Fractional reserve banking dissertation The WritePass Journal

Fractional reserve banking dissertation Chapter 1 Fractional reserve banking dissertation Chapter 11.1 Introduction1.2 Research Aim1.3 Research Objectives1.4 Research Method1.5 Dissertation Structure1.6 LimitationChapter 3 Methodology3.1 Data Sources3.2 Methodology Approach3.2.1 Data Samples3.3 Selection of Research Methodology3.4 LimitationsRelated Chapter 1 1.1 Introduction Fractional reserve banking concepts, theories and a real life case of debate by the Bank of England Governor Mervyn King have been investigated in this dissertation from a perspective   differed to the mainstream. There have been controversy on the discussion on the nature and uprising of fractional reserve banking. Therefore, the author believes a need for awareness on the history and nature on subject is worth identifying. The approach mentioned above is expected to form a new angle on the issue investigated and conducting further insight for a more dynamic instead of a static framework in forthcoming research. Based on extensive reviews on texts, books, research papers and websites. Appropriately, from the literature review, the author would consider fractional reserve banking as a widely spread banking system in which allows banks to create money in a banking system by lending a fraction of its deposits   while keeping only a small fraction of the original deposit as a reserve available for withdrawal and daily operations. This kind of de facto banking operation system has been legit and practiced by all commercial banks. Accordingly, a vase amount of publications have been stating the goldsmiths were the inventors of this banking mechanism. In this dissertation, the author would be looking into the background of a brief history of fractional reserve banking in the 17th century, as this operation has been operating throughout the globe in every commercial banks for decades.   In addition, a critical review Fractional Reserve Banking as a system as a whole and its affects on our modern day society. And by explaining some common misconception on fractional reserve banking and full reserve banking. In addition, evaluating a case of speech by the Bank of England Governor Mervyn King and the Bank of England’s view on this banking system and concluding with some perspective on future development and reformation on the current fractional reserve baking system. 1.2 Research Aim The aim of this research is to investigate, identify and indicate the existing critical factors and problems behind the fractional reserve banking system in the UK by going through a critical literature review and a case on the Bank of England’s Governor Mervyn Kings’ speech on the subject and identifying possible reform suggestions. In order too achieve the research aims, the following objectives below have been set. 1.3 Research Objectives This research approach is expected to investigated and identify the background history, insolvency and possible reform suggestions in the current fractional banking system in the UK. It will mainly focus on critical analysis and literature review and case study on fractional reserve banking, full reserve banking, critiques on fractional reserve banking and possible reform suggestions from a financial and ethical perspective. In order too fulfill research approach, the research objectives have been created and summarized as follows: Firstly, identify the concept and background of fractional reserve banking, capital reserve ratios, full reserve banking and reform proposals by reviewing literatures. Secondly, find out the history and possible up rising of fractional reserve banking. Thirdly, distinguish misconceptions and critical analysis on fractional reserve banking. Fourthly, explore and recognize key factors and problems above the theories by critical analysis on the selected case study. Fifthly, perceive possible reform suggestions to the current fractional reserve banking system. 1.4 Research Method In order to achieve a high standard quality of result, it would be important to identify the research method and methodology. General business research stages will be followed in the research process. The general business research stages includes defining the objective, planning a research design, planning a sample, collecting data, analyzing the data, framing a conclusion and lastly, preparing the report (Zikmund,2003) The main research method in this research approach would be literature review. In order to maintain a high quality and thorough systemic research; gathering supportive information, theories and frameworks   includes published researches, academic journals, case studies, academic publications is necessary. 1.5 Dissertation Structure Chapter one is an introduction briefly introducing some background information, research aim, and objectives for this research approach. Chapter two largely focus on the relevant literature reviews to the research project which consists of history on fractional reserve banking, definition and concepts and misconceptions on the subject. The literature review is to identify supportive and relevant information to the research area and focus. Chapter three will be providing an overview on the methodology and research method selection, supportive software used for extensive comparative analysis and the chapter will also be identifying data formulation. Chapter four will be revealing the research result, findings and case analysis, which is supportive, and relevance to the further discussion. Chapter five will be concluding the research paper with suggestions for reform and points out critical factors uncovered in this research approach, and future improvement. 1.6 Limitation Because of exceptionally limited time in the whole research process, the result and quality of the research paper is therefore in constriction. On the other hand, a lack of up to date literatures and researches in terms of critiques on fractional reserve banking has inevitably increased the difficulty in acquiring expressive and reliable data in the systemic approach. As stated above, therefore the author would have a level of difficulties in obtaining the perfect research result. Chapter 3 Methodology 3.1 Data Sources The research frameworks are well organized and carried out accurately in order to achieve a research result as precise as possible. First of all, to understand the importance of the research methodology, the research process will be identified and explained. In this case, relevant literature review from all possible sources and formats from books, journal articles, thesis and the internet will be included as the primary source of data. The secondary, research data format would be using a case study as its function is to verify arguments from other sources and helps drawing views and debates on the nature of the subject. 3.2 Methodology Approach 3.2.1 Data Samples The method adopted for this research project involved extended on-site visits to Thomson One Banker and Emerald Journals. In addition to it, SSRN research database Accordingly, Thomson One Banker represents the most important data source. A relevant case from the data sources was carefully selected to achieve a better understanding of the factors and critiques on fractional reserve banking. The author also implemented additional press research to verify the data in the Financial Times and The Economist. 3.3 Selection of Research Methodology In this research paper, the author tends to apply case study approach and sources of data from literatures. Which emphasize on observing and reasoning as a result of understanding the nature of the phenomena in terms of expressing the observation the author’s point of view. The case study method is also known as the realistic analysis that studies a current phenomenon within its present-day and real life perspective involving various sources of data (Yin, 2003). Anderson (1998) added that the case study approach is about the exploration of contextual realities and dissimilarities between what was planned and what have actually occurred in terms of who, why and how things happen. As well, Edge and Coleman (1986) mentioned that the case studies enable researchers to gain high degree of confidence in their judgment and verdict, which as well improve the degree of humility. The case study approach is a common use of technique of corresponding to what, who, when and how things happen. Therefore, the case study approach is chosen in order to assist the author to deliver a conclusive debate. From a several source of supportive evidence, literature review and case study enables the author to look deeply into real life happenings. Furthermore, An explanatory case study offers the data and perception based on cause-effect relationships, responding to whom, why and how things happen in its natural context that includes the point of view of the participants (Kos, 1991). And throughout the methodology progress, it has been a great media of increasing the existing understanding of the processes by businesses and other organizations implemented, this is because it is a way of creating consistent and yet valid evidence. 3.4 Limitations Arising from the extensive case studies and literature reviews, the research methods can hardly be factually completed due to the limitations of the research approaches. There are at least three obstacles in obtaining unbiased references from the methods chosen. Potential inadequacies in this research include the large amount of data, which may have led to missing important data or overweighting some findings due to focusing on a particular and big set of data. Besides, it is possible that revisiting the data would reveal other issues and aspects would occur. Moreover, a research study generally is limited to descriptions of what the author gathered from the case study and literature reviews analyzed, which also limits the ability to generalize the results. On the other hand, the research study is time-consuming to gather and even so it takes lots of time to analyze as cutting corners on either of these aspects can probably cause to lower the value and credibility of the research paper. As a result, the author might or might not give valuable data in the time given. Besides, the author faces the challenges in representing of the information gathered. Every researcher has different ways of presenting the same set of data based on different styles and emphasis which leads the author to have difficulties in summarizing the data collected. Shionoya (1992) defines that methodology is known as the philosophical study of reason behind a prescribed use of methods. Consequently, studies of various definitions, concepts and theories are preferred to verify the functions and importance of methodology. This study correspondingly indicated the purpose for applying different methods and clarified the motive of a specific method which in terms of aiding in framing the particular discussion.   Consistently, this theory is considered as predictable and recognizable. As quoted from Easterby-Smith et al (1993), the discipline which investigates and evaluates methods of inquiry, of validation, of teaching etc., a theory within that discipline. It is important to pay attention that methodology is about method and not the same as method (Easterby-Smith et al, 1993). Accordingly, as there are different emphasis within methodology and method, this theory has distinguished the point on investigation and evaluation which has illustrated the methodology and method noticeably. However, in terms of the distinctive yet complex methodology, as the theories gathered and examined is the result the research in which that the real functions might influence the research, therefore, there are still many components to be considered within the research process. In fact, there are array of research methods available is widespread. Khairul (2008) mentioned that the choice of which method to employ is dependent upon the nature of the research problem. However, the actual suitability of a research method comes from the nature of the social phenomena should be explored (Morgan and Smircich, 1980). In substance, Remenyi and Williams (1993) presents as many as 20 types of qualitative methods and Creswell (1994) proposes basic methodological traditions of research namely ethnography, grounded theory, case study and positivism and post-positivism for phenomenological studies. In addition, Quinn-Patton (1987) offers various methods for consideration. Methodology unquestionably can be used as a decision-making procedure, which is carried out for guidelines of one or more analysis or suppositions. Khairul (2008) stated that a paradigm is a hypothetical design that likely to classifies the researcher’s reality yet one may not be aware of it. Consequently, there is a connection of theoretical decision making to strategies of collecting different backgrounds and different types of figures. Furthermore, the choice of which appropriate method to employ is important in terms of those available background information and figures. Under the circumstances, it is clear that every type of methodologies and methods has explicit and implicit research design. Accordingly, methodologies and methods shape the research process in terms of questions asked and answers received, as well it privileges specific ways of knowledge. In the main, paradigm and perspectives are taken adequate account in the framework of the research. Thus, research methodology is the way showing researchers conduct their researches. A paradigm is defined as a worldview representing people’s value judgments, norms, standards, frames of reference, perspectives, ideologies, myths, theories, and so forth, in terms of managing their thinking and actions (Gummesson, 1991). As cited from Leedy (1997), there are mainly two basic methodological traditions of research derives from the nature of reality, known as positivism and post positivism namely phenomenological. In order to maintain the analysis of the phenomena, sufficient information and precise elements might be required in positivist paradigm. Conversely, the use of several sources of information can help extensively in improving the validity and reliability of the research. By studying every aspect of the problem from as many angles as possible, and by using different sources of data, the case study research strategy is a powerful research tool in the hands of a capable researcher (Hodkinsons, 2001). It is believed that bias is everywhere but it can be minimized with following the steps as mentioned above.   The author understands that it is the crucial task in the research paper to reduce the bias level. Reference Admati, A.R., DeMarzo, P.M., Hellwig, M.F., and Pfleiderer, P (2010), ‘Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital regulation: Why Bank Equity is Not Expensive’ Stanford Business School, mimeo. Arrow, K.J. (1951), ‘An extension of the basic theorems of classical welfare economics’, In Proceedings of the Second Berkeley Symposium on Mathematical Statistics and Probability, ed. J. Neyman, Berkeley: University of California Press, 507–32. Arrow, K.J. and Debreu, G. (1954) ‘Existence of an equilibrium for a competitive economy’, Econometrica 22, 265–90. Bagehot, W. (1873), ‘Lombard Street: A Description of the Money Market’, Wiley Sons, (reprinted 1999). Bank of England, (2009), ‘Financial Stability Report’, June 2009, available at bankofengland.co.uk/publications/fsr/2009/fsrfull0906.pdf Diamond, D.W. and Dybvig, P. H. (1983, 91(3)), ‘Bank Runs, Deposit Insurance, and Liquidity’, The Journal of Political Economy, pp. 401-19. Brennan, S., Haldane, A. and Madouros, V. (2010), ‘The Contribution of the Financial Sector Miracle or Mirage?’, available at bankofengland.co.uk/publications/speeches/2010/speech442.pdf Colangelo, A. and Inklaar, R. (2010), ‘Banking Sector Output Measurement in the Euro Area – A Modified Approach’, ECB Working Paper Series No. 1204. Debreu, G. (1951), ‘The coefficient of resource utilization’, Econometrica 19, 273–92. Fisher, I (1936), ‘100% Money’, Revised edition, New York: Adelphi Company, 1936. Friedman, M. (1960), ‘A Program for Monetary Stability’ New York: Fordham University Press, 1960. Haldane, A. (2010), ‘The $100 Billion Question’, available at bankofengland.co.uk/publications/speeches/2010/speech433.pdf Hellwig, M. (1995), ‘Systemic Aspects of Risk Management in Banking and Finance’, Swiss Journal of Economics and Statistics, Vol. 131 (4/2), 723-737. IMF (2009), ‘Global Financial Stability Report’, April 2009. Institute of International Finance (2010), ‘Interim Report on the Cumulative Impact on the Global Economy of Proposed Changes in the Banking Regulatory Framework’, available at ebf-fbe.eu/uploads/10-Interim%20NCI_June2010_Web.pdf Kay, J. (2008), ‘We let down diligent folk at the Halifax’, Financial Times, 24 September 2008 Kay, J. (2009), ‘Narrow Banking: The reform of banking regulation’, CSFI report. Keynes, J.M. (1936), ‘The general theory of employment, interest and money’, London: MacMillan (reprinted 2007). Kotlikoff, L.J. (2010), ‘Jimmy Stewart is Dead: Ending the Worlds Ongoing Financial Plague with Limited Purpose Banking’, John Wiley Sons. Lacker, J.M. (2010), ‘Real Regulatory Reform’, available at richmondfed.org/press_room/speeches/president_jeff_lacker/2010/lacker_speech_201 00301.cfm Miles, D. (2010), ‘Leverage and Monetary Policy’, available at bankofengland.co.uk/publications/speeches/2010/speech451.pdf Modigliani, F. and Miller, M.H. (1958), ‘The cost of capital, corporate finance and the theory of investment’, American Economic Review 48, 261–97. Pigou, A.C. (1920) ‘The Economics of Welfare’, 4th edition, London: Macmillan, 1932. Tobin, J (1987), ‘The Case for Preserving Regulatory Distinctions’, in Restructuring the Financial System, Federal Reserve Bank of Kansas City, 1987, pp. 167-183 Tucker, P. (2010a), ‘Resolution of Large and Complex Financial Institutions: The Big Issues’ available at bankofengland.co.uk/publications/speeches/2010/speech431.pdf Tucker, P. (2010b), ‘Shadow Banking, Financing Markets and Financial Stability’ available at bankofengland.co.uk/publications/speeches/2010/speech420.pdf Weitzman, M. L. (1974), ‘Prices vs. Quantities’, Review of Economic Studies, vol. 41, p.477-91. Wolf, M. (2010), ‘The challenge of halting the financial doomsday machine’, Financial Times, 20 April 2010.

