The Kidnapping of Charles Lindbergh JR

No matter how you choose to raise your children, one thing is the same for every parent- the immediate sense of panic you feel when you can't find your child. Whether a relative has scooped your newborn up for a cuddle, or your toddler is hiding in a nearby clothing rack, or your punctual teen is 30 minutes late for curfew, the wave of panic is the same. Fortunately, so is the instant relief when we see their face. So much so, we almost feel silly for even letting our minds go there. Unfortunately that isn't always the case. For aviator Charles Lindbergh and wife, Anne Morrow Lindbergh, on 01 March 1932 that panic would turn to terror and then heartbreak.THE FAMEAt 30 years old, Charles Lindbergh had made quite the life for himself. His solo flight across the atlantic (from New York to Paris) He landed in Paris to a cheering crowd of over 150,000 spectators, and returned home to millions who turned out for a ticker tape parade in America. His fame was world wide as he received commendations from Presidents, Kings and Dictators. (The annals of crime) In the two-year period following Lindbergh's flight, the U.S. Copyright Office recorded thr ee hundred applications on Lindbergh songs. He married his love, Anne Morrow, and together had a son, Charles Augustus Lindbergh, Jr. He was a beautiful little boy with blue eyes and blonde curly locks. He may have been the apple of his parents eye but had won the affection of the people as well-and the press knew it. They followed the young family everywhere. Even the house staff cashed in on the fame by giving tours of their main residence in Hopewell, New Jersey, U.S which, in hindsight, may have given the kidnappers the advantage of knowing where the child slept.THE KIDNAPPINGOn 1 March 1932, Anne Lindbergh made a last second decision against taking a toddler with the sniffles into the cold and rainy night air to travel to her parents house. She had the nurse take young Lindbergh upstairs to bed at 8pm. The nurse, Betty Gow, rubbed medicine on his chest, changed him into a one piece sleeping suit and put him down to sleep around 8:30 pm (kidnapped) Following Lindberghs orders, she closed the door allowing the child to self soothe for no less than 2 hours before checking on him. Though Anne was in a bath and Charles was in his study, both heard a noise around 9:30 but dismissed it as being made by one of their staff. An hour later, upon checking on young Lindbergh, Nurse Gow informed them the child was gone. â€Å"They have stolen our baby!† was Lindbergh's immediate response. (kidnapped) A seal enveloped ransom note was on the open window sill.THE INVESTIGATIONAs police began arriving shortly before midnight they had little to go on. Although H. Norman Schwarzkopf (father of Persian Gulf War commander Gen. H. Norman Schwarzkopf) of the New Jersey State Police was nominally the lead investigator in the case, control of many of the details was ceded to Lindbergh. (encyclopedia britannica) A command center was formed in Lindbergh's 3 car garage. Despite the command center Police failed to secure the crime scene and kept no record of who was in the home at the time of the kidnapping nor of who came and went from the home afterwards. Poor lighting and bad weather limited their search outside. They started inside the home, mainly, the nursery. The ransom note demanded specific amounts of certain denominations and seemed to be written by someone who spoke english as a second language and was uneducated. The room was dusted for prints only to discover none would be found, anywhere -not even nurse Gows.(Annals of crime) It appeared to have been wiped clean, thoroughly and completely. It wasn't long before the press got wind of the story and began arriving. They each set up their own command centers and started doing their own investigating, walking around the house in search of clues and entering and exiting the home questioning staff. The next morning, no witnesses saw anyone come or go on the main street in front of the home. Investigators did manage to find a broken homemade ladder several yards from the house. It is unclear whether it was ignorance or poor training was to blame as to why so few crime scene photos were taken and those that were, were neither to scale nor taken before the evidence was moved. As for the ladder, which was considered the most damning piece of evidence, (mike ray) was photographed after being broken down into 3 pieces. Later a photo was taken of a different ladder of exact height up against the home to show a ladder of that length would reach the child's window. Fingerprint experts found 400 partial prints, but because they were all fragmentary, they had no value in identifying anyone. (annals of crime) Lack of evidence only fed speculation that some powerful criminal organization or foreign government had taken the young child (annals of crime) Even though President Hoover had vowed to move â€Å"Heaven and Earth† to find the child (annals of crime) and J. Edgar Hoover-no relation- decided to expand the FBI into a national police agency, Lindbergh chose not to cooperate with FBI agents. He first went to William Donovan (who would later head the OSS.) Then he sought out shady characters who claimed to have underworld connections. He then went to the underworlds elite that he could find=the ones in prison. Al Capone offered his assistance, upon his release, which was immediately denied. Without consulting investigators he then gave copies of the ransom note to all parties contacted in an attempt to find out who wrote it. The shady characters showed their shadiness by immediately selling their copies to the press. With the press competing in their print wars they ran with their lead, publishing the note. Suddenly, ransom notes claiming to be the kidnappers started to appear. Some raise the ransom and some included items like a thumb guard, which the baby (along with 1000's of other babies) had on when abducted, so was assumed to be his (but could not be proven to be young Lindberghs.) The third ransom note was received by Colonel Lindbergh's attorney on March 8, informing that an intermediary appointed by the Lindberghs would not be accepted and requesting a note in a newspaper. On the same date, Dr. John F. Condon, Bronx, New York City, a retired school principal, published in the â€Å"Bronx Home News† an offer to act as go-between and to pay an additional $1,000 ransom. The following day the fourth ransom note was received by Dr. Condon, which indicated he would be acceptable as a go-between. This was approved by Colonel Lindbergh (fbi 2010) In total, 12 ransom notes were received from the kidnappers. None were found in the same place and the person contacted as to their whereabouts changed each time as well. After the 12th note,which reduced the ransom to the original asking price of $50,000, Dr Condon began negotiating through the newspapers on when and where to meet. On April 2 1932 Dr Condon with Lindbergh not far in a park car, met with â€Å"John† at St Raymonds Cemetary in the Bronx to exchange the ransom for the child's whereabouts. Because Lindbergh wanted the focus on child recovery and not kidnapper apprehension, the police were not told about the exchange,however the bank did record the serial numbers from the 10,000 in cash and 40,000 in gold certificates. â€Å"John† gave them the 13th and last note stating the child could be found on a ship called â€Å"The Nelly† in Martha's Vineyard under the care of 2 innocent women under the impression they were babysitting. Instead of following â€Å"John† they contacted police who informed local authorities and Lindbergh took to the air to find the ship. Despite all efforts, the ship could not be found. Later they would find it didn't even exist. Lindbergh conceded he had gained nothing by paying the ransom.THE DISCOVERYOn May 12, 1932, the body of the kidnapped baby was accidentally found, partly buried, and badly decomposed, about four and a half miles southeast of the Lindbergh home, 45 feet from the highway, near Mount Rose, New Jersey, in Mercer County. The discovery was made by William Allen, an assistant on a truck driven by Orville Wilson. The head was crushed, there was a hole in the skull and some of the body members were missing. The body was positively identified by Lindbergh who, and after cause of death was determined, ordered its immediate cremation in Trenton, New Jersey, on May 13, 1932. The Coroner's examination showed that the child had been dead for about two months and that death was caused by a blow on the head. (FBI 2010)Now a murder investigation, the Bureau (who was acting merely in an auxiliary capacity, since there was no federal jurisdiction.) was now in charge. The President directed that all governmental investigative agencies should place themselves at the disposal of the state of New Jersey and that the FBI should serve as a clearinghouse and coordinating agency for all investigations in this case conducted by federal investigative units.On May 23, 1932, the FBI in New York City informed banks in greater New York that the Bureau was the coordinating agency for all governmental activity in the case. A close watch for ransom money was requested. A pamphlet containing serial numbers was created. Copies of this pamphlet was given to each employee handling currency in banks, clearinghouses, grocery stores in certain selected communities, insurance companies, gasoline filling stations, airports, department stores, post offices, and telegraph companies.(fbi 2010) As time went on, the money and certificates popped up along the eastern seaboard, but police had no way to analyze the bills recovered. Just as the case turned cold, On May 1st, 1933 there was an executive order released for any individuals in possession of any gold certificates to turn them into a bank for money; if you were to be found in possession of the gold certificates after this date you were held criminally responsible and could be punished via a fine of $10,000 or up to ten years in prison. Prior to this deadline, $2990 in gold certificates matching the serial number were turned into a local bank, but the bank attendants were busy due to the deadline and did not notice the serial numbers until after the individuals left the bank. What seemed to be a fruitless endeavor finally bore its first solid fruit in Sept 1934. 16 certificates had popped up in New York. A suspicious gas station attendant had wrote the licence plate number of a man who had used the certificate to purchase gas on the certificate itself. Soon after the bank teller informed the FBI. The license plate belonged to a german immigrant carpenter named Bruno Richard Hauptmann. He was married and had a son close in age to young Lindbergh had he been alive.TRIAL AND EXECUTIONWhen police arrested Hauptmann on Sept 19 1934 he had a $20 certificate on his person. Police claimed to have found many pieces of evidence in Hauptmanns home. Over $13,000 in certificates were found in his garage. An apparent sketch of a collapsible ladder similar to the one used in the kidnapping was found. Jim Condon's telephone number and address was found written on a closet wall in the house (history.com); whether this handwriting matched Hauptmann's or the ransom notes is unknown. Hauptmann did admit to police that he wrote the information down himself, but this was after hours of interrogation and at least one severe beating (FBI, 2010). Some questioned why he would still have these items 2 years after the kidnapping.The most damning evidence was found in the attic. Investigators noticed a beem missing from his rafters. The piece that would come to be known as â€Å"Rail 16† was found to be part of the homemade ladder found by the Lindberghs home and became a large part of the prosecution's case. Wood expert Arthur Koehler was one of 8 experts who testified for the prosecution. He matched Rail 16 of the kidnap ladder with the flooring from the attic. The four irregularly spaced extra nail holes in Rail 16 matched up perfectly with the holes in the attic floor joists. Prosecutor Wilentz broke up their dry testimony by bringing on a statuesque beauty, Hildegarde Alexander, described as â€Å"a blonde pajama model,† who testified that she saw Hauptmann staring at Dr. Condon in a telegraph office. Alexander was one of many eyewitnesses for both sides whose testimony seemed contrived. (crime mag) This included an 87-year-old Hopewell man, testifying for the prosecution, claimed that Hauptmann drove by his house the morning of the kidnapping. That is, he remembered the face of a stranger in a car, before he had any reason to take notice of him, and could pick him out in the courtroom three years later. Only after the trial, the defense learned that this witness was legally blind and had been so at the time of the sighting. This could've been known if the defense had challenged his eyesight as expected of an 87 year old witness. Even Lindbergh's claim that he recognized Hauptmann's voice as being the same voice that said â€Å"Hey, Doc,† at the cemetery 2  ½ years earlier seems far-fetched. But he was the Lone Eagle. As the prosecutor told the jury, â€Å"And Lindy remembered that voice. And who is to say he didn't? Are you going to substitute your judgment for his?†. (crime mag)VERDICT AND SENTENCINGOn Feb. 13, 1935, after 11 hours of deliberation, the jury returned a guilty verdict. Hauptmann was sentenced to death. A series of appeals, ultimately reaching the Supreme Court in December 1935, were unsuccessful, and a clemency bid was rejected on March 30, 1936. Desperate to bring others to justice but running out of time, the prosecution offered Hauptmann a deal- your life for your confession and accomplices. A newspaper offered $90,000 to Hauptmann's wife and child to accept the deal. (Fleming, 2010) Hauptmann, denying until the end any involvement in the crime, told them he had no names to give. On April 3, 1936, 19 months after the verdict, he was executed by electric chair. Soon after the United States Congress adopted a federal kidnapping statute—known as the Federal Kidnapping Act 18 U.S.C.  § 1201(a)(1) (popularly known as the Lindbergh Law, or Little Lindbergh Law) imposing the death penalty for transporting a kidnapped victim across a state line.(history.com)CONCLUSIONThis day, many forensic scientists and police investigators are under the belief that Bruno Richard Hauptmann was innocent and that he fell victim to police and their need for closure a case. There was too much circumstantial evidence and police made too many mistakes; crime scenes were contaminated, evidence lacked and was not always connected. (fORENSIC FILES) Lindbergh's dominating control of the investigation raises even more questions. Sadly, Lindbergh's fame was greater than Hauptmanns innocence. A point made clear by the jury, who so quickly found him guilty beyond reasonable doubt, even though so much was left unclear or unknown.

