Social Commentary Essay Example | Topics and Well Written Essays - 250 words

Social Commentary - Essay Example All the electronics, which people use for the comfort in their routine lives, actually emit such dangerous gases and chemicals in the air that they destroy the natural composition of the environment. The disposal or the waste material of the people destroys the natural lands and the greenery of any place. Usually people do not care for the surrounding environment and just want to relax themselves. Similarly water areas i.e. oceans, rivers, seas and natural waterfalls are slowly getting polluted because of the chemicals emitting from the sea transports. Nevertheless, people are continuously using these transports without any solution to this water pollution. Due to many factors, the temperature on the planet has increased so much that it has started destroying natural beauties and even the atmospheric layers. It is evident that slowly these things are destroying natural environment and thus the natural habitat of many of the living species is not worth living now. The human beings should think over their activities and the probable ways to overcome the loss of natural

- Art and Music Appreciation Essay Example | Topics and Well Written Essays - 250 words

- Art and Music Appreciation - Essay Example It is incisively instructive, showing how the entire art movement can be looked at cynically, but one needs to know a lot about it first. This quote best expresses Holland’s take on the development of art. He is biting in his sarcasm, which shows disdain of how art is shown to the public, how commercial art is denigrated, and how common perception needs to be improved by education. Yes, I agree with Holland’s ‘inherited and exploded’ quote: today’s artists can take everything that went before and ‘blow it to bits’ in the sense of debunking art myths, taking and expanding forms, and adding or subtracting what would have been unthinkable when those forms and myths were created. The collage of styles in Strawberry Fields Forever is a precursor (or permission) for other bands to incorporate classic themes in their music. It took a while, but bands like Electric Light Orchestra and Orchestral Maneuvers in the Dark came along much later and used string and brass sections, together with symphonic strains. It was all due to John Lennon and Paul McCartney and their innovative, prophetic, visionary borrowing of classic motifs. The lyrics are intentionally jumbled to express laconic abandonment of all that was rule-bound: the Beatles allowed youngsters to break out with impunity, and to ignore disapproval. It allowed musicians to create collages of their own in a destructurist way, and there is the link with post-modernism. Such a band as the Beatles will, as Levitin (2007) proposes, always occupy a place in music, but their name might not live on with the tunes. People will hum Yesterday, sing Yellow Submarine to their children or serenade a lover with Michelle forever, but these will be like O Sole Mio, You are My Sunshine and Dancing in the Rain. Everyone knows them but like... who wrote

Impact of Organised Retail On Unorganised Retail

Impact of Organised Retail On Unorganised Retail Abstract The revolution in Indian retail industry has brought many sweeping changes and also opened door for many Indian as well as foreign players. In Indian scenario there is always a constant clash between challenges and opportunities but chances favors those companies that are trying to establish themselves. As every coin has two faces similarly it also has some pros and cons. In India about 96% of retail markets consist of unorganized retail players such as kirana stores. As a result of favorable demographic conditions such as changing life style of Indian consumers and government policies provide huge opportunities for Indian corporate houses as well as foreign players. If we compare today’s scenario with earlier we found that at that time the price and the delivery mode is totally different .at present the markets and their processes are more flexible in all aspects. The new Snow-white market places have started to replace the traditional bazaar – kind of dwarfed tiny corner kirana shop. India has highest shop density in the world. It has more than 1.5crores retail shop thus providing 2nd highest employment after agriculture. It employs 7% of total workforce and contributing more than 10% of India’s GDP.But have we ever thought that what by the entry of big retailers what will be happened to those unorganized retail kirana stores which constitute 96% of it? It may not have an immediate effect but in long run it might affect the small kirana stores and thus many people would loose there job , many families could get affected thus in long run we should not ignore this issue . The main purpose of this report to study the impact of organized retail on the small kirana stores and to find: How kirana stores can sustain themselves in long run? How they will cope in the competition from organized retail players? Are the steps taken by government enough for their safeguards? This paper discusses the various challenges faced by both organized as well as kirana stores in Delhi NCR and how both can sustain in equilibrium without much affecting each others. Introduction Retailing can be defined as the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the consumer. Retailing is a well recognized business function which compromises making available desired product in the desired quantity at the desired time. This creates a time, place and form utility for the consumer. The success of retailing is depend up on the efficient supply chain and assortment of merchandise mix. A well-developed supply chain reduces wastages and transaction cost thereby reducing the cost of inventories to be maintained by the producers and the traders. A reduction in the cost of inventory management leads to a reduction in the final price to the consumer. Retailing has been identified as a key source for promotion of textiles, processed foods, agricultural and horticultural products. Recently due to certain demographic and economic changes India retail sector has taken a new breathe. It has created a lot of opportunities for big corporate houses like Tatas , Reliance and Bharti etc as well as for many foreign players. As in present scenario Indian retail is in nascent stage therefore it is not much affecting the small kirana stores but in long run its affect can be ignore. Undoubtedly, revolution in retail is good for Indian consumers as well as government as it will increase the taxes i.e. income for government and consumer will have more choice. Broadly Indian retail sector can be classified into two segments: Unorganized retailing Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and inefficient upstream processes, lack of modern technology, inadequate funding and absence of skilled manpower. Therefore, there is a need to promote organized retailing. Organized Retailing Organized Retailing can be defined as a form of retailing whereby customers can buy goods in a similar purchase environment across more than one physical location for verticals from food, grocery, apparel, consumer durables, jewellery, footwear, beauty care, home dà ©cor, and books to music. In organized retailing a proper record is maintain by the government and retailers need to pay the tax to the government. What is the threat for local organized stores? India has highly fragmented retail industry. Today’s scenario India, still have of the traditional formats retailing .Today still local kirana shop, pan, bidi shop, hardware Store, weekly hatts,convenience stores bazaars etc.It constitute about 96% of retail market .About 12 million outlets operating in country and only 5% of them being larger than 500 square feet in size. In India it is very important to understand what role it pays in lives of Indian citizens from social as well as economic prospective. Retailing is probably the primary form of Disguised Unemployment In Our Country As we have over crowded agriculture sector and stagnating manufacturing sector and the low wages and hard work in both sectors forced many Indians to jump in service sector. Here due to lack of opportunities it is almost become a natural decision for an individual to set up a small shop or store depending upon his financial condition .Thus retailer is born by circumstance not by choice. Ultimately it provides job of more than 6 crores people where as organized retail provides employment to roughly 7 lakhs peoples. So the policy makes should be careful about these 6 crores peoples, whose livelihood may get in danger in future. Retail Industry Structure Global Scenario Worldwide retail industry is one of the most attracting industry being controlled by a handful of powerful corporations based mainly in the U.S and Europe, namely, Wal-Mart, Tesco, Carrefour and Metro. Beside these their are many others big MNC retailers but they have saturated in their home countries only and are looking for penetrating emerging markets like India, China and Russia. As these players are penetrating in these countries thus providing a world class shopping experience to the consumers. Today consumers become more demanding want world class products as well as not only buying but an experiential shopping. Thus shift in consumer behavior in these emerging markets attracting world biggest players. Also the saturation in US retail market and other existing markets in developed countries forcing them to move in new market like India and china. Retailing in United States Retail Sector is the second largest industry in U.S. both in number of establishments and number of employees. The