A Geographical Analysis of the Roadmap for Peace in the Middle East

The longstanding conflict between Israel and Palestine has had rippling effects on the world community. Not only has it devastated a community in both nations, but the war has transcended globally, as both nations gather allies to their diplomatic defense.The seemingly never ending war has left countless dead, homes destroyed and a hope for a normal life dismayed. In light of this, the United States took the initiative of creating a roadmap towards peace for both nations. Designed to create a Palestinian State that co-exists with Israel, both nations were handed down a set of conditions in 2002.Though accepted formally in 2003, both nations have failed to act upon the roadmap and have thus, once again, left a yearning for peace in the region (Steinberg, 2002). This paper will discuss the long detailed plan of achieving peace in the Middle East, relating the geographical and political elements, problems and prospects of implementation, and the short and long term consequences of succe ss.The roadmap to peaceOverview on the geographical and political elementsIn July 2000, former US President Bill Clinton, Israeli Prime Minister Ehud Barak, and Palestinian Authority President Yasser Arafat have initiated the meeting with the agenda to finalize the initial peace agreements signed during the â€Å"1993 Declaration of Peace Principles† between Israel and Palestine.Sadly, the meeting ended at no point of further agreements unless critical issues on peace pact would be strongly determined (Migdalovitz, 2006). The uncompromising leverage to peace negotiations between Israel and Palestine was futile to the peace initiative mediation of the â€Å"Mitchell Commission and the Paris Summit†, wherein the spate of violence were unabated (Steinberg, 2002).Violence intensified which highlighted the March and April 2002 serial bombings that accounted death toll of more than 100 Israelis as a result of Palestinian aggression. The US initiative to refocus a new approac h to peace negotiation was then attempted by former President George W. Bush sometime in June 2004, mediating the lull of Palestinian aggression against the Israelis (Steinberg, 2002).The initiation of the â€Å"Plan for Palestinian State† has been laid down to outline the peace pact which follows the establishment of the Middle East Quartet or peace process international cooperation in the Israeli-Palestinian conflict, consistent with the United Nation’s peace pact proposal which is being negotiated by the US and other countries in the Middle East and European Union (Migdalovitz, 2006).Problems and prospects of implementationThe Israeli-Palestinian conflict has long been waged since the 19th century. In which case, it is noteworthy that the peace negotiations in the 21st century can be facilitated by mediating non-Arab countries, like the United States and the rest of European Union through the guiding peace pact proposals of the United Nations.Accordingly, only the l eaders in the Middle East could dutifully institute the peace pact, in which the â€Å"presence† of the United States only tries to â€Å"systematize the outlining of a roadmap† for the peace process to be concluded in a short or long term basis (Migdalovitz, 2006).However, the continuing peace process negotiation could meet a â€Å"sticking point† which the â€Å"roadmap† for the peace negotiations can be blurry as a result of the perceived political interests of major countries that get involve in the Middle East Quartet. The critical roles of involvement of major countries must be redefined, focusing on the elemental issues of achieving substantial peace accord between Israel and Palestine (Steinberg, 2002).One more additional impediment in the Middle East Quartet could be the internal establishment of confidence among the negotiators. Of which political interests may not be a â€Å"dà ©tente† or intent to easing the tensions or strained relati ons between Israel and Palestine. It may be critically reconsidered that the Arabs accuses the Israelis for being an illegitimate which has been the campaigns of Yasser Arafat to remove 3,000 years of Jewish history in Jerusalem.The abhorrence of the Arabs to Israelis is likewise entangled in the envisioning of independent Arab states, from which Israel’s foreign relations have indicated bluntness with the European countries, as hostile stance has even contributed by the United Nations Security Council’s 2002 Anti-Israel Resolution upon attack in Gaza Strip (Steinberg, 2002). These critical reconsiderations equate a far-reaching disposition that would pave the way for an expedited peace pact and settle the long-time conflict on top of the negotiating table of the Middle East Quartet. A Geographical Analysis of the Roadmap for Peace in the Middle East In the past, geography had been one of main issues of conflict in the international community because having larger territories means having more wealth and power compared to other countries. In the early days, Spain was one of the main colonizers in our world history.Due to the many territories that they had, Spaniards were considered rich. They have many lands to plant crop, for mining of minerals, and the likes. The competition of who and what territory was a big issue for most of the powerful states in the past. However, the concept of power through geographical location and territory is still present such as the conflict of Israel and Palestine.The conflict of the Israel and Palestine penetrated the international community in the 1990’s. The conflict is a part of the widely known â€Å"Arab-Israeli† conflict. Basically, the dispute of Israel and Palestine is concerning land territory.The two states have been claiming the land ever since and both of these state beli eve that they have authority over that land for many historical, religious and geographical.Currently, the conflict of Israel and Palestine became more personal to both countries. Unlike the past, the whole conflict was related to the Arab and Israelites but now it is more focused on the territory of the Gaza and the West Bank region which borders the two conflicting states.Since the time that had passed, many changes had happened in relation to the situation of Israel and Palestine. Different states intervened with the situation and showed interest in the situation.The United States had joyfully included itself as the major key player in the resolution of the conflict. In June 24, 2002 President George W. Bush delivered his speech and encouraged Israel and Palestine to create peaceful negotiations towards having friendly relations and harmony among each other. In his speech he stated thatâ€Å"We express our determination to bring an end to the blood shed, suffering and decades of conflict between our peoples; to usher in a new era of peace, based on freedom, security, justice, dignity, respect and mutual recognition: to propagate a culture of peace and non-violence; to confront terrorism and incitement, whether committed by Palestinians or Israelis.In furtherance of the goal of two states, Israel and Palestine living side by side in peace and security, we agree to immediately launch good-faith bilateral negotiations in order to conclude a peace treaty, resolving all outstanding issues, including all core issues, without exception, as specified in previous agreements.† (Bush, np)President George W. Bush expressed his enthusiasm towards the great possibilities of the positive relations between Israel and Palestine. HE imply for a program called â€Å"The Roadmap for Peace in the Middle East† that would provide proper guidance to the states to be able to achieve the goal of peace and harmony.He has continuously suggested that there be negotiations . There would be a committee that would specifically address the issues of the states involved in the conflict. A joint work plan would be established as well as an overseeing team to monitor the projects.The â€Å"Roadmap for Peace in the Middle East† is a plan formed by the United States shaped to stop the conflict between the Israel and Palestine. The conflict resolution will be led by the â€Å"Quartet† which is composed of the United States, Russia, The European Union and the United Nations .The plan was presented at the Israel Palestinian Authority last April 30, 2003.The US Department of State said, â€Å"The plan is a performance-based, goal-driven plan, with clear phases, timelines, and benchmarks. It involves reciprocal steps by the two parties in the political, security, economic, and humanitarian fields† (Bureau of Public Affairs, np).The concept of the Road map is mainly obliging the Palestinian Authority to create democratic reforms and neglect the utilization of terrorism. On the other hand, Israel should support and recognize the materialization of a new Palestine Government including the settlement of the Gaza and West Bank conflict.The assumed out come of the strategy is the broad resolution of the Israel and Palestine conflict however, the dedication and good-faith efforts by both states are necessary for the implementation of the Road map. Other than the members of the Quartet, other regional Arab leaders will exertion effort to maintain and assist the progression.   (Bureau of Public Affairs, np)

What Were the Main Problems and Issues Facing the Allies at the 1943 Teheran Conference (Eureka) and How Were They Dealt with?