A Sorrowful Woman by Gayle Godwin

â€Å"A Sorrowful Woman† by Gayle Godwin Once upon a time there was a wife and mother one too many times One winter evening she looked at them: the husband durable, receptive, gentle; the child a tender golden three. The sight of them made her so sad and sick she did not want to see them ever again. She told the husband these thoughts. He was attuned to her; he understood such things. He said he understood. What would she like him to do? â€Å"If you could put the boy to bed and read him the story about the monkey who ate too many bananas, I would be grateful. † â€Å"Of course,† he said. Why, that's a pleasure. † And he sent her off to bed. The next night it happened again. Putting the warm dishes away in the cupboard, she turned and saw the child's grey eyes approving her movements. In the next room was the man, his chin sunk in the open collar of his favorite wool shirt. He was dozing after her good supper. The shirt was the grey of the child's trusting gaze. She began yelping without tears, retching in between. The man woke in alarm and carried her in his arms to bed. The boy followed them up the stairs, saying, â€Å"It's all right, Mommy,† but this made her scream. Mommy is sick,† the father said, â€Å"go and wait for me in your room. †    The husband undressed her, abandoning her only long enough to root beneath the eiderdown for her flannel gown. She stood naked except for her bra, which hung by one strap down the side of her body; she had not the impetus to shrug it of. She looked down at the right nipple, shriveled with chill, and thought, How absurd, a vertical bra. â€Å"If only there were instant sleep,† she said, hiccupping, and the husband bundled her into the gown and went out and came back with a sleeping draught guaranteed swift.She was to drink a little glass of cognac followed by a big glass of dark liquid and afterwards there was just time to say Thank you and could you get him a clea n pair of pajamas out of the laundry, it came back today. The next day was Sunday and the husband brought her breakfast in bed and let her sleep until it grew dark again. He took the child for a walk, and when they returned, red-cheeked and boisterous, the father made supper. She heard them laughing in the kitchen. He brought her up a tray of buttered toast, celery sticks and black bean soup. â€Å"I am the luckiest woman,† she said, crying real tears. Nonsense,† he said. â€Å"You need a rest from us,† and went to prepare the sleeping draught, and the child's pajamas, select the story for the night. She got up on Monday and moved about the house till noon. The boy, delighted to have her back, pretended he was a vicious tiger and followed her from room to room, growling and scratching. Whenever she came close, he would growl and scratch at her. One of his sharp little claws ripped her flesh, just above the wrist, and together they paused to watch a thin red line materialize on the inside of her pale arm and spill over in little beads. Go away,† she said. She got herself upstairs and locked the door. She called the husband's office and said. â€Å"I've locked myself away from him. I'm afraid. † The husband told her in his richest voice to lie down, take it easy and he was already on the phone to call one of the babysitters they often employed. Shortly after, she heard the girl let herself in, heard the girl coaxing the frightened child to come and play. And now the sleeping draught was a nightly thing, she did not have to ask. He went down to the kitchen to mix it, he set it nightly beside her bed.The little glass and the big one, amber and deep rich brown, the flannel gown and the eiderdown. After supper several nights later, she hit the child. She had known she was going to do it when the father would see. â€Å"I'm sorry† she said, collapsing on the floor. The weeping child had run to hide. â€Å"What has happened to me. I'm not myself anymore. † The man picked her tenderly from the floor and looked at her with much concern. â€Å"Would it help if we got, you know, a girl in? We could fix the room downstairs. I want you to feel freer,† he said, understanding these things. We have the money for a girl. I want you to think about it. †Ã‚   The man put out the word and found the perfect girl. She was young, dynamic and not pretty. â€Å"Don't bother with the room. I'll fix it up myself. † Laughing, she employed her thousand energies. She painted the room white, fed the child lunch, read edifying books, raced the boy to the mailbox, hung her own watercolors on the fresh-painted walls, made spinach souffle, cleaned a spot from the mother's coat, made them all laugh, danced in stocking feet to music in the white room after reading the child to sleep.She knitted dresses for herself and played chess with the husband. She washed and set the mother's soft ash-blonde hair and gave her neck rubs, offered to. The girl brought the child in twice a day, once in the later afternoon when he would tell of his day, all of it tumbling out quickly because there was not much time, and before he went to bed. Often now, the man took his wife to dinner. He made a courtship ceremony of it, inviting her beforehand so she could get used to the idea. They dressed and were beautiful together again and went out into the frosty night.Over candlelight he would say, â€Å"l think you are better, you know. † â€Å"Perhaps I am,† she would murmur. â€Å"You look. . . like a cloistered queen,† he said once, his voice breaking curiously. One afternoon the girl brought the child into the bedroom. â€Å"We've been out playing in the park. He found something he wants to give you, a surprise. † The little boy approached her, smiling mysteriously. He placed his cupped hands in hers and left a live dry thing that spat brown juice in her palm and leapt away. She sc reamed and wrung her hands to be rid of the brown juice. â€Å"Oh, it was only a grasshopper. said the girl. Nimbly she crept to the edge of a curtain, did a quick knee bend and reclaimed the creature, led the boy competently from the room. â€Å"The girl upsets me,† said the woman to her husband. He sat frowning on the side of the bed he had not entered for so long. â€Å"I'm sorry, but there it is. † The husband stroked his creased brow and said he was sorry too. He really did not know what they would do without that treasure of a girl. â€Å"Why don't you stay here with me in bed,† the woman said. Next morning she fired the girl who cried and said, â€Å"l loved the little boy, what will become of him now?But the mother turned away her face and the girl took down the watercolors from the walls, sheathed the records she had danced to and went away. â€Å"I don't know what we'll do. It's all my fault. I know I'm such a burden, I know that. †    †Å"Let me think. I'll think of something. † (Still understanding these things. )    â€Å"I know you will. You always do,† she said. With great care he rearranged his life. He got up hours early, did the shopping, cooked the breakfast, took the boy to nursery school. â€Å"We will manage,† he said, â€Å"until you're better, however long that is. He did his work, collected the boy from the school, came home and made the supper, washed the dishes, got the child to bed. He managed everything. One evening, just as she was on the verge of swallowing her draught, there was a timid knock on her door. The little boy came in wearing his pajamas. â€Å"Daddy has fallen asleep on my bed and I can't get in. There's not room. †    Very sedately she left her bed and went to the child's room. Things were much changed. Books were rearranged, toys. He'd done some new drawings. She came as a visitor to her son's room, wakened the father and helped him to bed. Ah, he sh ouldn't have bothered you,† said the man, leaning on his wife. â€Å"I've told him not to. † He dropped into his own bed and fell asleep with a moan. Meticulously she undressed him. She folded and hung his clothes. She covered his body with the bedclothes. She clicked off the light that shone in his face. The next day she moved her things into the girl's white room. She put her hairbrush on the dresser; she put a note pad and pen beside the bed. She stocked the little room with cigarettes, books, bread and cheese. She didn't need much. At first the husband was dismayed. But he was receptive to her needs.He understood these things. â€Å"Perhaps the best thing is for you to follow it through. † he said. â€Å"I want to be big enough to contain whatever you must do. †    The woman now spent her winter afternoons in the big bedroom. She made a fire in the hearth and put on slacks and an old sweater she had loved at school, and sat in the big chair and stare d out the window at snow-ridden branches, or went away into long novels about other people moving through other winters. All day long she stayed in the white room. She was a young queen, a virgin in a tower; she was the previous inhabitant, the girl with all the energies.She tried these personalities on like costumes, then discarded them. The room had a new view of streets she'd never seen that way before. The sun hit the room in late afternoon and she took to brushing her hair in the sun. One day she decided to write a poem. â€Å"Perhaps a sonnet. † She took up her pen and pad and began working from words that had lately lain in her mind. She had choices for the sonnet, ABAB or ABBA for a start. She pondered these possibilities until she tottered into a larger choice: she did not have to write a sonnet.Her poem could be six, eight, ten, thirteen lines, it could be any number of lines, and it did not even have to rhyme. She put down the pen on top of the pad. In the evenings , very briefly she saw the two of them. They knocked on her door, a big knock and a little, and she would call Come in, and the husband would smile though he looked a bit tired, yet somehow this tiredness suited him. He would put her sleeping draught on the bedside table and say, â€Å"The boy and I have done all right today,† and the child would kiss her. One night she tasted for the first time the power of his baby spit. I don't think I can see him anymore,† she whispered sadly to the man. And the husband turned away but recovered admirably and said, â€Å"Of course, I see. †    So the husband came alone. â€Å"I have explained to the boy,† he said. â€Å"And we are doing fine. We are managing. † He squeezed his wife's pale arm and put the two glasses on her table. After he had gone, she sat looking at the arm. â€Å"I'm afraid it's come to that,† she said. â€Å"Just push the notes under the door; I'll read them. And don't forget to lea ve the draught outside. †    The man sat for a long time with his head in his hands. Then he rose and went away from her.She heard him in the kitchen where he mixed the draught in batches now to last a week at a time, storing it in a corner of the cupboard. She heard him come back, leave the big glass and the little one outside on the door. Outside her window the snow was melting from the branches, there were more people on the streets. She brushed her hair a lot and seldom read anymore. She sat in her window and brushed her hair for hours, and saw a boy fall off his new bicycle again and again, a dog chasing a squirrel, an old woman peek slyly over her shoulder and then extract a parcel from a garbage can.In the evening she read the notes they slipped under her door. The child could not write, so he drew and sometimes painted his. The notes were painstaking at first; the man and boy offering the final strength of their day to her. But sometimes, when they seemed to have had a bad day there were only hurried scrawls. One night, when the husband's note had been extremely short, loving but short, and there had been nothing from the boy, she stole out of her room as she often did to get more supplies, but crept upstairs instead and stood outside their doors, listening to the regular breathing of the man and boy asleep.She hurried back to her room and drank the draught. She woke earlier now. It was spring, there were birds. She listened for sounds of the man and the boy eating breakfast; she listened for the roar of the motor when they drove away. One beautiful noon, she went out to look at her kitchen in the daylight. Things were changed. He had bought some new dish towels. Had the old ones worn out? The canisters seemed closer to the sink. She inspected the cupboard and saw new things among the old. She got out flour, baking powder, salt, milk (he ought a different brand of butter), and baked a loaf of bread and left it cooling on the table. The force of the two joyful notes slipped under her door that evening pressed her into the corner of the little room; she had hardly space to breathe. As soon as possible, she drank the draught. Now the days were too short. She was always busy. She woke with the first bird. Worked till the sun set. No time for hair brushing. Her fingers raced the hours. Finally, in the nick of time, it was finished one late afternoon. Her veins pumped and her forehead sparkled.She went to the cupboard, took what was hers, closed herself into the little white room and brushed her hair for awhile. The man and boy came home and found five loaves of warm bread, a roast stuffed turkey, a glazed ham, three pies of different fillings, eight molds of the boy's favorite custard, two weeks supply of fresh-laundered sheets and shirts and towels, two hand-knitted sweaters (both of the same grey color), a sheath of marvelous watercolor beasts accompanied by mad and fanciful stories nobody could ever make up again, and a tab let full of love sonnets addressed to the man.The house smelled redolently of renewal and spring. The man ran to the little room, could not contain himself to knock, flung back the door. â€Å"Look, Mommy is sleeping,† said the boy. â€Å"She's tired from doing all our things again. † He dawdled in a stream of the last sun for that day and watched his father roll tenderly back her eyelids, lay his ear softly to her breast, test the delicate bones of her wrist. The father put down his face into her fresh-washed hair. â€Å"Can we eat the turkey for supper? † the boy asked.

Summer: David Updike

It is the simple childhood activities like e games of inns or baseball that gives him the feeling of youth. To parallel Homers feel Eng, Update describes the summer nights filled with an endless amount of stars making the e sky seem infinite with â€Å"no bounds† ( pig 359, Summer). As children, the sense of bounds ray is constantly being learned and discovered. This small view into Homers pastimes allows t he reader to catch a glimpse of Homer's childlike side. As the story continues, Homer takes an interest in Sandra, the girl next door.He no longer plays games to pass the time, instead he spends his days thinking ABA t her. Soon he notices notices every detail about her, her inability to get a tan despite being outdoors, or the way she walks. However, as young man, to approach Sandra and tell her how he really feels takes large amounts of courage. When Homer is around her, he is always very cautious not letting on too much about how he feels. For the time being, Homer is li ving in absolute bliss. With a â€Å"merciless succession of beautiful days† (pig 301, Summer), it seems like e nothing can wrong.Time slows down and everything is perfect, especially with Sandra. Unfortunately all good things come to an end. As summer comes to an end, H emmer realizes that he will have to say goodbye to Sandra without her knowing his try u feelings for her. Time isn't the only thing running out for Homer, the glorious summer day s have also begun to fade â€Å"leaving the sky a hard and unbroken blue† (pig 361 Summer). Despite the feelings of sadness, all it takes is one small touch from Sandra to assure him t hat â€Å"his love [had] been returned† (pig 363, Summer).The simplicity of the action was neon ugh to make him tauter and realize that even though he might not have expressed himself full y, the message he was trying to convey was still understood and returned. Childhood to adulthood is a transition that all individuals experience. Updat e Illustrates this change through the example of first love. Homer's hesitance to express hi s feelings to Sandra is just one type of growth that helps shape an individual to be who the y are as an adult. Update then uses setting, symbolism, and events to parallel Homers fee lings throughout the month.

A Concept note is designed to allow you to demonstrate an Essay

A Concept note is designed to allow you to demonstrate an understanding of the concepts that are dealt with during the delivery of the module - Essay Example Positivism emerged due to the rejection of the metaphysics concepts for example, god. Sociologists then found it difficult to explain concepts and neither could they prove and test these ideas; therefore, they saw the need of looking for alternative ideas. Moreover, they felt that social science should be as objective and verifiable like other subjects; thus, they came up with positivism as an alternative to metaphysics (Anderson, 2004; p. 142). Therefore, positivism was applied to describe social phenomenon, but did not dig deep into what was unlikely be known or those phenomena that were considered to be beyond the scope of social science. The positivists concluded that research work could be analyzed and concluded only from what is observable. Therefore, according to positivism, what could be seen and measured from the subject matter under study. Notably, positivism can find its application in research marketing in that some phenomena of marketing can only be measured and analyzed through observation (Browne, 2006; p. 400). For instance, observation is sometimes vital in measuring the trend in some market activity from which conclusions can be made on the best marketing practices to be incorporated to increase such marketing activities. On the other hand, Interpretivism emerged because scientists felt that human being were never puppets to respond to stimuli in certain defined or prescribed manner. The defined human beings as purposeful and active: thus, they were expected to react to stimuli in differently depending on their means of interaction and interpretation (Belk, 2006; p. 157). Moreover, they define human beings as objects having power and intent interpret actions; therefore, they were capable to construct actions taking place within their surroundings as opposed to being mere spectators to the events taking place about them (Browne, 2006; p. 400). The interpretivists stressed on the thinking, behaviors, and intentions of human beings

ART Essay Example | Topics and Well Written Essays - 2250 words

ART - Essay Example One does not exist without the other. In American tradition, an author is a creator and full owner of the original artwork. In copyright law, author is the major actor. Author’s role is defined in U.S. Constitution, while copyright law is part of federal law. Article 1 Section 8 of US Constitution states: â€Å"To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries† (U.S. Constitution Online). Even after death of the author, his copyrights continue their existence. However, the modern era have brought many issues connected to originality of created works, authorship, and modern copyright law. The very first law to regulate and protect original intellectual works was Copyright act of 1790. Firstly, it was solely publisher’s privilege and only later copyright law became â€Å"author’s right in her intellection product† (Bracha 186). Only in the nineteenth century the very essence of the copyright law was fundamentally altered. Today it is Copyright, Designs and Patents Act 1988 which regulates authorship rights and protects holders of artworks in the UK. The right of copying artwork includes reproducing, preparing derivative works, distributing, performing, and displaying The law protects original works of art. The existing law applies to such works of art as follows: Copyright law is an example of a specific kind of product. This product is a masterpiece of artistic production. This piece comes together with the other related pieces and is very popular in modern society. This piece of art is related to such important business activities as trading, conserving, exhibiting, performing, reproducing and distributing works of art or reproductions. The main issue about â€Å"dogmatics of copyright is that this dogmatics is able to elucidate the normative import of art and aesthetics.† (Chicago. John M. Olin Law &

Writing about writing Essay Example | Topics and Well Written Essays - 750 words

Writing about writing - Essay Example In this paper, comparisons will be made between two articles that discuss Walter Isaacson’s retelling of the life of Steve Jobs, one of the most influential men in this century. It is curious to note that although both articles are presented in the same form of media, that is, online newspapers, the piece written by Janet Maslin for the New York Times appears more convincing and appropriate because of the words she used, how she presented her topic and the way she wrote her article. Since Walter Isaacson wrote best-selling biographies of Albert Einstein and Benjamin Franklin, it was not a big surprise that Steve Jobs wanted the Isaacson to write his life story. Nevertheless, because Jobs was as popular as his inventions, Isaacson’s book, which came out only a few weeks after the Apple inventor died, had expectations to meet. In October 2011, two articles came out online from Reuter and New York Times discussing Isaacson’s â€Å"Steve Jobs.† Penned by Fred Schruers and Janet Maslin, respectively, the articles gave contrasting opinions on Isaacson’s most recent best-seller. ... Given the hype surrounding the literary work, it is easy to assume the need for the book review. Steve Jobs was not only well-known because of his Apple creations. His personal life and work ethics are also public knowledge. Readers worldwide would be very interested to read about how the man built one of the most trusted names in the world of technology. The question is would their money be worth it. Would the book be a good buy? Janet Maslin addresses this curiosity when she says, â€Å"His story calls for a book that is clear, elegant and concise enough to qualify as an iBio. Mr. Isaacson’s â€Å"Steve Jobs† does its solid best to hit that target. (Maslin)† In effect, she is telling her audience that the book is as satisfying as the other â€Å"i† products from Apple, namely: the iPad, iTunes and iPhone. Since almost everyone around the world has an iPad and/or an iPhone, wanting to have the iBio would appear to be a given reaction. Maslin repeats her a pproval of the book writing, â€Å"So, â€Å"Steve Jobs†... must reach across time in more ways than one. And it does, in a well-ordered, if not streamline, fashion.† Maslin also makes it easy for the viewers to get an idea of how Steve Jobs is presented in the book by allotting each paragraph of her article to specific topics the book covers. One paragraph describes how the Isaacson tells about the beginnings of each Apple product. Another paragraph mentions Jobs’ rival, Bill Gates. Yet another one talks about how Jobs’, through the book, talks to the past, present and future generations. Employing very familiar words such as iPod, iPad, iMac, NeXT, Pixar and iTunes, Maslin was able to introduce the book to the general public, her