How To Calculate the Margin of Error

How To Calculate the Margin of Error Many times political polls and other applications of statistics state their results with a margin of error. It is not uncommon to see that an opinion poll states that there is support for an issue or candidate at a certain percentage of respondents, plus and minus a certain percentage. It is this plus and minus term that is the margin of error. But how is the margin of error calculated? For a simple random sample of a sufficiently large population, the margin or error is really just a restatement of the size of the sample and the level of confidence being used. The Formula for the Margin of Error In what follows we will utilize the formula for the margin of error. We will plan for the worst case possible, in which we have no idea what the true level of support is the issues in our poll. If we did have some idea about this number, possibly through previous polling data, we would end up with a smaller margin of error. The formula we will use is: E zÃŽ ±/2/(2√ n) The Level of Confidence The first piece of information we need to calculate the margin of error is to determine what level of confidence we desire. This number can be any percentage less than 100%, but the most common levels of confidence are 90%, 95%, and 99%. Of these three the 95% level is used most frequently. If we subtract the level of confidence from one, then we will obtain the value of alpha, written as ÃŽ ±, needed for the formula. The Critical Value The next step in calculating the margin or error is to find the appropriate critical value. This is indicated by the term zÃŽ ±/2 in the above formula. Since we have assumed a simple random sample of a large population, we can use the standard normal distribution of z-scores. Suppose that we are working with a 95% level of confidence. We want to look up the z-score z*for which the area between -z* and z* is 0.95. From the table, we see that this critical value is 1.96. We could have also found the critical value in the following way. If we think in terms of ÃŽ ±/2, since ÃŽ ± 1 - 0.95 0.05, we see that ÃŽ ±/2 0.025. We now search the table to find the z-score with an area of 0.025 to its right. We would end up with the same critical value of 1.96. Other levels of confidence will give us different critical values. The greater the level of confidence, the higher the critical value will be. The critical value for a 90% level of confidence, with a corresponding ÃŽ ± value of 0.10, is 1.64. The critical value for a 99% level of confidence, with a corresponding ÃŽ ± value of 0.01, is 2.54. Sample Size The only other number that we need to use the formula to calculate the margin of error is the sample size, denoted by n in the formula. We then take the square root of this number. Due to the location of this number in the above formula, the larger the sample size that we use, the smaller the margin of error will be. Large samples are therefore preferable to smaller ones. However, since statistical sampling requires resources of time and money, there are constraints to how much we can increase the sample size. The presence of the square root in the formula means that quadrupling the sample size will only half the margin of error. A Few Examples To make sense of the formula, let’s look at a couple of examples. What is the margin of error for a simple random sample of 900 people at a 95% ​level of confidence?By use of the table we have a critical value of 1.96, and so the margin of error is 1.96/(2 √ 900 0.03267, or about 3.3%.What is the margin of error for a simple random sample of 1600 people at a 95% level of confidence?At the same level of confidence as the first example, increasing the sample size to 1600 gives us a margin of error of 0.0245 or about 2.5%.

How To Calculate the Margin of Error

How To Calculate the Margin of Error Many times political polls and other applications of statistics state their results with a margin of error. It is not uncommon to see that an opinion poll states that there is support for an issue or candidate at a certain percentage of respondents, plus and minus a certain percentage. It is this plus and minus term that is the margin of error. But how is the margin of error calculated? For a simple random sample of a sufficiently large population, the margin or error is really just a restatement of the size of the sample and the level of confidence being used. The Formula for the Margin of Error In what follows we will utilize the formula for the margin of error. We will plan for the worst case possible, in which we have no idea what the true level of support is the issues in our poll. If we did have some idea about this number, possibly through previous polling data, we would end up with a smaller margin of error. The formula we will use is: E zÃŽ ±/2/(2√ n) The Level of Confidence The first piece of information we need to calculate the margin of error is to determine what level of confidence we desire. This number can be any percentage less than 100%, but the most common levels of confidence are 90%, 95%, and 99%. Of these three the 95% level is used most frequently. If we subtract the level of confidence from one, then we will obtain the value of alpha, written as ÃŽ ±, needed for the formula. The Critical Value The next step in calculating the margin or error is to find the appropriate critical value. This is indicated by the term zÃŽ ±/2 in the above formula. Since we have assumed a simple random sample of a large population, we can use the standard normal distribution of z-scores. Suppose that we are working with a 95% level of confidence. We want to look up the z-score z*for which the area between -z* and z* is 0.95. From the table, we see that this critical value is 1.96. We could have also found the critical value in the following way. If we think in terms of ÃŽ ±/2, since ÃŽ ± 1 - 0.95 0.05, we see that ÃŽ ±/2 0.025. We now search the table to find the z-score with an area of 0.025 to its right. We would end up with the same critical value of 1.96. Other levels of confidence will give us different critical values. The greater the level of confidence, the higher the critical value will be. The critical value for a 90% level of confidence, with a corresponding ÃŽ ± value of 0.10, is 1.64. The critical value for a 99% level of confidence, with a corresponding ÃŽ ± value of 0.01, is 2.54. Sample Size The only other number that we need to use the formula to calculate the margin of error is the sample size, denoted by n in the formula. We then take the square root of this number. Due to the location of this number in the above formula, the larger the sample size that we use, the smaller the margin of error will be. Large samples are therefore preferable to smaller ones. However, since statistical sampling requires resources of time and money, there are constraints to how much we can increase the sample size. The presence of the square root in the formula means that quadrupling the sample size will only half the margin of error. A Few Examples To make sense of the formula, let’s look at a couple of examples. What is the margin of error for a simple random sample of 900 people at a 95% ​level of confidence?By use of the table we have a critical value of 1.96, and so the margin of error is 1.96/(2 √ 900 0.03267, or about 3.3%.What is the margin of error for a simple random sample of 1600 people at a 95% level of confidence?At the same level of confidence as the first example, increasing the sample size to 1600 gives us a margin of error of 0.0245 or about 2.5%.