What were the main problems and issues facing the Allies at the 1943 Teheran Conference (Eureka) and how were they dealt with? Intro The Teheran conference was the meeting of Joseph Stalin, Winston Churchill and Franklin D. Roosevelt between November 28th and December 1st 1943. It was the first World War 2 (WW2) meeting amongst ‘The Big Three’ (Stalin, Churchill and Roosevelt) in which Stalin was present. The principal aim of the Teheran conference was to firmly establish a global allied strategy for the duration of the war, and basic plans for the post war era. Throughout the meeting the big three addressed many issues which were deemed to be preventing a global allied strategy. Chief discussion at the conference was centered on ‘Operation Overlord’ which incorporated the opening of a second front in Western Europe which the Big Three believed would be a decisive step to allied victory over Nazi Germany. At the same time the conference discussed how to deal with the escalating Mediterranean conflict, the territorial disputes on the Soviet/Polish frontier as well as discussing operations in Yugoslavia, relations with Turkey and Iran, and a separate protocol pledged to recognize Iran’s independence. The varying success the Big Three had in resolving these issues at the Teheran conference is arguable. Issues concerning the swift conclusion of the War were often agreed upon mutually as it benefited all three nations, however issues which conflicted the self-interest of the Big Three often forced them to compromise on a successful resolution, one that was often questionable, but necessary for the development of the Grand Alliance and to achieve the primary objective of creating a global allied strategy. The main problems faced at the Teheran conference were primarily concerned with the sole objective of defeating the Nazi and bringing the war to a rapid end. It is evident that conflict occurred in areas were hidden agendas and self-interest was bought by the Big Three. With hindsight the success of these resolves is questionable, it is clear that many issues which were deemed to be resolved at the Teheran conference in fact resurfaced in future conferences; such as Yalta and Potsdam. Operation Overlord 700 One of the chief focuses of the Teheran conference was the prospect of a second Western front in Europe. The matter was known as ‘Operation Overlord’, and would entail the allied invasion of German-occupied Western Europe. The issue at the conference was not whether the Allies would launch Operation Overlord, but rather when it would be launched, as it conflicted with Winston Churchill’s wishes to invade Italy through the Mediterranean. The reason for Operation Overlord’s conception varied among the leaders but had the primary objective of ending the war as soon as possible. For Stalin one of the most fundamental reasons for creating a second front was to ease pressure on the Soviet army which were being pressed [†¦] Page 356 The Big Three. Churchill’s priorities throughout the beginning of the Teheran conference remained with his operations in the Mediterranean. He believed that continuing operations in the Mediterranean would not jeopardise the success of Operation Overlord, Churchill’s demands at the Conference were clear, he demanded landing craft for two divisions in the Mediterranean which could be used to facilitate the operations in Italy or to aid in the invasion of the Rhode Islands if Turkey would enter the war. Churchill believed that from here Italy could be employed in support of Overlord. Roosevelt’s enthusiasm for the Mediterranean operations differed greatly from that of Churchill’s. For Roosevelt the dilemma was that in order to give enough landing craft to aid Churchill in the Mediterranean would mean delaying Overlord six to eight weeks, he insisted that increasing Anglo-American activities in Italy and the Mediterranean would cause a conflict in the build-up for a successful cross-Channel invasion (OVERLORD) in 1944. [†¦] Page 91 Major problems of WW2. At the Teheran conference it was concluded that, despite Churchill’s wishes, the cost of invading Italy via the Mediterranean would delay Overlord far more than both Stalin and Roosevelt thought was acceptable. Stalin gladly recognised the outcome of Overlords negotiation as it would guarantee his army the support they needed to fight off the German advance into the Soviet Union. Likewise Roosevelt embraced the outcome, his main priority was to find the quickest solution to the War’s end and he was advised by his Chiefs of staff; Operation Overlord was by far the quickest means of achieving this. Churchill had never been against Overlord; his argument was simply that Overlord should not take away the importance of operations in the Mediterranean, Churchill accepted the resolution which was reached at the Teheran Conference and pledged full British support to any future Allied operations. Soviet involvement in Japan 400 One of Roosevelt’s main objectives whilst attending the Teheran conference was to gain Stalin’s support for the War in Japan. Roosevelt felt that with the intervention of Stalin not only would it bolster his resources in the far east but it would also speed up the inevitable allied victory in Japan (Click) Stalin however would only consider invading Japan once Germany had been defeated as he did not want to risk spreading his army in addition. Stalin pledged to assist in the war against Japan after Germany was defeated and expressed his wish that, after the war, the 1941 USSR borders with Finland and Poland be restored; he also requested many War reparations such as key railroads in Manchuria to compensate his intervention in Japan. Click) it was agreed that Stalin would declare war on japan 3 months after the defeat of Germany. Post War Germany 400 Turning to the question of the division of post-war Germany the discussion centred on whether or not to split up Germany. (Click) Churchill was primarily more interested in seeing Prussia, the core of German militarism, separated from the rest of Germany. (Click ) On the other hand Roosevelt had a plan for the division of Germany in six parts. These six parts were: 1. All Prussia to be rendered as small and weak as possible. 2. Hanover and Northwest section. . Saxony and Leipzig area. 4. Darmstadt 5. South of the Rhine 6. Bavaria, Baden, and Wurttemberg Roosevelt’s proposal stated that these six areas should be self-governed and that there should be two regions under some form of International control. These were: 1. The area of the Kiel Canal and the City of Hamburg. 2. The Ruhr and the Saar, the latter to be used for the benefit of all Europe. (Click) Stalin agreed with both Churchill and Roosevelt as he felt that to contain military threat Germany may pose in the future the only solution would be to completely divide it. However, Stalin felt that Churchill’s idea to divide Germany into 2 large states would merely offer an opportunity for Germany to revive as a great State and therefore preferred Roosevelt’ plan to dissect Germany into 6 self-governed areas and 2 areas under allied control. Yugoslavian partisans 400 After an attack by German, Italian and Hungarian forces against Yugoslavia on the 6th April 1941, the kingdom of Yugoslavia collapsed. This resulted in King Peter and his government to flee the country. On 27 June 1941, the Central Committee of the Communist Party of Yugoslavia appointed Tito Commander in Chief of all project national liberation military forces. Originally two groups emerged in the Yugoslavian resistance movement, the chetniks commanded by Draza Mihailovic and the partisans commanded by Tito. (Click) Initially both resistance movements operated in parallel, but by late 1941 began fighting each other in the attempt to gain control of the area following the end of the war. Stalin, who already supported Tito, wanted Roosevelt to recognize the partisans as the official resistance in Yugoslavia, rather than support Mihalovic. Click) Roosevelt up to this point had continued to aid the Chetniks as they fought against Germany but also against the partisans. (Click) Churchill advised Roosevelt that all support should go to Tito and that â€Å"complete chaos† would ensue if the Americans also backed Mihailovic. (Click) Stalin and Churchill were able to gain Rooseveltâ €™s support for Tito and the partisans in the form of supplies and equipment and also by commando operations. Soviet/Polish border disputes 400 A key reason for Stalin to attend the Teheran conference was his hope to gain Roosevelt and Churchill’s support for his territorial disputes with Poland. Stalin believed that the Polish Government in exile were closely connected with the Germans He stated that Russia, probably more than any other country was interested in having friendly relations with Poland, since the security of Soviet frontiers was involved. He said the Russians were in favour of the reconstitution and expansion of Poland at the expense of Germany and that they make distinction between the Polish Government in exile and Poland. (Click) Roosevelt said it was his hope that negotiations could be started for the re-establishment of relations between the Polish and Soviet Governments. He felt that the re-establishment of relations would facilitate any decisions made in regard to the questions at issue. He said he recognized the difficulties which lay in the way. (Click) Churchill said he would like to obtain the views of the Soviet Government in regard to the frontier question, and if some reasonable formula could be devised, he was prepared to take it up with the Polish Government in exile, and without telling them that the Soviet Government would accept such a solution, would offer it to them as probably the best they could obtain. If the Polish Government refused this, then Great Britain would be through with them and certainly would not oppose the Soviet Government under any condition at the peace table. (Click) To solve the issue Churchill suggested that Poland’s western borders would be extended east into Prussia to compensate for their eastern borders being reduced. Future of Iran 250 Future of Finland 250

AI, Robotics, and the Future of Jobs

AI, Robotics, and the Future of Jobs As AI scales, it will wind up less expensive and quicker to have a few kinds of work done by robots rather than people. One advantage of this is people will have the capacity to center around larger amount work that robots will be unable to do work that requires additionally considering, basic leadership, or enthusiastic knowledge, for instance. Notwithstanding, theres a typical and common worry that runs as one with this: a preparing dread that expanding robot work inalienably signifies diminishing human work (i.e. occupations). My view is substantially more idealistic. I trust robotization is a need in the close term to look after profitability. Over the long haul, we may even enhance current ways of life and all things considered work better less hours, for one, yet in addition all the more securely, more strongly with the assistance of AI. A suspicion behind our dread of man-made brainpower is that the pie (the number and sorts of jobsÐ’ available to people) remains the same, and robots will just remove occupations from people. While startling, this suspicion disregards two basic focuses: Robots are frequently filling the employments that relatively few or basically insufficient Americans need to do in the close term. As innovation propels, the pie will increment in measure, which means we really can create greater profitability and new kinds of employments. Filling in the unfilled spots An exceptionally close term advantage of AI is to help diminish the work deficiency in labor-overwhelming businesses, for example, assembling and agribusiness. Whats occurring in these businesses is that theres quite much work that insufficient individuals will do. Agribusiness, for instance, is theÐ’ least digitalized industryÐ’ and saw a 1% YOY decrease in profitability from 2005-2014, lower than each other industry outside of development and retail exchange. Numerous ranchers in California are so in need of innovation that they will experiment with and sign a Letter-of-Intent (LOI) with mechanical technology organizations in a matter of months. For point of view, a commonplace undertaking deals cycle is frequently 12-year and a half. Additionally, the greatest bottleneck for some manufacturing plant proprietors is work lack. On account of Heartland VC, I as of late met a few assembling proprietors in Indiana, and no matter how you look at it, the significant agony point they raised was essentially finding hourly specialists, period. Sometimes, the requirement for new specialists is great to the point that they procure without leading individual verifications. This is the absolute most problem that needs to be addressed on a considerable lot of the industrial facility proprietors brains. In different cases, a few occupations are so hazardous for people to do that casualty is a key concern. Phone tower and scaffold investigation, for instance, expects people to move to the highest point of these developments to direct work. With the change of precision and strength, ramble organizations currently can fly overhead for the benefit of people to take photos of the PDA towers or scaffolds, and let people laborers examine them from a far more secure vantage point the ground beneath. Expanding the pie: Introducing new parts Investigate a portion of the new occupations that has flown up as of late; for instance, an online life supervisor. This activity didnt exist before improvements like Facebook and Twitter. In that vein, a robot facilitator may be a future part that doesnt exist today. Envision your present place of employment expects you to gather boxes individually. Consistently you collect approximately 200 boxes in 10 hours. Imagine a scenario where, later on, you could control 10 machines to gather the containers. Your activity changes from box constructing agent to robot controller. Not exclusively do you presently have a cool new activity title, yet you may just need to give supervision to ensure things are running appropriately. In principle, you could do this while taking in a dialect or doing your week after week dinner arranging, and still hit if not surpass your same quantity. Adaptable human on the up and up occupations Heres a comparable thought. IveÐ’ written beforeÐ’ about my confidence in opening up the advantages of aides past simply the official suite, yet the idea of AI partners (alongside innumerable other AI arrangements) presents another sort of employment: human on top of it work. To put it obtusely, AI colleagues are sufficiently bad to inside and out supplant human collaborators, particularly when circumstances get intricate or require situational learning and setting. Be that as it may, these frameworks need to use human work in new ways: utilizing individuals to do last checking and approval on machine learning presumptions. Organizations creating AI aides and different sorts of ML-driven calculations are really expanding work for those searching for adaptable and remote work and enabling those contracts to go up against pieces or lumps of hours on end.

