Social inequality in Birmingham 1

The city of Birmingham was founded in 1871, and lies within Jefferson County and Shelby County. It is known by various names, â€Å"The Magic city,† â€Å"Pittsburg of the South† and the â€Å"Tragic City† being few of them. Birmingham had witnessed brisk industrialization and also witnessed periods of social, political, and economic inequality. In the 1960s, the local government strategies to sustain racial segregation had disastrous effects. The church bombing attack on September 15, 1963, brought about world criticism.The death of the four African girls was enough proof of the racial discrimination that Birmingham was facing. The unleash of terror and violence in Birmingham added yet another name to the list, â€Å"Bombingham†. This brutal attack was condemned by people throughout the world and led to many developments which in fact played a major role in its prosperity. That was the time when Birmingham was reeling under social and racial discriminatio n. Though late by almost four decades, the guilty verdict in 2002 brought hope. The Voting Rights Act of 1965 which followed gave equal access to civil participation in Birmingham.The electing of Richard Arrington, an African American educator, as the Mayor of Birmingham in 1979 ushered in an epoch of racial harmony and prosperity. When he retired in 1999, Birmingham was deeply pitched on the road to success. Thus Birmingham did suffer great social and racial inequalities but it distanced itself from the past and stepped into a bright future under the leadership of many a capable hands, thus crossing the barriers of social inequalities. Today Birmingham is the largest city in Alabama and an international center for health care.Though Birmingham has done extremely well in various spheres, the efforts to set right a history of pervasive radical inequality persist even today throughout Birmingham. But the social conditions have greatly changed, and definitely, for the better. To quote Martin Luther King Jr. ,†I like to believe the negative extremes of Birmingham's past will resolve into the positive and utopian extremes of her future; that the sins of a dark yesterday will be redeemed in the achievements of a bright tomorrow. † REFERENCE www. africanaonline. com