Orgnistionl context of PEPSI INC Assignment Example | Topics and Well Written Essays - 1750 words

Orgnistionl context of PEPSI INC - Assignment Example Stakeholders are generally defined as any individuals or organizations who have the ability to directly or indirectly affect or are affected by the operations of a program. (Wnous, Reichers, Mlik, 2004) In Pepsi Inc there are two main distinctions concerning the type of stakeholder: internal and external. Internal stakeholders are typically all employees, and might include specific groups such as agency managers; program managers; front-line supervisors; direct-service employees; subject matter experts or occupational specialists; and evaluation, planning, and budgeting staff. External stakeholders are individuals or groups outside the organization that regularly exercise actions that can promote, inhibit, or change the operations of the organization. Types of external stakeholders who might participate include: elected officials, interest groups, union representatives, the media, customers, and citizens. Powerful externl stkeholders re cpble of dominting n orgnistion's strtegy. It i s importnt to scertin ech stkeholder's level of interest concerning the orgnistionl purposes nd strtegic choices, nd the level of power they yield. Implementing stkeholder mpping mtrix provides n insight into this, which in turn fcilittes the understnding of Pepsi Inc's politicl priorities. 4. Corporte strtegy Pepsi Inc brnd nmes re mong the best-known nd most respected in the world. Some of the Pepsi Inc brnd nmes re 100 yers old, but the corportion is reltively young. Pepsi Inc. ws founded in 1965 through the merger of Pepsi-Col nd Frito-Ly. Tropicn ws cquired in 1998. In 2001, Pepsi Inc merged with the Quker Ots Compny, creting the world's fifth-lrgest food nd beverge compny, with 15 brnds - ech generting more thn $1 billion in nnul retil sles. The success of PepsiCo is the result of superior products, high stndrds of performnce, distinctive competitive strtegies nd the high level of integrity of our people. Compny's overriding objective is to increse the vlue of our shreholders' investment through integrted operting, investing nd finncing ctivities. Pepsi's strtegy is to concentrte our resources on growing our businesses, both through internl growth nd crefully selected cquisitions. Corporte strtegy is continully fine-tuned to ddress the opportunities nd risks of the globl mrketplce. T he corportion's success reflects our continuing commitment to growth nd focus on those businesses where we cn drive our own growth nd crete opportunities. Pepsi's Keys of Corporte Governnce nd Business Ethics: strong record of community support nd corporte citizenship, contributing through The PepsiCo Foundtion, which includes grnts to orgniztions, support of employee volunteerism nd mtching gifts. Commitment to culture of inclusion, providing equl opportunity nd workplce where ll employees hve the opportunity to rech their potentil. Commitment to helping employees blnce their work nd home lives. Cultivtion diverse supplier bse, purchsing growing percentge of our products from minority- nd women-owned firms. Striving to develop

Has the Bush Administration made America more Safe as a Result of Research Paper

Has the Bush Administration made America more Safe as a Result of Exporting Democracy - Research Paper Example Export democracy bears semblance to colonization albeit in an indirect way. In medieval democracy, the Athenians, the French revolutionists, and the Russian Bolsheviks felt that the level of democracy and freedoms in their states was superior to that in the nations around themi. They, therefore, sought to influence and bring changes to the governments that neighbored them. In a way, the principle of export democracy played a role in instigating the process of colonization all over the world. For instance, Europe felt that their system of governance was the best and worth being assimilated world over. As history holds it, America adopted the western system of governance from its colonizers; it adopted its administrative system embedded on democracy with the freedom to vote and be voted for enjoyed by every citizen. With economic developments, the country became a world super power being both an economic power house and an epitome of political democracy. The feeling that the political system in the country had matured enough led the nation’s leader to believe that the system of government in the country was thus the best and could be adopted by other nations. In 1994, at the end of the Second World War, democracy was considered a giving to the Americans from the Europeans. The Italians were the major benefactors of this. When the Italian cities were being literally by the allied forces, a key participant of which was the United States, so did the reign of Nazi rule come to an end. The Nazi regime was an extremely authoritarian system that was led by a dictatorial leader; after its ousting, democracy was adopted in Italy instigated by Americans. The Italians incorporated democracy in their system of governance. It was a period of war it was not easily noticeable that the system of governance was being changed. In addition, the government could not resist the change since it had all its forces on the war front. For a country to completely change or influence the governance of a second nation, conflicts would arise leading to diplomatic ties being revoked. There are two ways through which a country influences the governance of anotherii. The first, which is diplomatic, is the imposition of conditions before giving out aid to the country. A superior economy would demand that certain changes be made in the system of governance before they send aid to the country. This has is used by governments even to date. The only condition that affects the use of this strategy is that the country that is to be changed has to be a weaker economy or in need of aid for these conditions to be met; this has always worked in the developing countries that always need aid the most yet they have the most autocratic systems of governance. The second strategy is the direct attack of a given government in an attempt to deliver the populace from the rule that is considered unfriendly. This would always lead to war and there would always be casualties. However, wit h international bodies at alert to object to such acts, the process would end up facing criticisms as a crime against. Furthermore, after all these, the preferred system would end up not being assimilated as in the long run the people are left to govern themselves. Bush’s Administration and Exercise of Export Democracy Bush was elected to office in 2001. His election was on a republican ticket. His