Thinking machines Essay Example | Topics and Well Written Essays - 4500 words

Thinking machines - Essay Example This paper conducts an analysis of its subject in the form of a qualitative content analysis of relevant available literature. A multi-dimensional approach is adopted to incorporate all perspectives in the analysis. These include perspectives of philosophy, mathematics, language, and related specialized sciences such as Computer Science, Artificial Intelligence, Neuroscience, Robotics and Natural Language Processing. Literature on the Turing Test has also been examined and analyzed to gauge its applicability on modern-day machines. Literature from these diverse subjects of study has been qualitatively analyzed in this chapter in search of a conclusive answer to the central question of the paper. This chapter begins with an analysis of the human thinking process based on the approach of computer science and natural language processing. The objective of the analysis was to define the human thinking process in a quantitative manner and then compare it quantitatively with the functioning of a computer system. The next section of the chapter concentrated on trying to develop a possible mathematical model of the human thinking process based on neuroscience and analyzed by a philosophical approach. Thereafter, the chapter present analyses of the different perspectives held on the subject by related specialized disciplines. These disciplines include Artificial Intelligence (AI), Robotics and Neuroscience. The chapter then takes on an analysis of the Turing Test to gauge its efficacy as a test for human-level intelligence in machines. The chapter is rounded up with an overview in the form of a summary. The literature review conducted for this study was successful in finding the answers to many of the research questions. With regards to the first research question, while Philosophy holds that the human mind itself may not be

Business Enviroment Essay Example | Topics and Well Written Essays - 1000 words

Business Enviroment - Essay Example Environmental scanning drives an organization's strategic planning process-the quality of the planning depends on the quality of the scan. The scanning manager faces a lot of challenges because the external environment is changing rapidly in complex ways; there are numerous sources of information and this information is often ambiguous. (Auster and Choo, 1994). The organisation has to use this information to make consequential decisions or long-term commitments by the organisation. Scanning involves several modes of information seeking. Aguilar (1967) usefully differentiates between searching for information about a specific question, and viewing information or being exposed to information without a specific information need in mind. According to Auster and Choo (1994). Scanning could range from a casual conversation at the lunch table or a chance observation of an angry customer dumping a product, to an extensive market research programme to identify business opportunities. At a conceptual level then, environmental scanning may be seen as an extended case of information seeking, in that scanning not only includes searching for particular information, but also simply being exposed to information that could impact the firm. (Auster and Choo, 1994). Duncan (1972) defines the environment as "the totality of physical and social factors that are taken directly into consideration in the decision-making behavior of individuals in the organization" (p. 314). Draft et al. (1988) suggest that a firm's external environment can be divided into six environmental sectors including: 1. Customer sector refers to those companies or individuals that purchase the products made by the respondent's firm, and includes companies that acquire the products for resale, as well as final customers. 2. Competition sector includes the companies, products, and competitive tactics: companies that make substitute products; products that compete with the respondent firm's products; and competitive actions between the respondent's firm and other companies in the same industry. 3. Technological sector includes the development of new production techniques and methods, innovation in materials and products, and general trends in research and science relevant to the respondent's firm. 4. Regulatory sector includes federal and provincial legislation and regulations, city or community policies, and political developments at all levels of government. 5. Economic sector includes economic factors such as stock markets, rate of inflation, foreign trade balance, federal and provincial budgets, interest rates, unemployment,and economic growth rate. 6. Socio-cultural sector comprises social values in the general population, the work ethic, and demographic trends such as an increasing number of women in the work force (Daft et al., 1988, pp. 137-38). By understanding the above environmental sector a company can better understand how to deal with the requirements of each sector. There is a general model proposed by Mintzberg (1973) which deals with managerial use of information acquired from the external environment. According to this framework, a manager's interpersonal roles provide access and exposure to

Comprehensive Discussions Essay Example | Topics and Well Written Essays - 1500 words

Comprehensive Discussions - Essay Example Every year the US Supreme Court takes up 100 to 150 cases for argument. Four justices must give their consent for hearing the case. The US Supreme Court is primarily an appellate court having jurisdiction over ambassadors as well as two or more states (Understanding Federal and State Courts). The Supreme Court has a chief justice as well as associate justices whose numbers are fixed by the American congress. The present number of associate justices is presently eight. The president of the US has the power to nominate the justices and their appointments are sanctioned according to the advices and consent of the senate. Article III, Â §1, of the Constitution further provides that the Judges of both Supreme and inferior Courts, shall hold their Offices during good Behavior, and Shall, at stated Times, receive for their Services, a Compensation, which shall not be diminished during their Continuance in Office. Article III, Â §1 of the constitution provides that the legal power of the United states shall be vested in only one supreme court as well as in such inferior courts as the congress may from time to time proclaim and institutes. Article. III, Â §2 states that the legal power shall be extended to all cases under the constitution to the US supreme court. It includes cases affecting ambassadors, public ministers, consuls, cases of admiralty and maritime jurisdictions, cases between two or more states, cases involving state and citizens of another state and of the same state, foreign states etc. In cases involving ambassadors and other public ministers, consuls, states, the US Supreme Court has the ultimate jurisdiction. In other cases the Supreme Court has appellate jurisdiction. The appellate jurisdiction has been given to the US Supreme Court by various statutes in the constitution. The basic statute which defines the judicial power is found in 28 U. S. C. Â §1251 et seq. The US c ongress from time to time gives powers to the US supreme court to prescribe

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Leadership in a Global Environment Essay Example | Topics and Well Written Essays - 1500 words - 3

Leadership in a Global Environment - Essay Example Management at the global level has resulted in a massive capacity strain on leadership and leadership strategies owing to the multicultural nature of the staff. In a multicultural managerial environment, leaders encounter a workforce with varying religious, political, cultural and racial backgrounds. As such, they view numerous things that are relevant in the workplace differently. The difference in the views may result in conflict among members of the workforce or between the management and the staff members (Griffin 2006, p. 72). For an entity seeking to establish a subsidiary in a different country, it is vital for the leadership of the company to adopt a leadership style, which will resonate well with the culture and the ideals of the new country. If such factors are overlooked, the human resource department will experience many challenges that will result in reduced output per employee. Some societies value individualism, for instance, in the western nations while other societies focus on projects, which will uplift the society in its entirety. The leaders in the multicultural managerial environment must remain alive to the complexitie s that result from diversity. Diversity is a great asset to a company since different people bring different skills and perspectives in the entity. However, if leaders fail to manage diversity shrewdly, it becomes an impediment to the management. Multicultural workforces have become symptomatic with global entities. Hence, one of the steps the leaders should undertake is to ensure that the mission and vision coined are global in nature. Most of the missions and visions will be a reflection of the ideals of the country of origin (Toyota 2014 p.1).

Probable reasons of why racists mitigate their views whenever possible Essay

Probable reasons of why racists mitigate their views whenever possible - Essay Example It is very peculiar to consider racism is an ideology where humans are separated into various groups in the belief that some people are superior because they belong to a particular ethnic or national group. It could be summarized that racism is the result of having negative judgments, beliefs, and feelings towards certain identifiable groups. But there are multiple folds to the idea of racism and though an act of violence against a black youth by few white neo-Nazi and the killing of a Christian priest by some religious fundamentalists look very different from each other but to its core they are all the same and inseparable. It is not surprising that there is a prevalence of racism; however, it is not so common that a person admits to being a racist. (Black, 127) The reason is that most people with racist views don't want others to label them as racist, so they mitigate their views whenever possible. In a general sense, racism is fuelled by different aspects like low education, unfavorable economic condition, social structure that inclined towards a specific religion or cult and most important of all- ill fated political motivation. This are few reasons why the well educated, financially well off people tend to be secular in nature though there are exceptions and sometimes with rapid political campaigns (like the Nazi movement in Germany during 1930's and 1940's by Adolph Hitler) these people start believing in a ideology that is basically racist in nature. Most people with racist views don't want others to label them as racist, so they mitigate their views whenever possible as this racism (like Nazism) comes in a package of camouflaged theoretic philosophy. Most people under the banner of democracy tend to believe that all human beings are equal and they should be treated equally. So they disregard themselves as raciest and seek asylum under some make believe theories. If one o f such example comes in the shape of Nazism the other side of the same story tells us the existence of such interesting phrases like 'white man's burden". (Atherton, 15) This phrase developed during the colonial era at the 19th and 20th century and this phrase is just a make believe theory so as to soften the harsh reality of racist manners those indicated the rise and sustainability of the 19th and 20th century imperialism. This phrase, 'white man's burden', is a very interesting clue to the statement that 'why racists mitigate their views whenever possible'. If we look closely enough, we would find that during the 19th and the early part of 20th century it was the times of building, developing and sustaining a huge empire, later known as colonies, by the major players of the European politics. It should also be noted that this period, the 19th and the early part of 20th century, was also the fallout period of the essence of industrial revolution. Industrial revolution freed the entrepreneurs from the usual bondage of traditional economy and for the general it was the time for a new social bondage free from the earlier pseudo- feudal economic system. But all these developments also brought in new learning and new ideologies where ideas of human rights occupied a major role. In this context and social structure it would have been very hard to digest the ideals of imperial expansions through the method of brutal strength. This hard pill of 'colonialism with brutality' needed some spooning with