U. S. retail industry generates $3.8 trillion in retail sales annually ($4.2 trillion if food service sales are included), that is approximately $11,993 per capita. Wal-Mart is the worlds largest retailer and the worlds largest company with more than $312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than 400,000 internationally. The second largest retailer in the world is Frances Carrefour. Retail Trends in other Countries China had initially restricted FDI in retailing to only joint ventures at 49 percent foreign holding and only at specified locations subject to a ceiling on the number of stores. Malaysia, Indonesia, Thailand and Japan have enforced zoning restrictions for mega-retailers. There are minimal capital requirements for foreign retailers in Sri Lanka. The Philippines has imposed â€Å"sourcing† and reciprocity requirements on foreign retailers. In Japan, mega-retailers must seek the views and permission of small local stores before opening a new store. In the US, major cities such as Los Angeles, California, Chicago and New York City have restricted the opening of Wal-Mart stores within city limits. France enacted the Raffairin Act that regulates the growth of hypermarkets larger than 300 square feet. In Thailand, the government has set up an assistance fund for local retailers due to the impact of mega retailers. Share of Retail Market in world economy: Country Total Market ( bn US $) U.S 4030 Taiwan 40 Malaysia 20 Thailand 32 Indonesia 75 China 325 India 360 Indian Retail Scenario History Traditionally Indian Retail can be traced back from Weekly Markets, Melas, Village Fairs in Small towns and villages to Kirana stores, PDS outlets, Khadi Bhandaar, co-operative stores in Urban cities. The wave of retail began with various textile manufactures like Bombay Dyeing, Raymonds, S Kumar’s, and Grasim foraying into selling the product through their outlets and competition among FMCG players driving the forces towards retailing. The evolution of retailing lead to an emergence of various modern formats like Shopping malls, Super-marts, Hyper-marts,Departmental Stores, Apparel Stores, etc. catering to majorly all sectors of society providing the all-important 3Vs – Value, Variety and Volume. Retail Boom In India Indian Retail Sector is at its inflexion point awaiting multifold growth. The Retail Industry’s Size is presently Rs 1, 44,253 crores out of which the organized sector contributes to a mere 4 percent Of the market size, fairly dominated by scattered, unregulated, unorganized players. Retail sector is expected to grow in tandem to the GDP growth-rate. This sector is slated to be the biggest contributor to GDP of around 10 percent and has promisingly generated ~8 percent employment in India, which is moving towards a larger generation of employment opportunities in the times ahead. Future Of Organised Retailing In India Due to the urban-rural divide, organised retail will grow in the metros and large cities, followed by semi-urban and rural areas. Thus India is on the verge of an enormous multi-fold growth of organised retail. In a span of just 5 years, organised retail is expected to expand in urban cities besides making an entry in semi-urban and rural areas. Presently, the organised retail market is 4 percent of the total retail, that is around Rs 67,310 crore and is expected to compound at 27 percent per annum, aggregating to Rs 1,75,103 crore (7.44 percent of the total retail) in 2010-11. The retail industry is assumed to grow at GDP growth rate. The retail revolution signals softening of inflation rate on an yearly basis, due to elimination of intermediaries in retailing and passing on of all the benefits to the consumer. The mantra expediting the retail growth is ‘Consumer is the King’. Penetration of Organized Sector Organized Share of retail sector is expected to increase to 8-9 percent in 2010-11 from 4 percent in 2007. Segmental Growth of Retailing Food and Grocery This is the largest vertical of 74.4 percent of retail size compromising fruits and vegetables, milk and milk products, staples, cereals, grains, pulses, processed food, ready to cook and ready to eat meals, spices and other eatables. This is least penetrated segment across all verticals of around 1.5 percent, being the most untapped pie. According to NSSO 60th round, 54 percent of the rural and 42 percent of urban expenditure was on food. Apparels Clothing and textile is a large organized vertical dominated by textile manufacturers Raymond, Bombay Dyeing, Vimal, and by big retailers like Pantaloon, Pyramyd, Koutons having ~16.4 penetration level. Increasing disposable incomes and change in the lifestyle needs has pushed the segment. Consumer Durables The electronics and consumer durable is the biggest organized segment penetrated to ~20 percent. There lies more unearthed growth in the verticals as the craze for electronic gadgets have been picking up with the advent of nuclear families. Home Dà ©cor and furnishing The demand for furnishing is going to be spearheaded by a huge demand for the real-estate, paving way to tap the unorganized segment. Presently only a few players like Gautier, Godrej, Durian function as organized entities. Jewellery and Watches Titan is the early entrant in the segment followed by MNCs Oyzterbay, Tanishq, Swaroski, Orra, Gitanjali, D’damas driven by demand for fashion accessories, and huge advertising and promotion campaigns. Beauty Care The organised players in Beauty Care are HLL (Lakme Salons), Marico (Kaya), Health and Glow are having a huge growth impetus. Footwear Leaving aside the Apparel, Footwear segment is forming a big pie in the organised retail sector, expected to grow to greater heights with foreign payers like Crocs Inc. Books, Music and gifts In addition to Tier-II and Tier-III cities, the habit of reading books and listening to music is picking up among the Tier-I cities. The stores like Oxford Bookstore etc are experiencing this upswing. Organized Retail Growth in Indian Cities The Retail sector contributes to around 36 percent of GDP in India and is largest employment generator. The sector is dominated by small-scattered unorganised regional players, large players contributing to meager 10 percent of the total pie. Organised retail is at its nascent phase wherein the large organised retail groups are having aggressive expansion plans to penetrate the Metros and Tier I cities and establish themselves amongst rural masses of Tier I and Tier II cities. There lies a challenge for retailers to experiment with new value formats along with developing customer loyalties. Since there will be demographic shift in population growth, urbanization and migration due to transition in urban household growth and income distribution. The total retail market in the top 67 cities in India in 2006 was Rs. 2.55 trillion, which is expected to increase to Rs. 3.91 trillion in 2011. According to CRISIL, around 87 percent of the retail opportunity comes from top 25 cities compromising Metro Delhi, Mumbai, Calcutta, Mini Metros Hyderabad, Chennai, Bangalore, Mini Metros Ahmedabad and Pune, Tier I cities of Kanpur , Nagpur, Surat and Ludhiana, Tier II cities Coimbatore, Chandigarh, Lucknow, Kochi, Jaipur and Tier III cities Vadodara, Vizag, Indore, Vijaywada, Thiruvananthpuram, Bhopal, Nashik and Madurai. The levels of penetration in the top 67 cities are expected to leap. Organized retail has been established in Metros and Tier 1 cities, other cities having negligible level of penetration Retail Formats in India: Conventional Formats Kirana These are food and non-food neighborhood counter stores, also called ‘mom and pop stores’ in western countries. These are big chunks forming the segregated and unorganised retail segment. These are family-ownedand- run retail-outlets picking the goods from wholesalers totaling to around 12 million stores across India. Mandis These are the largest chunk of unorganised retail catering to urban and rural masses. Mandis are physically located at different regions to enhance convenient shopping. The sellers bring across various products like eatables,vegetables and fruits, pulses, cereals, spices etc. The most prominent of them are sabzi mandis found in most of the localities across India. Village Haats This form is operating in rural areas where buyers and sellers gather once in a week or month from nearby villages and small towns to cater their livelihood and leisure needs. These haats are a source of entertainment and socialization among rural masses. Push Cart Vendors The are categories of vendors roaming from door to door in various localities selling fruits, vegetables, and other eatables, from which mostly housewives makes purchases that too on credit. Modern organized retail formats: Shopping malls Area -60000-700000 square feet Point of differentiation: Multi format, Multi products, Multi brand caterings, Lifestyle needs. Hyper market Area: 50000 – 100000 square feet Point of differentiation: Multi vertical Super markets Area: 5000-10000 square feet. Point of differentiation: low cost, low margin high volume, self service operations design to serve total need for food, laundry household maintenance products. Departmental stores Area: 20000-30000 square feet. Point of differentiation: single vertical , several product lines Apparels store Area: 20000-25000 square feet Point of differentiation: Multi branded, Single vertical, focusing on high consumers Specialty stores Area:-2000-5000 square feet Point of differentiation: Narrow product line with deep assortment ,multi branded, Single vertical on specific needs of the customers. Exclusive formats Area: 500-5000 square feet Point of differentiation: Owned/Franchised, Single products 8. Convenience