Impact of Grey Marketing on Indian Economy Essay Example for Free

Impact of Grey Marketing on Indian Economy Essay â€Å"An unofficial market in which goods are bought and sold at prices lower than the official price set by a regulatory agency Grey marketing (also sometimes known as â€Å"gray market†) involves the trade of legal goods through unauthorized, unofficial, and unintended channels of distribution. Hence, trademarked products are often exported from one country to another and sold by unauthorized individuals or firms. This practice is also often known as parallel importing, product diverting, and even arbitrage, and typically flourishes when a product is in short supply, when manufacturers resort to skimming strategies in specific markets. A good example is the trading of crude oil by an individual. The grey market includes services that are typically unregistered to evade taxes. Perfectly legitimate occupations, such as domestic help, babysitters, part time beauticians and freelancers, may not be registered. Not only is it difficult to detect such defaulters, the punishment is usually mild. For example, even as Apple, Inc., rolled out its latest third-generation iPhone on July 11, 2008, several retail stores throughout the world, including those in China and Thailand, continued to take orders even though this product was not being sold in those markets. Their computer codes were unlocked, so that the phones could be used with different mobile service providers. Even in India, one of the fastest-growing markets for cell phones, Apple delayed the release of the original iPhone until mid-2008, a year after the release in the United States and six months after its release in Europe, because of the fear of grey market sales. A wide range of goods and services have been sold through grey markets, including automobiles, broadcasting delivery, college textbooks, pharmaceuticals, photographic equipment, video games, and even wines. Research has demonstrated that every one of the world’s eight major export regions has experienced grey marketing activity damaging to their operations. Parallel market is further encouraged by periods of war or any other crisis. During harsh political conditions or natural disasters, scarce goods are rationed by the government. People have the tendency to violate restrictions or rationing laws to secure the products they desire. In the United States, grey market goods are prohibited according to Section 526 of the Tariff Act of 1930, which expressly forbids importation of goods of foreign manufacture without permission of the trademark owner. However, the implementation of regulation by the U.S. Customs Service and the courts’ interpretation of the law have not been in line with each other. In a recent study, about 13 percent of the firms in North America have reported some form of grey marketing. A positive outcome of grey markets is that they provide brand-name goods at lower prices to the customer. They can create incremental sales in markets not in direct competition with sanctioned dealers, and sometimes help companies overcome distribution bottlenecks because of local government regulations. Occasionally, it is less expensive to tolerate grey marketing than to shut down the operations completely because of the time and resources required to monitor the violations. Finally, eradicating grey marketing activities can provide a firm with sound marketing intelligence regarding customers in these markets and their buying behavior. On the other hand, the phenomenon obviously also has several drawbacks for companies. It simultaneously undermines the manufacturer’s distribution arrangements and their ability to control quality it creates the dilution of exclusivity and damages existing channel relationships. Official dealers may not choose to offer significant services in order to compete with the grey market price for the product. There is likely to be an erosion of the brand’s global image, and the firm is unlikely to have the ability to use traditional pricing strategies, thus having less control over their overall marketing strategies. 2.According To World Health Organization: 2.1.Parallel Imports: Parallel imports are imports of a patented or trademarked product from a country where it is already marketed. For example, in Mozambique 100 units of Bayers ciprofloxacin (500mg) costs US$740, but in India Bayer sells the same drug for US$15 (owing to local generic competition). Mozambique can import the product from India without Bayers consent. According to the theory of exhaustion of intellectual property rights, the exclusive right of the patent holder to import the protected product is exhausted, and thus ends, when the product is first launched on the market. When a state or group of states applies this principle of exhaustion of intellectual property rights in a given territory, parallel importation is authorized to all residents in the state in question. In a state that does not recognize this principle, however, only the patent holder who has been registered has the right to import the protected product. Sometimes referred to as â€Å"grey market† imports, parallel imports often takes place when there is differential pricing of the same product either brand-name or generic drugs in different markets (usually owing to local manufacturing costs or market conditions). The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement explicitly states that this practice cannot be challenged under the World Trade Organization (WTO) dispute settlement system and so is effectively a matter of national discretion. Parallel imports can reduce the price of health products and pharmaceuticals by introducing competition. However, they can also affect the negotiation of tiered pricing regimes with pharmaceutical companies. If a private pharmaceutical company agrees to sell a product at a lower price in poor countries, it will need some assurance that the cheaper product will not be imported back into its rich country markets, undercutting its profits (product diversion). 3.Grey Marketing by Industry: 3.1. IPO Grey Marketing in India: Cities like Ahmedabad, Kolkata and Rajkot are the most active centers for the IPO (initial public offerings) grey market. Trades done in the grey market are settled on the day of listing. Once the deal is done at a stipulated price, the seller must deliver the shares after he has been allotted the shares by the company. If the seller falls short in receiving the exact number of shares that he has sold in anticipation, then he must buy the shares on the market (once the share is listed) to honor his commitment. Most of the recently-concluded initial public offerings are quoting at a significant premium in the grey market, compared to their issue prices; this means that the issues are perceived to have been underpriced. Many traders short sell in the grey market if they feel that the premium on offer is unwarranted and that the stock may list at a price lower than what most market players expect it to. Though grey-market operators say that there is a constant change in the grey-market premium, it largely depends on the subscription on the last day and the market conditions, post issue closing. 3.1.1. In the stock market, what is the concept of grey marketing? Grey marketing is a trade of something legal but through unofficial and unauthorized distribution channels. In contrast, black marketing is a trade of illegal goods or services through illegal channels. The grey market of goods is to import and sell products through market channels which are not authorized by the manufacturers. It occurs when the prices of a product differ significantly in different countries. The grey market of securities markets and IPO (Initial Public Offer) is to buy and sell the shares to be allotted in the future. Once the trading is done in the grey market at a stipulated price, the seller must deliver the sold number of shares to the buyer on the day of listing to honor the commitment. 3.1.2.Effect of Grey Market Trading on Indian Economy 3.1.2.1Grey Market: Rs. 1L in Reliance Power IPO will earn 9% in 20 days [pic] AHMEDABAD: Reliance Power (REPL) seems to have electrified grey market operations in Ahmedabad with operators willing to shell out as much as Rs. 9,000 for every application of Rs. 1 lakh. In the bustling grey market in Gujarat, such high rates are unheard of. The last benchmark for hectic activity was the Mundra Port and SEZ IPO in November when the grey market started buying applications for Rs. 7,500 in the last stages of the issue. With the REPL offer ready to hit the market on January 15, the grey market is trading the shares and the applications. It basically means that if you have Rs. 1 lakh to invest when the IPO opens, you have a secured 9% return within 20 days of closing of the issue when the stock would be listed. After SEBI cleared REPLs IPO, grey markets had resumed trading in the stock with premium saudas (trades) at Rs. 340-350 and application buying rate at Rs. 7,500. While the premium has zoomed to Rs. 390-400, the applications rate touched Rs. 9,000 and could break the Rs. 10,000 mark by the time the IPO hits the market, sources said. The excitement on the counter in the grey market has come on the heels of news that REPL will offer 5% discount to retail investors, who will also get an option to pay only 25% of IPO amount at the time of application. 3.1.2.2.Reliance Power IPO: Grey market sees Rs. 2000 crore loss: [pic] AHMEDABAD: The dismal debut of Reliance Power on the bourses may result in losses to the tune of Rs. 2,000 crore in the grey market. Operators also fear a payment crisis as many investors are threatening to hold back payments. Grey market players — both operators and investors — who were expecting the stock to list in the range of Rs. 550-Rs 600 per share, were in shock as Reliance Power opened at Rs. 430 and closed at Rs. 372.50 on its first day on the exchanges. This could also adversely impact the premium transactions in forthcoming IPOs (initial public offers). Ever since the grey market began trading in this IPO, the premium on Reliance Power shares had peaked at Rs. 450 over and above IPO price of Rs. 450 per share. Majority of trading in R-Power IPO in the grey market was done at an average premium of Rs. 300 per share. As the issue closed at Rs. 372.50, most market operators, who had taken huge exposures, have lost Rs. 377 per share. It is estimated the grey market has already taken an exposure of five crore equity shares, leading to losses worth Rs. 1,900 crore. It is also learnt that many investors in Jaipur have refused to honor their payment commitment to grey market operators in Ahmedabad, as the IPO plunged after listing. This could well result in operators losing out on large sums of money and have a cascading effect in the market. 3.1.2.3.Grey market bets big time on DLF IPO: [pic] AHMEDABAD: Only time can tell whether you could get the elusive pit of gold at the end of the DLF IPO rainbow. But, street savvy investors in Gujarat have already started earning a secured 4% return on their investment in the initial public offer of the countrys biggest realty developers, much before the offer hits the market on June 11. Large numbers of investors, who want to earn secured interest earning up to 4%, are selling their IPO applications to grey market operators in Ahmedabad. Although the DLF IPO is opening from May 11, IPO applications are being sold anywhere between Rs. 3,800 and Rs 4,000 for a single application worth Rs. 1 lakh. Activities in the Ahmedabads grey market, popularly known as Sakar Bazar, has gradually been heightening as the market enters the final week before a deluge of public offering hit the primary markets. Led by DLF IPO, the next two months could see close to Rs. 50,000 crore being raised from the market. On one hand, the grey market is witnessing huge trading in IPOs, which are yet to be listed on the bourse. On another hand, people are selling their IPO applications to the grey market operators for a secured interest. Even as DLF shares are yet to be listed on the bourse, operators in Ahmedabads grey market are trading DLF shares at a premium of Rs 37 to Rs 38 on its issue price of Rs 500-Rs 550. Similarly, Meghmani Organic is fetching a premium of Rs 5 over its issue price. And, its not only in the case of these two IPOs. All IPOs are traded in the Ahmedabad grey market, which seems to have a handle on the pricing of IPO listings. It has been found by most market participant of the capital market that majority of the IPOs listing prices are normally close to the last trading price of the IPO in the Ahmedabads grey market. 4.WINE: The grey market in wine flourishes, particularly in the case of champagne. Many large champagne producers do their own importing, and desire to maintain independent price points in different markets. Thus a bottle of Champagne might cost US$35 in the United States while the same bottle might be only 15 Euros in France. It is often profitable to buy the wine in Europe from an authorized distributor, and resell it in the US. In the case of enormous pricing disparity, it is not uncommon to find a grey-marketed wine selling for less at retail than the wholesale price of the authorized distributor. In the case of a large availability disparity between the US and Europe, the grey market price may be the same or higher than the authorized price. Typically the importer of a wine is the one most concerned about grey market sources. The winemaker may or may not care what happens to the wine after it is sold, although he or she might complain to appease an importer. 4.1.India imports 72,000 cases of wine a year PUNE: The Indian wine market is growing at 30-40% annually and this rate will continue for the next 5-6 years in keeping with global trends. However, the current per person per year consumption of wine in the country is as low as 9-10 ml. The Maharashtra Industrial Development Corporation has mentioned this in its note on the grape wine industry of Maharashtra, based on a report prepared by Rabo International Bank. The highest wine consuming countries such as France and Italy has per person wine consumption as high as 60 to 70 liters annually. Those in China consume four liters, the report stated. Domestically, 80 % of wine consumption is confined to major cities like Mumbai (39 %), Delhi (23 %), Bangalore (9 %) and Goa (9 %) whereas rest of India has only 20 % consumption. The MIDC report further stated that India currently imports 72,000 wine cases (nine liters to a case) a year. About 32,000 of this are bottled at origin and the other 40,000 cases are imported in bulk flexi bags, which are subsequently bottled by Indian wineries. Besides this, about 12,000-15,000 wine cases are sold through the grey market. In 2009-2010, some seven lakh liters of wine worth Rs. 5.92 crore was exported to France, Italy, Germany, US, UK, Singapore and Belgium from Maharashtra. The state had announced its `Maharashtra Grape Processing Industrial Policy 2001 on September 19, 2001 with wine as an important part of it. According to a report by MIDC, four components are required to make good wine. Those are soil, climate, vines and human factor that is the people who brew wine. A lot depends on finding the ideal balance between the characteristic of soil, the microclimate and the grape varieties. At present wine grapes are grown on a 7,000 acre area in the state. In 2010 there were a total of 74 wines making units (36 in Nashik, 13 in Sangli, 12 in Pune, 5 in Solapur, 4 in Osmanabad, 3 in Buldana and 1 in Latur district) that had started production in the state. At present, total production of wine in the country is 1.45 crore litres from 90 wineries in the country. Of that, 1.32 crore litres wine is produced by 75 wineries in Maharashtra. The total investment in wineries was Rs 431.71 crore in 2009 which rose to Rs 452.10 crore in 2012. France, Italy, Spain, Germany are the main grape wine producing countries in the world. Nearly 32,000 million litres wine is produced per annum. 