PEST Analysis on Deodorant market Essay Example | Topics and Well Written Essays - 500 words

PEST Analysis on Deodorant market - Essay Example This in turn influences the prices they are to be charged in the market. For example if the import duty imposed on the deodorant is high, this means they will be charged at high prices hence their demand will be low. On the other hand, if the custom taxed charged on them is low, it means that they will be charged less in the market hence they demand will be high thereby increase the sales. 1 On the other hand, economic factors greatly influence deodorant market in that during inflation deodorants are charged more in the market hence they become unpopular to the consumers. At this time, the purchasing power of the consumers is greatly affect and the only money they have, they spend it to buy necessities and not things like deodorants. This in turn affects the deodorant sales. 2 Unemployment is another factor that affects deodorant market. The whole world today is greatly affected by unemployment and there as so many young energetic people in the world that ought to be working and there are no employment opportunities for them. For this case, they are not salaried; hence they have nothing to spend to buy anything like cosmetics. Due to this, the sales of deodorant go down since those people who ought to be buying these deodorants have no purchasing power at all. 3 Deodorant market is also affected by socio cultural environmental factors that greatly affect their demand in

Growth and Future of Private Equity Essay Example for Free

Growth and Future of Private Equity Essay 1. Overview of Private Equity Private equity is an important source of funds for start-up firms, and firms in financial distress. This type of funding has gained great significance in the past two decades and as such is a relatively new concept. It is one of the fastest growing sectors in the world of corporate finance with extensive applications across all industry segments. Businesses across the globe depend on capital investment for their growth and survival. The capital investment is generally raised through public issues, financial institutions, loans from banking institutions, mutual funds, and lease financing options available in the market. Investment in start-up business venture has high risks associated where business returns are uncertain. Private equity broadly refers to investment in companies that are privately owned. This form of investment generally uses funds raised from pension funds, financial institutions and wealthy individuals for investing in high growth businesses or for acquiring businesses with higher rates of return. â€Å"The private equity market involves large block transactions, which are privately negotiated, generally involving unlisted companies† (Business Standard publication). This type of investment is not listed in the stock exchange and has become popular financing instrument for new business ventures. This kind of investment broadly covers management buy-outs and buy-ins, development capital and venture capital. Management buy-ins and buy-outs In this case private equity funds are used to purchase the company or controlling stake in it using debt and equity capital. Development capital – This form of investment generally refers to money borrowed for development or growth purposes. Capital borrowed under this category can be used for any organizational purpose ranging from financing new lines of production to ensuring smooth completion of on going projects. Venture capital – This refers to investment in new business ventures that has promising growth potential and higher financial returns. Private equity firms establish funds that raise capital from investors who form limited partners. The private equity firms, referred to as the general partners invest this capital along with funds collected from banking and other commercial institutions to buy businesses that have significant growth and increased profitability potential. The general partners have certain guidelines for selecting a company or business for acquisition. A business that combines the ability to generate cash, and significant market value along with a strong managerial team to steer growth in the desired direction is an ideal investment option. The general partners objective is to infuse well-planned growth strategies backed by a strong team to improve the company’s performance and generate higher returns on investment. This is accomplished through strategic advice, market analysis, restructuring of existing operational framework, change management strategies and financing. They make money from the cash flow of the acquired business and then sell them for profitable gains. The relationship is generally of a short-term nature ranging from three to ten years of ownership after which the proceeds are used to acquire another business or finance another venture. Once the company has grown in terms of valuation and profitability it is sold to a larger company or floated on a stock market. The private equity investment has its own cycle that is extended through long periods of activity to support sustained business growth and gains. Private equity firms raise funds every three to five years to fund specific activities within the acquired business. The best time for acquiring a business is when the markets and prices are low. Similarly the ideal time for exiting or selling stakes in the acquired business is when the prices are high to maximize gains from proceeds. Investments within a company are usually held for several years to give time to the business to mature and reach a stage of high profits and market value. The private equity market constitutes of the organized market and the informal market. The organized private equity market includes professionally managed equity investments in unregistered securities of private and public companies. Specialized firms and institutional investors provide professional management services that build on the company’s assets and managerial talent. The private equity managers have large ownership stakes in the business and get actively involved in the overall management of the company. These businesses are profit-building machines for them that are nourished and nurtured to provide higher returns on investment. Once the businesses are established and reap profitable returns they are either listed for public offers in the market or sold to larger companies for higher gains. The organized private equity market has four major players comprising of private equity issuers, intermediaries, investors, and the agents or advisors. The issuers comprises of firms that cannot raise financing in the debt market or the public equity market. These firms are relatively younger in comparison to other firms in the market and they seek to raise capital for new product development or technology to show very high growth rates in the future. These firms are still in the research and development stage. In some cases firms with years of operation in the market venture out to new technologies or lines of service also come into this bracket for financing needs. This segment has assumed great importance in the private equity market with rising statistics and more private equity investors taking active interest in their potential growth capacity and highly profitable ventures. High yields and increasing returns are one of the most attractive features of this market segment. Intermediaries comprise of nearly 80 percent of private equity investments. This market sector mostly constitutes of limited partnership firms managed by independent partnership organizations or by affiliates of financial institutions. This segment also includes small business investment companies, or publicly traded investment companies that account for marginal share of the private equity market. Investors comprise of the public and corporate pension funds forming the largest investor groups accounting for 40 percent of global capital out standings. Public pension funds are the fastest growing group of investors and have overtaken private pension funds in terms of amount of private equity holdings. Endowments, foundations, bank holding companies, and high net worth individuals accounting for almost 10 percent each of the total private equity funds follow the pension funds. The other investors include insurance companies, investment banks, financial investors, and non-banking financial institutions. Agents and advisors form a significant section of the private equity market. They are mainly referred to as the information producers, who place private equity, raise funds for private equity partnerships, and evaluate the feasibility of the partnerships for the potential investors. Their sole purpose is to reduce the cost of information gathering that is required for private equity investment. They facilitate the search of companies in need of private equity funding, and institutional investors who are willing to enter into partnership agreement. They advise on the structure, timing, and pricing of private equity issues and assist in the process of negotiation between the two parties. Their role assumes greater significance in the context of financial investors who are unfamiliar with the local market or economy.   In the informal private equity market unregistered securities are sold to institutional investors, where the number of investors is larger and minimum investments smaller than the organized private equity market. Investors in this segment are mostly insiders in the company who have stake in the company. The companies that are financed through private equity funds benefit in terms of better management and increased efficiency since the investors take active interest in monitoring and improvising changes for better financial performance. The private equity firms have access to specialized management expertise for acquired businesses. Moreover, the private equity managers conduct extensive market research and analyze the feasibility of business ventures from every angle to draw risk assessment and opportunities before deciding on investment. This equips them with indepth market knowledge to make well-planned strategic moves that can reap higher productivity and gains for the private equity investors. The concept of private equity dates back to the year 1946 with the establishment of the American Research and Development Corporation with the sole objective of providing financing to new and start up businesses in the private sector. It was setup as an institution that provided finance as well as management expertise to ailing organizations. Since then the private equity market has witnessed a booming presence across the globe especially in the last 15 years. The sector has generated profits of more than $430 billion for their investors between the years 1991 and 2006. The recent corporate trends in the private equity market have shifted towards consolidations and buyouts. This is mainly attributed to seeking good investments by private equity firms and the benefits of cost advantage and minimizing risks across various channels of distribution. The private equity firms look for companies that are market leaders in terms of product and service offering having a strong management team and high barriers to market entry, attractive growth opportunities and profit margins. The growth of private equity funds is evident with increasing investment in large number of private companies as well as taking public companies private. Private equity has played an important role in economic development contributing to enhanced productivity, competitiveness, and improved performance of businesses in the private sector. The private equity market in India has also grown from US$20 million in 1996 to US$1.75 billion in 2004. The country is emerging as the major market for private equity investments. 2. Growth of Indian Economy The Indian subcontinent having population of over 1.1 billion, diverse cultures, religion, and languages has one of the largest and successfully running democracies in the world. Post independence it has been successful in eroding poverty and illiteracy to a great extent. The low per capita income combined with fewer manufacturing industries and a service sector at the base level had labeled the country as poor and underdeveloped. The economy was primarily agrarian and lack of facilities and infrastructure posed great difficulties in its progress. Initially the government controlled everything from banks to major industries. Facing such extreme situation the country has emerged as one of the fastest growing economies in the world with an annual growth rate of 8% in the last three years. It is also seen as the destination for information technology and global process outsourcing. Increased foreign investments and growth in real per capita income has transformed the economy largely over the last decade. Now India is a rapidly growing economy experiencing a fast growth rate in the past few years. The path of economic development and progress that India has taken is spectacular and has emerged the new market for the world with immense growth potential. Various economists have predicted that India will become a major economic power in the years to come. This is largely attributed to the rising Gross Domestic Product (GDP) of the countries and the major economic transformation that has taken place in the countries recently. The Indian economy had very poor growth rate post independence with a predominantly agrarian economy and underdeveloped manufacturing and service sectors. Rise in privatization of various sectors paved the way for economic progress in the subsequent years. The government sought to implement policies to ensure overall development of the manufacturing and service sectors. These measures brought about major changes in the industrial landscape and economic growth rate accelerated. The annual economic growth rate was 5.5% in the 1980s. Industrial growth rate was recorded at 6.6% annually and 3.6% in the agricultural sector. The 1990s witnessed a rapid change in the economic growth and development with the liberalization of the economy. A GDP growth of 9% was observed in the 2005-06 and 9.5% during 2006-07. With rising GDP and increased investment the economy is poised for enhanced growth rate. The economy was largely boosted by growth in tourism, financial sectors, and manufacturing industries. It is now the fourth largest economy in terms of purchasing power parity. High growth rates in the industrial and service sector combined with a slump in the major economies across the world in the last few years have provided the Indian economy a boost. The mid 1990s saw a rise in the Information Technology