Using a case example analyse a decision made by a nurse in the Essay

Using a case example analyse a decision made by a nurse in the practice setting - Essay Example Decision making in a nursing profession evaluates the ability of a nurse to identify and collect critical information in an emergency situation, analyze on them, identify appropriate decisions and more importantly, implement those decisions in such precarious situations.According to the case presented, the decision of the nurse is to respect the choice of the patient and go with the method of treatment, as chosen by the patient. (Adair 1999) This decision-making process plays an integral part in establishing the most complex of all relationships in health care – between a patient and the nurse.The health care services have improved so much that patients have become more cautious about the approach taken for their treatment. (Benner 2004) Many of the services are customized in such a way that the patient’s approval of the process taken for their treatment has become a must. So, with the growing trend, people have started to understand about the different options availabl e for a particular treatment and know about the consequences of each of the methods. (Benner 2001) These steps of improvement towards health care clearly show that decision-making has gained high priority among the patients. The changing trends have made sure that nurses are given full freedom to excise their duties and make appropriate decision. Such autonomy has also provided them with prime responsibility. Any decision that could have severe impact directly affects the growth of their career. (Department of Health Nursing and Midwifery Council 2002) It also acts as one of the means of measuring a nurse’s contribution towards improvement of health care. The clinical importance of decision-making process is directly attributed towards the improvement of patient care. Their critical thinking skills in a clinical field allow them to be actively responsive to grasping even semblance of opportunities that could help in improving care. (Chapman 1994) In this case study, the patie nt is a 26 year old female working as an assistant in a shop. The patient as got a cut in the proximal phalange on the dorsal aspect of the middle finger. The patient is extremely tentative towards the concept of needles and sutures and in every possibility is in favor of avoiding such methods to treat her. The nurse handling the case, being an experienced practitioner in nursing gave the opportunity for the patient to decide between suture and gluing. The nurse practitioner did not fail to mention about the advantages and consequences of choosing each method. Given the stress that the patient incurs about suture and needles, the patient’s choice for gluing method to treat her was respected and followed. The first priority of the nurse practitioner while deciding on the method of treatment was to respect the choice of the patient. Since the patient was given the details of both the procedures and after having decided that the nature of the wound to be a minor one, the patient was given the responsibility of self-management. Secondly, the guidelines of the gluing procedure were easily satisfied by the wound’s state and hence, the nurse had an easy approach while deciding on the treatment. (Tschudin 1994) Several systems like the Clinical Decision Support Systems are used to support practitioners while making decisions. (DOH 2007) Such systems are categorized as knowledge based and non-knowledge based. These systems work on the basis of the information collected and also on the past history of the patient to guide the practitioners to take a final decision. Ultimately, these systems only help in guiding the practitioners to make a decision and they do not finalize any decision. (DOH 2009) The theories of rational approach towards clinical decision-making suggest that, decisions should be made on a long term basis, taking in details of the numerical data, the probabilities of different decisions and others facts. These systems help in collecting tho se empirical data and allow for making a decision that is well thought

Enviromental Economics Problem Research Paper Example | Topics and Well Written Essays - 1500 words

Enviromental Economics Problem - Research Paper Example Healthcare by products have been disposed to rivers and other areas that are ineffective for their disposal. As a result these wastes have brought with them different devastating affects most of them affecting the economy of the country. The waste is as a result of various economic activities taking place in the country. This therefore means that the waste and their effects are as a result of market failures. Identification of the problem is a key factor here and it involves looking at all the externalities of the various economic activities and the economic activities that are associated with them. Problem analysis is the other factor that we consider here. By the use of a demand curve, we can determine the net social benefit and the marginal private benefit and determine the causes of these externalities. At the end a solution which is economically appropriate is given out to replace the various policies. Problem identification There are various environmental problems that are seen in Kuwait. Following the announcement by Mohammed Al-Enzi that Sabah Al-Ahmad city was at a risk of pollution due to the exposure of the various liquid industrial wastes. This is situated just four kilometers from the city. He also states that Kuwait is one of the countries that have challenges regarding environmental waste disposal. Municipal solid waste is also a problem that is faced by the country. The collection of this waste, their transportation and disposal is a major challenge for the country various suggestions have been put forward to help in the management of these sites such involves the use of anaerobic digestion of the waste before disposing them to the land. Using LCA, the impact of these waste were seen to influence people a lot negatively. Electronic waste is another important point of discussion here. E waste should always be separated with other waste that is decomposable. However in Kuwait, these E wastes are mixed with other waste materials that can be decompo sed thereby making it even hard to dispose. People are also ignorant about the effects of electronic waste on the life of an individual and the entire world. Most people therefore do not take necessary effects needed in order to separate the E wastes from other bio degradable wastes. Awareness is therefore needed and this is the call for both public and government intervention. Healthcare products waste is also common in Kuwait. There are various diseases that are seen in the area of Kuwait due to the rising number of bad disposal of healthcare products. These result in negative economic impact on the government and the people of Kuwait as this disease are expensive to treat and better ways of disposal are also expensive to set and maintain. Poor disposal of these materials is also a major challenge that is faced by the people of Kuwait. By products from healthcare is also a challenge to the people as they have to think of the best way to dispose them and make them have no threat to causing diseases. Various hospitals are also taking the advantage of government reluctance and disposing their waste in a dangerous manner. This result in environmental pollution which in the long run affects the economy. Problem analysis The externalities experienced in Kuwait are as a result of the marginal social cost (MSC) being more than the private costs (MPC). From the look, there is more profit that the government an

Physical Activity and Wellness Research Paper Example | Topics and Well Written Essays - 1500 words

Physical Activity and Wellness - Research Paper Example Since the establishment of the physical activity, several factors influence the level of exercise behaviors of people. Physical activity entails bodily movement produced by skeletal muscle that results in energy expenditure above resting level. Several guiding framework are put in place to aid in understanding the multiple elements at each level. Individual factors are core when it comes to factors influencing a person’s involvement in exercise. The factor is innate to each person and differs from person to another such as a person’s genetic make-up, sex, growth and development as well as socioeconomic status among others. Social factors influence the physical activity of a person as fellow peers encourage one another to participate in exercise regime. Yet another influence is the environmental factor, ones surrounding such as walk paths encourage people to walk to work or shopping centers and even at times just for leisure. To build an environment suitable for physical activity opts to be an objective when setting up settlement units for it supports an active lifestyle. For example, safer streets that support biking, jogging and wider walking causes majority of the population to engage in some form of exercise reducing bad health outcomes. Controlled environment especially at workplace ensures employees access to existing communication channels and networks that improves levels of physical activity at all instances such as encouraging people use staircase instead of use of elevator.

Is gambling a moral issue Essay Example | Topics and Well Written Essays - 1250 words

Is gambling a moral issue - Essay Example Although some of these arguments may be correct, gambling is more of a moral issue because it results in people’s suffering while others thrive. According to Fitzgerald there is no point in considering gambling and casinos as an economically viable industry. No doubt it adds to the pocket of a few and also contributes to the governments revenue box, yet considering the social maladies casinos and gambling are responsible for; it is more of a curse than blessing. Furthermore a healthy society can thrive amidst healthy individuals. Here health does not only refer to physical health but also the psychological one. Gambling results in erratic behavior through a complex neurochemical reaction that is far from being healthy and therefore according to Fitzgerald should be abstained from. Last but not the least the writer has also criticized gambling and casinos for spreading pollution and congestion in weekends through the rush of gamblers in peaceful localities where casinos are loc ated. Fitzgerald states at first that gambling although illegal in the state of California, in recent time permission has been extended to some Indian tribes. Might be placed in a light note but according to him since from historical times the Indians have been exploited by the other Americans the state now want to compensate them by conferring right of exploiting the others. United States of America as a uniform country must follow the same law for all and the logic that the writer has presented in legalizing gambling is no short of disgracing the goodwill of the government and the equality doctrine of the constitution. Without any grain of doubt the writer is against legalizing gambling but his arguments against such legalization are all driven on materialistic grounds. Fitzgerald has referred that gambling can never be considered as an economic boost owing to the $2 net loss it imposes on the government for each dollar earned as revenue. Another economic argument placed by the wr iter is the doubling of bankruptcy rate in countries with casinos in compare to those without them. The writer carefully states statistics to act as a psychologist while judging the compulsion of a gambler to spend more than he can afford. The statistics according to Fitzgerald in favor of such compulsion is quite high at 43%. Apart from economic and psychological reasons another aspect that Fitzgerald has referred to is the environmental aspect of gambling or casinos. The economic aspect that Fitzgerald has cited against gambling holds quite a ground. However quantifying the qualitative variables and indicators often stirs much debate. Owing to this fact it is hard to tell that whether the exact number that the writer has cited as a burden on revenue owing to gambling is appropriate. Another study amidst a different surrounding might have yielded a different result. Furthermore the modern day economics is a social science and much more beyond monetary value exists in a society that economic consideration must take into account. The psychological cost that gambling imposes on an individual in terms of erratic behavior and addiction might well receive a counter attack from those who support gambling and considers it as a means to joy. Gambling is based upon probability and neither the cost of loosing nor the profit from winning is assured. A

The City Of Greensburg Essay Example | Topics and Well Written Essays - 750 words

The City Of Greensburg - Essay Example The present evacuation program by the Department of Emergency Department seemingly fails to recognize the presence of the vulnerable population especially those who are disabled or those who are suffering from chronic illnesses. It is important to note that the City Council has made sure that all public buildings are easily accessible by the disabled people and even homes where there is a disabled person are advised to ensure that the home allows for easy movement of the disabled person. This is a great way enables the easy evacuation of disabled people or people suffering from chronic illnesses that impair their movement, in case a disaster occurs.Intensive care units in health care facilities normally cater for vulnerable patients of which some of them depend on life support machines that are powered by electricity and therefore, in case of a power blackout there are likely to die. However, healthcare facilities not only in the City of Greensburg but also in most parts of the count ry have a power back up or generators that will power-on immediately there is a power blackout and hence, ensuring that vulnerable patients are not affected. Nevertheless, in case of a disaster, the generators may even fail to provide power and patients will be transferred to other health care facilities where there is electricity. The evacuation of patients from facilities that have been affected by a disaster to safer facilities. If the severity of the disaster is not high to an extent that roads are inaccessible.

Innate Ability on Universal Grammar Essay Example for Free

Innate Ability on Universal Grammar Essay Language is a very important aspect of the lives of the people. Because of language and the interaction of people, communication transpires and it enables everyone to connect with everyone else. It is with the use of language that simple whims and requests to more difficult conversations and negotiations which concern the nation’s affairs or economic and business transactions can be granted. Moreover, language reflects the history and culture of a certain nation—it can mirror the characteristics and attitudes of a person. However, no matter how helpful land useful language is, there are instances when language causes disputes and misunderstandings as there are over a hundred of languages of different nations which lead to confusion on meaning. In addition, even if the same people share the same language, miscommunication can still arise due to the fact that there are confusing meanings and different interpretations that vary from person to person. However, there is something very integral in language in which, no matter what country a person belongs to, he or she is still able to practice. No matter what language it is, there should always be a form or order of words which enables the receiver of the message at the other end to comprehend the message. This is the semantic aspect of language which encompasses and is integral to all languages. Even if there is a tremendous difference in the languages of each country, semantics ties them all together and is greatly connected to the one which this paper is actually going to explore—grammar. The Concept of the Universal Grammar Grammar is defined by many different people and according to different contexts. Students and younger kids may have the opinion that it is something so complex, tedious, and monotonous. On the other hand, academic people, scholars, and linguists may have an opinion that it is something so enthralling and exciting. Though different in their perceptions, one thing remains the same: It is imperative for a person to fully use it with accuracy and appropriateness as to ensure that effective communication is made. While grammar and linguistics is indeed complex, this paper will only focus on one aspect of these subjects which connects not only grammar and linguistics but also includes the fields of psychology, neurology, and history: the concept of Universal Grammar. There have been many speculations about the theory of universal grammar (UG) and its existence in the first place. There have been a couple of people of people who rebuked Chomsky’s theory of universal grammar and that â€Å"UG is a theory which provides constraints on linguistic representation† (White 1). According to the Merriam-Webster Online, however, Universal Grammar is defined as: â€Å"the study of general principles believed to underlie the grammatical phenomena of all languages ; also such principles viewed as part of an innate human capacity for learning a language. † The first definition is actually more appropriate with regard to the introduction of this essay, but the latter is more apt with regard to the genuine focus of the paper—the capability or ability of humans on language-learning and the amazing naturalness of it that it actually seems innate in everyone. It is with the person of Noam Chomsky to whom the theory of universal grammar can be traced. Chomsky is the famous linguist who theorized the concept of universal grammar which actually leads to a whole other dimension on languages and linguistics: UG is a theory of knowledge, not behavior; its concern is with the internal structure of the human mind. UG theory holds that the speaker knows a set of principles that apply to all languages Each principle of language that is proposed is a substantive claim about the mind of the speaker and the nature of acquisition. the importance of UG is its attempt to integrate grammar, mind, and acquisition at every moment. (Cook qtd. in Herman 17-18) If, according to Chomsky, universal grammar already exists, then why do people need to further study it anymore and why is it that many people are finding difficulty with stringing sentences together to enable them to produce grammatically flawless and perfect language? Perhaps, one should look at the point of the whole theory and the evidences that underlie it. It is imperative to note that according to the theory, universal grammar simply means that it holds the belief that there is an â€Å"internal structure† within the confines of â€Å"the human mind,† and because of this structure which is so innate in a person, he or she is able to recognize and produce sentences or a language which has an obvious structure. Language Acquisition and the Feral Children However, a counter argument can be made stating that people only learn such grammar because of the language produced around them. After all, what can be seen, heard, or done by adults are most often emulated by younger children, as what Albert Bandura’s experiment on Booboo Dolls show. As such, this can be also applicable to language acquisition of the younger children. Stephen Krashen, another linguist, even formulated that effective second language acquisition can be fully realized if it follows the same natural pattern of first language acquisition wherein it enables the learner to converse in a natural environment and with the native speakers. In simple terms, the logical way in explaining this universal grammar that a person or (in the most often cases) a child innately has supposedly is through the learning acquisition he or she has made through his or her surroundings. However, Timothy Mason has different ideas. Citing Chomsky and other situations in the history of psycholinguistics, he concluded that there are people, most specifically children, who are able to form language with little or absolutely no interaction at all with other people. There are famous accounts of wild children who are called the feral children—they are what Mason calls as â€Å"tragic figures, offering glimpses of what might have been, of fully human intelligence that somehow does not enable them to live a social life. † There are numerous personalities who became famous for being one of the feral children; one of them is Genie. In a gist, Genie is a thirteen-year old young girl who has been locked up by his father from the outside world with absolutely no interaction with people who may have caused her to acquire a language whatsoever. The surprising thing is Genie does exhibit language acquisition even if it is in a very minimal way. Other personalities who have undergone the same history can be plenty, ranging from the â€Å"Victor, the wild boy of Aveyron† to Genie’s case in 1970 (Mason). How did these children then learn their very own primitive language if they are unable to interact in a normal environment? Thus, the theory of universal grammar may indeed hold some truth in it. The Neurological Connection of the Brain and Language Another basis of the universal grammar is the neurological explanation behind the theory. According to Mason, there are certain evidences that the â€Å"language functions† of a person seem to be located in a â€Å"localized [area] in the brain. † These areas are proven to be affecting the language functions of the brain. The studies of brain illnesses and diseases have proven this as what appears in Norman Geshwind’s essay: †¦the most fruitful has been the study if language disorders, followed by postmortem analysis of the brain, in patients who have suffered brain damage. From these studies has emerged a model of how the language areas of the brain are interconnected and what each area does. Thus, ever since a person is born, his or her brain is already working to acquire and learn the language that a person needs to produce. Conclusion In conclusion, although there are still speculations about the authenticity of the universal grammar and even if it is still a theory, there should be no reason to rule out the possibility that it may indeed be true. Perhaps, in the near future, someone may be able to fully find out the truth and prove that there is indeed a universal grammar existing within the confines of each person. Works Cited Geshwind, Norman. â€Å"Language and the Brain. † First Language Acquisition: The Essential Readings. Ed. Barbara Lust and Claire Foley. Oxford, United Kingdom: Wiley-Blackwell, 2004. 109–122. Herman, David. Universal Grammar and Narrative Form. Durham, NC: Duke University Press, 1995. Mason, Timothy. â€Å"Lecture 3: The Evidence from Acquisition in Extreme Conditions, Didactics 3: Chomsky the Evidence II†. Didactics of English. 2002. Universite of Versailles St. Quentin. 11 May 2009.