5.AUTOMOBILES: Automobile manufacturers segment world markets by territory and price, thus creating a demand for grey import vehicles. In the United Kingdom the term applies to vehicles imported either new from cheaper European countries or from Japanese domestic models imported secondhand from Japan or Singapore, which both have strict laws against older cars. This importation of secondhand models from Japan/Singapore tends to involve sports models that were never released in the UK or models that fetch a high price in the UK due to their performance or status. Although some grey imports are a bargain, some buyers have discovered that their vehicles do not meet British regulations or that parts and service are hard to come by because these cars are different from the versions sold new in the UK. In New Zealand, grey market vehicles comprise a majority of cars in the national fleet. These secondhand imports have achieved normal status and are used and serviced without comment throughout society. A huge industry servicing and supplying parts for these vehicles has developed. After years of trying to stop grey imports the car companies themselves have become involved, importing in competition with their own new models. 6.MOBILE HANDSET: iphone Launch gets hit by Grey Marketing: 6.1.Low-cost handsets to get impacted, says industry: Nearly 75 per cent of the currently available mobile handset models in the market could get defunct or redesigned with the Government deciding to bring in new radiation norms for the telecom sector. The Department of Telecom has accepted a proposal by an inter-ministerial committee to lower the permitted radiation in mobile phones by 50 per cent. The move will impact almost all the handset makers, especially those who operate in the low-end segment. 6.2.Handset price: According to the Indian Cellular Association, the new radiation norm will jack up handset price by 5-30 per cent as handset makers will have to make additional investments to meet the new rules. According to the new guidelines, handsets should not have Specific Absorption Rate (SAR) of more than 1.6 watt/kg taken over a volume containing as mass of 1 gram of human issue. This is the same levels allowed in the US. India till now followed the European standards wherein handset makers are allowed to have SAR levels of 2 watt/kg on a 10 gram human issue. Globally, about 1,500 million mobile phones are sold per year out of which more than 80 per cent is sold in countries where European guidelines are followed. In India, there about 10 global brands, another 15-20 Indian brands and more than 4,000 importers who trade in unbranded Chinese phones. â€Å"Most of the handsets under Rs 11,999 which are approximately 645 or so would have to be redesigned. Effectively, this would disrupt the entire operation of more than 88 per cent of the legal handsets sold in the market (the legal market is approximately 70-75 per cent of Indias total volume market). All global brands and domestic brands will get seriously impacted by this,† Mr. Pankaj Mohindroo, President, Indian Cellular Association. 6.3.Chinese handsets: The industry is worried that the new guidelines will have no impact on the Chinese unbranded grey market phones, which is handled by over 4,000 importers with volumes between 3 and 4 million a month. The handset makers fear that the grey market will get a window of opportunity of approximately 6-9 months to rapidly expand their volumes before the branded companies start bringing redesigned phones. â€Å"If the Government is bringing new laws to address concerns of health and security then it should also set up good monitoring. While the branded phones will have to bear the costs to redesign phones, grey market devices will continue to be available without any check,† said Mr. S.N. Rai, Co-founder Director, Lava International – one of the Indian handset Company. According to ICA, the industry would be able to redesign approximately 100 models in about 6-9 months and 200 in 24 months. There are about 850 handset models available in the market at present. â€Å"The legal industry will never be able to redesign all the models and the availability would constrict to at best 150- 200 models within 18-24 months of implementation of such norms,† Mr. Mohindroo said 6.4.Ultra low-cast models: ICA said that in the case of ultra low-cost handsets, it may not be possible to redesign these handsets and all the models in the ultra low-cost handsets less than Rs 1,500 could get knocked out of the market. Apart from lowering the permitted radiation levels, the new guidelines also make it mandatory for handset makers to display the SAR level on the handset. The DoT is expected to notify the new norms shortly. Keywords: mobile radiation norms, low-cost handsets to get impacted, Specific Absorption Rate (SAR) 6.5.Dark days for mobile grey market: The import duty on mobile phones has been reduced from about 16 per cent to around 4 per cent.Industry participants also believe that the shift from grey market to the legal market is by and large on the account of growing number of mobile retail stores. The mobile stores provide accessibility to the consumers. Our mobile stores are at all the visible locations, so consumers can walk in anywhere and get the best deals possible, said Subhiksha marketing vice-president Mohit Khattar. Industry analysts say that a huge grey market exists because of the differential of around 10 per cent to 25 per cent between legal and grey handset prices.With growing competition in the organized mobile retail market, players are offering products at lower prices. This, in turn, helps counter the grey market and bolsters footfalls in these stores. Consumers can buy high-end, genuine branded handsets with guarantee of replacement or repair through the mobile retail stores. Trust is the predominant factor that consumers are turning towards the branded retail stores, said HotSpot CEO Sanjeev Mahajan. Consumers are opting for accessibility and do not mind paying extra for it. The grey markets operate from a few areas in a city. On the other hand, mobile stores are more easily accessible as they are located in all prominent markets. The growing brand consciousness among the people, analysts say is also propelling the consumers to approach branded mobile retail stores. Mobile phone retail chains like Mobile Store, Mobi Retail, RPG Cellucom, currently account for just 7 percent of the overall mobile handset market, which has a market share of Rs 15,000 crore. Currently, the impact of mobile retail stores on the grey market is minimal. However, considering the rapid growth rate of organized mobile retail, its contribution is set to increase in the next 3-4 years, said retail consultancy Technopak Advisors chairman Arvind Singhal. Though the grey market in mobile phones has reduced, a large (75%) grey market still exists in mobile phone accessories such as batteries and chargers, which are often available at one-tenth the price of company branded accessories . Last year, the mobile phone makers asked finance ministry to reduce 34% duty on imported accessories, but nothing concrete has happened as yet. 7.PHOTOGRAPHIC EQUIPTMENT: Generally regarded as legal in most countries, parallel imports make expensive photographic equipment attractive to savvy users. The grey market in photographic equipment is thriving in highly developed and heavily taxed states like Singapore, with dealers importing directly from lower taxed states and selling at a lower price, creating competition against a local authorised distributor. Grey sets, as colloquially called, are often comparable to authorised imports. Lenses or flash units of parallel imports often only differ by the warranty provided, and since the grey sets were manufactured for another state, photographic equipment manufacturers often offer local warranty, instead of international warranty, which will render grey sets ineligible for warranty claims with the manufacturer. Due to the nature of local warranty, importers of grey sets usually mask the flaw in warranty with their own warranty schemes. These are often warranties with reduced benefits or lasting a shorter period of time. Grey sets do not differ particularly from an authorised import. They look and function identically, apart from the manufacturers warranties having been voided. 7.1.Grey market for digital cameras may bite the dust soon: KOLKATA: Grey markets for digital cameras may soon become a thing of past, feel the imaging majors in India. It is certainly the year of demise for grey market in compact category, and the sun will set soon in DSLR (Digital Single Lens Reflex) segment, said Alok Bharadwaj, senior V-P, Canon India. Though being an unorganized sector, it is spread in many metro cities, like in Kolkata, at Metro Galli, Kidderpore, and in Delhi, at Pallika Bazar. Earlier, Nikons competition was Nikon grey but now the scenario has changed and grey market has shrunk a lot. Its no more a cause for concern, said Sajjan Kumar, GM, imaging, Nikon India. According to Bharadwaj, the grey market in the country is mostly activated in DSLR segment and its roughly around Rs. 250 crore, but since India is the main focus for all the global camera majors and as a consequence of that, the market is also increasing rapidly, which is ultimately causing the death of grey market. The general trend amongst consumers is to buy expensive lenses and camera bodies from the grey market at a cheaper rate, but now with most of the players providing the product at a place nearby them, with an extended guarantee period and free memory cards, people are ready to buy it from us officially, said Kumar. More awareness among the consumers and round-the-clock marketing have also stepped up the chances to diminish the grey market, said Hiroshi Takashina, MD, Nikon India. It may be noted that Nikon India has recently doubled its marketing expenditure to Rs. 120 crore from last years Rs 60 crore. Another common feeling amongst the leading camera players is, if government reduces tax on the DSLR bodies, lens, accessories, then the process of erasing grey market will be rapid. Currently, the basic duty on lenses and accessories is still at 10%, which makes it a little difficult for us to bring DSLR prices further down, despite a phenomenal growth in the sector, said a top official of Olympus India. Currently only 1% of Olympus Indias sales is affected by grey market. The Comprehensive Economic Partnership Agreement (CEPA) will benefit us surely to cut the excessive costing, feels Bharadwaj. It may be noted that India and Japan have signed the CEPA Act, under which both the countries will enjoy some trade benefits during the bilateral trade. According to Takashina, India is a price conscious market where 75% of the sales are in the category of cameras priced below Rs.10,000, so with more shopping shop concept and 24 hour customer care backup, it is now more sensible for a customer to buy the gear from official dealers than to go and buy it from the grey market. 8.BROADCASTING: In television and radio broadcasting, grey markets primarily exist in relation to satellite radio and satellite television delivery. The most common form is companies reselling the equipment and services of a provider not licensed to operate in the market. 8.1Industry body opposes levy on TV sets: [pic] NEW DELHI: Consumer electronics industry said on Monday that sale of television sets would be hit and investment flows affected, if government imposes a license fee on TV sets. Also, share of the grey market would go up if such a proposal is accepted, Anoop Kumar president Consumer Electronics and TV Manufacturers Association (Cetma) said.[pic] Government is planning to impose a license fee of 10-15% on purchase price of each TV set, to provide financial help to Prasar Bharati. If the proposed levy is imposed, the level of taxation on TV sets would rise to 45-50% and the share of the grey market will certainly increase, a Cetma official said. When total incidence of taxes on ACs was about 50%, the grey market was more than 80%. With the reduction of taxes, the grey market for ACs has practically disappeared. The increase in the share of grey market for TV sets will ultimately result in loss of revenue to the government, Cetma added. Cetma said any additional burden would result in a major slowdown of the television industry, already reeling under heavy taxes. 9.VIDEO GAMES: Grey markets can sometimes develop for select video game consoles and titles whose demand temporarily outstrips supply and the local shops run out of stock, this happens especially during the holiday season. Other popular items, such as dolls can also be affected. In such situations the grey market price may be considerably higher than the manufacturers suggested retail price. Online auction sites such as eBay have contributed to the emergence of the video game grey market. 10.How to control the web of Grey Marketing? In order to reduce the impact of grey market goods, firms can take the following strategies: Enforcement of intellectual property rights Manufacturers or their licensees often seek to enforce trademark or other intellectual-property rights against the grey market. Such rights may be exercised against the import, sale and/or advertisement of grey imports. However, such rights can be limited. Examples of such limitations include the first-sale doctrine in the United States and the doctrine of the exhaustion of rights in the European Union. When grey-market products are advertised on Google, eBay or other legitimate web sites, it is possible to petition for removal of any advertisements that violate trademark or copyright laws. This can be done directly, without the involvement of legal professionals. eBay, for example, will remove listings of such products even in countries where their purchase and use is not against the law. Refusal to supply Manufacturers may refuse to supply distributors and retailers (and with commercial products, customers) that trade in grey-market goods. They may also more broadly limit supplies in markets where prices are low. Refusal to honor warranties Manufacturers may refuse to honor the warranty of an item purchased from grey-market sources, on the grounds that the higher price on the non-grey market reflects a higher level of service. Alternatively, they may provide the warranty service only from the manufacturers subsidiary in the intended country of import, not the diverted third country where the grey goods are ultimately sold by the distributor or retailer. This response to the grey market is especially evident in electronics goods. Reliance on regulation Local laws (or customer demand) concerning distribution and packaging (for example, the language on labels, units of measurement, and nutritional disclosure on foodstuffs) can be brought into play, as can national standards certifications for certain goods. Tracing grey-market goods Manufacturers may give the same item different model numbers in different countries, even though the functions of the item are identical, so that they can identify grey imports. Manufacturers can also use batch codes to enable similar tracing of grey imports. Parallel market importers often de-code the product in order to avoid the identification of the supplier. In the United States, courts have decided that decoding which blemishes the product is a material alteration, rendering the product infringed. Parallel market importers have worked around this limitation by developing new removal techniques.

