letter, Nathaniel Hawthorne portrays Arthur Dimmesdale as a troubled individual. In him lies the central conflict of the book. Dimmesdale's soul is torn between two opposing forces: his heart, his love for freedom and his passion for Hester Prynne, and his head, his knowledge of Puritanism and its denial of fleshly love. He has committed the sin of adultery but cannot seek divine forgiveness, believing as the Puritans did that sinners received no grace. His dilemma, his struggle to cope with sin, manifests itself in the three scaffold scenes depicted in The Scarlet Letter. These scenes form a progression through which Dimmesdale at first denies, then accepts reluctantly, and finally conquers his sin. During Hester Prynne's three-hour ignominy, Dimmesdale openly denies his sin. Hawthorne introduces Dimmesdale as "a being who felt himself quite astray and at a loss in the pathway of human existence" (64). The author made it obvious that a grim secret lies hidden in the depths of Dimmesdale's soul. This secret, however, does not reveal itself immediately, since Dimmesdale hides it from the closely watching town. In addition, he magnifies his own denial of his sin when he charges Hester to "speak out the name of thy fellow-sinner and fellow-sufferer"(65). By deliberately speaking to Hester as if the sinner were not himself, the pastor makes sure that nobody suspects him. One may also interpret Dimmesdale's speech as a hint to Hester not to name him. He feels he must "add hypocrisy to sin" in order to keep his standing in the town. He thinks that if the town finds out about his sin, they will never forgive him, much like his belief system tells him that God will never forgive him. So great is his relief when he finds that "she will not speak" that he stands in awe of the "wondrous strength and generosity of a woman's heart"(66). Despite an inward wish for his sin to be discovered, Dimmesdale feels better knowing that Hester will not willingly expose him. In this scene in front of the town, Dimmesdale shows his original strength of character, which will diminish along the course of the book. In the middle of the night, seven years after Hester's punishment, Dimmesdale holds a vigil on the scaffold where he finally accepts his sin. The battle within Dimmesdale between "Remorse, which dogged him everywhere" and "Cowardice, which invariably drew him back"(144) leads to a temporary compromise in his midnight vigil.