stores Area: 200-500 square feet Point of differentiation: Located near residential area, open long hours, seven days in a week, limited product line, high turnover Advantages of conventional Modern Organized retail formats Conventional formats: Low operating cost Overheads. Proximity to consumers. Low operating hours. Strong relations with customers. Modern organized retail formats: Large bargaining power with suppliers. Range variety of goods. Quality assurance( Brand related, durability) Convenience Hygiene Business Models suiting Indian Scenario Cash--carry Wholesale Model Cash--carry is a form of retail trade in which goods are sold from a wholesale warehouse operated either on a self-service basis where customers settle the invoice on-the-spot or pay cash and carry the goods away themselves. The cash--carry player also performs many value-added functions, including selling and promoting, buying and assortment building, bulk-breaking, warehousing, transporting, financing, risk-bearing, supplying market information, and providing management services. Hub-and-spoke Model Retail Chains are entering residential areas with the hub-andspoke model, whereby one large store supports various smaller stores in the nearby residential areas. This is win-win model is well-suited to the Indian business scene where large stores obtain supplies from the warehouse and supplies to the consumers, involving both large payers acting as wholesalers and local kiranas as retail outlets. With efficient supply chain management, availability of space and proper technology in place, this will not take much time. The Piramyd Retail’s Trumart Stores (food and grocery) in Mumbai and Pune are based on a similar model. Growth Enabling Factors Higher Disposable Income The disposable income has been showing a rapid increase from the last few years and is expected to grow steadily because the proportion of the major consuming class (population having incomes higher than Rs 90,000) is expected to reach 48 percent by 2009-10 from 20 percent in 1995-95, at the 2001-02 prices, at a CAGR of 9.3 percent over the next 8 years leading to new consumption patterns due to increasing depth in the consumers’ pocket. Growing Working women population The propensity to spend in the case of working women is higher by 1.3 times as compared by housewives. According to the census report, the population of working women increased to 26 percent in 2001 as compared to 22 percent in 1991. Adoption of Nuclear Family culture The increase in per capita income paved way to increase the nuclear-family culture. The proportion of nuclear families as a percentage of total household population has increased as shown by fall in average household size from 5.57 in 1991to 5.36 in 2007, expected to fall further to 5.02 by 2011. This will fuel the growth of organised retail. Baby Boomer Effect The demographics of Indian population has a steep growth in earning population (15-60 yrs). In 2000, 593 million people (58.3 percent of total population) constituted the age bracket of 15-60 yrs – growing from an unprecedented level of 335 million people (54 percent of total population) in 1975 at a rate of 77 percent (CAGR of 2.3 percent) in contrast to a population growth of 64 percent (CAGR of 2 percent) over the same period of 25 years. Over the next 15 years, the earning population is expected to increase to 62.8 percent in 2015, translating into a population of 782 million. Growth in Urban Population Urbanization has increased at a rate of 2.7 percent over the last 10 years (1990-2000). In 2000, the urban population was estimated to be 281 million (27.7 percent of the total population). This trend is likely to continue and urbanization is expected to grow at 2.4 percent between 2000 and 2015. In 2015 the urban population is expected to be 401 million, constituting 32.2 percent of the total population. Robust Outlook towards Branded products Due to liberalization of manufacturing sector, various organized branded products have entered into Indian markets, thereby developing and widening the basket for branded finished goods. With the advent of International competition, new trends and lifestyles are evolving among India masses resulting into 10-15 percent growth in branded products. This has established the base for organized retail market in India. Growth in Retail Malls and various other new Formats Real Estate players like Raheja’s, Future Group, DLF, Omaxe, Piramal Group, Parsvnath, Unitech are developing retail malls and leasing out the retail spaces to various retailers of varied products making it a one-stop shopping destinations in urban and semi-urban cities. These shopping-cum-entertainment malls are wooing young buyers to increase their conversion rate backed by increasing foot-falls. Around 358 malls have come up by 2007, covering a total space of 87 million square feet, thereby pushing organised retail to new heights. Plastic Money becoming a greater Pie of credit The use of plastic money in the form of debit and credit cards has expanded multifold in last 5 years. The number of credit cards has grown at a CAGR of 28 percent and debit cards galloped by 140 percent. The customers have adopted the habit of electronic payments and leveraging their pockets shifting from basic needs to lifestyle products. Swot Analysis of Organized Stores Strength: As being technology intensive .these stores are able to forecast customer demand, shorten lead time reduce inventory holding ultimately save cost. Wide assortment show customer has variety of choice Weakness: Despite of high footfall the conversion rate is very low. As a result retail measure experiencing an ROI of only 8% to 10% Organized stores have less customer loyalty as compare to unorganized stores. Low customer knowledge Lack of personal touch Opportunities: Indian middle class is already 30 crores projected to grow to over 60 crores by 2010 making India one of the largest consumer markets in the world. According to KSA projections by 2015 India will have 55 crores people under the age of 20 reflecting the enormous opportunities possible in the kids teens retailing segments. Threats: High real estate rent. Poor Infrastructure Less develop shopping culture. Due to fragmented market high distribution cost. Swot Analysis of Unorganized Stores Strength: Located in prime residential area. Rental for large stores in these area are generally not available. They enjoy a near monopoly in area that is backward or do not have a population with sustainable purchasing power like rural areas. since organized retailer are unlikely to enter such reasons Weakness: Do not provide quality assurance. Less concern about ambience hygiene issue. Opportunities: Low capital requirements Proximity to consumers and strong relationship help them to gauge .Customer needs stock accordingly thus gaining more business. Threats: Increase in use of credit cards With huge stores coming up in catchments areas of 5-7 km of approachable distance larges chains planning to set up hub spoke, smaller stores. So the very existence of traditional store is in danger. Low or no bargaining power due to small scale of operations Due to smaller in size unable to stock a variety of goods. Provide not many options to the customers. Why Indian consumers want more experiential shopping today? The Indian consumer is changing rapidly. The average consumer today is richer, younger and more aspirational in his or her needs than ever before. Consumers now value convenience and choice on a par with getting value for their hard-earned money. A range of modern retailers is attempting to serve the needs of the ‘new’ Indian consumer. Today Indian consumers want not only buying but a full shopping experience. For this one of the important factors responsible is change in life style as well as disposable income. As per Indian consumer’s map , approximately 209 million of total household in India 6 millions are rich having annual income of more than US$ 4700 .this number were 1 million household in 1994 and 3 million households in 1999-00 thus this class is growing very rapidly. About 50% of these families are living in metros and spending more than eighteen billion annually. As per the need of these families around 62% market for premium products is concentrated in Mumbai, Bangalore, Chennai and Kolkata. But now retail market is moving toward big and also small cities . India’s 8.5% of the retail market concentrated in 8 big cities .As per an estimate among rich class top most 1 million customers comes under superrich category growing by 20% per annum and shows behavior similar to international consumers . While this segment is worth targeting for high-end premium products, it is not the key driver of the organized retail sector. The real driver of the Indian retail sector is the bottom 80% of the first layer and the upper half of the second layer of the income map (see ‘Map of India’s income classes’ below). This segment of about 40 million households earns USD 4,000-10,000 per household and comprises salaried employees and self-employed professionals. This segment is expected to grow to 65 million households by 2010 and is currently the key driver behind explosive growth in passenger car sales (USD 5 billion in 2004) and mobile phone penetration (over 70 million). The top 6 Indian cities -Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad -are the darlings of India’s exploding economy. They represent 6% of the population, but contribute 14% of India’s GDP. They are the centers of business, finance, politics and the emerging sunrise industries such as IT, pharma and ITeS, which have put India on the global map. These cities are also the barometer of India’s economic