The London Stock Exchange Information Technology Essay

The London Stock Exchange Information Technology Essay The London Stock Exchange has for over 300 years produced detailed market information for companies and investors. Technological innovations have transformed this service and from a bi-weekly paper publication, the LSE today continuously remit electronic information to all the financial markets across the globe in real time. These innovations, however, suffered a major setback when a new computer system commissioned in 1989 ended up to be one of the decades biggest failures when its implementation was terminated in 1996. Background Information Transfer and Automated Registration of Uncertified Stock, otherwise known as TAURUS, was a system meant to wholly change the way of conducting business at the London Stock Exchange in 1989, by automating the sale and purchase of securities. Had it succeeded, it would have dematerialized stock certificates and instead, ownership of the various stocks would have run through a computer database, this would have saved the London Stock Exchange millions of pounds annually and further reduced the risk of purchasers going bankrupt before settlement. However, the implementation of TAURUS did not go as planned and was terminated four years after being commissioned. This failure gave birth to CREST, a computer system whose implementation was commissioned by the Bank of England after taking lessons on organizational change and project management from the failure of TAURUS. Problems that Contributed to the Failure of TAURUS One of the reasons that led to TAURUS failure as a computer system at the LSE was the fact that it attempted to solve too many mini problems. This was as a result of the design and implementation team attempting to take care of most of the individual interests of the players at the LSE. The LSE has many firms whose individual trading methods vary, and the thought of incorporating their needs while keeping the overall objective of the system was far-fetched. The idea that a system should always aim at solving the overall problem by factoring in common minor concerns was basically overlooked in the case for TAURUS (Ackoff, 1989). It is a project management policy that one objective is set and all efforts in implementation should be geared towards its achievement. It was therefore a failure on the part of the LSEs management to be distracted from this, and instead, prioritized individual stakeholder needs. The other problem was the size and structure of the design team. For efficiency, a change implementation team should have very clear structures for a smooth transition, the TAURUS system design team should have been as slim as possible to avoid coding mistakes given that this was a project that would overhaul transactions at the LSE-this was not the case for TAURUS. TAURUS employed hundreds of people, an action that led to numerous coding mistakes and confusion as there was no clear structure of operations. This happened at a time when the world had not fully embraced technology, which was a recipe for failure. That is exactly what happened when several code mistakes appeared in the system. The other problem against TAURUS was the government interest in the project, which led to the creation of an issue involving a 150-page of document containing complex regulations to be followed. The governments document was so big that it did not give the design team a free hand to make feasible decisions with regards to the system. The government clearly revealed that the political interests in TAURUS were not comprehensively explored and that adequate stakeholders had been overlooked. It would have been proper to know and clearly define the interest and input of the government. Had this happened, it would have led to a simpler regulatory document that would not only be precise with regards to the design teams scope of operations, but also acceptable to all. The design team should have been given the freedom to make realistic alterations in case of a technical difficulty towards the achievement of the overall objective. Having cast on hardline operational regulations, the objective was not easy to realize as every change outside the regulations came with serious legal implications. The strict and complex regulations led to numerous redesigns, causing delays and eventually the project costs went out of control. The design team also made another mistake of choosing the software that needed several modifications to meet the different demands. This meant that they were relying on unproven software, which was very risky. Reasons for the Success of CREST CREST, a system that is still in use today, went live in 1996 and was completed within both the allocated budget and schedule. The reason for its success was that its development and implementation team learnt from the mistakes made in implementing TAURUS. CREST had a small staff of just 20, with four to five experienced members supervising the entire project. It had a minimalist approach with a design to perform only a pair of processes, which made up nearly 90% of all transactions of the LSE, unlike the 21 attempted by TAURUS. This meant that the overall project objective was very clear and all the human and material resources were properly directed towards their achievement. The slim design team also meant that modifications were closely monitored which provided minimal room for mistakes. The project equally made use of tested computer software (TCS). The use of TCS in CREST meant that the implementation was done with just a few problems to be solved, and there was no problem in c oding-solutions were readily available. Organizational Change in TAURUS and CREST An organization must always undergo some kind of change to cope with the dynamic business environment. In the case of the LSE, the need to incorporate technology in its operations was inevitable at the end of the 1980s. However, this change was resisted the end result was the failure to implement the multi million pound TAURUS project for a few reasons. One, there was no proper structure to implement the new system. TAURUS was a mandatory system and needed to accommodate the interests of all stakeholders who severally and individually had an idea of their own inputs. The management of the LSE should have spent time and resources in identifying the common individual needs of these stakeholders to design a system that could have addressed the common needs. If this were the case, TAURUS design team would have worked towards achieving what CREST later achieved. It is by failing to address these common needs that individual players at the LSE insisted on their inputs to be incorporated in to the system and still achieve the overall objective. Two; change will always be resisted in any organization by people who feel that the new order is not in their best interests. The LSE management had no clear structure or definitive planning strategy. The project was carried out in fragments without bringing it together and this was bound to cause delays as merging fragments of the system that may not be fully compatible could lead to further re-writing complications. This gave room for speculation with regards to system mismanagement. Some stakeholders thought that if this system had been successfully implemented then it could have had an effect on power as a way of getting rid of their jobs, and the whole LSE process would be completely changed. This thought created an enemy within, thence implementation could not have been successful. The appropriate mode of action was for the management to conduct education to the stakeholders and familiarize them with the new way of transaction with the aim of letting them know that computerization was a tool that would improve how they did business at the LSE and not an impediment as they thought. This would have helped in the stakeholders embracing and offering support to the implementation of TAURUS. Success of an organizational change is entirely dependent of how much the new way of doing things is accepted by the relevant stakeholders. Principles and Methodologies of Project Management In The Case Of TAURUS and CREST The main principles of project management are purpose, relevance, feasibility, accuracy and accountability (Maylor 2005). The main purpose in the case of TAURUS and CREST was to computerize the LSE, a purpose that was achieved by the implementation of CREST, but not TAURUS. It was very important that all the stakeholders understood and embodied this principle and to do so, the management had the task of conducting a project familiarization campaign whose success would be measured by the stakeholders understanding of the projects significance to the current business operations, its contribution to business policies and production of a document with stakeholder recommendations. These parameters would ensure that all interested parties owned and accepted the project. Worries about job losses, shifts in political influence at the LSE upon its implementation would be minimal and the result would be a successful implementation and transition into the new system. It was equally important that the LSE stakeholders understood the relevance of a computer system to their transaction. One should not be taken by surprise if it emerged that among the stakeholders opposed to the new system were interested groups that did not see the need for TAURUS at the time. It is universally known that change, be it organizational, political or otherwise, will always be resisted by people who cannot see any major differences between the old and proposed new ways of doing things. Having faith in the accuracy accountability of TAURUS would have further facilitated the stakeholders acceptance of the system. Interest groups will always want the assurance that the new order is safe for their businesses to be able to build the needed faith and rule out the possibility of other interests taking advantage of the new system. When a majority of stakeholders do not clearly understand a new idea, they are bound to front an opposition up to a point when they understand the pr os and cons of the new order in totality. These principles and their parameters must always be taken into account for a successful implementation of a project and when ignored or partially considered, failure is always the end product as was in the case at the LSE. There are scientifically acceptable methodologies in project implementation and these include: Critical Path A project can be broken down into a number of tasks that have to be performed and in the preparation of a project schedule, the project manager has to figure out what the tasks are, how long they will take, what resources they require, and in what order they should be done ( Maylor, H. (2005), Project Management). All these elements have a direct correlation to the schedule. Omission of a task would then lead to the projects incompletion, underestimation of the length of time or the amount of resources required for the task would also mean missing the schedule. The schedule can also be blown if a mistake in the sequencing of the tasks is made. TAURUS design team had problems with following the critical path because of the large number of staff involved in its design which created duplication of duties and coding problems. This was however not the case in CREST which had a slim design team and for that, CREST went live not only within its schedule but also within the allocated budget. A project manager should always build the project schedule by listing in order, all the tasks that need to be completed, assigning duration to each task and allocating the required resources. It is always important to determine predecessors-what tasks must be completed before, and successors-tasks that cannot start until after, for each task. This makes project implementation very simple and straightforward. A typical example is to think of a project as getting dressed in the morning. The task of putting on a shirt may have a longer duration if it is a buttoned dress shirt than if it is a pullover, and it does not matter which order one completes the task of putting on right or left shoe as long as he or she completes putting on pants before starting wearing shoes. When a project, however big, is looked in such simple terms, success will always be the end result. However, there is always some difficulty in managing a project schedule in that there are seldom enough resources and enough time to complete the tasks sequentially. In this case, tasks have to be overlapped so that several can happen at the same time. Were it not for this sequential running of coding during CRESTS design, it would not have been live in 1996. A Project Managers key duty is to manage the critical path and this is what separates the success of a manager. Materials The biggest material in the TAURUS and CREST project was the staff. Managing human resources entails having the right people, with the right skills and proper tools, in the right quantity, and at the right time. It also means ensuring that those people know what needs to be done, when, and how-and finally, it means motivating them to take ownership in the project too, something that was perfected in the design and implementation of CREST. The opposite was however the case in TAURUS. There were so many people doing the same thing at the same level resulting into multiple mistakes and ultimately failure. Materials also include operation manuals and hardware, computers in the case of TAURUS and CREST. TAURUS had three volumes of specification manuals each two inches thick. This was a recipe for confusion in a project of this magnitude. This further emphasizes on the fact that, for a successful project implementation, a manager must match the right human resource to the correct tools and materials. Cost Every project task will have a cost, whether it is the cost of the labor hours of a computer programmer or the purchase price of a cubic yard of concrete. In preparing the project budget, each of these costs is estimated and a total figure arrived at. Some of these estimates are likely to be more accurate than others. A company usually knows what it will charge each of its projects for different classifications of labor. Concrete for example, is priced in a very competitive market so prices are fairly predictable. With the numerous modifications to TAURUSs design software which had not been well tested earlier on and a number of coding mistakes, the cost of implementing TAURUS went way beyond the allocated budget. This was not the case in CREST, the project managers managed every task and with the thin and clear structures in place, the allocated budget was never surpassed. It is therefore important to note that the total project cost can only be contained and properly managed by clo sely monitoring individual task costs during the implementation process. Therefore, a project manager should not take his or her sights of the performance and costs of component project tasks. Conclusion The TAURUS and CREST projects present a wonderful example of issues that should not be overlooked in the implementation of projects and in the process of bringing to life organizational change. It is important to take into account several facts before the implementation of a new idea or way of operations. It is also important that everyone involved understands and is in a position to offer prompt answers to the following questions: What are the anticipated benefits of the system? Are there any existing cultural issues that the new order will overhaul? If so, what are they? How can they be overcome? Are all the stakeholders input factored into the new order? To what extent is the government involved and if not, how can it be involved? Do the stakeholders understand how the implementation will alter their operation and are they prepared for the alterations? These are just but a few of the basic questions that the implementation team should be able to confidently give answers to before resources are committed to a project or a new way of doing business. The implementation of TAURUS clearly failed to answer most of the questions and the end result was a totally new computer system known as CREST after several years of wasted man hours, millions of sterling pounds and embarrassment not only to the LSE bur also to the Bank of England. CREST as a computer system answered most if not all the questions that TAURUS failed to provide. It particularly adheres to the basic methodology of sticking the set critical path as a tool in not only getting the job done in time but also within the allocated budget and with minimal avoidable mistakes. The issue of getting the right number of people holding the required qualifications for the work at hand and making use of the relevant tools was well understood and put in practice in CREST. This is a confirmation that scientifically proven ways of project management should always be put to practice and their strict adherence is what makes the difference between success and failure for a project manager and an organization seeking to implement change. The project management policy that a singular or a clear list of set objectives should always be in place and all implementation efforts geared towards their achievement is a lesson that can never be taken for granted. As by the saying too many cooks spoilt the broth so did the many individual interests at the LSE that contributed to the failure of the implementation of TAURUS. Focus shifted to what was not the main reason for the computer system and confusion followed. It should be understood that organizational change is an inevitable part of business and any institution not prepared for change cannot survive the dynamic business environment today. It is therefore important to take lessons from CREST during and after implementation of a new order to not only improve ways of doing business but to also minimize the huge losses that come with the failure to totally implement a new project or to do it the wrong way.