The Persistence of Memory

Looking at the picture The Persistence of Memory by Salvador Dali, people can see an abstract aesthetic deep within. The landscapes associated with his childhood have become an inspiration for his paintings. When he grew up, Dali still spent his time to painting the Catalonia’s landscape elaborately. Completed in 1931, The Persistence of Memory became one of his well-known paintings. This famous artwork is called â€Å"Dali ‘s hand painted dream photographs†, and it is simultaneously read as a painting depicting landscape, still life, and self-portrait. As I find curious in this abstract, I use many researches in reference book and Internet in order to look for the meaning of this picture so far. One interesting idea is about the melting watches that inspire randomly. In one hot August afternoon in 1931, as Dali was having lunch on his work bench, suddenly an idea of paranoiac hallucinations came to his mind. He took his pencil and slid under a bit of Camembert cheese, which was softer by the heating of summer weather, and started drawing. Dali came up with an idea about the melting watches as the main subject. These soft melting watches convey Dali’s primary philosophy about the â€Å"softness† and the â€Å"hardness†. The melting watches are one symbol that is commonly associated with Salvador Dali's Surrealism. They are literally meant to show the irrelevance of time. According to the Wikipedia website, one famous art history professor named Dawn Ades wrote, â€Å"The soft watches are an unconscious symbol of the relativity of space and time, a Surrealist meditation on the collapse of our notions of a fixed cosmic order. In addition, there are some interesting subjects appearing in this painting such as the craggy rocks of Catalonia spreading out further away. This is the place where he grew up, and also indeed the association with his painting The Persistence of Memory. It shows a typical Dalinian landscape with his beloved Cape Creus (a peninsula and a headland located at Mediterranean) in the background. In the foreground, there is an orange clock at the bottom l eft of the painting, which is covered in ants. Beside, the figure in the middle of the painting can be recognized as a human figure in a dream state that Dali uses to represent himself, as the artwork became a self-portrait, maybe. Looking closely as the details, we see the abstract form has one closed eye with curvy eyelashes, as it falls into a dream state. The melting clock laid on top symbolizes the passing time experienced in a dream. The bottom left of a painting usually is a death spot; people perceive a painting by reading the focus elements, then following the direction it points too. Sometimes leads to death point. But in this picture, the plate is oval to top right, leading the viewers up back to the watches that can make viewers focus on the foreground. As the technique of drawing, the painting presents a linear perspective. The tree, the table, the clocks stand out in the foreground, but they are colored with a darker color. This lets the bright yellow cliffs and the blue water shinning in the background as it helps to emphasize the landscape of Dali’s childhood. The contrast of bright and dark color also creates the intensity of â€Å"real† and imagination of the â€Å"composition† Well, in my opinion, I perceive things rights at this part because dark color means dark reality, and bright color means dreamy, but in this picture is the opposite. Dark color is unrealistic world; bright color may be his memory on the beautiful land. His reality now is dark and shallow that represents the watch is the time has passed in his life. As the choices of color, this artwork has used a bright white and blue in the top left hand corner and then fading up into the darkness. There is an orange clock in the bottom left hand corner sticks out of the brown and black foreground. The cool colors include the sky, and three melting watches that are harmony with the rest of landscape’s color. This painting represents a linear perspective. The objects in front of the piece, the tree, the clocks, the table stand out more than the objects that the artist wants the viewers to notice like the mountain, the sky, the ocean, and the rocks in the background. Even though they are the main points in this painting, they are less of focusing than the melting clocks in the foreground. Dali interpretation gives much confusion for critics and art lovers. Partly because Dali’s work is to convey a concept of two different sides: real and imagination. For example, The Persistence of Memory is a landscape painting produced based on the landscape that Dali saw in his childhood. In the background is a beach with sand and water, rock and cliffs. These details represent real subjects in life. Yet, in the foreground, there are some melting watches and an unrecognizable figure sliding over the rocks in the center of the painting. The melting watches and the strange figure can be seen as products of his imagination, and the cliffs which is a place in Catalonia depicts Dali’s childhood memory. The Persistence of Memory is named itself. It resembles for Port Lligat, the home of Salvador Dali. He tried to expose his hometown with sand, beach, branch tree, rock and cliff. Still, there are many interpretations in this painting. Some we can understand, others are hard to explain. Perhaps the images of the melting watches are really nothing more than the ideas that Dali was inspired by the Camembert cheese melt in a warm sunny day. As I find Dali’s artwork intriguing and repulsive, his painting looks really realistic, creative, and stunning. He was the person that could put the photorealistic images on a canvas. His style noted as a Surrealist, which was influenced by famous psychologist who led him to explore his fears and fantasies, or possible, a crazy idea. This is the reason I choose his artwork because through them, he brings me a new concept that looks abnormal at firs but then really intense as I discover deepen into its meanings. Salvador Dali was a great artist, a man who is not ashamed to show his feeling. Through The Persistence of Memory, I felt like it is a perfect example for Dali’s style, very surrealist and realistic. No matter what is said about the painting, this work has stood the test of time as it has a great influence on pop culture today. Salvador Dali has become an icon for a generation that is interested in the abstract and distortion of reality.

The Cunning of Iago in Othello

So Iago is this extremely interesting, cunning, evil character. But over all of these trait’s Iago’s jealousy is what drives him to scheme and plot to take down othello and weave his elaborate web of destruction. Does anyone know exactly when in the play does Iago’s intense jealousy come into play? In the very 1st act scene one iago and roderigo are arguing in the streets and iago starts to rant about his hatred for Othello and how Othello passed him up over cassio for promotion to ancient.Iago had an enormous amount of battle experience, experience that Othello has witnessed firsthand â€Å"And I, of whom his eyes had seen the proof At Rhodes, at Cyprus, and on other grounds Christian and heathen, must be belee’d and calmed† while cassio has no battle experience and only knows the theory of leading men into battle, â€Å"I have already chose my officer. And what was he? Forsooth, a great arithmetician,One Michael Cassio, a Florentine(A fellow almo st damned in a fair wife)That never set a squadron in the field,Nor the division of a battle knows More than a spinster—unless the bookish theoric, Wherein the toged consuls can propose As masterly as he. Mere prattle without practice is all his soldiership.But he, sir, had th' election he has no clue how to put into practice this theory and is therefore unqualified according to iago. Later on in the play iago shows his jealousy of Othello because Othello is rumored to have slept with his wife toIago becomes jealous of cassio getting the promotion over him so he devises a plot to get revenge.