development and most foreign investors have flocked here. Are Indian consumers are ready for organize retail? By the end of 20th century in Indian retail sector too many significant changes has taken place. The retailing industry, which in early1990s was dominated by the unorganized sector, is now going a drastic change with a rapid growth in the organized sector with the entry of many corporate groups such as Tata, RPG, ITC and Bennett Coleman Company. Now Indian consumers are much aware about domestic and foreign products by the different source of media, such as newspaper ,television and the internet Apart from this there are too many social changes like increase in working couples , increase in number of nuclear families , rapid Urbanization.goverment policies ,increase in availability of retail space , increase in disposable income , availability of educated manpower also catalyzed the growth of organize retail . Food retailing was the most important area where players like food worlds establishing their outlets all over the India. Beside it supermarket and departmental stores now replacing traditional grocery stores all over the India , by the entry of fast foods (McDonalds), packaged foods (MTR), vending machines and specialty beverage parlors (Nescafe, Tata Tea, Cafe Coffee and Barista) brought about significant changes in the eating habits of Indian consumers. Literature Review Indian retail sector still has long way to go till now many research work and articles have been return over Indian retail. These articles and research work mainly focus upon huge untapped markets in Indian retail. They mainly talk about the opportunities available in the Indian market for the growth of organized retail. Some of the important research paper and articles which inspired me and catalyzed my thinking process over this topic are: â€Å"The evolving retail market in India† was written by Dale Anne Raiss and Ranjan biswas working as partner and head of market at Ernst Young .In this report they talk about largely untapped potential in retailing in India. They also tal Impact of Organised Retail On Unorganised Retail Impact of Organised Retail On Unorganised Retail Abstract The revolution in Indian retail industry has brought many sweeping changes and also opened door for many Indian as well as foreign players. In Indian scenario there is always a constant clash between challenges and opportunities but chances favors those companies that are trying to establish themselves. As every coin has two faces similarly it also has some pros and cons. In India about 96% of retail markets consist of unorganized retail players such as kirana stores. As a result of favorable demographic conditions such as changing life style of Indian consumers and government policies provide huge opportunities for Indian corporate houses as well as foreign players. If we compare today’s scenario with earlier we found that at that time the price and the delivery mode is totally different .at present the markets and their processes are more flexible in all aspects. The new Snow-white market places have started to replace the traditional bazaar – kind of dwarfed tiny corner kirana shop. India has highest shop density in the world. It has more than 1.5crores retail shop thus providing 2nd highest employment after agriculture. It employs 7% of total workforce and contributing more than 10% of India’s GDP.But have we ever thought that what by the entry of big retailers what will be happened to those unorganized retail kirana stores which constitute 96% of it? It may not have an immediate effect but in long run it might affect the small kirana stores and thus many people would loose there job , many families could get affected thus in long run we should not ignore this issue . The main purpose of this report to study the impact of organized retail on the small kirana stores and to find: How kirana stores can sustain themselves in long run? How they will cope in the competition from organized retail players? Are the steps taken by government enough for their safeguards? This paper discusses the various challenges faced by both organized as well as kirana stores in Delhi NCR and how both can sustain in equilibrium without much affecting each others. Introduction Retailing can be defined as the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the consumer. Retailing is a well recognized business function which compromises making available desired product in the desired quantity at the desired time. This creates a time, place and form utility for the consumer. The success of retailing is depend up on the efficient supply chain and assortment of merchandise mix. A well-developed supply chain reduces wastages and transaction cost thereby reducing the cost of inventories to be maintained by the producers and the traders. A reduction in the cost of inventory management leads to a reduction in the final price to the consumer. Retailing has been identified as a key source for promotion of textiles, processed foods, agricultural and horticultural products. Recently due to certain demographic and economic changes India retail sector has taken a new breathe. It has created a lot of opportunities for big corporate houses like Tatas , Reliance and Bharti etc as well as for many foreign players. As in present scenario Indian retail is in nascent stage therefore it is not much affecting the small kirana stores but in long run its affect can be ignore. Undoubtedly, revolution in retail is good for Indian consumers as well as government as it will increase the taxes i.e. income for government and consumer will have more choice. Broadly Indian retail sector can be classified into two segments: Unorganized retailing Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and inefficient upstream processes, lack of modern technology, inadequate funding and absence of skilled manpower. Therefore, there is a need to promote organized retailing. Organized Retailing Organized Retailing can be defined as a form of retailing whereby customers can buy goods in a similar purchase environment across more than one physical location for verticals from food, grocery, apparel, consumer durables, jewellery, footwear, beauty care, home dà ©cor, and books to music. In organized retailing a proper record is maintain by the government and retailers need to pay the tax to the government. What is the threat for local organized stores? India has highly fragmented retail industry. Today’s scenario India, still have of the traditional formats retailing .Today still local kirana shop, pan, bidi shop, hardware Store, weekly hatts,convenience stores bazaars etc.It constitute about 96% of retail market .About 12 million outlets operating in country and only 5% of them being larger than 500 square feet in size. In India it is very important to understand what role it pays in lives of Indian citizens from social as well as economic prospective. Retailing is probably the primary form of Disguised Unemployment In Our Country As we have over crowded agriculture sector and stagnating manufacturing sector and the low wages and hard work in both sectors forced many Indians to jump in service sector. Here due to lack of opportunities it is almost become a natural decision for an individual to set up a small shop or store depending upon his financial condition .Thus retailer is born by circumstance not by choice. Ultimately it provides job of more than 6 crores people where as organized retail provides employment to roughly 7 lakhs peoples. So the policy makes should be careful about these 6 crores peoples, whose livelihood may get in danger in future. Retail Industry Structure Global Scenario Worldwide retail industry is one of the most attracting industry being controlled by a handful of powerful corporations based mainly in the U.S and Europe, namely, Wal-Mart, Tesco, Carrefour and Metro. Beside these their are many others big MNC retailers but they have saturated in their home countries only and are looking for penetrating emerging markets like India, China and Russia. As these players are penetrating in these countries thus providing a world class shopping experience to the consumers. Today consumers become more demanding want world class products as well as not only buying but an experiential shopping. Thus shift in consumer behavior in these emerging markets attracting world biggest players. Also the saturation in US retail market and other existing markets in developed countries forcing them to move in new market like India and china. Retailing in United States Retail Sector is the second largest industry in U.S. both in number of establishments and number of employees. The U. S. retail industry generates $3.8 trillion in retail sales annually ($4.2 trillion if food service sales are included), that is approximately $11,993 per capita. Wal-Mart is the worlds largest retailer and the worlds largest company with more than $312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than 400,000 internationally. The second largest retailer in the world is Frances Carrefour. Retail Trends in other Countries China had initially restricted FDI in retailing to only joint ventures at 49 percent foreign holding and only at specified locations subject to a ceiling on the number of stores. Malaysia, Indonesia, Thailand and Japan have enforced zoning restrictions for mega-retailers. There are minimal capital requirements for foreign retailers in Sri Lanka. The Philippines has imposed â€Å"sourcing† and reciprocity requirements on foreign retailers. In Japan, mega-retailers must seek the views and permission of small local stores before opening a new store. In the US, major cities such as Los Angeles, California, Chicago