Lord of the Flies: Can Someone Be Innately Evil or Innately Good? Essay

The difference in the way humans perceive things is part of the complexity of mankind. What is thought of as evil to one person can be seen as good to another, and vice versa. The issue of good and evil is brought up in William Golding’s Lord of the Flies, when innocent boys are set on an island to bear the weight of society on their backs. What happens to them? How do past influences effect them? Are their actions good or evil? The actions of the boys were not a matter of being good or evil, but were actions for survival. A man’s environment does not influence him towards good or evil, nor is he born with it inside. Man has instincts and inner drives that are not matters of good and evil, but of survival. Humans are always, by natural instinct, going to do what is best for them and their survival. Animals, much like men, kill when in need. For instance, when they feel they are backed into a corner, they will attack, and when they need food, they will kill to eat. In Lord of the Flies, Ralph was being hunted by Jack’s tribe, and in a desperate attempt in his defense, he thrust his spear through a crack at the inspecting savages. Ralph attacked someone of his own kind for his own survival. It can be believed that man is the derivative of others animals, and as such, they have certain instincts that were instilled from birth. The boys on the island later began to resemble the behavior of animals. â€Å"At once the crowd surged after it, poured down the rock, leapt on to the beast, screamed, struck, bit, tore. There were no words, and no movements but the tearing of teeth and claws† (153). William Golding’s description of this scene leads a reader to believe that these boys took on animal like qualities. What kind of human tears with teeth and claws? The boys mistake Simon for their beast and result in ruthlessly killing him. In their state of mind of savagery and hunting, they saw themselves in danger of this â€Å"beast† and their first instinct was to kill anything in sight that had the possibility of being it. Humans and animals have a natural instinct to protect themselves in the face of danger, like attacking when backed into a corner. Instincts are innate, but indefinite characteristics such as good or evil are not. The significance of moral values does not apply to actions in a situation for survival. Instincts are not about being good or evil, because the issue of being good and evil is undefined. Whether an action or situation is good or evil depends on who it is and how it is being perceived. This makes this issue uncertain due to the way it is viewed from person to person. Since the way it is seen will differ, man cannot be exclusively evil or exclusively good. Consider the following example: A dog constantly jumps on the window of a door in an attempt to get the attention of the family inside. He is doing this in hopes to be let back inside the house. Someone inside the house could view this as being evil, which would be different from the view of an animal lover. They would not consider this evil and would claim that the dog had not caused physical harm and just didn’t know any better. The dog doesn’t believe that it is evil because he is only obeying environmental stimuli. He’s been inside before and knows that it is much nicer than outside, and wants the attention that is inside. The dog has tried to jump on the door before, and had received the attention of someone who thus let him in. This leads the dog to believe that what he is doing is the â€Å"right† thing to do. After all, he just wants in, right? So the dog is evil because someone inside says he is, but then he is not evil because he doesn’t think he is. The opinions on what is evil and what isn’t disagree with each other because of how it was perceived by each side. In Lord of the Flies there is a situation that deals with Piggy’s glasses, which is the key to fire on the island. The glasses are stolen in the middle of the night that leads to a brawl in the dark among the boys. Of course the fact that the glasses were stolen, and that they were Piggy’s only seeing aid, can be seen as evil, but what about Jack’s side? Jack acts upon his need for fire to cook the pig he slaughtered with his tribe to fully enjoy their prize. Ralph and Samneric engage in a fight with whoever they can touch first, not even attempting to reason. Which is evil in this situation? Humans are simply complex animals that respond to complex stimuli, and their behaviors are influenced or are a product of everything that they learn starting from the day of their birth do the day of their death. Society sets a mold for the â€Å"good† and â€Å"bad† conditions that humans are learning from day to day. The role of society in being good or evil is that it acts as this guideline for that long lived dream of acceptance. It’s where what’s good gets you in, and what’s evil is what will make you repulsive. The ideas of power and the abuse of that power are not learned from the environment. The environment is used as a resource to abuse that power. Jack manipulates the boys into joining his tribe and sets up his territory on the island. He threatens people to join his tribe, and hunts those that refuse to. Jack’s tactics are an example of how he abuses power by using the environment and how he sets the society guidelines of acceptance. A society could not exist where people are brought up to know what they define as right or wrong, and could stick to that without problem. â€Å"We decide things. But they don’t get done†(79). On the island, the civilized rules of having drinking water, shelters, and having a spot for a lavatory are not followed. The boys were brought up having rules like these, but they did not stick to them due to the problem that they didn’t have a strong enough authority figure to instill them. Society acts as this needed component to life, and if it’s not there then it needs to be made. The creation of society begins with people who have the power to set the rules of acceptance, and they are the ones who establish what is good and what is evil. Society may manipulate others into believing what is good and evil, but those that manipulate society create that belief. It’s not that man is innately good or innately evil, it’s their natural instinct that drives them to do those evil or good deeds based upon what society leads them believe. Man can not be exclusively good or evil because the state of good and evil is undefined. People are born with an instinct that drives them to do what is necessary in extreme measures. This instinct over takes any other preceding thought and becomes the need for survival. In Lord of the Flies, it wasn’t whether or not the inhabitants were evil or good, it was their human reaction and instinct in the case of survival.