sector in the country. The rapid penetration of computers and the Internet in nooks and corners of the country attributed largely to this rise. Moreover, the abundance of skilled professionals armed with latest technical know-how and the zeal to prove their abilities in this direction provided the necessary impetus. India soon became the hub of IT activities across the globe with surging demand for professionals from the country. Government reforms and policies provided the necessary infrastructure for the growth of this sector. This was a major achievement for the country. The growth in IT sector led to the rise in other associated service and industrial sectors contributing to overall development of the economy. Currently the service sector dominated by IT, financial services, and construction contributes more than 50% of the GDP. Business Process Outsourcing (BPO) is yet another arena contributing to overall economic development. This segment has attracted huge foreign investments into the country. A large portion of the Indian population comprises of young people. The educated young people have benefited the service sector with the availability of skilled labor and this contributed largely to the development of the country. Despite the slump in global economy that has hit hard some of the most developed economies like United States, Indian economy has remained immune to the effects of this recession. This is primarily due to the strong economic reforms adopted by the country. The low dependence of the economy on export trade is one of the reasons. The Indian economy is more driven by domestic demand than foreign investment. Moreover, the banking system has minimal exposure to foreign currency assets. This has rendered the economy relatively immune to the effects of the global slump. While other economies across the world are facing economic turmoil, India remains on steady footing. Being one of the fastest growing economies in the world India is attracting huge amounts of foreign investment. The total amount of foreign investment reached US$ 8.5 billion in the year 2006. Real GDP Growth Rate during 2003 to 2007   Ã‚   2003   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2004   Ã‚   2005    2006   Ã‚   2007 4.30% 8.30% 6.20% 8.40% 9.20% The chart shows the real GDP growth rate in percentage during the period 2003 to 2007. (Data collected from economywatch.com) The current GDP of the country is at 9.2% per annum that is quite an impressive figure. Growth of merchandise exports and rise in exports of services have strengthened the foreign reserves of the country. The major destinations for exports are United States, United Arab Emirates, and the OPEC (Organization of Petroleum Exporting Countries). The active participation of India in international commerce has created enough opportunities for economic growth and development. The impressive growth rates and statistics predict the emergence of a strong economy in the coming future. Economists predict that the Indian economy will become a super economic power in the next two decades. Some of the major development indicators of Indian economy are summarized below: High rate of savings, almost 32% of the GDP and higher rate of investment – approximately 34% of the GDP indicate accelerated growth rate. A young population of the country is another factor contributing to the overall economic growth and development. Highly educated masses contributing to skilled labor force is yet another factor contributing to the rise in the IT and BPO sector. Economic growth has created huge employment opportunities that have helped in reducing poverty considerably. Economic reforms and policies adopted by the Government of India towards social upliftment with particular stress on education, health, and infrastructure has greatly assisted the process of economic growth. 3. Issues facing the Indian Economy India may be reckoned as the emerging economic power of the future, but it has its share of challenges that need to be overcome. Lack of adequate institutional and infrastructure facilities may create bottlenecks in the growth and development of the economy. Since independence the country has faced huge challenges in its way to modernization and political, economic and social growth. Impediments in the form of poverty, illiteracy, unemployment, poor health facilities, and socio-cultural barriers posed grave problems in its road to development. The fast rate of growth aided by effective economic reforms helped in overcoming these challenges to a great extent. Poverty and illiteracy were reduced considerably with adequate measures adopted in the form of Five-year plans implemented by the successive governments. The upliftment of the masses by creating employment opportunities and provision for free and compulsory education for all across the country did have significant effect on the economy. Infrastructure also received considerable attention in the development plans resulting in the emergence of a new and modern India. In spite of tremendous progress India still faces major challenges that need to be overcome if the country wants to become a superpower in the near future. The issues and challenges faced by the Indian economy currently are given below: Sustaining a growth rate of 8% per annum for the consecutive five years will be one of the biggest challenges for the Indian economy. The entry of companies and business ventures into the Indian soil requires extensive paperwork and legal procedures. Most foreign companies find it a little intimidating to enter the Indian market due to these reasons. Relaxation and simplification of the entry procedures will definitely work in the interest of the Indian economy. The huge population density of the country affects the gross per capita income of the country. The country’s economy is primarily agrarian but with rapid industrialization and governments boosting the service sector, agriculture has taken a backseat. The government needs to boost this sector as well giving it a more organized look.   Providing proper infrastructure to attract large scale foreign investment is much required for sustainable economic growth. The economy faces widespread problem of electricity supply, proper roads, and communication channels that can affect the economy adversely. Extending proper health care to all is another important issue facing the country. Health care has definitely improved over the past few years but it still remains inadequate by world standards. Poverty is still posing a stiff challenge to the economic growth and development. Inequality of wealth distribution is quite high across the country. Education is yet another challenge faced by the country. The government needs to implement effective policies and reforms to increase the overall standard of living of the poorer section and provide basic amenities to them. Reducing income inequalities along with social reforms are much required for overcoming these discrepancies faced by the Indian economy. The foreign direct investment has become a key feature of growing economic development and the focus of national development strategies in almost all countries across the globe. It is considered an important economic growth indicator that assists boost in domestic capital, productivity, and employment. It is considered to be the lifeblood of any economy. The Indian Government has initiated several promotional efforts to attract more foreign direct investment into the country in the form of private equity. There are several trends that are reinforcing traditional patterns in foreign direct investment across economies that include access to natural resources, markets, and low-cost labor. Globalization and liberalization of the economy added to the attraction of private equity funds in to the country. In addition to these economic factors the expansion in information and communication technologies, and improvement in logistics has greatly shaped the Indian economic attractiveness to foreign investors. Private equity investors across the globe are increasingly shifting their focus to India. Big names in private equity market across the globe like Blackstone Group, Texas Pacific Group, Kohlberg, Kravis and Roberts, Carlyle Group, Actis Partners and General Atlantic Partners have ventured into the Indian markets in search of higher returns on investment. 4. Growth Trends of Private Equity in India The market for private equity in India has emerged quite recently. The private equity market grew from a US$ 20 million in 1996 to US$ 7.5 billion in 2006. The country is now reckoned as one of the top ten destinations for private equity investments. Investors across the globe are eyeing the growing Indian market that offers extensive investment opportunities. Local and foreign investors are eyeing the domestic market investment opportunities with increased interest. The major sectors of investor interest are the IT and BPO sectors that continue to dominate the economy but manufacturing concerns are not far behind. Investors are taking avid interest in this rapidly growing market parallel to the Chinese economy that has shown immense potential in the past few years. The rise in entrepreneurship, skilled workforce, rising percentage of people with fluent English speaking capability and the country’s status as the world’s largest democracy have greatly contributed to its rising economy. The private equity market has risen both in terms of greater number of deals and greater number of firms’ capitalizing on this increasing opportunity. The Indian private equity market also saw an increase in exits and improved liquidity in the recent years. The Asian market has largely been perceived as difficult for exits in the private equity sector. Investors are wary of the fluctuating market trends and risk proposition involved in capitalization of their funds. Unlike the Asian market the Indian market has been strengthening over the years this has attracted the investors greatly. The increasing liquidity of the market has played in favor of these investors providing higher gains and returns from public offer deals and trade sales. As per K.P. Balaraj, the Managing Director and co-founder of West Bridge Capital Partners, â€Å"In India, the markets are in their third or fourth year of a bull run. The companies have a number of avenues to raise money at low cost. There’s a lot of liquidity in the debt system. The IPO markets and capital markets are very strong in India, and there’s lot of appetite overseas for Indian securities.† The Indian market has gained the investors’ confidence due to the stable environment and growth statistics that has worked to its advantage in the past few years. The foreign investment growth in the private equity market is seen as yet another boost to this finance segment contributing to a market capitalization of more than US$ 3.56 million in the year 2005. The private equity funds invest mostly in unlisted companies that have good growth potential and cash out option through public offers. In some cases the private equity firms invest in both seed capital and development ventures that have potential high rates of returns on investment. According to a study conducted by Venture Intelligence, a Chennai based research firm, â€Å"Private equity firms invested a record $7.46 billion over 299 deals in India during 2006,† that is three times greater the previous year figures. The biggest deal clichà ©d in 2006 involved Idea Cellular, the fifth largest wireless operator in India, raising a funding of $950 million from a group of private equity investors that included Providence Equity Partners, ChrysCapital, and Citigroup. Another important deal involved Kohlberg Kravis Roberts that paid $900 million for 85% stake of Textronics Software. Warburg Pincus’s $300 million investment in the year 1999 in Bharti Tele-Ventures the largest mobile service provider in India was subsequently sold in several stages for $1.6 billion. This is considered one of the most profitable private equity deals in the country to date. These high rates of returns and attractive gains lured many foreign private equity investors to the Indian market. The tremendous growth of the private equity market in the country is largely attributed to a combination of country-specific factors that distinguish the Indian environment in terms of investment opportunities from other emerging markets across the globe. These factors include: Sustained rapid economic growth of 8% per annum over the past five years consecutively. Rising domestic consumer market of India has given rise to potential business opportunities. A well-established public equity market of India has given rise to increasing breed of private equity investors in the country. The Mumbai stock exchange dating back to 1875 has more than 6000 listed companies recording extensive trading volumes comparable to no other exchange in the world. A highly educated population combined with widespread knowledge of the English language provides a distinctive advantage. The skilled workforce has resulted in the rising development of certain sectors like information technology, business process outsourcing, software development, pharmaceuticals, and automobile components. The country has one of the oldest and largest democracies in the world running successfully across decades. The stable political scenario combined with an effective legal framework has provided the economy with sound base for development and growth. The distinctive advantages mentioned above have created a huge market for private equity funds investors. Private equity firms are investing in retail, manufacturing, healthcare, real estate, infrastructure, media, and telecom sectors in India. India is the second largest market for private equity firms in Asia after Japan. It has surpassed China and Singapore with large amounts of investment in private equity and venture capital in the year 2006. (Source: Indiaopportunitiesfund.com) Research conducted by global research firm Evalueserve suggest that India will receive almost US$ 20 billion private equity funding by the year 2010 making it one of the top ranking countries in the world in terms of private equity investment. The lucrative Indian market has attracted foreign private equity investors in the past couple of years. As per a market analysis report released by Venture Intelligence the foreign capital investment reached US$ 2.2 billion in the year 2005 that increased to US$ 5.4 billion in the year 2006. The market research and analysis conducted by Evalueserve reveals that the Indian market needs an in-depth understanding and evaluation for the investors in private equity market to maximize returns. The investors need to conduct proper market research, adopt subtle managerial skills, and instill patience in order to maximize gains since the market is unique in many aspects. The research shows that there are over 366 firms currently operating in the private equity market in India and another 69 are in the process of starting funding operations. These private equity firms have targeted to raise funds totaling US$ 48 billion for investment between July 2007 and December 2010. This predicted growth statistics may face challenges in the face of economic slowdown in India or a liquidity crunch in the economy. The first firm to initiate private equity investment in India was the Risk Capital Foundation set up in the year 1975. Till the year 1995 very few financial institutions provided capital for investment in private equity or venture capital sector. These institutions were the Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), and Industrial Credit and Investment Corporation of India (ICICI Bank). A number of private equity firms started raising capital from various international and domestic sources to invest in business ventures in the country. This market trend gained momentum during the period 1996 to 2000. The total amount of investment in the private equity and venture capital segment rose from US$20 million in 1996 to US$ 80 million in the year 1997. The market attracted increasing investment from foreign as well as domestic players largely due to the boom in the information technology sector. A crash in the market during the period of 2000 to 2003 brought down the levels of investment. The total number of deals in private equity finance reduced from 280 in 2000 to 110 in 2001. The economy recovered in 2003 and the market growth rate accelerated from 8% GDP to 9% annually. 