Controversy Of Coca Cola Company In India Commerce Essay

Controversy Of Coca Cola Company In India Commerce Essay This case study states the controversy of Coca Cola Company in India because of the allegations of CSE (Centre for Science and the Environment) which stated the presence of high levels of pesticide in 12 cold drinks in and around Delhi. It analysis the controversy to how the stakeholders were affected and also recommends the different strategies that could have been used to tackle the situation in a better way. This controversy is the biggest crisis in Coca Cola India which affected the company in a big and negative way. CONTENT Introduction..3 Analysis.3-4 Stakeholders theory.5 Recommendations..6-7 Conclusion8 References9 INTRODUCTION Coca Cola Company is the worlds largest beverage company with manufacturing, distributing and marketing of non-alcoholic beverage concentrates around the world. Coca Cola brand and formula was bought by Asa Candler in 1889 who integrated the Coca Cola Company in 1892. Coca Cola offers almost 400 brands in more than 200 countries. CSE had a press release which stated some 12 cold drink brands in and around Delhi contained a deadly cocktail of pesticide residue in it. The tests were conducted by the Pollution Monitoring Laboratory which found 12 cold drink brands containing pesticide residue exceeding the global standards by 35 times (Sanjeev Gupta 2003). Since the Bureau of Indian Standards (BIS) has an unclear and indeterminate standards for pesticide residues, CSE used the European standard for maximum acceptable limits for pesticide in package water. The pesticide that has been found is harmful for the human body, which were known to cause cancer, birth defects and severe damage to the immune system, nerves and reproductive systems. All these aspects, social, environmental, ethical and political, are affected and each play an important part in the whole crisis in Coca Cola (India Kaye- Jennifer 2005). ANALYSIS Many of the scientists have been arguing that the pesticide which is a by-product of Indias agriculture industry, leaked into the groundwater which Coco Cola uses for the manufacturing of the drinks. Most of the industries in India are required to meet an acceptable amount of pesticide allowed but when tested; the level was far more than the acceptable level (Coco-cola in India. 2012). In a matter of only 2 3 weeks the sale of Coca Cola dropped by 40 percent. The President and CEO of Coca Cola India, Sanjiv Gupta denied the allegations made by CSE and also stated them to be unaccredited and misleading. They even challenged the credibility of CSE and their results and plan to make the data public. On one hand the tests done by CSE, resulted in the exceeding presence of pesticide in those 12 samples but on the other hand when the government did the tests, it found no unsafe level of pesticide which was stated by the Minster of health and family welfare (Indian Resource Center 2012). CSE disputed the testing and stated that both the results cannot be right. Later Coca Cola hiked the prices by 15 percent in India giving the reasons that the hike in prices will cover up the increase in raw material, the cost of distribution and also the effect of the false pesticide accusation which led to a decline (Brady, D 2007). This uproar also crossed across to the United States where the University of Michigan stopped the sale of Coca Cola products along with universities like New York University, Rutgers University New Jersey and Santa Clara University California which also stopped the sale of Coca Cola products. All these universities had a 1.4 million contract with Coke. In India, Coca Cola teamed up PepsiCo on a campaign to prove that their products were safe and they also issued a combined statement in the crisis through ISDMA (Indian Soft Drinks Manufacturers Association). They also stated that the customer safety was their priority and that the soft drinks which are manufactured in India fulfil the international as well as the national norms and regulations (Indias cola crisis bubbles up 2003). Coke was under a lot of pressure by the protestors, who even attacked the shops in Delhi which sold Coca Cola products. The Indian Supreme Court also pressurized the company to reveal the secret recipe which has been kept a secret for almost 120 years, so that more testing could be done. States like Gujarat and Madhya Pradesh banned the Coca Cola products and wanted a nationwide ban (Amelia Gentleman 2012). Sales dropped by 40 percent and also the Coca Cola Bottling Company stock went down by 5 percent. This is arguably the biggest controversy in Coca Cola Company in India (Reynolds, J 2007).Coke concentrated more on arguing the allegation made by CSE of the pesticide charges instead of concentrating on getting back the support of the customers, especially in India. This caused a backfire as stated by Richard.S.Lewick who specialises in crisis management. All this led to the main concern of winning back the support of the consumers, quality issue, environmental issue and political is sue (Fraser P. Seitel 2010). THE STAKEHOLERS THEORY MANAGEMENT EMPLOYEES INVESTORS COCACOLA COMPANY SUPPLIERS LOCAL COMMUNITY GOVERNMENT CUTOMERS CONSUMERS The table below states the degree of importance and the power of influence of each stakeholder individually: STAKEHOLDERS DEGREE OF IMPORTANCE POWER OF INFLUENCE Employees 5 4 Investors 5 4 Suppliers 5 4 Management 5 5 Consumers 5 4 Customers 5 5 Government 5 5 Local community 4 3 RECOMMENDATIONS I hope the following recommendations and strategies will help Coca Cola rebuild its image and reputation in India to increase sale of Coca Cola products, improve the ratings and also earn back and regain the trust of the people in India. Internal recommendations: The first priority should be to re examine the testing amenities and update the water purification system throughout the plants in India since the company dedicates to offer healthy and refreshing products (Earth Talk 2012). The employees should also be regularly updated on how the crisis is being administered. A mandatory bi monthly meeting should be held which will brief on the lab results, procedure and the new policies. A toll free 800 number can be created where the customers can call and ask the operators with any questions they might have and want cleared. External recommendations: Immediately after the CSE allegations and the press release of high level of pesticide in Coca Cola products, the President and CEO of Coca Cola India should have held a news conference addressing the issue and assuring the public that the company is dedicated to offering high quality product and that the Coca Cola independent tests have resulted in the support of the standards set by the European Economic Commission (EEC), and the officials also should take care of not admitting to the guilt but assuring that the company is dedicated and loyal to the safety of the people and always keeps on researching on improving all the products. The company should also have increased the transparency by making the lab results public on quality control etc., on their website. Instead of attacking the CSE for the allegations made by them, joining forces with them would help a lot in solving the problem which would avert the loss of customers in India and also around the world. Coca Cola Company could also have stated that the tests done by CSE, was done by a third party. The company could have been less offensive which would make the public believe that the company is taking this matter seriously and they do care about the health and safety of the public (Nandlal Master,  Lok Samiti  Amit Srivastava 2008).   Another recommendation can be a case of DENIAL i.e. Coca Cola India can just ignore the allegations made by CSE. Coca Cola being a powerful brand could deny the allegations, by just ignoring it because eventually after a while the people will forget about it. This is a simple alternative but it can also backfire because the reporters are known to criticise and make an issue through media. Even though the NGOs are small, but the public trusts them more which could turn out to be a disaster for Coca Cola. Just as in the case of Belgium, a couple of years earlier, Coca Cola India could arrange a PR campaign which would help them regain customer loyalty. In the case of Belgium, the company there arranged a PR campaign in which vouchers, products were being delivered to the house and offered which worked for Belgium because it only consists of 4.4 million households which is comparatively less to that of India. So the PR campaign plan has to be tailored to reach out to the people in India. It can also show and demonstrate that Coca Cola is not just a huge greedy company which concentrates only on profits but is a global citizen which also gives back to the people of the community. This strategy will also help build an image which will show the company as to being responsible both socially and environmentally. Coca Cola India can go green and create a green logo which can be put up and stamped in all the bottles and cans of the soft drinks products so when the people buy the product they have an assurance and a satisfaction that the product is safe. This will not only show that the product is safe for consumptions but also that it is not harmful to the environment. A regular taste testing could be organised in the urban and rural communities so that the people themselves could give feedbacks on the quality of the product and as to how to make it better. This can also include community services with the people cleaning the river, streets, ponds etc (Cokes crime in India 2004). When the improvement in the quality is made the public will automatically start working in behalf of the company to restore and promote the product while the company continually keeps on the quality of the product and the public safety as their priority. CONCLUSION It can be assured that the recommendations and strategies mentioned above will prove itself to be socially and environmentally responsible which prioritizes the safety of the public in providing safe and delicious soft drinks which will eventually lead to the sustainability of Coca Cola India.co and its profit. The crisis spotlights on the factors and commodities like clean drinking water, which cannot be taken lightly and is a serious matter which needs to be made a priority and the quality of the product should continually be examined and updated. The transparency of Coca Cola India was also questioned. The analysis of the crisis regarding socio- ecological and political changes, all are covered here as in the government taking a stand, environmental measures and public safety (Desertplace 2009). Coca Cola India learnt a lot of things from this crisis as to making public safety their priority and not neglecting the main issues which concerns with the safety of the consumers and als o the environment.

Cataract Operation :: Free Essays

Cataract Operation Title ----- The title refers to the removal of a dull film from the eyes. This is a poem about sight and awareness. Structure Another poem of twenty lines, being made up of ten couplets. Again the poet plays with rhyme as in the pun "hens" and "lens". Language The poem is rife with clichÃÆ'Â ©, metaphor and puns. The poem starts with a very distinctive simile: "The sun comes like a head through last night's turtleneck." This not only gives the reader a comical image of the sun coming up but links this time of day with waking up and hurrying to dress up in yesterday's clothes. By changing everyday ordinary things into extraordinary images, the poet creates a vivid picture and a sense of movement. He does this through his choice of words, his use of colloquial expressions and his use of metaphor. Notice how he describes the pigeon. The expression "turns tail" is particularly effective because it suggests that the pigeon is turning and "taking flight", all in one quick movement. Comparing the tail to a magician fanning out a pack of cards also works well because it expresses the magic of a brief moment when the pigeon opens out its tail feathers. The theatrical metaphor is continued with "a pantomime of damp, forgotten washing" which now plays out the entertainment, where these ordinary things are transformed. So, as the wind stirs the washing, the poet imagines a bull fight enacted with the crimson towel, a can-can danced by the fluttering ra-ra skirt, the mischievous behaviour of the shirt, which flaps animatedly in the wind pegged only by its sleeve, waving of a handkerchief like an informal goodbye, and imagines a parade of hens are a company of soldiers strutting round the courtyard. Parts of the pictures are real and some are imagined. The poem can be compared to a magic eye picture. If it is studied for long enough, the picture changes and hidden images emerge.

The Tell-Tale Heart: An Analysis Essay -- Analysis Tell Tale Essays Pa

The Tell-Tale Heart: An Analysis   Ã‚  Ã‚  Ã‚  Ã‚  In Edgar Allan Poe’s short-story, â€Å"The Tell-Tale Heart,† the storyteller tries to convince the reader that he is not mad. At the very beginning of the story, he asks, "...why will you say I am mad?" When the storyteller tells his story, it's obvious why. He attempts to tell his story in a calm manner, but occasionally jumps into a frenzied rant. Poe's story demonstrates an inner conflict; the state of madness and emotional break-down that the subconscious can inflict upon one's self.   Ã‚  Ã‚  Ã‚  Ã‚  In "The Tell-Tale Heart", the storyteller tells of his torment. He is tormented by an old man's Evil Eye. The storyteller had no ill will against the old man himself, even saying that he loved him, but the old man's pale blue, filmy eye made his blood run cold. And when the storyteller couldn't take anymore of the Evil Eye looking at him, he said, "I made up my mind to take the life of the old man, and thus rid myself of the eye for ever." This is the start of the storyteller’s madness, and as the reader listens to what he says, the madness within the storyteller becomes very apparent.   Ã‚  Ã‚  Ã‚  Ã‚  For eight nights in a row, the storyteller went to the old man’s chamber and cast a shred of light upon the Evil Eye that he so hated. For seven nights, it was always shut, and the storyteller could do nothing because it was only the eye that he hated, not the old man. On the eighth, the storyteller accidentally makes some noise and wakes the old man up. As... The Tell-Tale Heart: An Analysis Essay -- Analysis Tell Tale Essays Pa The Tell-Tale Heart: An Analysis   Ã‚  Ã‚  Ã‚  Ã‚  In Edgar Allan Poe’s short-story, â€Å"The Tell-Tale Heart,† the storyteller tries to convince the reader that he is not mad. At the very beginning of the story, he asks, "...why will you say I am mad?" When the storyteller tells his story, it's obvious why. He attempts to tell his story in a calm manner, but occasionally jumps into a frenzied rant. Poe's story demonstrates an inner conflict; the state of madness and emotional break-down that the subconscious can inflict upon one's self.   Ã‚  Ã‚  Ã‚  Ã‚  In "The Tell-Tale Heart", the storyteller tells of his torment. He is tormented by an old man's Evil Eye. The storyteller had no ill will against the old man himself, even saying that he loved him, but the old man's pale blue, filmy eye made his blood run cold. And when the storyteller couldn't take anymore of the Evil Eye looking at him, he said, "I made up my mind to take the life of the old man, and thus rid myself of the eye for ever." This is the start of the storyteller’s madness, and as the reader listens to what he says, the madness within the storyteller becomes very apparent.   Ã‚  Ã‚  Ã‚  Ã‚  For eight nights in a row, the storyteller went to the old man’s chamber and cast a shred of light upon the Evil Eye that he so hated. For seven nights, it was always shut, and the storyteller could do nothing because it was only the eye that he hated, not the old man. On the eighth, the storyteller accidentally makes some noise and wakes the old man up. As...

The Seven Principles For Making a Marriage Work :: essays research papers

The Seven Principles For Making a Marriage Work   Ã‚  Ã‚  Ã‚  Ã‚  In The Seven Principles For Making Marriage Work there are seven myths and seven real truths about marriage. The first myth is that neuroses or personality problems will ruin a marriage. The truth about that myth is that we all have our crazy buttons or issues we’re not totally rational about, but they don't necessarily interfere with marriage. The key to a happy marriage isn't having a "normal" personality, but finding someone with whom you get along with. The second myth is that common interests keep you together. The truth is that it is a plus to have common interests with someone, but is all depends on how you interact with the other person while pursuing those interests. The third myth is the saying "You scratch my back and .....". The real truth about this myth is that it is only a truly unhappy marriage where this quid pro quo operates, where each partner feels the need to tally up things the other partner did. Married couples should just do things f or one another because it feels positive to them and their spouse. If you keep score in marriage it shows there is an area of tension in your marriage.   Ã‚  Ã‚  Ã‚  Ã‚  Another myth that is shown to us in this book would be that avoiding conflict in a relationship will ruin your marriage. The truth about this myth is that couples simply have different styles of conflict. Some avoid fighting with their spouses at all costs, some couples fight a lot, and some can find a compromise with out ever having to raise their voices. No one of these styles is better for the other it's just a matter of which style works for both spouses. The fifth myth that is portrayed is that affairs are the root cause of divorce. The truth is that problems in marriage which send couples on a path to divorce also tends to lead to one or both of the partners resort to an intimate relationship outside of marriage. Eighty percent of divorced men and women said their marriage broke up because they gradually grew apart and lost a sense of closeness, or because they did not feel loved or appreciated. The sixth myth that is talked about is that men are not biologi cally "built" for marriage. The truth is that among humans the frequency of extramarital affairs does not depend on the gender so much as the opportunity.