and New York City have restricted the opening of Wal-Mart stores within city limits. France enacted the Raffairin Act that regulates the growth of hypermarkets larger than 300 square feet. In Thailand, the government has set up an assistance fund for local retailers due to the impact of mega retailers. Share of Retail Market in world economy: Country Total Market ( bn US $) U.S 4030 Taiwan 40 Malaysia 20 Thailand 32 Indonesia 75 China 325 India 360 Indian Retail Scenario History Traditionally Indian Retail can be traced back from Weekly Markets, Melas, Village Fairs in Small towns and villages to Kirana stores, PDS outlets, Khadi Bhandaar, co-operative stores in Urban cities. The wave of retail began with various textile manufactures like Bombay Dyeing, Raymonds, S Kumar’s, and Grasim foraying into selling the product through their outlets and competition among FMCG players driving the forces towards retailing. The evolution of retailing lead to an emergence of various modern formats like Shopping malls, Super-marts, Hyper-marts,Departmental Stores, Apparel Stores, etc. catering to majorly all sectors of society providing the all-important 3Vs – Value, Variety and Volume. Retail Boom In India Indian Retail Sector is at its inflexion point awaiting multifold growth. The Retail Industry’s Size is presently Rs 1, 44,253 crores out of which the organized sector contributes to a mere 4 percent Of the market size, fairly dominated by scattered, unregulated, unorganized players. Retail sector is expected to grow in tandem to the GDP growth-rate. This sector is slated to be the biggest contributor to GDP of around 10 percent and has promisingly generated ~8 percent employment in India, which is moving towards a larger generation of employment opportunities in the times ahead. Future Of Organised Retailing In India Due to the urban-rural divide, organised retail will grow in the metros and large cities, followed by semi-urban and rural areas. Thus India is on the verge of an enormous multi-fold growth of organised retail. In a span of just 5 years, organised retail is expected to expand in urban cities besides making an entry in semi-urban and rural areas. Presently, the organised retail market is 4 percent of the total retail, that is around Rs 67,310 crore and is expected to compound at 27 percent per annum, aggregating to Rs 1,75,103 crore (7.44 percent of the total retail) in 2010-11. The retail industry is assumed to grow at GDP growth rate. The retail revolution signals softening of inflation rate on an yearly basis, due to elimination of intermediaries in retailing and passing on of all the benefits to the consumer. The mantra expediting the retail growth is ‘Consumer is the King’. Penetration of Organized Sector Organized Share of retail sector is expected to increase to 8-9 percent in 2010-11 from 4 percent in 2007. Segmental Growth of Retailing Food and Grocery This is the largest vertical of 74.4 percent of retail size compromising fruits and vegetables, milk and milk products, staples, cereals, grains, pulses, processed food, ready to cook and ready to eat meals, spices and other eatables. This is least penetrated segment across all verticals of around 1.5 percent, being the most untapped pie. According to NSSO 60th round, 54 percent of the rural and 42 percent of urban expenditure was on food. Apparels Clothing and textile is a large organized vertical dominated by textile manufacturers Raymond, Bombay Dyeing, Vimal, and by big retailers like Pantaloon, Pyramyd, Koutons having ~16.4 penetration level. Increasing disposable incomes and change in the lifestyle needs has pushed the segment. Consumer Durables The electronics and consumer durable is the biggest organized segment penetrated to ~20 percent. There lies more unearthed growth in the verticals as the craze for electronic gadgets have been picking up with the advent of nuclear families. Home Dà ©cor and furnishing The demand for furnishing is going to be spearheaded by a huge demand for the real-estate, paving way to tap the unorganized segment. Presently only a few players like Gautier, Godrej, Durian function as organized entities. Jewellery and Watches Titan is the early entrant in the segment followed by MNCs Oyzterbay, Tanishq, Swaroski, Orra, Gitanjali, D’damas driven by demand for fashion accessories, and huge advertising and promotion campaigns. Beauty Care The organised players in Beauty Care are HLL (Lakme Salons), Marico (Kaya), Health and Glow are having a huge growth impetus. Footwear Leaving aside the Apparel, Footwear segment is forming a big pie in the organised retail sector, expected to grow to greater heights with foreign payers like Crocs Inc. Books, Music and gifts In addition to Tier-II and Tier-III cities, the habit of reading books and listening to music is picking up among the Tier-I cities. The stores like Oxford Bookstore etc are experiencing this upswing. Organized Retail Growth in Indian Cities The Retail sector contributes to around 36 percent of GDP in India and is largest employment generator. The sector is dominated by small-scattered unorganised regional players, large players contributing to meager 10 percent of the total pie. Organised retail is at its nascent phase wherein the large organised retail groups are having aggressive expansion plans to penetrate the Metros and Tier I cities and establish themselves amongst rural masses of Tier I and Tier II cities. There lies a challenge for retailers to experiment with new value formats along with developing customer loyalties. Since there will be demographic shift in population growth, urbanization and migration due to transition in urban household growth and income distribution. The total retail market in the top 67 cities in India in 2006 was Rs. 2.55 trillion, which is expected to increase to Rs. 3.91 trillion in 2011. According to CRISIL, around 87 percent of the retail opportunity comes from top 25 cities compromising Metro Delhi, Mumbai, Calcutta, Mini Metros Hyderabad, Chennai, Bangalore, Mini Metros Ahmedabad and Pune, Tier I cities of Kanpur , Nagpur, Surat and Ludhiana, Tier II cities Coimbatore, Chandigarh, Lucknow, Kochi, Jaipur and Tier III cities Vadodara, Vizag, Indore, Vijaywada, Thiruvananthpuram, Bhopal, Nashik and Madurai. The levels of penetration in the top 67 cities are expected to leap. Organized retail has been established in Metros and Tier 1 cities, other cities having negligible level of penetration Retail Formats in India: Conventional Formats Kirana These are food and non-food neighborhood counter stores, also called ‘mom and pop stores’ in western countries. These are big chunks forming the segregated and unorganised retail segment. These are family-ownedand- run retail-outlets picking the goods from wholesalers totaling to around 12 million stores across India. Mandis These are the largest chunk of unorganised retail catering to urban and rural masses. Mandis are physically located at different regions to enhance convenient shopping. The sellers bring across various products like eatables,vegetables and fruits, pulses, cereals, spices etc. The most prominent of them are sabzi mandis found in most of the localities across India. Village Haats This form is operating in rural areas where buyers and sellers gather once in a week or month from nearby villages and small towns to cater their livelihood and leisure needs. These haats are a source of entertainment and socialization among rural masses. Push Cart Vendors The are categories of vendors roaming from door to door in various localities selling fruits, vegetables, and other eatables, from which mostly housewives makes purchases that too on credit. Modern organized retail formats: Shopping malls Area -60000-700000 square feet Point of differentiation: Multi format, Multi products, Multi brand caterings, Lifestyle needs. Hyper market Area: 50000 – 100000 square feet Point of differentiation: Multi vertical Super markets Area: 5000-10000 square feet. Point of differentiation: low cost, low margin high volume, self service operations design to serve total need for food, laundry household maintenance products. Departmental stores Area: 20000-30000 square feet. Point of differentiation: single vertical , several product lines Apparels store Area: 20000-25000 square feet Point of differentiation: Multi branded, Single vertical, focusing on high consumers Specialty stores Area:-2000-5000 square feet Point of differentiation: Narrow product line with deep assortment ,multi branded, Single vertical on specific needs of the customers. Exclusive formats Area: 500-5000 square feet Point of differentiation: Owned/Franchised, Single products 8. Convenience stores Area: 200-500 square feet Point of differentiation: Located near residential area, open long hours, seven days in a week, limited product line, high turnover Advantages of conventional Modern Organized retail formats Conventional formats: Low operating cost Overheads. Proximity to consumers. Low operating hours. Strong relations with customers. Modern organized retail formats: Large bargaining power with suppliers. Range variety of goods. Quality assurance( Brand related, durability) Convenience Hygiene Business Models suiting Indian Scenario Cash--carry Wholesale Model Cash--carry is a form of retail trade in which goods are sold from a wholesale warehouse operated either on a self-service basis where customers settle the invoice on-the-spot or pay cash and carry the goods away themselves. The cash--carry player also performs many value-added functions, including selling and promoting, buying and assortment building, bulk-breaking, warehousing, transporting, financing, risk-bearing, supplying market information, and providing