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of deals 5 18 60 107 280 110 78 56 71 146 299 Value of deals 20 80 250 500 1160 937 591 470 1650 2183 7460 (Source data: Private equity market in India Evalueserve Market research report 2007) Out of a total GDP of US$ 910 billion in India in the year 2006 approximately US$ 7.5 billion accounted for private equity investment. This amounts to 0.8% of the total GDP. A comparative analysis of the private equity investment in other developed countries reveal that the percentage spent on private equity is far below countries like United States and United Kingdom. Private Equity Investment as a percentage of Total GDP of some major economies: (Source: Evalueserve Market research reports 2007) A global stock market review conducted by Standard and Poor ‘s in May 2007 reveals that the Indian equity market has far surpassed the markets of emerging and developing nations for the past three months growing at a rate of 25.87 percent as opposed to other key economies that reported a growth rate of 13.83 percent. The Chinese market reported a growth rate of 16.82 while the Mexican market growth rate stood at 24.4 percent. The equity market in South Africa rose by 11.48 percent. It was observed that the Indian stocks were cheaper than the Chinese stocks. The appreciating rupee in India has led to higher capital inflow from foreign investors to the Indian economy and this is accounted for higher growth rate in the Indian economy. The increase in interest rates of banks across the globe has a positive impact on the Indian economy. This trend will result in reduced external borrowings and consequently the export segment of Indian companies will not be affected. Similarly other developments in the global economy has had very little or negligible effect on the Indian economy so far and this has proved conducive for the private equity market in the country. The Securities and Exchange Board of India (SEBI) has specified the regulatory framework for investment in private equity and venture capital segment in India. A foreign investor proposing for investing in the Indian private equity market needs to fulfill the following eligibility criteria and other requirements specified in the SEBI foreign venture capital investor guidelines: The applicant’s track record, competence, financial soundness, and experience in the related industry are evaluated. The applicant needs to obtain an approval by the Reserve Bank of India for making investments in the country. The applicant needs to be an investment company, trust, partnership, pension fund, mutual fund, endowment fund, charitable institution or any other entity incorporated outside India. The applicant can be an asset management company, investment manager, or investment management company incorporated outside India. The applicant must possess the authority to invest in venture capital or operate as foreign venture capital investor. Evaluate if the applicant is regulated by an appropriate foreign regulatory authority or is an income tax payer. Check if the Board has not refused the applicant a certificate. Check if the applicant is a fit individual with proven track record. Besides the above-mentioned eligibility criteria the SEBI lays down certain investment guidelines that need to be followed by the foreign investors: The foreign investor must disclose its investment plans and strategies to the SEBI. At least 66.67% of the investment funds must be invested in unlisted equity shares. Not more than 33.3% of the investable funds may be invested in: Subscription of initial public offer of a venture capital undertaking whose shares is not listed. Debt or debt instrument of a venture capital undertaking in which the investor has already made an investment by way of equity Preferential allotment of equity shares of a listed company, subject to a lock-in period of one year The equity shares or equity linked instruments of a financially weak or sick industrial company whose shares are listed. 5. Sector Wise Growth Trends in Private Equity Market The primary feature of growth in private equity market in India has been the increased domestic market investment opportunities that are dominated by both local and foreign investors. In addition to the increase in investment in Information Technology and Business Process Outsourcing sectors a large number of deals have been made involving the domestic market in India with particular emphasis on the manufacturing sector. In the year 2006 the total investments in the private equity market ranged from IT and IT-enabled industries, to banking and financial services, insurance and health care sectors, engineering and construction to manufacturing. While the IT and IT-enabled industries accounted for more than a fifth of the total investment, the manufacturing sector attracted approximately $1 billion. Another significant sector receiving substantial private equity funding was the real estate sector that received almost $1 billion funding in 2006. But a greater portion of this amount was used to acquire physical assets. Shankar Narayanan, the Mumbai based Managing Director of Asia Growth Capital at the Carlyle Group states â€Å"We’re sector agnostic. Broadly we see two investment themes: One, the growth of outsourcing, whether IT, IT-enabled services, generic pharmaceuticals, clinical research, contract manufacturing, engineering and design or any other knowledge based service; and two, the huge infrastructure and consumption needs this growth fuels.† Most of the foreign investors are channeling funds to the Indian and Chinese market that have shown tremendous growth potential. These investors scale up the operations of the acquired firms and facilitate all-round transformation that spruces up the firm’s processing capabilities. It is widely felt that the family owned businesses in India that have so far been conducted in an orthodox traditional managerial approach can widely benefit from the private equity funding. The financial, strategic, and managerial support provided by these private equity-investing firms can transform the company’s operations to provide larger scales of operation and world-class business outlook. The various industrial sectors comprising of financial services, manufacturing industries, construction and information technology are attracting the foreign investors to India. In the year 2006 the service sector accounted for 55% of economic growth rate while the contribution of manufacturing and industries’ sector was 26% and the agriculture sector accounted for 19% of the overall economic growth in India. There are basically three industry sectors that are proving highly lucrative for the private equity investors in the country. These are broadly categorized as below: Hi-tech products and service sector comprising of the following segments: Information technology and software application development Business process outsourcing Knowledge process outsourcing Drug research and clinical research outsourcing Engineering services outsourcing Software and solutions related to e-commerce Telecommunication products and related services The market trend reveals that this sector will grow at approximately 22% per year during the next five years. The investment in this sector is of high value with higher rates of return. Service and retail sector that caters to the Indian domestic market needs including – Retail market of consumable goods Travel and hospitality sector (airlines, hotels) Health care (spas, hospitals) Entertainment (movie and television industry) Private education sector   This sector is expected to grow at approximately 19% per annum in the next five years. Products and services related to high-end manufacturing and infrastructure that includes automobiles, automotive components, electronic components, chemicals, pharmaceuticals, gems and jewellery, textiles, real estate, and construction. The growth rate of this sector is expected to reach 19% annually in the next five years. The pie chart below gives an insight into the sector wise private equity investment trend in the past three years. The financial services received the highest foreign private equity funding totaling US$ 277.8 million that constitutes 19.8% of the total funds invested. The total funding in this sector including the domestic investment accounted for 32%. (Source: Thompson Financial) The next industry that received most funding in the private equity form was the consumer related sector totaling US$ 196.7 million. This was approximately 14% of the total foreign private equity financing. The overall financing in this sector was 23%. The Medical Health industry accounted for 16% of the total funding, with total foreign equity investment amounting to US$ 134.4 million, followed by construction accounting for 15% and the Internet related sector accounted for 14% of the total private equity investment including foreign and domestic sources. The graph below shows the breakup of domestic and foreign funds invested in the private equity market in India. As is evident from the graph the amount of foreign investment far exceeds domestic funds invested in the private equity market in India over the past five years. Private Equity investments in India – breakup of foreign and domestic investment over the past five years (Source: Thomson Financial) The private equity market is thriving due to the huge influx of foreign funds in the recent years. The appreciation of the rupee combined with a strengthening stock market and controlled inflation rates are responsible for the huge attraction that the Indian private equity market is having for foreign investments. Among recent activities in the private equity market in India is the acquisition of Hutchinson Essar Ltd, a cellular carrier by Reliance Communications facilitated by private equity players like Blackstone, Texas Pacific, and Kohlberg Kravis and Roberts with a funding of almost $10 billion. Private equity emerged as the single most largest investment segment in the year 2006 with private equity deals overtaking both foreign and domestic strategic investors. Private equity investment in India crossed the global average by 20 percent of investment as a proportion of total merger and acquisition deals accounting for 28 percent of total value of deals. 6. Problems Facing the Private Equity Market in India The rapid pace of economic growth in India has raised concerns regarding the stability of the economic environment. The economy poses certain risks and challenges to the emerging and developing market of private equity investment. The country’s population demographics present a confusing picture – 54% of its population is below 25 years of age that works in favor of the economic growth and development. But at the same time statistics reveal a large gap in income distribution. The economy is widely imbalanced in terms of income distribution. It has a large chunk of population still under the poverty lines and at the same time the number of high net worth individuals is increasing. Some of the important sectors of the economy like Information Technology and IT enabled services, telecom services, airlines services and construction services are experiencing shortage of skilled labors. Most of these sectors depend heavily on the human resource for survival and growth. With rising inflation and increasing wages the companies are finding it difficult to retain employees. Better pay packages are luring the skilled staff to hop companies and this has become a matter of grave concern for most organizations. Increasing attrition rates and rising wages are posing a serious challenge to existing companies and start-up business ventures. A few years back the economy was known for providing cheap and skilled labor but with rising inflation the wages have also gone up thereby increasing the cost to companies in addition to high levels of attrition. The rapid economic growth and rising GDP has resulted in increasing cost of commercial as well as residential property. The boom in real estate is reaping benefits for most landowners but the purchasing power of the people have not increased at the same rate. This might have a negative impact on the economy in the long run. The real estate prices will be forced to crash with lesser number of people being able to afford the rising prices. The crash in the real estate market will result in substantial losses for the investors. The Indian stock market is currently on a strong footage with number of companies listed in the Bombay Stock Exchange rising steadily. A market fluctuation might topple the stock market any time and this could lead to severe losses for the investors. Foreign investments in the Indian economy in the last four years have been on the rise and this is one of the major factors contributing to the overall development and progress. Short-term foreign institutional investors invested more than US$ 40 million in the country while long-term foreign direct investment was US$ 23 million in the last four years. The short-term investment can be pulled out in any moment of crisis and this could result in severe economic setback for the country. The rapid inflow of capital in the form of these short-term investments for purchasing equities and securities has no doubt strengthened the stock market, but an outflow of this capital will depress the stock market and cause the economy to fumble. The economy needs more of long-term foreign direct investment to stabilize growth. Lately the Indian rupee has appreciated by more than 10% with respect to the US dollar, 8% with respect to British pounds, 7% with respect to Euros and 11% with respect to Yen. On one hand this appreciation has benefited the economy by making imports cheaper and controlling inflation to a considerable extent. The price of crude oil has been kept in check in India due to this reason. On the other hand the valuation of exports has gone down and this has hit some of the small-scale exporters hard. Moreover the Indian goods have to compete with Chinese goods in the market that are relatively cheaper and has captured larger market share. Broadly the Indian economy presents high risks to investors in terms of possible depreciation of rupee, high inflation, policies adopted by the Indian government for further liberalization of the economy and the highly volatile nature of the Indian stock market. Since the markets present high risks to foreign investors in the Indian market, they expect higher returns as compared to investments made in other developed economies of United States and Europe. The private equity firms that invest in these developed countries for a period of five to seven years expect an average net annual return of 13% to 15%. But the private equity firms investing in India have a time frame of three to five years and expect an average net annual return of 25% to 27%. 