Commercial Vehicle Market in India

2010 Commercial Vehicle Market in India-Industry Report Commercial Vehicle Market in India-Industry Report Table of Contents Executive Summary3 Usage Segment6 Market share & Competition Situation8 Key Opportunities14 Key Success factors15 Financial Analysis17 Regulatory Advantage & legal frameworks22 Recent Mergers & Acquisitions26 Industry SWOT27 Market forecast with Macroeconomic assumptions28 PEST Analysis30 Annexure32 List of Industry Associations32 Executive SummaryIndia being the second most populated and seventh largest nation in the world provides a vast and untapped market for automobile giants. The de-licensing in 1991 provided the well-deserved growth essentials, which attracted international automobile majors to set up their production facilities in the country to take advantage of various facilities available. According to my research, the economic slowdown has had moderate negative effects on commercial vehicle market. The slowdown of commercial activities i n infrastructure, construction, manufacturing and other sectors resulted in sluggish demand for commercial vehicles.However, in 2009-10, the commercial vehicle segment regained its growth momentum, both in terms of production and sales, on the strong fundamentals of recuperating demand from almost all prominent sectors. Especially, passenger carriers registered notable sales momentum and boosted the overall commercial vehicle development outlook. In coming years, rapid expansion of cities to suburban areas will also create more demand for mass transportation vehicles in the country. It is expected that a major part of India will be well connected by 2013-14, which will fuel the demand for commercial passenger carriers in the country.Keeping this in mind, we have projected the sales of commercial passenger carriers to register nearly 13% CAGR between 2010-11 and 2013-14. On utility vehicle front, the country posted one of the fastest year-on-year production growths in 2009-10. In 200 8-09, manufacturers were forced to halt their production capacity amid falling domestic and export demand for utility vehicles. Consequently, the production saw a massive 11% drop in the same year. With recovering vehicle demand from schools, corporates and public sector organizations, the production grew strongly at the rate of 24. % in 2009-10. We anticipate this trend to continue in coming years also, thus enabling the country to become a dominant utility vehicle player in global arena. This report is an outcome of extensive research and objective analysis on Utility Vehicle, Multipurpose Vehicle and Commercial Vehicle markets in India. The report provides detailed data and statistics on production, sales and export trends for each of the abovementioned market segment. It studies all the past and present trends prevailing in the market to give the future market outlook.Industry in India ———————————â€⠀Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- KEY POINTS 1. ————————————————- Automobile production and sales went up in 2007-08 as compared to 2002-03. 2. ————————————————- They reached a peak in 2009-10 3. ————————————————- Sales of commercial vehicles are growing day by day due to the growing construction industry and commercial developments and many other conditions such as growing urbanization. ———————————————— ————————————————- KEY POINT S 4. ————————————————- Automobile production and sales went up in 2007-08 as compared to 2002-03. 5. ————————————————- They reached a peak in 2009-10 6. ————————————————- Sales of commercial vehicles are growing day by day due to the growing construction industry and commercial developments and many other conditions such as growing urbanization. ———————————————— High economic growth of India has worked wonders for most of its industries. With advantages like low labor costs, easy availability of raw materials and well qualified employees, Indi a has established many industries thereby marking the beginning of an era of rapid industrialization. This has led to the increase in employment rate and income levels, giving rise to a more affluent middle class in the country, which serves as an active consumer base for most of the industries, including the automobile industry.India opened its automobile industry to global players with the de-licensing of the industry in 1991. As a result, automobile production and sales went up strongly in 2007-08 from 2002-03 levels. Even amid global economic slowdown, the industry was able to sustain its positive growth momentum. Moreover, in 2009-10 automobile production and sales surged phenomenally and India emerged as a potential competitor of the largest automobile markets such as China and Japan. Sales of commercial vehicles, particularly light commercial goods carriers are touching new heights, both in domestic and export markets.The growing construction industry and commercial developme nts have opened new vistas for light commercial goods carriers. But medium and heavy commercial vehicles will also see high demand in the domestic market due to infrastructure development like hydro power projects, port development and mining industry. Commercial passenger vehicles will also hit the peak due to increasing urbanization and growing need to commute from rural and sub-urban areas to industrial areas for work. All these are creating suitable conditions for India to emerge as an automobile production hub in the future.The sectors which have major contribution in LCV sales in the country are expected to see sustained capital expenditure in coming years. For instance, the organized retail sector which is growing at an annual pace of 30% is highly untapped and the players are planning to aggressively increase their presence in Tier-2 and Tier-3 cities. This will further boost the demand of commercial vehicles as they are largely deployed in redistribution of consumption good s. Usage Segment * Transport operators: This segment includes all fleet operators and owner-operators.There are around 200,000 road transport operators in India. However, most of them are small owner-driven firms. Road freight transportation is highly fragmented with the truck operators owning less than five trucks estimated to account for over 75% of the truck fleet. It is estimated that 77% of truck fleet is under operators who own 5 trucks or less; 10% belonged to those with 6-10 trucks; 4% belonged to those with 11-15 trucks; 3% belonged to those with 16-20 trucks; and only 4% of fleet belonged to those with more than 20 trucks. Thus, the industry is characterised by intense competition.The high competition is the result of relatively lower capital requirement, ease of obtaining driving licenses and permits. The small operators are involved mainly in the physical movement of goods and depend on brokers and other fleet operators who in turn depend on the booking agents for obtain ing business. These operators do not have the geographical reach and necessary infrastructure to tap business on a continuous basis, and thus rely on brokers. Fleet operators are the medium and large, organised-sector players in the transportation industry. The arge fleet operators are small in number, and generally operate throughout the country. These fleet operators primarily work on a hub and spoke model. The hub and spoke distribution system enables optimisation of costs and higher revenues for the transport companies/ fleet operators. These transport companies generally have formal contracts with the users, which is very rare in the case of small operators. Some larger fleet operators have ventured into offering value-added services such as courier and express cargo business and providing third party logistic services. Companies: This segment accounts for a small proportion of CV sales. Some companies located in industrial areas use these vehicles primarily for employee and ma terial transportation while a few companies use them for secondary distribution of the goods from warehouses to distributors, such as wholesalers and retailers. * Government organisations: The vehicle purchases made by municipal authorities, State transport undertakings, and various other Government departments primarily include LCVs and special application vehicles. Private bus operators: There has been a significant increase in the number of private bus operators in the country as State transport undertakings have proved inadequate in meeting the increasing demand for transportation. These vehicles are used as passenger carriers or chartered buses. ————————————————- ————————————————- Key points ————————â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ————————————————- Key points ————————————————- Zzzzzzzzzz ————————————————- Yyyyyyyyyyyyyy ———————————————— Key points ————————————————- Zzzzzzzzzz ————————————————- Yyyyyyyyyyyyyy ——————————à ¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- Key points Market Structure & Segmentation ————————————————- Enter key points: ————————————————- Enter key points: The commercial vehicle market can be divided into four segments: 1. Segment A-High performance and image sensitive- The consumers in segment A are brand conscious and are willing to pay any price for that brand.But, they usually don’t compromise on quality. However, that doesn’t means they are loyal to one brand. To target such type of consumers, companies have to concentrate on performance as the main criteria. 2. Segment B-Balanced perspective-The consumers in segment B are the most difficult ones to please. They want both price and performance rolled into one product. To target suc h type of consumers, companies have to concentrate on delivering high performance at the best prices. Hence, they have to keep their operating costs to a minimum. 3. Segment C-ROI and quick payback period sensitive- .Segment D-Extremely price sensitive-The consumers in segment D want a product at an economical price and for this, they are ready to compromise on performance if they are offered a good price. To target such type of consumers, companies have to design products keeping costs at a minimum even if that means a medium or low performance but the main criteria is that price should be the best in the industry. Market share & Competition Situation The following are the main players in the Production of Commercial Vehicles in India; * Ashok Leyland Ltd. * Hindustan Motors Ltd. * Telco Force motors Ltd. ( Previously known as Bajaj Tempo Ltd) * Eicher Motors Ltd. * Mahindra & Mahindra Ltd. * Swaraj Mazda Ltd. * Tata Motors * Ashok Leyland Ashok Leyland Ashok Leyland is one of the biggest players in the Production of Commercial Vehicles in India. Ashok Leyland is one of the oldest automotive company of India. It was set up in 1948 in Madras (now called Chennai) to assemble Austin cars. However, the company's future changed after British Leyland made equity participation. Hence the company became Ashok Leyland in 1955 and started the Production of Commercial Vehicles.They offer a wide range of in Heavy and Light Commercial Vehicles varying from buses, trucks, engines to special application vehicles. They were the first company in the history of Indian to win the ISO 9002 Certification in 1993. Again it became the first Indian company to receive ISO/TS 16949 Corporate Certification. Their global ambition is very simple, it is; Global Standards, Global Markets. Hindustan Motors Ltd Hindustan Motors Ltd is one of the oldest car manufacturing company of India. It was founded in 1942. It manufactures a wide range of vehicles from cars to trucks to school bu ses to trekker to porter.However, it is more popular for one of its particular car model called the Ambassador. But, at the same time it does manufacture a lot of Commercial Vehicles as well. It was one of the leading players in cars till the early 80's but could not maintain its position after globalization came into effect and the markets were opened. It has its manufacturing plants in Uttarpara- West Bengal, Pithampur- Madhya Pradesh, Thiruvallur- Tamil Nadu and Hosur- Tamil Nadu. Telco Telco deals with Heavy Commercial Vehicles, Light Commercial Vehicles, Multi-Utility Vehicles etc.Telco was set up in 1945 to manufacture steam locomotives. Now it's the largest private sector company in Commercial Vehicle manufacturing. The four manufacturing plants of Telco are located in Jamshedpur in Jharkand, Pimpri and Chinchwad in Pune ( Maharashtra) and Lucknow in Uttar Pradesh. It has a market share of 31. 2% in Multi Utility Vehicle Segment. Force motors Ltd. (Previously known as Bajaj T empo Ltd) Force motors Ltd. (Previously known as Bajaj Tempo Ltd) is a promising company in the Commercial Vehicle segment. The company is now working on the project of introducing state-of-the-art range of trucks.The company has different technological collaboration with many international giants. Hence, it has an upper edge with new and modern technology. They are also working on eco friendly CNG bus engines. They are the only company to have a full range of Commercial Load carrying vehicles. Eicher Motors Ltd. Eicher Motors Ltd. deals with the manufacturing of Commercial Vehicles. They mainly deal with buses, trucks and chassis. These products comply with all the specifications of BS II norms. Its CNG Technology is also known to be the very best in the market. Mahindra ;amp; Mahindra Ltd.Mahindra ;amp; Mahindra Ltd. has a hugh Indian market with Multi Utility Vehicles. It was originally set up in 1945 to cater to general purpose utility vehicles. However, today it is one of the t op five manufacturers of tractors in the world. Swaraj Mazda Ltd. Swaraj Mazda Ltd. deals with the manufacturing of Light Commercial Vehicles. They mostly manufacture buses, trucks, police personnel carrier, ambulance, water tankers and special vehicles. The company was formed in 1983 and production started from 1985. Tata Motors Tata Motors is one of the most important fore runners of the Indian automobile industry.They believe in focus and state-of-the-art facilities. They probably have the best infrastructure required for the assurance of manufacturing quality vehicles. They deal with M;amp;H Commercial Vehicles, Intermediate Commercial Vehicles, Light Commercial Vehicles, Small Commercial Vehicles, Utility Vehicles Etc. In the Commercial Vehicles segment, they mostly manufacture buses and trucks. They even have a good range of passenger vehicles as well. Market Share of Major Players: The Commercial Vehicle Market is divided into following categories: 1. Light Commercial Vehicle s 2. Heavy Commercial Vehicles 3.Medium Commercial Vehicles Table 1-Market share of different players in commercial vehicle industry Type of Vehicle| TATA| Ashok Leyland| Mahindra| Eicher Motors| Force Motors| Swaraj Mazda| HindustanMotors| Volvo| Tatra| Trucks| 64%| 24%| -| 8%| -| 3%| -| ;lt;1%| ;lt;1%| Buses| 40%| 30%| 7%| 5%| 10%| 6%| 1%| 1%| -| Temposand Lorries| 59%| ;lt;1%| 32%| 4%| 3%| 3%| ;lt;1%| -| -| In the MHCV goods carrier segment, TML is the market leader with a 68% share in 9MFY2010, which represents a sharp increase from 63% in FY2008. While new players have entered the MHCV segment, some of them have limited their presence to niche segments—e. . VIL in the higher tonnage RV and HT segment; Tatra in the higher tonnage RV segment. Although the competitive intensity has increased with the entry of new players, TML and ALL continue to dominate on account of established product performance, strong brands and customer support, wide servicing network and availabilit y of spares (ease of servicing). Although TML and ALL dominate nearly all sub-segments in MHCV goods carriers market, EML has a strong presence in the 7. 5-12 tonnes segment, with a market share of 39% in 9MFY2010. However, while EML’s market share in the 7. -12 tonnes segment has declined from 53% in FY2003, TML’s market share has increased from 27% to 47% in 9MFY2010. ————————————————- Enter key points ————————————————- Enter key points Key Drivers 1. Strong economic growth- A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. The Gross Domestic Product (GDP) in India expanded at an annual rate of 8. 80 percent in the last reported quarter. From 2004 until 2010, Indi a's average quarterly GDP Growth was 8. 37 percent reaching an historical high of 10. 0 percent in September of 2006 and a record low of 5. 50 percent in December of 2004. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. In recent years, Indian cities have continued to liberalize business regulations. By 2008, India had established itself as the world's second-fastest growing major economy. Economists predict that by 2020, India will be among the leading economies of the world. According to the BRIC report, published by Goldman Sachs, India will be the second largest economy after China by 2043. . Robust industrial growth -The industrial sector is one of the main sectors that contribute to the Indian GDP. The country ranks fourteenth in the factory output in the world. The industrial sector is made up of manufacturing, mining and quarrying, and electricity, water supply, and gas sectors. The indus trial sector accounts for around 27. 6% of the India GDP and it employs over 17% of the total workforce in the country. 3. Low interest rates –Although the interest rate has been a little high this year, it has been around 6. 0% on an average for the past 5 years which has boosted trade. 4. Road and Infrastructure development -The most distinct part of India’s physical infrastructure development in recent years is the development of road network across the country; per sq. km. of surface area in India is now endowed with one km of roadways. India has one of the largest road networks in the world, aggregating to 3. 34 million km. The country’s road network consists of Expressways, National Highways, State Highways, Major District Roads, Other District Roads and Village Roads.The road network, as on December 2007, comprises 66,590 km of National Highways, 128,000 km of State Highways, 470,000 km of Major District Roads and about 2. 