management services. Hub-and-spoke Model Retail Chains are entering residential areas with the hub-andspoke model, whereby one large store supports various smaller stores in the nearby residential areas. This is win-win model is well-suited to the Indian business scene where large stores obtain supplies from the warehouse and supplies to the consumers, involving both large payers acting as wholesalers and local kiranas as retail outlets. With efficient supply chain management, availability of space and proper technology in place, this will not take much time. The Piramyd Retail’s Trumart Stores (food and grocery) in Mumbai and Pune are based on a similar model. Growth Enabling Factors Higher Disposable Income The disposable income has been showing a rapid increase from the last few years and is expected to grow steadily because the proportion of the major consuming class (population having incomes higher than Rs 90,000) is expected to reach 48 percent by 2009-10 from 20 percent in 1995-95, at the 2001-02 prices, at a CAGR of 9.3 percent over the next 8 years leading to new consumption patterns due to increasing depth in the consumers’ pocket. Growing Working women population The propensity to spend in the case of working women is higher by 1.3 times as compared by housewives. According to the census report, the population of working women increased to 26 percent in 2001 as compared to 22 percent in 1991. Adoption of Nuclear Family culture The increase in per capita income paved way to increase the nuclear-family culture. The proportion of nuclear families as a percentage of total household population has increased as shown by fall in average household size from 5.57 in 1991to 5.36 in 2007, expected to fall further to 5.02 by 2011. This will fuel the growth of organised retail. Baby Boomer Effect The demographics of Indian population has a steep growth in earning population (15-60 yrs). In 2000, 593 million people (58.3 percent of total population) constituted the age bracket of 15-60 yrs – growing from an unprecedented level of 335 million people (54 percent of total population) in 1975 at a rate of 77 percent (CAGR of 2.3 percent) in contrast to a population growth of 64 percent (CAGR of 2 percent) over the same period of 25 years. Over the next 15 years, the earning population is expected to increase to 62.8 percent in 2015, translating into a population of 782 million. Growth in Urban Population Urbanization has increased at a rate of 2.7 percent over the last 10 years (1990-2000). In 2000, the urban population was estimated to be 281 million (27.7 percent of the total population). This trend is likely to continue and urbanization is expected to grow at 2.4 percent between 2000 and 2015. In 2015 the urban population is expected to be 401 million, constituting 32.2 percent of the total population. Robust Outlook towards Branded products Due to liberalization of manufacturing sector, various organized branded products have entered into Indian markets, thereby developing and widening the basket for branded finished goods. With the advent of International competition, new trends and lifestyles are evolving among India masses resulting into 10-15 percent growth in branded products. This has established the base for organized retail market in India. Growth in Retail Malls and various other new Formats Real Estate players like Raheja’s, Future Group, DLF, Omaxe, Piramal Group, Parsvnath, Unitech are developing retail malls and leasing out the retail spaces to various retailers of varied products making it a one-stop shopping destinations in urban and semi-urban cities. These shopping-cum-entertainment malls are wooing young buyers to increase their conversion rate backed by increasing foot-falls. Around 358 malls have come up by 2007, covering a total space of 87 million square feet, thereby pushing organised retail to new heights. Plastic Money becoming a greater Pie of credit The use of plastic money in the form of debit and credit cards has expanded multifold in last 5 years. The number of credit cards has grown at a CAGR of 28 percent and debit cards galloped by 140 percent. The customers have adopted the habit of electronic payments and leveraging their pockets shifting from basic needs to lifestyle products. Swot Analysis of Organized Stores Strength: As being technology intensive .these stores are able to forecast customer demand, shorten lead time reduce inventory holding ultimately save cost. Wide assortment show customer has variety of choice Weakness: Despite of high footfall the conversion rate is very low. As a result retail measure experiencing an ROI of only 8% to 10% Organized stores have less customer loyalty as compare to unorganized stores. Low customer knowledge Lack of personal touch Opportunities: Indian middle class is already 30 crores projected to grow to over 60 crores by 2010 making India one of the largest consumer markets in the world. According to KSA projections by 2015 India will have 55 crores people under the age of 20 reflecting the enormous opportunities possible in the kids teens retailing segments. Threats: High real estate rent. Poor Infrastructure Less develop shopping culture. Due to fragmented market high distribution cost. Swot Analysis of Unorganized Stores Strength: Located in prime residential area. Rental for large stores in these area are generally not available. They enjoy a near monopoly in area that is backward or do not have a population with sustainable purchasing power like rural areas. since organized retailer are unlikely to enter such reasons Weakness: Do not provide quality assurance. Less concern about ambience hygiene issue. Opportunities: Low capital requirements Proximity to consumers and strong relationship help them to gauge .Customer needs stock accordingly thus gaining more business. Threats: Increase in use of credit cards With huge stores coming up in catchments areas of 5-7 km of approachable distance larges chains planning to set up hub spoke, smaller stores. So the very existence of traditional store is in danger. Low or no bargaining power due to small scale of operations Due to smaller in size unable to stock a variety of goods. Provide not many options to the customers. Why Indian consumers want more experiential shopping today? The Indian consumer is changing rapidly. The average consumer today is richer, younger and more aspirational in his or her needs than ever before. Consumers now value convenience and choice on a par with getting value for their hard-earned money. A range of modern retailers is attempting to serve the needs of the ‘new’ Indian consumer. Today Indian consumers want not only buying but a full shopping experience. For this one of the important factors responsible is change in life style as well as disposable income. As per Indian consumer’s map , approximately 209 million of total household in India 6 millions are rich having annual income of more than US$ 4700 .this number were 1 million household in 1994 and 3 million households in 1999-00 thus this class is growing very rapidly. About 50% of these families are living in metros and spending more than eighteen billion annually. As per the need of these families around 62% market for premium products is concentrated in Mumbai, Bangalore, Chennai and Kolkata. But now retail market is moving toward big and also small cities . India’s 8.5% of the retail market concentrated in 8 big cities .As per an estimate among rich class top most 1 million customers comes under superrich category growing by 20% per annum and shows behavior similar to international consumers . While this segment is worth targeting for high-end premium products, it is not the key driver of the organized retail sector. The real driver of the Indian retail sector is the bottom 80% of the first layer and the upper half of the second layer of the income map (see ‘Map of India’s income classes’ below). This segment of about 40 million households earns USD 4,000-10,000 per household and comprises salaried employees and self-employed professionals. This segment is expected to grow to 65 million households by 2010 and is currently the key driver behind explosive growth in passenger car sales (USD 5 billion in 2004) and mobile phone penetration (over 70 million). The top 6 Indian cities -Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad -are the darlings of India’s exploding economy. They represent 6% of the population, but contribute 14% of India’s GDP. They are the centers of business, finance, politics and the emerging sunrise industries such as IT, pharma and ITeS, which have put India on the global map. These cities are also the barometer of India’s economic development and most foreign investors have flocked here. Are Indian consumers are ready for organize retail? By the end of 20th century in Indian retail sector too many significant changes has taken place. The retailing industry, which in early1990s was dominated by the unorganized sector, is now going a drastic change with a rapid growth in the organized sector with the entry of many corporate groups such as Tata, RPG, ITC and Bennett Coleman Company. Now Indian consumers are much aware about domestic and foreign products by the different source of media, such as newspaper ,television and the internet Apart from this there are too many social changes like increase in working couples , increase in number of nuclear families , rapid Urbanization.goverment policies ,increase in availability of retail space , increase in disposable income , availability of educated manpower also catalyzed the growth of organize retail . Food retailing was the most important area where players like food worlds establishing their outlets all over the India. Beside it supermarket and departmental stores now replacing traditional grocery stores all over the India , by the entry of fast foods (McDonalds), packaged foods (MTR), vending machines and specialty beverage parlors (Nescafe, Tata Tea, Cafe Coffee and Barista) brought about significant changes in the eating habits of Indian consumers. Literature Review Indian retail sector still has long way to go till now many research work and articles have been return over Indian retail. These articles and research work mainly focus upon huge untapped markets in Indian retail. They mainly talk about the opportunities available in the Indian market for the growth of organized retail. Some of the important research paper and articles which inspired me and catalyzed my thinking process over this topic are: â€Å"The evolving retail market in India† was written by Dale Anne Raiss and Ranjan biswas working as partner and head of market at Ernst Young .In this report they talk about largely untapped potential in retailing in India. They also tal