7. Future Trends in Private Equity Market in India Several factors have contributed to the growth and rise of private equity market in India. Among these the most prominent is the stable economic and political environment of the country that has triggered economic growth and prosperity in the past few years. The Indian economy is witnessing increasing number of high net worth individuals with increasing assets. The country has a large number of family-owned businesses that present excellent opportunities for investment and growth. Most of these businesses are changing their operational structure to accommodate new and better technology for higher returns. Tatas, Ambanis, Wipro (Azim Premji), Birlas,   Singhs (Ranbaxy) and Bajajs are all family-run business. The Bombay Stock Exchange lists 47 companies that are partially or fully family-owned businesses with a total market capitalization of US$ 345 billion in the year 2007. The changing faces of the traditional modes of conducting business have created huge scope for investment. The existing modes of operations require re-modeling and re-structuring requires adequate investment. The family-run businesses lack effective management and vision to expand in the domestic and global market. The infusion of appropriate capital funds with strategic management moves and planning can create a huge difference in this type of business ventures. An investment in such companies can prove mutually beneficial for both parties. This has created a huge demand for private equity investment. Rising disposable income in the middle and higher income group has led to significant changes in their lifestyle. This has created markets for new sectors of commerce. One of the sectors affected by the changing lifestyle of these classes is the growth in domestic flight service sector. The country currently has 325 airplanes on the domestic route but this figure is projected to reach 750 by the end of 2010 that is expected to generate annual revenue of US$ 12 billion. The rise in this sector has created the need for more airline maintenance companies that are so few in numbers currently. Likewise it has also created market need for airline certification companies that will certify and check the audit requirements of the airplanes and the airlines companies. This is just an illustration of how emerging economic trends have given rise to new service sectors that require financing. Similar trends are visible in the food and beverage industry sector. Rising demand for quality processed food and beverages are slowly making their presence felt with changing tastes and lifestyles. The automobile industry is yet another industrial sector witnessing immense market growth potential. Finer tastes and longing for world-class cars engineered with latest technological specifications is changing the face of this industry. This sector is expected to generate revenue of US$ 165 billion by the end of the year 2016. E-commerce is yet another avenue of potential growth and development. The sector being in its nascent stages has a long way to go in the Indian market. Industries are slowly realizing the revenue and growth potential of this medium and are revising their existing strategies to exploit the advantages of increased market share and global outreach. The need for skilled professionals for the rising industries and opportunities presented by the growing economy has driven the educational institutes to adopt new strategies and expansion models to cater to changing market needs. More and more companies are entering this sector to satisfy the growing market requirements. The real estate and hospitality service sectors are also experiencing widespread changes owing to changing lifestyle and increased disposable income. Investment in this sector needs to be carefully examined and studied since the real estate prices in India are overpriced as compared to other economies in Asia. A growth in market demand has resulted in subsequent rise in demand for capital investment. Favorable economic conditions have lured private equity investors both domestic and foreign to start operations in India. The country’s extensive pool of skilled labors has produced excellent managerial and entrepreneurial talent who has ventured into new and promising business ventures. The private equity market in the country is still in its initial phases of development and hence promises immense scope and potential in the near future. The increasing interest of global firms in the Indian market has overcome the challenge of attracting more funds into the private equity sector. The real challenge now lies in extracting maximum value from these investments and retrieve higher gains. Government policies have raised the foreign direct investment (FDI) limit in various sectors to attract more funds. The retail sector now has 51 percent foreign investment limit while in the telecom sector the FDI limit has been raised from 49 percent to 74 percent. Absolute ownership of foreign firms is allowed in some selected infrastructure sectors like development of new airports, petroleum, mining of coal and lignite, natural gas pipelines and mining of diamonds and precious stones. 8. Conclusion The impact of private equity funding on the country’s economy has been quite significant since this financing sector has added new dimensions to the booming industrial and service sector in India. The financing alternative available to the firms has not only assisted them in improving financial and market valuations but has also provided them with the necessary backing to fulfill expansion and diversification strategies to the existing line of products or services. Max Calderon, a senior partner of Apex Partners Worldwide, which is a $20 billion firm is of the opinion that the â€Å"drivers of the private equity investment in the Indian market include consolidation in fragmented industries, international expansion, increasing domestic market spend, and continued growth in value added services. â€Å" It is only recently that the private equity funds have adopted segmentation and specialization strategies in acquiring investment portfolios. Some of the private equity firms target early stage investment in technology or matured stage investment in manufacturing. The strengthening stock market is witnessing increased volumes of trading and this has eased the exit process for private equity funds investors. Multinational financial institutions like Citigroup Venture Capital, Barings and Westbridge Capital, Warbug Pincus and Actis Partners have taken strong interest in this emerging market. Global private equity players like Blackstone and Goldman Sachs have established permanent operations in the country to reap the benefits of this promising market. The key factor to successful operations in this market will depend largely on one sole factor – the right leadership and availability of a strong team of professionals. The private equity market requires adequate managerial talent for designing effective business strategies for successful acquisitions made by the investors. It is therefore essential that the private equity firms focus on specific industry sectors to build their professional expertise and specialized areas of operations. This builds on the firms’ value and potential for higher rates of returns over their invested funds. The private equity firms hence not only need to look into the experience and skill sets of the professionals they hire but also need to train them on the finer aspects of the business requirements. The team of executives need to take overall responsibilities of entire operations and functioning within the company and think as owners while devising strategies and business plans. An in-depth knowledge of the business and market area is an essential asset for this venture. Experienced professionals are hence much in demand and a valuable asset for this market segment. The private equity firms also need to conduct extensive and in-depth market research and analysis activity before investing in any company. The Indian economy presents a diverse and variable growth indicators across the geographical boundaries. An understanding of the existing socio-cultural and political environment of the region helps to understand better the market and consumer behavior pattern. The investors across the globe are increasing fund allocations for the private equity market in India. It is boom time for this market segment and the trends of growth will continue over the coming years with the adoption of adequate government policies and measures to ensure a strong market performance.   The private equity market is reaping benefits on the one hand from expanding into overseas market through acquisitions and on the other hand investing into private equity assets managed by global fund managers. Reference: What PE firms look for in Private Companies – Financial Executive Journal from British Council, December 2007 Private Equity: How long can the perfect storm last? Financial Executive Journal from British Council, September 2007 Think like private equity to enhance Financial Executive Journal from British Council, November 2007 Evalueserve Whitepaper – An indispensable guide to equity investment in India, Facts and Forecasts – September 2007 –   Market analysis report from www.evalueserve.com From BPO to buyouts, Indian private equity is booming – 2005 AVCJ Private equity report – India Private equity pushes into India, Africa Financial Executive Journal from British Council, January/February 2008 Indian Buyouts – A market report by Anthony O’Connor Journal from British Council, June 2006 Economics of private equity market – Stephen D. Prowse, Federal Reserve Bank of Dallas – Economic review journal third quarter 1998 Recent developments in the private equity market and the role of preferred returns – Daniel Covitz and Nellie Liang, Board of Governors of Federal Reserve System, Washington DC   An overview of private equity: evolution of the asset class, rationale and considerations for investing and keys to success – James McGovern Review of the Economy 2007/2008 – Economic advisory council to the Prime Minister of India, New Delhi, January 2008 Our current perspective on private equity investing in India – Gopal Jain, Gaja Capital Partners Investing in India – Surging economy sees private equity investments soar by Arun Subramaniam – The Wall Street Journal, January 24, 2007 http://www.ventureintelligence.in/WSJ-01-07.pdf accessed on 30th March 2008   India’s economic star sectors: sliced and diced – an analysis on foreign private equity investments among India’s top industries – Thomson Financial www.thomson.com/financial   Private equity in India – adding human capital to the value creation recipe – Luis Moniz – Heidrick Struggles http://www.heidrick.com/NR/rdonlyres/BDE42EF8-E443-44D9-9B6F-48E69D67093D/0/HS_PrivateEquityIndia.pdf accessed on 31st March 2008 Private equity market in India http://www.indiaopportunitiesfund.com/private-equity-market-in-India.html accessed on 31st March 2008   India tops global market with 26% growth: SP – June 9, 2007 http://www.thehindubusinessline.com/2007/06/09/stories/2007060906500100.htm accessed on 30th March 2008   An introduction to Private equity http://www.bvca.co.uk/publications/guide/intro.html accessed on 30th March 2008 What is private equity? http://www.ipeit.com/pe.htm accessed on 30th March 2008   http://www.indiape.com/ accessed on 30th March 2008 http://www.idfcpe.com/pages/main1.html news articles accessed on 30th March 2008   http://www.privateequitycouncil.org/ Public Value: A primer on private equity 2007 – accessed on 30th March 2008   Economy watch – Indian economy overview http://www.economywatch.com/indianeconomy/indian-economy-overview.html accessed on 30th March 2008   http://news.indiamart.com/news-analysis/india-is-most-immune-18256.html accessed on 30th March 2008   Global research project on growth – India: Economic Growth, 1950 – 2000 by Shankar Acharya and Isher Ahluwalia http://www.gdnet.org/pdf2/gdn_library/global_research_projects/explaining_growth/India_complete_31Mar04.pdf accessed on 30th March 2008   The rise of Indian Economy: John Williamson http://www.unc.edu/depts/diplomat/item/2006/0406/will/williamson_india.html accessed on 30th March 2008   Indian Economy – Section 1: Economy and Markets http://www.bseindia.com/downloads/IndianEconomy.pdf accessed on 30th March 2008   Private equity article: http://www.privateequityinfo.com/article.php accessed on 30th March 2008   Globalization of alternative investments – working paper volume 1 – the global economy impact of private equity report 2008 – World Economic Forum http://www.weforum.org/pdf/cgi/pe/Full_Report.pdf accessed on 30th March 2008   A coming of age for private equity Business Standard, 7 November 2007 http://www.mayin.org/ajayshah/MEDIA/2007/pe.html accessed on 30th March 2008