Analysis of “Mississippi burning” Essay

Mississippi Burning is a film directed by Alan Parker that was released in 1988. It depicts the case of Mississippi Burning, which took place in 1964, where three civil rights workers went missing. The FBI was notified only to find the sheriffs office linked to the Ku Klux Klan and accountable for the disappearances of the three boys. This film follows an investigation carried out by FBI agents into the disappearances of three civil rights workers, who campaigned for the rights of â€Å"blacks†. As the case unfolds, vital evidence, such as the workers abandoned car are found and turmoils are faced by the main characters, Agents Anderson and Ward. The case proceeds when more FBI agents are called in and the sheriffs offices involvement is discovered. As a last resort, Ward does things Andersons way and as a result, information is received from the Deputys wife, which leads to the bodies being recovered and the men involved, charged with violating civil rights. The film is set in the fictional town of Jessup County in Mississippi. Segregation is prominent in this town where many of the whites; live in the town, whilst the blacks; are shown living on the outskirts in rundown houses. The setting is also presented in a manner where the town is shown to be in the middle of nowhere in order to depict the belief that their crimes would go unknown due to its isolation to the higher authorities. Mississippi Burning is a fictionalised depiction of the events in Mississippi in 1964. The movie portrays a period in history during the 1960s, where segregation and racial discrimination dominated. It was a period when civil rights movements were held to fight for the rights of â€Å"blacks† such as the Freedom Summer Movements and The Watts Riots of 1965. There was also the strong presence of racial groups such as the KKK and the corrupted authorities, who possessed great influence in those times. Many people also voiced their concerns such as Malcolm X and Martin Luther King in the struggle for their civil rights. The film â€Å"Mississippi Burning† gives an accurate account of the 1960s; however a few discrepancies can be identified through analysis of that historical period. In the movie, many scenes present the reminder of segregation and racial discrimination as seen in the 1960s. These include the first scene, where a contrast is shown between the two water fountains, at the restaurant, where coloureds were separated from the whites and the strong presence of the distinctive racial groups. Some of the discrepancies identified were that there was no representations of retaliation from â€Å"blacks†, an expression that the FBI were the heroes and a stereotypical view given to all locals, which was not the case. The film, â€Å"Mississippi Burning† contains a vast array of characters, but two main characters are Ward and Anderson, who are the FBI agents in control of this investigation. Agent Ward, acted by William Dafoe, is the more conservative type of person. He was described by Anderson as the type that crossed the t’s, implying that Ward only knew one approach. Ward’s role in the movie was also primarily dominating as he made all the decisions such as interviewing witnesses and gathering evidence; however, it was apparent that with this approach, the case wouldn’t be solved. William Dafoe portrayed Ward convincingly through his attire, where he was formally dressed at all times and the use of glasses to depict a compliant attitude. The way he spoke also brought about a convincing attitude where formal language was always used. However in contrast, Agent Anderson, acted by Gene Hackman, is the type of person that does things his way. Anderson’s method was demonstrated during the film when Anderson passively scrutinised the deputy’s wife to obtain facts required for the conviction. He also orchestrated other events, for instance, the scene when the KKK members turned on each other due to  Anderson causing an internal quarrel. It is obvious that if it wasn’t for Anderson, the case wouldn’t have been solved. Gene Hackman portrayed Anderson very convincingly as his attire was always casual and his use of language depicted his aggressiveness. His stature was also related to the attitude Anderson portrayed as well as the aggressive voice that accompanied it. â€Å"Mississippi Burning† was released by Orion Productions in 1988. At this time, segregation had been minimised in most communities and equality between races and gender were on the rise. Society had become modern where living standards and the economy had increased. The â€Å"Klan† had also gone into hiding and laws had been created in order to protect the rights of each individual no matter what race they were. There were still the groups/individuals that were prejudice in different aspects of life. But, the majority had started to treat each other as equal whilst others were treated like heroes for their efforts such as Martin Luther King Jr who received a Nobel Peace Prize that year. Much progress had been made since the 1960s in regards to racism, that many people saw this movie has a way to bring about awareness. Some organisation had praised it as it gave an insight into how â€Å"blacks† were treated, but still held their heads high. People also saw the film as a way to see the true extent of what life was like for a coloured during the 1960s and to understand their pain through startling images of the â€Å"Klan’s† acts. Criticism was also expressed towards the film as many critics claimed that the â€Å"blacks† had been portrayed as helpless scared people who didn’t help the civil rights struggle, but instead, needed whites to come to their aid. Critics also fault the film, for not representing the â€Å"blacks† who played vital roles and also for the stereotyping of all Mississippians as racists. Throughout the film, the angle of a low angle shot has been extensively used to convey certain moods and emotions. This technique consists of positioning  the camera below the figure, in order to obtain a particular effect. The low angle shot was used in the film to show power and vulnerability such as in the scene when the burning cross was shown where it illustrated the powerful symbol of the cross and the supremacy it had. The shot of the extreme close up was also used where a close up was given of an object. This technique was primarily used to display qualities of a person and the expressions manifested on their faces. An occurrence in the film was just before Frank shot the civil rights workers, where a close up of his face was portrayed. This was done in order to depict his expressionless face and the way he had no remorse for his actions. A lot of emphasis was also put into the lighting used in order to create a specific atmosphere. During the film, backlight was used create an eerie atmosphere as well as suspense due to the lack of light. This occurred in the scene when Lester was attacked in order to create a sense of anticipation as well as the kidnapping of he mayor. Lastly, the technique of sound was also used where diegetic and non-diegitic sounds were used. These types of sounds included voices, where as non-diegetic sounds covered mood music. This technique was expressed during many scenes in order to set the tone such as when the characters were speaking and the mood music of gospel singing being used. This gospel singing was used to create the sad and sombre atmosphere and to also engage the viewer’s emotions. Overall, this movie was a clear depiction of the events in the 1960s and is a successful text in keeping this history alive through the passing to future generations.