65 million km of other District and Rural Roads. The National Highways Development Project (NHDP), the largest highway project ever undertaken by the country, is being implemented by the National Highway Authority of India (NHAI). NHDP Phase I ;amp; II envisage 4/6 laning of about 14,279 km of National Highways, at a total estimated cost of Rs. 650 million (at 2004 prices).These two phases 109 comprise of Golden Quadrilateral (GQ), North-South and East-West Corridors, Port Connectivity and other projects. The Golden Quadrilateral (GQ-5,846 km) connects the four major cities of Delhi, Mumbai, Chennai and Kolkata. The North-South and East-West Corridors (NS-EW-7,300 km) connect Srinagar in the North to Kanyakumari in the South, including spur from Salem to Kochi and Silchar in the East to Porbandar in the West. 5. Good Agricultural production -Today, India ranks second worldwide in farm output. Agriculture and allied sectors like forestry and logging accounted for 16. % of the GDP in 2007, employed 52% of the total workforce and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. India is the largest producer in the world of fresh fruit, anise, fennel, badian, coriander, tropical fresh fruit, jute, pigeon peas, pulses, spices, millets, castor oil seed, sesame seeds, safflower seeds, lemons, limes, cow's milk, dry chillies and peppers, chick peas, cashew nuts, okra, ginger, turmeric guavas, mangoes, goat milk and buffalo milk and meat.It also has the world's largest cattle population (281 million). It is the second largest producer of cashews, cabbages, cotton seed and lint, fresh vegetables, garlic, egg plant, goat meat, silk, nutmeg. mace, cardamom, onions, wheat, rice, sugarcane, lentil, dry beans, groundnut, tea, green peas, cauliflowers, potatoes, pumpkins, squashes, gourds and inland fish. It is the third largest producer of tobacco, sorghum, rapeseed, coconuts, hen's eggs a nd tomatoes. India accounts for 10% of the world fruit production with first rank in the production of mangoes, papaya, banana and sapota. 6.Good replacement demand- There has been good replacement demand recently for commercial vehicles. Decisions about replacing vehicles are relatively complicated: people compare the transportation services they get from their present vehicle and the costs associated with running it, with the services they could get from another vehicle, given the costs of buying and selling vehicles and of running the new one. Replacement decisions are also affected by developments in the used-vehicle market: when people replace vehicles, they may buy either new or used, and they very often sell a vehicle on the used-vehicle market when they acquire another.Thus, although only production and sales of new vehicles affect the industry’s contribution to GDP, demand for new vehicles is influenced by prices, quantities, and qualities in the used-vehicle market. Key Challenges / Barriers 1. Increasing Competition and WTO Regime 2. Cyclicality of businesses 3. Increasing Customisation and Application Profileration-While the earlier paradigm aimed at meeting the needs of segments of consumers, the new paradigm treats every customer as unique.The development of technology has made it possible to address the needs of individual customers, the day may not be very far off when a customer wanting to buy a toilet soap may have to put his/her hand into a scanner which will sense the skin complexion and pop out a pouch of liquid soap that is ideally formulated to suit his/her skin. Also, innovation is more than creativity; it is the commercial realization of creativity. Consumers like what they have but also crave change. The word â€Å"New, Improved, Better† can influence the customer preference.Innovation is the life blood of Marketing. Creative ideas are valuable but the greater part is harnessing them to profitable productive change. 4. C ompetition from alternative modes- The alternative modes of transport are the telecom, air and port services. These services have grown exponentially as compared to the traditional commercial vehicle sector. Container port traffic has increased from less than a million in 1991 to about 5 million in 2005 with an annual growth rate of about 266 percent since 1991.Also, the increase in air freight and air transport has been around 15% whereas the increase in fixed line and mobile phone subscribers has been around 150% from 1991-2005. 5. Stiff Emission and other Regulatory Changes- The emission norms have become really strict these days. From the earlier emission norms of Euro 3 in metro cities and Euro 2 in rest of the country, the automobile companies have to ensure that the automobiles produced in or after 2009-10 adhere to Euro 4 in metro cities and Euro 3 in rest of the country. 6. Operating Cost Pressures 7.Increased Customer Awareness- In the 21st century, the customer has become very aware due to the various sources of information available to him. Now, it is very difficult to fool the customer as he can get the full information with the click of a button. Hence, companies have to keep the customer needs in mind while designing a product. 8. Accelerated Technology upgradation requirements and other change needs Key Opportunities Enter key points Enter key points †¢ Vibrant Indian Economy †¢ Automotive Industry showing double digit growth in all segments †¢ Growing engineering and IT capability for manufacturing Auto Component Industry :Culturally compatible-Quality, Experience and Values Key Success factors * Ability to enhance and vary product mix – A diverse and broad product mix enables a manufacturer to serve a wide variety of transportation solutions across different load levels. * Sales and distribution service network * Balance between outsourcing and in-house production * Quality: A company must have good quality product to ga in a customer trust. This would also help in building long term relationship with the consumer and also gain viral marketing. Environment: A company need to adapt to the surrounding environment and must act in a way to improve and sustain environment around it. ————————————————- Enter key points: ————————————————- 1 ————————————————- 2 ————————————————- 3 ————————————————- Enter key points: —————â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- 1 ————————————————- 2 ————————————————- 3 Enter key pointsEnter key points Market Entry Strategy * Collaboration for Manufacturing Excellence and Process Design * Production Sharing in India & Europe for a Holistic Service Capability * Partnering for Global Requirements * Merger & Acquisition * Establish JV ————————————————- Enter key points: ————————————————- 1 ———————————à ¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- 2 ————————————————- 3 ————————————————- Enter key points: ————————————————- 1 ———————————————— 2 ————————————————- 3 Financial Analysis Commercial Vehicles- Recent Trends During FY2004-07, CV sales volumes growth in the domestic market had been healthy led by buoyant economic activity, easy access to finance, entry of new truck financing companies, increased momentum in highway construction, b etter operating economics of new trucks, and a Supreme Court (SC) order prohibiting overloading of trucks. However, continued hardening of interest rates and a slowdown in economic activity has impacted CV sales volumes since FY2008.Since mid-2008, domestic CV sales volumes have declined significantly because of an economic slowdown, slowdown in index of industrial production (IIP), tighter credit conditions and constraints in the availability of vehicle finance from banks and non-banking finance companies (NBFCs). Though in-house vehicle financing of major manufacturers has increased, the additional credit flow was unable to fully offset the decrease in credit availability from outside sources. As compared with a year on year (yoy) growth of 9. 2% in Q1FY2009, domestic CV sales declined 1. 8% (yoy) during Q2FY2009, and by a sharp rate of 47. % (yoy) in Q3FY2009, and 35. 7% (yoy) in Q4FY2009. The rate of decline was lower at 12. 1% (yoy) in Q1FY2010 primarily because of 16% (yoy) gr owth in LCV segment. A significant proportion of trucks are purchased by small truck operators in the unorganised sector, who may have to pay a relatively higher rate of interest as compared with large-fleet operators, and are more vulnerable to interest rate fluctuations and slowdown in economic activity. Production: The Indian automobile sector, described as the sun rise sector, had been growing at a healthy double digit rate till 2006-07.However, it witnessed a downturn during the later half of 2007-08 and 2008-09 due to global economic slowdown. To tide over the situation, the Government of India took immediate remedial action and announced three stimulus packages. As a result of this, the overall position has improved since July, 2009 onwards. In the year 2008-09 the industry witnessed a modest growth in production at 2. 96% over 2007-08. In the year 2009-10 (April 2009 to December, 2009), passenger vehicle segment, two-wheeler segment, three-wheeler segment and commercial vehi cle segment have all recorded a growth of 24. 55%, 19. 0%, 16. 04% and 15. 10% respectively over the corresponding period last year (CLPY). The details of actual production of various automobile segments during the year 2006-07 to 2009-10 (upto December, 2009) are given below: ————————————————- [Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box. ] ————————————————- [Type a quote from the document or the summary of an interesting point.You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box. ] Automobile Production Trends: Segment| 2 006-07| 2007-08| 2008-09| 2009-10| Passenger Vehicles| 1,545,223| 1,777,583| 1,838,593| 2,351,240| Commercial Vehicles| 519,282| 549,006| 416,870| 566,608| Three Wheelers| 556,126| 500,660| 497,020| 619,093| Two Wheelers| 8,466,666| 8,026,681| 8,419,792| 10,512,889| Total| 11,087,997| 10,853,930| 11,172,275| 14,049,830| Table 2-Automobile Production Trends Exports:The period from April-December 2009 saw growth in automobile exports sliding sharply to 10. 4% (yoy) with deceleration in almost all segments. Although CV exports declined 14. 6% (yoy) in 9MFY2010, the decline was lower than the decline of 28% (yoy) in FY2009. CVs and 3Ws segments recorded declines of 14. 6% (yoy) and 1. 9% (yoy) respectively during 9MFY2010. Although exports of 4Ws increased at a high rate of 30% (yoy) in 9MFY2010, this represented a decline from the high rate of 54% in FY2009. 2W export growth slid from 22. 5% (yoy) in FY2009 to 7. % (yoy) in 9MFY2010 attributable to a sharp decline in growth of motorcyc le exports. Although export growth has decelerated sharply in 9MFY2010, there has been a recovery in Q3FY2010 attributable partly to the base effect. The key reason for the decline in export growth was the fall in auto sales especially the CVs in the major destination markets of Asia, Africa, US, and Europe. Automobile Exports Trends Segment| 2006-07| 2007-08| 2008-09| 2009-10| Passenger Vehicles| 198,452| 218,401| 335,729| 446,146| Commercial Vehicles| 49,537| 58,994| 42,625| 45,007|Three Wheelers| 143,896| 141,225| 148,066| 173,282| Two Wheelers| 619,644| 819,713| 1,004,174| 1,140,184| Total| 1,011,529| 1,238,333| 1,530,594| 1,804,619| Table 3-Automobile Exports Trends Figure 1-Monthly Exports of Commercial Vehicles The exports of CVs which were growing till FY2008, registered a decline in early FY2009, though there was minor recovery in Q2FY2009, due to the growth in LCVs exports but that was also short-lived. The rate of decline was lower in Q2FY2010, and subsequently CV exports increased 50% (yoy) in Q3FY2010. However, this was largely due to the base effect.CVs segment was the worst hit by the economic downturn in the American and European countries, but the decline after peaking in Q3FY2009, has been showing some signs of recovery. Evidence for the US and Canada suggests that the sharp reduction in CV sales since mid-2008 has been magnified by the lack of access to credit, leading many firms to postpone their CV purchases. This implies that continued improvement in financial market conditions could provide an impetus to CV sales. Domestic Sales: Overall production growth declined from 0% (yoy) in Q2FY2009 to sharp declines of 50. % (yoy) in Q3FY2009, and 43. 5% (yoy) in Q4FY2009. However, production declined at a lower rate of 19. 5% (yoy) in Q1FY2010, because of recovery in LCV production. MHCV production continued to decline at a high, albeit lower rate through Q2FY2010. Overall CV production actually increased 4. 4% (yoy) in Q2FY2010, followed by an exceptionally high increase of 95. 4% (yoy) in Q3FY2010, albeit on a low base. Domestic MHCV sales increased at a 3-year CAGR of 10. 4% to 270,994 units during FY2008, followed by sharp declines thereafter till Q1FY2010. The less than 3. tonnes category is the largest segment, accounting for 84% of domestic goods LCV sales in 9MFY2010. This segment has reported very high growth rate during FY2005-08, primarily because of the superior price-performance ratio, and the launch of ACE by Tata Motors Ltd. (TML). The LCV segment is dominated by TML and the high growth in goods carrier segment during the last few years has been driven by the launch of Tata Motors’ 207DI (a 2-tonne pick-up vehicle), which enabled the company to strengthen its presence in this segment. During FY2006-07, growth was driven by the launch by TML of a mini-truck—the TATA ACE (with a GVW of 1. 5 tonnes). Since FY2006, the demand growth for this LCV goods carrier has been higher than other sub-segments , driven by the trend of increase in consumption of consumer goods and durables in smaller cities/towns and restrictions on goods movement by bigger vehicles in metros/bigger cities especially during daytime. The increasing popularity of the lower tonnage LCVs can be attributed to the increasing distribution of goods inside Indian towns and villages that need small vehicles because of disaggregated nature of freight generation and narrow roads.The increasing popularity of door-to-door service has contributed to the growth of LCVs in the recent past. As these vehicles have relatively lower acquisition costs, the fleet operators may prefer them to carry small cargo. The corporates not only look for speedy, reliable, door- to- door services, but also for a complete logistic solution that minimises the costs of transport, logistics and inventory. With the share of the high value consumer goods (which call for timely transportation and better handling) increasing, lower tonnage LCVs are expected to witness higher growth in the medium-term.Automobile Domestic Sales Trends Table 4 –Automobile Domestic Sales Trends Segment| 2006-07| 2007-08| 2008-09| 2009-10| Passenger Vehicles| 1,379,979| 1,549,882| 1,552,703| 1,949,776| Commercial Vehicles| 467,765| 490,494| 384,194| 531,395| Three Wheelers| 403,910| 360,781| 349,727| 440,368| Two Wheelers| 7,872,334| 7,249,278| 7,437,619| 9,371,231| Total| 10,123,988| 9,654,435| 9,724,243| 12,292,770| Figure 2-Monthly Domestic Sales of Commercial VehiclesRegulatory Advantage & legal frameworks In India the Rules and Regulations related to driving license, registration of motor vehicles, control of traffic, construction & maintenance of motor vehicles etc are governed by the Motor Vehicles Act 1988 (MVA) and the Central Motor Vehicles rules 1989 (CMVR). The Ministry of Shipping, Road Transport & Highways (MoSRT&H) acts as a nodal agency for formulation and implementation of various provisions of the Motor Vehi cle Act and CMVR.Figure 4 –Regulatory Framework of Indian Automobile Industry In order to involve all stake holders in regulation formulation, MoSRT&H has constituted two Committees to deliberate and advise Ministry on issues relating to Safety and Emission Regulations, namely – * CMVR- Technical Standing Committee (CMVR-TSC) * Standing Committee on Implementation of Emission Legislation (SCOE) CMVR- Technical Standing Committee (CMVR-TSC) – This Committee advises MoSRT&H on various technical aspects related to CMVR.This Committee has representatives from various organisations namely; Ministry of Heavy Industries & Public Enterprises (MoHI&PE)), MoSRT&H, Bureau Indian Standards (BIS), Testing Agencies such as Automotive Research of India (ARAI), Vehicle Research Development & Establishment (VRDE), Central Institute of Road Transport (CIRT), industry representatives from Society of Indian Automobile Manufacturers (SIAM), Automotive Compone nt Manufacturers Association (ACMA) and Tractor Manufacturers Association (TMA) and representatives from State Transport Departments. Major functions the Committee are: To provide technical clarification and interpretation of the Central Motor Vehicles Rules having technical bearing, to MoRT&H, as and when so desired. * To recommend to the Government the International/ foreign standards which can be used in lieu of standard notified under the CMVR permit use of components/parts/assemblies complying with such standards. * To make recommendations on any other technical issues which have direct relevance in implementation of the Central Motor Vehicles Rules. * To make recommendations on the new safety standards of various components for notification and implementation under Central Motor Vehicles Rules. To make recommendations on lead time for implementation of such safety standards. * To recommend amendment of Central Motor Vehicles Rules having technical bearing keeping in view o f Changes in automobile technologies. CMVR-TSC is assisted by another Committee called the Automobile Industry Standards Committee (AISC) having members from various stakeholders in drafting the technical standards related to Safety. The major functions of the committee are as follows: * Preparation of new standards for automotive items related to safety. * To review and recommend amendments to