Holes-Why is it a good novel for teenagers? Essay -- English Literatur

Holes-Why is it a good novel for teenagers? In this essay I intend to look at why the book ‘Holes’, is a good novel for teenagers to read. Written by Louis Sachar in 1998, it is a modern novel telling readers a story about the life experiences of a young boy called Stanley. The story revolves around Stanley being unfairly acquitted for a crime leading to him being faced to cope with life at a juvenile detention centre. Along with this main plot, there are several other underlying smaller plots that contribute towards the success of the story as a whole. I will examine the various reasons for why this book would appeal to teenagers. There are three simultaneous plots, which creates more excitement and suspense for the reader. But the main theme is how young Stanley Yelnats IV comes to redeem the curse which was visited upon his great-great-grandfather and all the Yelnats family, through the generations, by Madame Zeroni. Stanley, the main character in the story, is falsely accused of stealing a pair of trainers, which had been donated to help raise money for the homeless shelter. These trainers weren’t any ordinary trainers; they had belonged to the most famous baseball player in history, Clyde Livingstone. Stanley isn’t too disheartened when he is sent away from his family to a juvenile delinquent’s camp (Camp Green Lake) for a crime he did not commit, due to his family’s long known history of bad luck. Stanley doesn’t blame the judge for falsely convicting him, but he blames the whole misadventure on his â€Å"no-good-dirty-rotten-pig-stealing-great-great-grandfather†. For Stanley, his troubles are just a natural part of being a Yelnats, which is a factor of life that he has become accustomed to. .. ...n different parts of the world, not all teenagers may be treated in the same way Stanley had been. This is why it might be interesting to see what different parts of the world are like. The story isn’t really realistic either, because a teenager wouldn’t really expect such events to take place in this day and age. A teenager may want to read something that could happen to them, but from someone else’s point of view. The finding of treasure may seem to be an old-fashioned task and hence may not create the excitement that it was aimed for. Despite some not so appealing events in the story, I would recommend this book to all teenagers due to its suspense and excitement elements. The reader becomes intrigued to reach the ending, which is very successful in connecting all the sub plots to reveal the conclusion to the treasure and Stanley’s family history.