Book review Essay Example | Topics and Well Written Essays - 2000 words

Book review - Essay Example It is noteworthy that advancement in computers has also transformed the communication landscape. Computers are presently being used in information exchange in any form. This has created advancement in information technology globally. This paper appreciates that people comprehend the history of computing differently because some opinions are informed by traces of information available today of what happened in the past while others viewpoints are informed by issues about computers that are of interest today. Therefore, it presents a timeline on the history of computing according to my own understanding. History of Computing: The Timelines The 14th BC – 1800’s – Abacus and the Slide Rule Abacus remains one of the most primitive machines purposefully developed to aid people in computations. The machine has been on use several centuries even after better-designed devices started coming into the market. Around 17th BC a device that worked even in a more interesting wa y to assist in calculations was generated. The Slide Rule worked manually in doing calculations. Its components included a simple ruler and an impermanent piece that had graduations of parallel logarithmic ranges (Turner, 2006). The greater need to make computations even more easy generated more interest among scholars leading to additional innovations. Blaise Pascal another mathematician designed Pascaline. The mechanical calculator, which acted as an adding machine was developed in 1642, further facilitated the creation of Pascal programming language. 1800’s - Difference Engine and Analytical Engine Charles Babbage also developed what was famously called a â€Å"Difference Engine† in 1830’s. However, later it designed another device â€Å"Analytical Engine.† Both of these designs had five important components that have remained key features of modern computers. The Engines had an input device, component that stored numbers to be calculated, a processor that computed numbers, a component that controlled all machines’ tasks, and finally a component to generate processed numbers. Herman Hollerith also developed the first ever device using electricity to compute numbers in 1890’s. 1900 – 1950 – Computing Machines The period between 1900 and 1950 also saw major computing advancements taking place. Howard Aiken in 1932 started working for IBM and developed the Harvard Mark 1 an electromechanical engine that borrowed massively from Babbage’s Analytical Engine. The period around 1939 saw Atanasoff Berry and Clifford Berry of Iowa State University expanded the computing world by creating the first device that worked electronically. The machine used a binary system in calculations and used different components for processing numbers and storage. Further, in 1943, in order to emerge superior during the British war, many vacuum tube computers emerged and were used to disable the German codes; thus, led to en d of the war faster (Black, 2001).   The machines were named Colossus Mark 2. In 1946, John Mauchly and Presper Eckert both expanded the ideas behind Colossus in order to come up with Electronic Numerical Integrator and Computer, ENIAC that emerged as the world’s all-purpose computer (Black, 2001). John Von Neumann further developed ENIAC to create an Electronic Discrete Variable Automatic Computer, EDVAC that generated computers that are more superior. 1950 – 1970 – Punch Card Technology The computing world welcomed the first computers to be commercially supplied to the markets.