Intent and Motive in The Devil and Tom Walker and The Devil and Daniel

Intent and Motive in The Devil and Tom Walker and The Devil and Daniel Webster  Ã‚     Ã‚   Washington Irving, in writing "The Devil and Tom Walker", and Stephen Vincent Benet, in writing "The Devil and Daniel Webster" illustrate to the reader the consequences of man's desire for material wealth and how a person's motivation for a relationship with the devil affects the outcome of the "deal". In these two different, yet surprisingly similar narratives, the authors present their beliefs about human intent and motive. In "The Devil and Tom Walker", the story is seen of a stingy man and his nagging wife who "...were so miserly that they even conspired to cheat each other" (128). In the story, one sees a man make a deal with the devil, who in the story is known as "Old Scratch", for the sole purpose of personal gain. Tom Walker, seeing only the possible wealth that he could achieve, bargains with the devil and finally reaches an agreement which he sees to be fair. Tom does not see the danger present in bargaining with such a powerful force for so little gain. There is a note of humor present in the narrative, which adds to the sense of danger that is present making deals that one does not intend to keep. Commenting on the story, Larry L. Stevens notes that "This tale,..., comically presents the results of valuing the dollar above all else." This story does a very good job of conveying a message to the reader about human values. In the story Tom is seen as a very self-centered man who cares only for himself and his own well being. He is not even phased when he discovers the remains of his wife hanging in a apron in a tree; "Tom consoled himself for the loss of his property with the loss of his wife" (132). Tom is portrayed in ... ...Daniel Webster". in Adventures in American Literature. Ed. Fannie Safier et al. Athena Edition. Austin: Holt, 1996. 635-643. Discovering Authors. Macintosh. CD-ROM. Detroit: Gale Research, 1993. Irving, Washington. "The Devil and Tom Walker". in Adventures in American Literature. Ed. Fannie Safier et al. Athena Edition. Austin: Holt, 1996. 128-135. Masterplots II: Short Story Series. Ed. Frank N. Magill. Vol. 2. Pasadena: Salem Press, 1989. Peck, David. Masterplots II: Short Story Series. Ed. Frank N. Magill. Vol. 2. Pasadena: Salem Press, 1989. 575-578. Stewart, Larry L. Masterplots II: Short Story Series. Ed. Frank N. Magill. Vol. 2. Pasadena: Salem Press, 1989. 579-581. Wagenknecht, Edward. "Washington Irving: Moderation Displayed". Oxford UP. 1962. 233. in Discovering Authors. Macintosh. CD-ROM. Detroit: Gale Research, 1993. 3.

Corporation and all other organizational forms Essay

1-1. What is the most important difference between a corporation and all other organizational forms? Owners of a corporation are not liable for obligations the corporation enters into because a corporation is defined as a legal entity separate from its owners. 1-2. What does the phrase limited liability mean in a corporate context? Limited liability means that owners/investors are solely liable for the amounts they invested in the company; and owners/investors are not responsible for any debts, delinquent funds, or collections incurred by the company. 1-3. Which organizational forms give their owners limited liability? Corporations give owners limited liability and limited partnerships give limited liability to the limited partners, not the general partners. 1-4. What are the main advantages and disadvantages of organizing a firm as a corporation? The main advantages of an organization are they offer limited liability to the owners, greater liquidity and life span due to an unlimited number of potential owners investing funds into the firm. The main disadvantages of an organization are their double taxation of profits/dividends and the separation between ownership and control of the firm. 1-5. Explain the difference between an S corporation and a C corporation. The difference between a C corporation and S corporation is a C corporation pays corporate income taxes on profits and then the profits are distributed to the owners, whom are responsible for paying income taxes on these earnings. S corporations do not pay corporate taxes on profits, but they pass the entire tax liability onto the owners. The owners of an S corporation are limited to no more than 100 U.S. citizens. 1-6. You are a shareholder in a C corporation. The corporation earns $2 per  share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 40% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid? Dividend available after corporate taxes: $2 x (1-0.4) = $1.20 Dividend available after personal taxes: $1.20 x (1-0.3) = $0.84 After taxes are paid, a dividend of $0.84 per share is available for distribution. 1-7. Repeat Problem 6 assuming the corporation is an S corporation. Dividend available after corporate taxes: $2, S corporations are not subject to corporate taxes. Dividend available after personal taxes: $2 x (1-0.3) = $1.40 After taxes are paid, a dividend of $1.40 per share is available for distribution. 2.8 In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE’s: a. market capitalization? Market Value of Equity = Shares outstanding Ãâ€" Market price per share 2009: 10.5 billion shares x $10.80 per share = $113.4 billion 2012: 10.6 billion shares x $17 per share = $180.2 billion The change in market capitalization between 2009 and 2012 is: $180.2 billion – $113.4 billion = $66.8 billion. b. market-to-book ratio? 2009: $113.4 / $105 = 1.08 2012: $180.2/ $116 = 1.55 The change in market-to-book ratio between 2009 and 2012 is: 1.55 – 1.08 = 0.47 c. enterprise value? Enterprise Value = Market Value of Equity + Debt − Cash 2009: $113.4 + 524 – 48 = $589.4 billion 2012: $180.2 + 410 – 84 = $506.2 billion The change in enterprise value between 2009 and 2012 is: $506.2 billion – $589.4 billion = -$83.2 billion 2-11. Suppose that in 2013, Global launches  an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2012. a. What is Global’s EBIT in 2013? 2013 Revenues: $186.7 million x 1.15 = $214.705 million EBIT = $214.705 million x 0.045 = $9.66 million b. What is Global’s net income in 2013? Net income = EBIT – Interest Expenses – Taxes 2013 Net income: ($9.66 million – $7.7 million) x (1-0.26) = $1.45 million c. If Global’s P/E ratio and number of shares outstanding remains unchanged, what is Global’s share price in 2013? 2013 P/E ratio: 2012 share price/earnings per share = $14/$0.556 = 25.17 2013 EPS: 2013 Net income/shares outstanding = $1.45 million/3.6 million shares = $0.403 2013 Share price = 25.17 x $0.403 = $10.14 per share 2-24. Suppose your firm receives a $5 million order on the last day of the year. You fill the order with $2 million worth of inventory. The customer picks up the entire order the same day and pays $1 million upfront in cash; you also issue a bill for the customer to pay the remaining balance of $4 million in 30 days. Suppose your firm’s tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: a. Revenues = Increase by $5 million b. Earnings = Increase by $ 3 million c. Receivables = Increase by 4 million d. Inventory = Decrease by $2 million e. Cash = Increase by $1 million ($3 million earnings + $2 million inventory – $4 million receivables)

Responsibilities and Rights of Employees and Employers