Dior Omni Channel

Luxury Retail Management Individual Assignment Luxury Brands Digital & OMNI Retail Strategies Decoding DIOR DNA †¢ †¢ †¢ Feminine Princess Sexy CODES †¢ †¢ †¢ Cannage Knot & Oval Rose †¢ †¢ Flirtatious Francaise †¢ †¢ Avenue Montaigne New Look Distribution Strategy †¢ Dior Beauty is following a multi-channel distribution strategy worldwide. †¢ Mainly sell products at wholesale to dealers and retailers including department stores. †¢ Also sell beauty products in brand retail store together with ready-to-wear section. Retail Presence †¢ With growth much higher than the average in its competitive market, Dior Beauty continued to gain market share globally. Dior beauty achieved clear successes in all product categories: start from perfumes for both men and women, then makeup, and finally the skincare segment. On-line and Digital Strategy †¢ Using the web and social media is a new trend for luxury brands. But being innovative and ambitious while being loyal to the luxury image is not an easy game to play. Dior Beauty is overall growing in an impressive way. †¢ With a strong support from LVMH Group, Dior Beauty is positively developing in diverse digital channels in mature and emerging markets, through both mainstream media and some chic platforms. Although Dior Beauty sets a good example for luxury brands in on-line and digital strategy, it still failed to make the top 10 list of the digital competence of 56 beauty brands according to L2’s annual Digital IQ Index benchmark. Can we equally feel the same Dior? How can Dior Beauty convey its brand DNA and codes, culture, values, quality, craftsmanship and exclusivity on? line? †¢ Dior Beauty doesn’t create a totally new website which is independent from Dior. In this way people can potentially get the whole idea about the brand DNA. Dior Beauty segment is divided into three particular parts: Perfume, Makeup and Skincare. The welcome pages of these three parts are all filled with the new campaign. †¢ Each division is well-organized and user friendly. People can immerse in the Dior world with products introduction, collection images, and abundant knowhow videos. †¢ While browsing, people can also get advise by a simple click. New Campaign Brand History Products information & clear collection name Easy to choose Direct connection with social media Code: Cannage Personalized advice Code: Oval Craftsmanship http://www. ior. com/beauty/fra/fr/the_house_of_dior/index/th/mur_de_notes/index. html †¢ Various videos can show people the brand history, culture and value proposition. †¢ They also create an atmosphere of exclusivity and provide a guarantee of high quality. †¢ After selection, clients can easily open their own account and take the order on-line. Easy to order Clients’ recommendations The challenges †¢ It is reasonable that the Dior official site can successfully convey its brand DNA and exclusivity on-line. †¢ However, not all the customers visit the official site to order beauty products.Most of on-line consumers still prefer shopping at mass beauty website such as Sephora, Harrods, Taobao, etc. †¢ These websites differ from each other, then how to keep the coherence of the brand DNA with the necessity of adapting to distributors’ style and local culture background is a huge challenge. †¢ Besides, creating a luxury customer experience and also educating its customers on-line is definitely not easy to achieve. Example: Harrods †¢ Even though people browse the website of Harrods, they can also feel the brand DNA and culture of Dior Beauty. †¢ The products are segmented in the same way as Dior official site. All the campaigns and videos are consistent with Dior’s new promotion. Example: Taobao †¢ Taobao is the most popular on-line shopping website in China which achieved 1000 billion RMB in 2012. A nd Dior Beauty made the Top1 in makeup sector. †¢ However, apart from few words about Dior’s history, seldom can people find any brand DNA or consistency. †¢ Products are presented randomly with no background information or sense of luxury. †¢ The situation in Taobao is not the only case for Dior Beauty, almost all the luxury brands are facing with the same problem: people are buying a lot, ut they have no idea about brand story or collection concept, what they want is only the hot item, especially when the on-line shopping service is still unavailable at Dior’s official site in China and many other countries. †¢ Therefore, it is crucial for the brand to avoid letting it be. They should try their best to educate the potential customers. It is hard, but indispensable. If Dior Beauty can start earlier, it is more possible to hold its leading position in the future. Example: Sephora †¢ English version of welcome page. †¢ French version is muc h more simple. Explore the brand Hot itemsProducts catalogue New campaign †¢ Chinese version How to educate the customers? †¢ From the Sephora example we can easily find the difference. Even though they sell almost the same products, the promotion strategies are quiet different. †¢ As a well-known French brand, Dior obviously doesn’t need to make too many efforts to educate their mature customers. The only thing is to keep the coherence with the Brand DNA. †¢ When dealing with international version, they pay more attentions to the details. We can see that there are more cultural parts to introduce the brand history and collection background information.How to educate the customers? †¢ For the emerging market such as China, the website is much more well-organized. It is almost as complete as Dior’s official site. †¢ Besides, if we take a further look, it is also interesting to see that there are more products introduction and hot items prom otion in Chinese version. That is probably because the customers from emerging markets focus more on popular products right now rather than brand DNA. †¢ For example, the major ads in English and French welcome pages are showing Dior Beauty’s feminine feature. However, all the pictures in front page of Chinese version are products. Overall, it takes time to educate potential consumers, to help them turn from product consumer to brand consumer. Especially in beauty sector, each new product from other brand in the market may attract the clients who are not loyal customers yet. †¢ With the fast development of digital system, it is hard to maintain interests of clients through only one way. That is why nowadays brands are caring more about the influence of social media. Brand Websites & Content Digital Strategy Social Media & Bloggers E-commerce How can Dior Beauty leverage on digital strategy to complement its physical stores presence?Brand Websites & Content †¢ A s we analyzed before, the official site of Dior Beauty is quite impressive. The whole design is coherent with the brand DNA and culture, and tries to educate the viewers by all means. †¢ However, there are still a few things need to be improved. †¢ The cooperation between e-commerce and official website is missing in some countries. People from emerging market such as China, Brazil can not buy online yet. †¢ The CRM system isn’t completed. For example, in China, customer need to change their shopping credits into gift by phone, and get their on-line account number by message.It is really inconvenient. E-commerce †¢ With the strong promotion from LVMH Group, Christian Dior is now becoming more and more popular in its beauty division. †¢ Dior Beauty is also following the similar e-commerce strategy as that of LVMH. Not only is it important to control the supply of products and distribution, but furthermore it is important to control the message. †¢ As many brands move into conversational online media, such as Facebook and Twitter, they enter into a medium of a dialogue where third parties can completely alter or dilute the power of a message.Therefore, to control the message, you need to control the media. †¢ Dior MAG launched in March 2012. E-commerce †¢ While dealing with emerging markets, Dior Beauty hasn’t come up with efficient strategy yet due to the immature consumers and unpredictable market. †¢ In reverse, the brand doesn’t want to provide recent products or executive collections to sell on-line in these markets, clients are more possible to acquire faked products and terrible experience. †¢ Here one Miss Dior 50ml plus one Dior Addict 50ml cost no more than 40â‚ ¬, and tens of thousands of Chinese customers were set up.Example Dior Mag †¢ The online magazine will take fans of the brand inside the company from the past to the present. †¢ It will feature articles that ent ertain as well as inform die-hard Dior fans. †¢ The new magazine will feature higher resolution †¢ The brand isn’t stopping images as well as there as they plan to roll out lengthier videos for iPad and iPhone versions of people to share. the magazine, for the fashionista on the go. Social Media & Bloggers †¢ Dior has an active strategy on social media, and it dominates especially in Facebook and Twitter. Dior Beauty doesn’t have an independent account in social media. All the activities and promotions are posted together with Dior Couture. Coherent with new campaign Social Media & Bloggers †¢ YouTube is becoming more noticeable in the beauty industry’s online ecosystem. More beauty brands are receiving upstream traffic from YouTube to their sites than in 2011. Dior is in the top 10 YouTube channels for beauty brands ranked by video views, per the study. †¢ While watching the videos of new campaign, people can directly click the link to official site.Social Media & Bloggers †¢ They have an independent channel at YouTube to introduce products and to enhance the brand recognition. †¢ Videos are divided into different divisions, in this way customers can also be educated. Social Media & Bloggers †¢ As a micro-blogging platform and social networking website, Tumblr allows users to post multimedia and other contents to a short-form blog. Users can follow other users' blogs, as well as make their blogs private. †¢ An analysis by AddThis of shares through their service in 2011 noted that Tumblr sharing had increased by 1299. %. Social Media & Bloggers †¢ The service is most popular with the teen and college-aged user segments with half of Tumblr's visitor base being under the age of 25. As of 2009, Tumblr had an 85% user retention rate, compared with 40% for Twitter. †¢ Therefore, Dior launched its page at Feb. 2013 to attract young generation, as well as to educate potential consumers. Socia l Media & Bloggers †¢ As a global brand, it is not enough to only focus on international social media. Some countries have their special limit on Internet and their own social media. Dior Beauty makes a lot of efforts on promoting at local social media. †¢ For example, in China, Dior official page at Weibo has 568,535 fans, which is more than Louis Vuitton, Chanel, and Gucci. †¢ At the most important video site Youku, Dior has more than 12 million followers. It is also one of the earliest brands that created its own video channel. Social Media & Bloggers †¢ The pages are coherent with each other, showing the consistency of the brand DNA. Social Media & Bloggers †¢ WeChat is growing extremely fast from young generation to all, so Dior launched its public page at the beginning of 2013. However, it is not mature enough. For example, it lacks of the connection between WeChat and other social media, as well as purchasing possibility. Social Media & Bloggers †¢ The fast development of social media and blog totally changed the concept of luxury traditional distribution strategy: from receiving information passively to create and spread contents actively. †¢ Therefore it is crucial to not only provide abundant contents, but also build efficient channel to communicate with numerous potential customers in a luxury way. As we know, the biggest challenge for luxury brands is how to balance the image and business. Regard to digital strategy, that is how to lever on combined real stores as well as E, M and S commerce and technology to give empowered consumers more flexibility and convenience while preserving exclusivity. Example: Kaixin. com †¢ Dior is one of the earliest luxury brands that created a public page at Kaixin. com, a website whose users are mostly white collars. †¢ When Dior Beauty launched J’adore in 2011, the public page delivered invitations to all the fans at Kaixin.Only one week, there were over 170 thous and people joined the launch event of this new fragrance. †¢ Apart from watching and sharing with friends at Kaixin, fans can also share with people at Weibo. †¢ Finally, over 840 thousand people interacted with Dior Beauty, 79% of fans opened their invitations and watched the advertisement. 37% of them shared with their friends. Example: Kaixin. com †¢ Dior Beauty continues to interact with fans at Kaixin, who are mostly their targeted customers. †¢ After watching the new campaign, people can fill in their personal information to Watch video earn samples. Cooperation with Kaixin is a great success to Dior Beauty, it encourages Dior’s digital Personal information strategy and satisfies the demand of high-end users at Invite friends and share Kaixin. OMNI Retail Strategy †¢ Overall Dior Beauty has built an efficient and wellperformed OMNI retail strategy. †¢ It remains true to its DNA & codes while maintaining exclusivity on-line as they do off-li ne. That is why Dior nowadays is getting a stronger image as well as becoming more popular. †¢ It keeps on emphasizing the brand history and culture in different ways, so that potential customers can be educated and become more mature in the future. The initiative inside the brand and the strong support behind it give Dior Beauty so many opportunities to enter various social media, blogs, and e-commerce world as a pioneer. OMNI Retail Strategy †¢ Two smartphone apps, Dior MAG and Dior Addict, truly and strongly invite consumers to engage in a two-way dialogue with Dior Beauty on various topics. †¢ The combination of all channels will give empowered consumers more flexibility and convenience to purchase. †¢ However, the leverage on brick and click still needs to be improved with more innovative strategies. Conclusion The digital revolution for luxury brands is on the way. Every brand that wants to stay in the leading place needs to create an entire shopping ecosys tem and memorable experience for customers. †¢ Dior Beauty is definitely a leader in building OMNI retail channel, especially in new social media and in emerging markets. †¢ Although so far Dior Beauty has performed well, regarding to the uncertainty and various possibilities of digital marketing in the future, it still has a lot to explore and to attempt. â€Å"I create so that each and every woman is the most beautifulâ€Å" —— Christian Dior Dior Omni Channel Luxury Retail Management Individual Assignment Luxury Brands Digital & OMNI Retail Strategies Decoding DIOR DNA †¢ †¢ †¢ Feminine Princess Sexy CODES †¢ †¢ †¢ Cannage Knot & Oval Rose †¢ †¢ Flirtatious Francaise †¢ †¢ Avenue Montaigne New Look Distribution Strategy †¢ Dior Beauty is following a multi-channel distribution strategy worldwide. †¢ Mainly sell products at wholesale to dealers and retailers including department stores. †¢ Also sell beauty products in brand retail store together with ready-to-wear section. Retail Presence †¢ With growth much higher than the average in its competitive market, Dior Beauty continued to gain market share globally. Dior beauty achieved clear successes in all product categories: start from perfumes for both men and women, then makeup, and finally the skincare segment. On-line and Digital Strategy †¢ Using the web and social media is a new trend for luxury brands. But being innovative and ambitious while being loyal to the luxury image is not an easy game to play. Dior Beauty is overall growing in an impressive way. †¢ With a strong support from LVMH Group, Dior Beauty is positively developing in diverse digital channels in mature and emerging markets, through both mainstream media and some chic platforms. Although Dior Beauty sets a good example for luxury brands in on-line and digital strategy, it still failed to make the top 10 list of the digital competence of 56 beauty brands according to L2’s annual Digital IQ Index benchmark. Can we equally feel the same Dior? How can Dior Beauty convey its brand DNA and codes, culture, values, quality, craftsmanship and exclusivity on? line? †¢ Dior Beauty doesn’t create a totally new website which is independent from Dior. In this way people can potentially get the whole idea about the brand DNA. Dior Beauty segment is divided into three particular parts: Perfume, Makeup and Skincare. The welcome pages of these three parts are all filled with the new campaign. †¢ Each division is well-organized and user friendly. People can immerse in the Dior world with products introduction, collection images, and abundant knowhow videos. †¢ While browsing, people can also get advise by a simple click. New Campaign Brand History Products information & clear collection name Easy to choose Direct connection with social media Code: Cannage Personalized advice Code: Oval Craftsmanship http://www. ior. com/beauty/fra/fr/the_house_of_dior/index/th/mur_de_notes/index. html †¢ Various videos can show people the brand history, culture and value proposition. †¢ They also create an atmosphere of exclusivity and provide a guarantee of high quality. †¢ After selection, clients can easily open their own account and take the order on-line. Easy to order Clients’ recommendations The challenges †¢ It is reasonable that the Dior official site can successfully convey its brand DNA and exclusivity on-line. †¢ However, not all the customers visit the official site to order beauty products.Most of on-line consumers still prefer shopping at mass beauty website such as Sephora, Harrods, Taobao, etc. †¢ These websites differ from each other, then how to keep the coherence of the brand DNA with the necessity of adapting to distributors’ style and local culture background is a huge challenge. †¢ Besides, creating a luxury customer experience and also educating its customers on-line is definitely not easy to achieve. Example: Harrods †¢ Even though people browse the website of Harrods, they can also feel the brand DNA and culture of Dior Beauty. †¢ The products are segmented in the same way as Dior official site. All the campaigns and videos are consistent with Dior’s new promotion. Example: Taobao †¢ Taobao is the most popular on-line shopping website in China which achieved 1000 billion RMB in 2012. A nd Dior Beauty made the Top1 in makeup sector. †¢ However, apart from few words about Dior’s history, seldom can people find any brand DNA or consistency. †¢ Products are presented randomly with no background information or sense of luxury. †¢ The situation in Taobao is not the only case for Dior Beauty, almost all the luxury brands are facing with the same problem: people are buying a lot, ut they have no idea about brand story or collection concept, what they want is only the hot item, especially when the on-line shopping service is still unavailable at Dior’s official site in China and many other countries. †¢ Therefore, it is crucial for the brand to avoid letting it be. They should try their best to educate the potential customers. It is hard, but indispensable. If Dior Beauty can start earlier, it is more possible to hold its leading position in the future. Example: Sephora †¢ English version of welcome page. †¢ French version is muc h more simple. Explore the brand Hot itemsProducts catalogue New campaign †¢ Chinese version How to educate the customers? †¢ From the Sephora example we can easily find the difference. Even though they sell almost the same products, the promotion strategies are quiet different. †¢ As a well-known French brand, Dior obviously doesn’t need to make too many efforts to educate their mature customers. The only thing is to keep the coherence with the Brand DNA. †¢ When dealing with international version, they pay more attentions to the details. We can see that there are more cultural parts to introduce the brand history and collection background information.How to educate the customers? †¢ For the emerging market such as China, the website is much more well-organized. It is almost as complete as Dior’s official site. †¢ Besides, if we take a further look, it is also interesting to see that there are more products introduction and hot items prom otion in Chinese version. That is probably because the customers from emerging markets focus more on popular products right now rather than brand DNA. †¢ For example, the major ads in English and French welcome pages are showing Dior Beauty’s feminine feature. However, all the pictures in front page of Chinese version are products. Overall, it takes time to educate potential consumers, to help them turn from product consumer to brand consumer. Especially in beauty sector, each new product from other brand in the market may attract the clients who are not loyal customers yet. †¢ With the fast development of digital system, it is hard to maintain interests of clients through only one way. That is why nowadays brands are caring more about the influence of social media. Brand Websites & Content Digital Strategy Social Media & Bloggers E-commerce How can Dior Beauty leverage on digital strategy to complement its physical stores presence?Brand Websites & Content †¢ A s we analyzed before, the official site of Dior Beauty is quite impressive. The whole design is coherent with the brand DNA and culture, and tries to educate the viewers by all means. †¢ However, there are still a few things need to be improved. †¢ The cooperation between e-commerce and official website is missing in some countries. People from emerging market such as China, Brazil can not buy online yet. †¢ The CRM system isn’t completed. For example, in China, customer need to change their shopping credits into gift by phone, and get their on-line account number by message.It is really inconvenient. E-commerce †¢ With the strong promotion from LVMH Group, Christian Dior is now becoming more and more popular in its beauty division. †¢ Dior Beauty is also following the similar e-commerce strategy as that of LVMH. Not only is it important to control the supply of products and distribution, but furthermore it is important to control the message. †¢ As many brands move into conversational online media, such as Facebook and Twitter, they enter into a medium of a dialogue where third parties can completely alter or dilute the power of a message.Therefore, to control the message, you need to control the media. †¢ Dior MAG launched in March 2012. E-commerce †¢ While dealing with emerging markets, Dior Beauty hasn’t come up with efficient strategy yet due to the immature consumers and unpredictable market. †¢ In reverse, the brand doesn’t want to provide recent products or executive collections to sell on-line in these markets, clients are more possible to acquire faked products and terrible experience. †¢ Here one Miss Dior 50ml plus one Dior Addict 50ml cost no more than 40â‚ ¬, and tens of thousands of Chinese customers were set up.Example Dior Mag †¢ The online magazine will take fans of the brand inside the company from the past to the present. †¢ It will feature articles that ent ertain as well as inform die-hard Dior fans. †¢ The new magazine will feature higher resolution †¢ The brand isn’t stopping images as well as there as they plan to roll out lengthier videos for iPad and iPhone versions of people to share. the magazine, for the fashionista on the go. Social Media & Bloggers †¢ Dior has an active strategy on social media, and it dominates especially in Facebook and Twitter. Dior Beauty doesn’t have an independent account in social media. All the activities and promotions are posted together with Dior Couture. Coherent with new campaign Social Media & Bloggers †¢ YouTube is becoming more noticeable in the beauty industry’s online ecosystem. More beauty brands are receiving upstream traffic from YouTube to their sites than in 2011. Dior is in the top 10 YouTube channels for beauty brands ranked by video views, per the study. †¢ While watching the videos of new campaign, people can directly click the link to official site.Social Media & Bloggers †¢ They have an independent channel at YouTube to introduce products and to enhance the brand recognition. †¢ Videos are divided into different divisions, in this way customers can also be educated. Social Media & Bloggers †¢ As a micro-blogging platform and social networking website, Tumblr allows users to post multimedia and other contents to a short-form blog. Users can follow other users' blogs, as well as make their blogs private. †¢ An analysis by AddThis of shares through their service in 2011 noted that Tumblr sharing had increased by 1299. %. Social Media & Bloggers †¢ The service is most popular with the teen and college-aged user segments with half of Tumblr's visitor base being under the age of 25. As of 2009, Tumblr had an 85% user retention rate, compared with 40% for Twitter. †¢ Therefore, Dior launched its page at Feb. 2013 to attract young generation, as well as to educate potential consumers. Socia l Media & Bloggers †¢ As a global brand, it is not enough to only focus on international social media. Some countries have their special limit on Internet and their own social media. Dior Beauty makes a lot of efforts on promoting at local social media. †¢ For example, in China, Dior official page at Weibo has 568,535 fans, which is more than Louis Vuitton, Chanel, and Gucci. †¢ At the most important video site Youku, Dior has more than 12 million followers. It is also one of the earliest brands that created its own video channel. Social Media & Bloggers †¢ The pages are coherent with each other, showing the consistency of the brand DNA. Social Media & Bloggers †¢ WeChat is growing extremely fast from young generation to all, so Dior launched its public page at the beginning of 2013. However, it is not mature enough. For example, it lacks of the connection between WeChat and other social media, as well as purchasing possibility. Social Media & Bloggers †¢ The fast development of social media and blog totally changed the concept of luxury traditional distribution strategy: from receiving information passively to create and spread contents actively. †¢ Therefore it is crucial to not only provide abundant contents, but also build efficient channel to communicate with numerous potential customers in a luxury way. As we know, the biggest challenge for luxury brands is how to balance the image and business. Regard to digital strategy, that is how to lever on combined real stores as well as E, M and S commerce and technology to give empowered consumers more flexibility and convenience while preserving exclusivity. Example: Kaixin. com †¢ Dior is one of the earliest luxury brands that created a public page at Kaixin. com, a website whose users are mostly white collars. †¢ When Dior Beauty launched J’adore in 2011, the public page delivered invitations to all the fans at Kaixin.Only one week, there were over 170 thous and people joined the launch event of this new fragrance. †¢ Apart from watching and sharing with friends at Kaixin, fans can also share with people at Weibo. †¢ Finally, over 840 thousand people interacted with Dior Beauty, 79% of fans opened their invitations and watched the advertisement. 37% of them shared with their friends. Example: Kaixin. com †¢ Dior Beauty continues to interact with fans at Kaixin, who are mostly their targeted customers. †¢ After watching the new campaign, people can fill in their personal information to Watch video earn samples. Cooperation with Kaixin is a great success to Dior Beauty, it encourages Dior’s digital Personal information strategy and satisfies the demand of high-end users at Invite friends and share Kaixin. OMNI Retail Strategy †¢ Overall Dior Beauty has built an efficient and wellperformed OMNI retail strategy. †¢ It remains true to its DNA & codes while maintaining exclusivity on-line as they do off-li ne. That is why Dior nowadays is getting a stronger image as well as becoming more popular. †¢ It keeps on emphasizing the brand history and culture in different ways, so that potential customers can be educated and become more mature in the future. The initiative inside the brand and the strong support behind it give Dior Beauty so many opportunities to enter various social media, blogs, and e-commerce world as a pioneer. OMNI Retail Strategy †¢ Two smartphone apps, Dior MAG and Dior Addict, truly and strongly invite consumers to engage in a two-way dialogue with Dior Beauty on various topics. †¢ The combination of all channels will give empowered consumers more flexibility and convenience to purchase. †¢ However, the leverage on brick and click still needs to be improved with more innovative strategies. Conclusion The digital revolution for luxury brands is on the way. Every brand that wants to stay in the leading place needs to create an entire shopping ecosys tem and memorable experience for customers. †¢ Dior Beauty is definitely a leader in building OMNI retail channel, especially in new social media and in emerging markets. †¢ Although so far Dior Beauty has performed well, regarding to the uncertainty and various possibilities of digital marketing in the future, it still has a lot to explore and to attempt. â€Å"I create so that each and every woman is the most beautifulâ€Å" —— Christian Dior