the existing standards. Recommend adoption of such standards to CMVR Technical Standing Committee * Recommend commissioning of testing facilities at appropriate stages. * Recommend the necessary funding of such facilities to the CMVR Technical Standing Committee, and * Advise CMVR Technical Standing Committee on any other issues referred to it The National Standards for Automotive Industry are prepared by Bureau of Indian Standards (BIS). The standards formulated by AISC are also converted into Indian Standards by BIS. The standards formulated by both BIS and AISC are considered by CMVR-TSC f or implementation.Standing Committee on Implementation of Emission Legislation (SCOE) – This Committee deliberates the issues related to implementation of emission regulation. Major functions of this Committee are – * To discuss the future emission norms * To recommend norms for in-use vehicles to MoSRT&H * To finalise the test procedures and the implementation strategy for emission norms * Advise MoSRT&H on any issue relating to implementation of emission regulations. Based on the recommendations from CMVR-TSC and SCOE, MoSRT&H issues notification for necessary amendments / modifications in the in Central Motor Vehicle Rules.In addition, the other Ministries like Ministry of Environment & Forest (MoEF), Ministry of Petroleum & Natural Gas (MoPNG) and Ministry of Non-conventional Energy Sources are also involved in formulation of regulations relating to Emissions, Noise, Fuels and Alternative Fuel vehicles. Tax Structure 1. State VAT Rate and Classi fication of goods Uniform rate structure across the country helps in avoiding diversion of trade from one State to another, checks unhealthy competition and reduces tax evasion. It helps automobile industry to plan and commit long term investments.Basic rationale needs to be developed for generation of revenue from industrial products. This should be long term and the share of taxation in the total value of the ultimate customer needs to be defined. SIAM recommends such a policy in taxing goods and services under VAT. Total taxes from both Centre and State as proposed by SIAM not to exceed 25%. Considering Cenvat at 16%, Designated rate should not exceed 9%. The classification of goods should be aligned to central taxes to reduce litigation. Uniform classification across all States and central taxes would create favourable environment for growth of industry.No separate classification of Capital Goods 2. Multiple levies and Industrial input One of the stated objectives of VAT is to r educe multiple levies. Number of rates under VAT should be 0%, 4% & RNR in addition to 1% on precious metal and 20% on petroleum products. All other levies like Octroi, Entry Tax should be abolished. Inputs used in the manufacturing should be taxed at 4% against issue of declaration. There should not be any specific list of industrial input, as it will deprive the benefit to the industry using input other than the one mentioned in the list.Reduced rate on industrial input will avoid refund problem and avoid unnecessary interaction with the Department. Further when interstate transactions are zero rated, manufacturer selling predominantly in interstate ends up having huge input tax credit without set-off. Automobile manufacturers having one manufacturing facility in the country sells more than 80% of the production outside the Sate and forced to seek refund from the State Government for excess input tax credit. SIAM suggests VAT rate of 4% on all industrial input to mitigate the refund issue. 3. Set-off mechanismSet-off of tax paid should be allowed for all inputs including raw material, components, consumables, fuel and capital goods. Tax paid on services should be allowed to be set-off. Tax paid on capital goods should be allowed as set-off in full in the same year to avoid confusion and litigation later. 4. Interstate transactions All interstate transactions should be at zero rate. Further automobile manufacturers ‘Stock Transfer' goods by setting up huge facilities to strengthen distribution net work in order to reach the product to the customer at the earliest and at least cost.This mechanism should not be affected even under VAT. 5. Sales Tax Incentives Automobile manufacturers have made huge investments, which are in phases in unviable locations. These locational disadvantages are partially offset by fiscal incentives. Any detrimental variations or withdrawal will affect the viability of such investments. This may adversely impact the country's image as an attractive investment destination. It is heartening to note that all States have agreed in principle to honour all existing incentives under VAT SIAM suggests the following: Incentive| SIAM Suggestion|Input Tax Exemption| Refund Input Tax separately – adopt Maharashtra model| Output Tax Exemption| Continue exemption, Option to Defer output tax| Output Tax Deferral| Continue Deferment, refund input tax separately| Input Tax Exemption ;amp; Output Tax Exemption| Refund Input Tax separately,Option to Defer output tax| Input Tax Exemption ;amp; Output Tax Deferral| Refund Input Tax separately,Option to Defer output tax| Table 5-Tax Structure in Automobile Industry 6. Refunds Due to various reasons there is no alternative but to seek refund from the Government in case of excess credit.Given the state of finances, refunds will be difficult and uncertain while locking up working capital for industry. Refunds should be honoured within 15 days from the date of filing retu rns and credited to the assessee's account. Alternatively, VAT Entitlement Certificate on the lines of freely tradable DEPB may be considered Recent Mergers & Acquisitions 1. Merger of Ashok Leyland and IVECO,Italy 2. Merger of Eicher and Mitsubishi,Japan 3. Merger of M&M and Nissan Motor Company,Japan 4. Merger of Swaraj Mazda and Mazda Motor Company,Japan Industry SWOT Strengths: Automobile industry is an established and an evergreen industry. * India is the strongest player in the small car segment of the global automobile market. * Indian companies are the best cost innovators. * The automotive industry has long been known for its development and promulgation of the assembly-line. * Some of the greatest developments in the automotive supply chain lie in the development of Just-In-Time (JIT) inventory methods. * Through the use of advanced technologies, assembly line manufacturing, and JIT inventory management, the automotive industry has been able to achieve significant gains in productivityWeaknesses: * India is lacking in proper infrastructure. * This is slowing the pace of growth of auto industry. * Companies are not improving after sale services. Opportunities: * The automotive ecosystem is in the midst of significant change, with increasing challenges in consumer demands, technology development, and globalization. * While demand for incumbent technologies will remain strong, alternative power trains could capture more than 20 percent of the global market by 2020, depending upon boundary conditions such as fuel taxation and emissions regulation set by governments as well as oil price development. Storage is in the heart of the next generation of efforts for fuel economy. * More realistic scenario will emerge for technologies using Hydrogen as automotive fuel. * Intelligent use of NCES (Non conventional energy sources) for powering Public Transport. Threats: * Global Crisis * Companies not focussing on R&D are under great risk * High competi tion from foreign players * Lack of technology for Indian companies Market forecast with Macroeconomic assumptions Investments in future: The market is so large and diverse that a large number of players can be absorbed to accommodate buyer needs.The sector not only has global players looking to invest and expand but leading domestic companies are also pumping in huge sums into expanding operation. Some of the investments made by various companies or organisations are as follows: * Investment Planning Commission has set target of attracting foreign investment worth US$5 billion for the next five years (in automobile industry). * Rasandik Motors, a group company of Rasandik Engineering Industries India plans to set up a three-wheelers unit at Nanjangud in Mysore district of Karnataka. Work on the project was expected to commence by July 2010. An Indian automotive site called wheelsunplugged. com suggests that Daimler is planning to invest US$700 million-$1 billion to increase the cap acity of its planned truck assembly plant at the SIPCOT Industrial Park in Oragadam, near Chennai in Tamil Nadu. An initial capacity of 70,000 units a year is planned from a 1,000-acre site. * Mercedes-Benz plans to invest e700 million to increase the production capacity of its trucks in its manufacturing plant in Chennai. While the infrastructure is expected to address future expansion plans of the company, details of the time frame of investment were not disclosed.The German car maker is also on course to increase its headcount three-fold at its R&D centre in Bangalore by next year and will invest close to Rs. 450 crore on infrastructure and people-related costs. * Bharat Forge invested US$ 135 million in its Pune plant for increasing capacity to 240,000 tonnes. * Amtek Auto is expanding capacity of its casting unit to 70,000 tonnes per annum. * Rico Auto is investing Rs 350 million to expand its capacity. * Apollo Tyres plans to invest US$469. 58m to increase production capac ity in India and abroad. * Robert Bosch of Germany will invest U$201. 0 million in its subsidiaries over the next two years. * Ceat has inaugurated the Radial tyre greenfield project in Gujarat with an investment of Rs 7,000 million, which will create employment opportunities for 1,000 people. Demand forecast: Before looking at the forecast demand of automobiles, specially, commercial vehicles, let us look at the demand forecasting process used in automobile industry In forecasting the demand, we have used various statistical methods considering all the relevant demand drivers for each segment. Then, models were prepared considering an exhaustive list of variables such as: Macro-economic variables-GDP components, industrial production, inflation, interest rates, stock indices -Sector variables- model launches, vehicle price, inter-segment competition -Enablers/barriers- Finance availability, road connectivity Forecasts for 2010-11 Automobile Segments| 2010-2011 growth over 2009-10(% )| Passenger Cars| 12-13| Utility Vehicles| 13-14| Commercial vehicles(goods)| 19-20| ————————————————- Enter key points: ————————————————- 1 ————————————————- 2 ———————————————— 3 ————————————————- Enter key points: ————————————————- 1 ——————————— —————- 2 ————————————————- 3 Commercial vehicles(buses)| 4-5| Two wheelers| 9-10| Three wheelers(goods)| 5-6| Three wheelers(passengers)| 8-9| Table 6-Demand Forecast for 2010-11 Some of the key forecasts made with respect to growth of commercial vehice industry are: †¢ Expected demand in Passenger segment to grow at 6% CAGR in volume terms over the period FY05-FY10. Goods segment to show 4. 6% CAGR over the same period. †¢ Light Commercial Vehicles to grow at a rate of 20% YOY. †¢ Heavy Commercial vehicles to grow at a rate of 12% YOY. PEST Analysis Economic Scenario The fortunes of the CV industry are closely related to the general economic conditions prevailing in a country. The demand for transportation is directly proportional to the growth of the economy, mobility of population, and other related factors. In nearly al l countries, a close connection between growth in transport, goods traffic and economic growth can be observed.The effects are two-fold: * Increasing economic development causes more traffic. Increasing amounts of goods, greater transportation distances, enhanced division of labour (globalisation), new production technologies (e. g. just-in-time production), higher levels of commuter traffic, and an increase in business travel are producing a growth in goods transport and production-related passenger transport. The increase in the prosperity of private households, together with the reduction in the working week and the working life, produce an increase in holiday and leisure transport. The mobility of people and goods is a precondition for greater productivity and economic growth. The latter result from enhanced division of labour, faster structural change, the exploitation of new raw and other materials and greater competitiveness in international trade. POLITICAL SCENARIO: The gov ernment has taken many initiatives to promote foreign direct investment (FDI) in the industry; a few of them are given below: * Automatic approval for foreign equity investment up to 100 per cent of manufacture of automobiles and components is permitted. * The automobile industry has been delicensed. There are no restraints on import of components. Besides the above mentioned initiatives, the government has envisaged the Automotive Mission Plan 2016 to promote growth in the sector. It targets: * Emerging as the global favourite in the area of design and manufacture of automobiles and auto components. * Taking the output to US$ 145 billion, accounting for more than 10 per cent of the GDP. * Offering additional employment to 25 million people by 2016. ? TECHNOLOGICAL SCENARIO: Road Infrastructure Development 52000 + Kms Road development project taken up under NHAI * 5851 Kms of Golden Quadrilateral (93% completed) 7300 Kms of NSEW corridor (Phase I&II) –(11% completed) â₠¬â€œ Target Date – Dec’09 * 380 Kms of Port Connectivity (29% completed) – Target Date – Dec’12 * 46000 KM Length of Road Development- US $ 27Bn Project in progress – Completion by Dec’12 Port Infrastructure Development * Port Infrastructure upgradation projects ~ US $ 16 Bn. in progress * Upgradation of major ports through private sector involvement (13 projects are operational and 4 under implementation) * Development of container terminals (in 6 ports of total 15 million TEUs capacity) – Target Date – 2013-14 * Projects worth US$ 13. 3 billion proposed under National Maritime Development Programme (NMDP) –Target Date – 2013-14 * Additional port handling capacity of 530 MMTA in major ports Annexure List of Industry Associations The automobile industry like any other industry has a number of associations to look after its interests. They provide a greater bargaining power to the industry and act as a sourc e of bridge between the industry and the government. They help in formulating laws for the industry and help in getting technology from abroad.These associations enable the industry to lobby hard to get extra incentives in the Union budget in the form of reduced import duties etc. They also act as data banks and provide insightful researches into the industry and they also regularly conduct auto fairs and exhibitions. Some of the major automobile Manufacturers Association along with a brief description of their profiles is as follows: Society of Indian automobile Manufacturers ( SIAM)-This is the apex body of the automobile industry in the country representing nearly thirty eight vehicle and vehicular engine manufacturers in the country.It is an important channel of communication between with the Government and other national and international organizations. It works with all quarters of the industry and helps in formulating policies for the automobile industry. It also enhances com munication between all the stake holders of the industry and helps in technological up gradation though collaboration with foreign players. For more details of the organization log on to http://www. siamIndia. com/ The Automotive Component Manufacturers Association of India (ACMA)-This organization is the nodal agency for all the automobile component manufacturers in the country.They have nearly 500 hundred members and their supply form the majority of the components in the organized sector. Like SIAM, this association also helps in dissemination of information about the industry, enhances trade promotion, technological up gradation and quality enhancement thus playing an important role in the development of the industry. It also sends delegation to foreign countries and participates in international trade fairs and regularly publishes data about the sector. More information about the organization can be sought from http://www. acmainfo. om/ Federation of automobile Dealers Associat ion (FADA)-This association is the apex body of automobile dealers in India and it was established in 1964 to promote and protect the interests of the retail automobile market in the country. The four founder members of FADA which have played a key role in the formation of the association are as follows: †¢The automobile Dealers Association of Maharashtra, Mumbai †¢Motor Industries Association, Kolkata †¢Automobile Traders Association, Delhi †¢Motor Vehicles and Allied Industries Association , Chennai Click http://www. adaweb. com/ for more details. Motor and Equipments Manufacturers Association (MEMA)-This association as the name suggests represents the interest of the automobile equipment manufacturers by making the companies associated with this trade more profitable and efficient. It provides useful information about the industry, valuable market research, government representation and other valuable commercial services. The body was established in 1904 and s ince then they have provided valuable service to the light motor vehicle and the heavy industries.To know more click http://www. mema. org/index. php List of graphs and tables * Table 1-Market Share of Different Players in Automobile Sector * Table 2-Automobile Production Trends * Table 3-Automobile Domestic Sales Trends * Table 4-Automobile Exports Trends * Table 5-Tax Structure in the Automobile Industry * Table 6-Demand forecast for 2010-11 * Figure 1-Monthly Domestic Sales of Commercial Vehicles * Figure 2-Monthly Exports of Commercial Vehicles * Figure 3-Regulatory Framework of Automobile Industry