1. Know the statutory responsibilities and rights of employees and employers within own area of work.  1.1 List the aspects of employment covered by lawThe law in UK covers the following aspects:Minimum wage, Hours worked, Discrimination, Health and safety, Holiday entitlements, Redundancy and dismissal, Training, Disciplinary procedures, Union rights and consultation, among many others. Labour law covers the deal between employee and employer, Health and safety cover the work conditions, and minimum wage and other law set basic compensation levels. Within our area of work we also have the Disability Act, Manual Handling Operations and Regulations, Data Protection Act, The Medicine Act, General Social Care Council code 2001, RIDDOR 1995 and more.1.2 List the main features of current employment legislation PayBeing paid and payslipsCompany sick pay rightsPerformance-related payEmployment contracts and conditionsContracts of employmentChanges to employment conditionsBreach of contrac tThe National Minimum WageThe National Minimum Wage ratesCalculating the National Minimum Wage: the basicsHelp getting paid the National Minimum WageTime off and holidaysAnnual leave and holidaysTime to train, request time at work to learn new skillsTime off for dependantsWorking hoursWorking time limits /the 48-hour week/Rest breaksOvertimeFlexible workingTe right to request flexible workingWorking form homePart-time workSickness absenceTime off for sicknessStatement of Fitness for Work /fit note/How work can keep you healthyBusiness transfers and takeoversEmployment protection during business transfers and takeovers Transfers of employment contracts1.3 Outline why legislation relating to employment existsTo ensure a more cost efficient and safer working environment. There is an increasing responsibility for employers to protect the health and safety of their employees. To protect workers, to guide, regulate and set standards, to provide rights and restrictions on workers and manag ement though a legal relationship.1.4 Indentify sources and types of information and advice available in relation to employment responsibilities When I need information and advice with regards to employment responsibilities and rights, I can find these within my contract provided by my employer and the start of my employment, or I can find this information written within my staff handbook . There are policy documents available within my work place. I can also ask member of staff if I am unsure of my responsibilities.2. Understand agreed ways of working that protect own relationship with employer2.1 Describe the terms and conditions of own contract of employment With regards to the terms and conditions of my contract it states the date on with my continuous employment began, the Place of work, Duties, Salary per hour, Working hours per week, Holidays, Holiday Pay, Sickness Absence Policy, Pension, Probation Period, Rights to Notice, Smoking, Data  Protection Act 1998, Maternity rig hts; Ante/natal care, Maternity leave, Statutory Maternity Pay, Adoption Leave & Pay, Statutory Paternity Pay, Parental leave, Time off to care for dependants, Retirement, Right to Search, Short Time Working, Lay Offs & Redundancies, Extended Leave,Variation of Terms and Conditions, Contradiction Between These Terms & Conditions and my Individual Employment Letters, Intellectual Rights, Use of The Internet, Email, Company Rules, Disciplinary Procedures, Principles, Table of Disciplinary Offences and Penalties, The Procedure, Stage One – Verbal Warning, Stage Two – Written Warning, Stage three – Final Written Warning, Stage four / Dismissal, Appeals Procedure, Other Dismissals, The formal grievance procedure, Equal Opportunities Statement, Anti-Harassment Statement, Management’s Responsibility, Additional information, Restrictive Covenants.2.2 Describe the information shown on own pay statement On my own pay slip I have my full name, the name of the compan y that employs me, Tax period, Interval, Date, Staff ID number, NI Number, NI Code, Tax Code, PAYE Reference, Taxable Gross, Gross to Date, Tax to Date, Employer’s NI, Employer’s Pension, NI Gross, Net Pay.2.3 Describe the procedures to follow in event of a grievance If I have grievance relating to my employment, I should attempt to resolve this informally by speaking with your line manager. If, however, I fail to get a satisfactory resolution within a period of 5 days of speaking with my manager of if my grievance is about my manager and I do not wish to discuss it with him or her, the Company has a formal grievance procedure. If I have a complaint, which cannot be resolved, it is essential that I use this procedure in all circumstances.2.4. Identify the personal information that must be kept up to date with own employer Employees personal data should be kept safe, secure and up to date by an employer. Data an employer can keep about an employee includes name, address , date of birth, sex, education and qualifications, work experience, National Insurance number, tax code, details of any known disability, emergency contact details.They will also keep details about an  employee such as: employment history with the organisation, employment terms and conditions (pay, hours of work, holidays, benefits, and absence), any accidents connected with work, any training taken, and any disciplinary action. Each types of personal information must be kept up to date all the time with my employer will be: Change of name, marital status, address, GP, Next of Kin, nationality, change of sex.2.5 Explain agreed ways of working with employerThe Policies and procedures based on sector standards and guidelines and individuals care plans. To implement agreed ways of working I follow the care plan. Duty of care is the obligation I have to exercise a level of care towards an individual, as is reasonable in all the circumstances, to avoid injury to that individual or his /her property. Dilemma can occur when an individual makes a risky choice. They have a right to do this and I must respect and support their choices but I also have a duty to keep them safe.3. Understand how own role fits within the wider context of the sector3.1 Explain how own role fits within the delivery of the service providedMaintain high standards of care and service toward service users. Assist service users in maintaining their personal hygiene, washing and dressing, toileting, shaving male residents, going to bed, promote independence and dignity, and assist in enabling to live their chosen lifestyle. Report complaints directly to the Manager in charge as son as they are made.3.2 Explain the effect of own role on service provisionOur work is on one to one basic. Provide good quality of care, promote independent and dignity, assist in enabling to live their chosen lifestyle, makes clients happy and keep them in good living condition, make them to live longer, by this thing w e can increase peoples confident in the Health and Social Care sector. I work in a care home as a care assistant. My responsibilities includes: assist the residents with personal care, dressing and feeding, helping them to move around, incontinence care, generally assisting with overall comfort, monitoring conditions.3.3 Describe how own role links to the wider sectorI work in a care home where I take care of elderly and mentally ill people suffering from dementia. Old and demented people have problem with loss of short-term memory. I see people as individuals, focus on their strengths, treat them with dignity and respect, and protect the individual from abuse, injury and harm.3.4 Describe the main roles and responsibilities of representative bodies that influence the wider sectorThe main roles of these representative bodies are: to represent the people and be their voice in the senate, to be able assist the people they represent in asserting their humanitarian rights, to ensure tha t their government's financial allocation for the sector they represent is enough basing on their immediate or basic needs.Representative bodies my include: government departments, professional bodies, trade unions, sector skills councils, regulatory bodies, consumer groups. European Union is our representative bodies. The employee must again take all reasonable steps to attend the appeal meeting and will have the right to be accompanied by a trade union representative or fellow employee of his or her choice.4. Understand career pathways available within own and related sectors 4.1 Explore different types of occupational opportunitiesDifferent types of occupational opportunities for example: social worker, specialist, speech therapist, General Practitioner, children social worker, care specialist, Manager, Adult nursing, Child nursing, Mental health nursing, Learning disabilities nursing.4.2 Identify sources of information related to a chosen career pathway Sources of information: i nternet, books, Code of Practice, media /TV, radio, magazines, Newspapers/, individuals, training, Alzheimer’s Society, Supportive care for the Person with Dementia – edited by Julian C. Hughes, Mari Lloyd-Williams, Greg A. Sachs4.3 Identify next steps in own career pathwayI would like to complete the upcoming courses and become a manager in a care home.5. Understand how issues of public concern may affect the image and delivery of services in the sector5.1 Identify occasions where the public have raised concerns regarding issues within the sector Care home abuse and neglect is Britain’s next major scandal. The Panorama footage showed images of aggression and violence against residents at the care home, near Bristol. Staff pinned residents to the floor and forced one into the shower fully dressed and then outside until she shook from cold.5.2 Outline different viewpoints around an issue of public concern relevant to the sector The Government will give greater as surance to families that their complaints or concerns are being properly listened to. Anyone with worries about how their loved one has been treated at the end of their life will have access to an independent assessment of their case.To support this independent assessment, the Government will make available a list of experts to provide local support for patients if needed – and all NHS hospitals will be asked to appoint a Board member with responsibility for overseeing any complaints about end of life care and for reviewing how end of life care is provided.5.3 Describe how issues of public concern have altered public views of the sector The bad practices and scandals in the social and health care sector arouse the public. People lose their confidence and keep their family members away from the care homes.5.4 Describe recent changes in service delivery, which have affected own area of work I like to work with service users alone when the situation and their health condition al lows. My clients are suffering from dementia. They may become unusually emotional and experience rapid mood swings for no apparent reason, which may cause a dangerous situation. I make sure to call for help if necessary.