Pip and Magwitch Essay Example for Free

Pip and Magwitch Essay Throughout the novel Great Expectations the reader will find that Magwitch plays a significant role to the plot of story. Not only does Dickens use Magwitch to form the main foundation of the story he also uses the character to convey Dickenss view on important themes such as crime, punishment, social status and betrayal. In this presentation I will explore the ways in which Magwitch is presented and talk about and his significance in the novel. We are first introduced to Magwitch in chapter one. The reader becomes familiar with the character Pip; we learn he is a child who is alone in the graveyard and is mourning over the death of his family. The reader knows that not only would this upset Pip, it could make him feel frightened because as a child you are dependant on your family members to keep you safe. He makes it sound as if Pip was recalling what it felt like to be a child, like when we get the impression that he could have been exaggerating about wilderness and so on before him. An image is described, such as the low leaden line beyond and this then is revealed as what it actually is; the river. This gives the effect that not only Pip is confused and lost by his surroundings but also and therefore scared and intimidated by them. Dickens delivers Pips emotions cleverly because there is no direct reference to how he is feeling at first. This is very good building up to the shock of first meeting Magwitch. The writer uses direct speech for his first words, which come out suddenly, at no particular starting point and with impression that they are loud! He says Hold your noise. which sounds at first so abrupt it could be almost like he is trying to save Pip, that he fears for Pip too. We then read on to see how Magwitch is presented physically. He is wet and muddy, and is described as being stung by nettles, so he obviously does not look after himself properly. He is shivering and limping, so he may be unwell as well as cold. His shoes are broken and he has no hat or proper clothes which shows he cannot afford them. He has a very informal way of speaking, and is eager to see the scrap of food he finds on Pip, so this also shows that he is poor and working class. This could be because, or the results of being a criminal. The first chapter is important; we now know exactly what Magwitch looks like and how he is presented. As mentioned in the introduction, Magwitch is significant in the plot. The fact that he appears in the very first chapter makes us assume he is a main character, even though he does not reappear until later in the book when the reader either has completely forgotten about him or thinks it is very unlikely that he will appear again with the current story line, especially as at the end of chapter three it says the last I ever heard of him. When he does make his unexpected reappearance in Chapter thirty-nine, he reveals news that causes him to become the centre of almost every aspect of the story line. By the end of Chapter fifty-four and when mysteries are revealed and loose ends tied we come to realise that Magwitch is somehow connected to every character. Pip, obviously because of the money he gives that cause him to become wealthy and middle-class. His lost past with Molly and Estella, his daughter, who was adopted by Miss Haversham. Also he is connected to Joe because it was his whittles and file he used to set him free. Perhaps he is connected to Mrs Joe because he murdered her. When Magwitch dies during chapter fifty-six, it impacts the plot and the characters, especially Pip. Magwitch influences other characters, especially Pip and sometimes they influence him too. Had it not been for Magwitch the way people behaved may have been very different! We do not know much about Pip before he meets Magwitch, but afterwards we find him to be cautious, for example how nervous he was when he meets Miss Haversham. This could have been a lasting effect from his fears upon first meeting Magwitch. Pip may have been so shocked by the way that the poor lived that he becomes even more determined to become a gentleman. It gave him an insight to the lives of the very poor. In chapter three Magwitch seems to wait all night just for the food Pip has brought him. Pip may have recognised his determination and perhaps used this will when he is seeking Estella as his wife later during the book. Magwitch may have been so grateful towards Pip that it made him feel like he should try and become a better person. Both Pip and Magwitch taught each other that you should not always be judgmental. For Pip, it was that he was at first very afraid of Magwitch and thought he was going to be scary. Later on he realises that he only was behaving in a threatening way because he was hungry and desperate for food.