Democracy in Pakistan-a Dilemma

Against the backdrop of recent surge in political temperature, speakers at a roundtable discussion forum stress the need for continuation of democratic process despite of all the current challenges faced by it. In a roundtable discussion forum â€Å"Political Expediency and the Future of Democracy in Pakistan† organized by the Center for Research and Security Studies (CRSS), at its office premises in Islamabad, issues and challenges related to current democratic governance and prospects of a democratic Pakistan were discussed in detail. Mr.Ahmed Bilal Mahoob, executive director, Pakistan Institute of Legislative Development and Transparency(PILDAT) opened the discussion with an overly optimistic note and observed: â€Å"Democracy in Pakistan has never been as good as it is today. † He noted that it is the first time in history of Pakistan that three state pillars, those are Executive, Judiciary and the Legislature are carving out their respective ways out of this challe nging political environment and it is a good omen for young democracy. In the past, judiciary was under the influence of executives, but now it is independent and assertive. Related essay: Pillars of Democracy in TanzaniaParliament in a democracy is always considered a vital state pillar, but again it tried to overpower the other state organs. Against this backdrop, during the era of current democratic government, the growth of all state organs is continuous and stable. Likewise, during current democratic rule, for the first time, Senate was chaired by an opposition representative. Then if we look towards media, we have a robust and independent media, which explicitly does not seem under the influence of government. Coming to the democratic governance, Mr.Mahboob asserted the notion that there is widespread political discontentment and disillusionment among the masses. And ironically, the people have directed all their criticism and scathing towards federal government and spared the provincial governments altogether, whereas under the 18th amendment, most of the ministries have been devolved to the provinces. Therefore when we disparage the federal gover nment, we should also vent some anger on provincial governments as well. Discussing the recent upsurge in political temperature, Mr.Mahboob stated â€Å"As we are nearing to the close up of this government, therefore, all political parties want to gear up the political momentum in order to gain mileage out of it in coming elections. He further continued by saying that â€Å"Almost all opinion surveys and polls in recent months suggest that the people are fed up by the present government— and want a change, so this upsurge is not abnormal and nothing is worrisome in it†. He narrated that when we talk about the freedom of expression, we generally take a pride after looking at the countries, which enjoyed sustained periods of democracy.And this is something that we should cherish, despite of all short comings. He termed the â€Å"Imran Khan phenomenon† as a harbinger of positive change in the political arena of Pakistan. PPP leader and former federal minister, Sye da Abida Hussain said that since inception Pakistanis wished for democratic rule in the country, and it is because, â€Å"Pakistan born out of vote†. But, she lamented that we have been scathing under long dictatorial rules for better part of our political history and there are reasons for it.She observed that though we as a nation may have developed liking for democratic rule, but ironically we lack political temperament. Mrs. Hussain said that the voices for change are getting louder and louder with the passage of time. She acknowledged that there is rampant corruption in the country and no state department is free of it. â€Å"State institutions should be established on the basis of equality, charter of democracy should be written by all the parties struggling for rule of law in the country†, she suggested. Every one of us talks about poor governance but nobody did anything† she lamented. She reiterated that we have to make the system more responsive through s ustained efforts for efficient democratic governance. Meanwhile, if we resorted for premature political solutions at this stage, then the future of democracy in Pakistan will be dark once again. She warned that the covert apparatus is once again out with its ulterior motives and the political parties will have understand its maneuvering for the benefit of democratic et up in the country. Former lawmaker from Swat, Mr. Adnan Aurangzeb said that in Pakistan â€Å"—the gap between political representatives and the represented is widening relentlessly† and this is not healthy sign for the future of democracy in the country. He underlined that there are structural problems, which are not letting the democratic culture take hold in Pakistan. He said that unfortunately, the legislators in Pakistan are not well connected with their constituencies, and therefore the people feel marginalized.According to him, there lies huge social, cultural, economic and political void between the rulers and the ruled. And this pertinent factor will continue to haunt the dream of a peaceful and prosperous democratic Pakistan. Participants in the roundtable discussion forum were of the view that there is need for a responsive democratic governance structure and without accountability the dividends of democracy will not trickle down the masses. And in consequence, the ubiquitous discontent will eventually lead towards the folding of the political system.