Measurement of human processes (Project Management) Assignment

Measurement of human processes (Project Management) - Assignment Example Therefore, the development of a good visual system is of tremendous benefit to the project manager. A paper system in binders is a poor way of keeping people informed. This drags the organization behind in progress tracking and reporting (Kerzer, 74). Poor scheduling or resource management (mismanagement) by the project manager often leads increasing your chances of project failure. This is because managing any project is managing a schedule, but a schedule is typically a collection of resources that are being managed on a schedule. There is poor scheduling on elicitation techniques, use cases, user screen design specifications, reports, business rules, functional, and the non-functional requirements (76). Weak requirements definitions which lead to planning inadequacy, this is brought about by the project manager failing to identify his or her target. One way of identifying project requirements is by describing how the end results look like in measurable terms. Requiring of a soft w are that is easy to use is an objective measure of our testing. Poor requirements lead to poor development and design. A software program ends up doing the wrong things for the users resulting in massive re-tests and rework. According to Kerzer (78) he asserts that inadequate planning, risks, resources, and assumptions by the project manager often leads to a failed project. ... This may be attributed to the fact that you may not be trained in the utilization of that software or technology. Ineffective quality controls which make you to deliver what the client does not want. The poor balances and check systems results in these ineffective quality controls. In addition, most of the projects have a system of correcting problems but do not have a system of corrective action Managing multiple projects at the same time or multi-tasking resources goes against, less is more, and focus is power. Multitasking introduces schedule risk and complexity which impacts negatively on all projects involved. Supply chain failures which emanates from contracted work. Managing of contractors is an inherent risk because they may not be having the level of skills required for the job. Contractors also have that tendency to multitask so as to stay busy thus introducing complexity and schedule risk. Scope creep or poor analysis of impacts has an effect on the schedule, budget, and r esources. It means there is an increase in the on what is delivered without a corresponding increase in resources to the project timeline. This can actually be alleviated by performing good impact analysis and clarification of real requirements. Another failure of project is attributed to lack of qualified resources and personnel. This makes you to question your resources thus giving the wrong task to the wrong person (Anderson, 1). Discussion 2 I have the following characteristics; visionary, decisive, a good motivator, technically competent, and support team members. Those that I need to work on are being a good motivator, encouraging new ideas, and standing up to top management when necessary.

MGT302 - Org. Behavior and Teamwork CA Essay Example | Topics and Well Written Essays - 750 words

MGT302 - Org. Behavior and Teamwork CA - Essay Example Personal projects, failed projects, successful projects are all celebrated and well received within the company (Jarvis). The culture adopted within the company clearly uses all the possible initiatives and opportunities to be innovative and also to develop something new each day. Google is clearly more focused on the invention of newer products and is also focused on improving and innovating each day and hence the company clearly follows a culture which is innovative, challenging and also a new adventure each day (Anthony). Google’s Culture and Specific Factors: With the intensive competition that is presently found in the markets, Google approach is clearly among the best and most effective. Here the company’s approach has clearly been based on the external elements like the competition, competitive advantage, changing needs of the customers, changing approach and outlook of the customers (Nussbaum). However apart from the above, one of the key factors that is the cau se of the company’s culture is clearly the need for innovativeness. Google has been recognized to be a new age company and has been found to be open to change as well as open to new and fresh ideas (Mayer). These factors together have formed and developed the new age company and have also led to the immense success of Google (The Google Legacy). Google’s Culture and Performance: Google’s culture is clearly the main reason for the successful performance of the company. The culture that has been developed within the company has been present from the start and this has been followed from the start (Girard). The company’s flexible approach and genuine focus on employees has led the employees to be more motivated and also focused on the job. The company has focused not only on the monetary needs of the employees but also on the personal needs at times like the maternity leaves, paternity leaves and several other similar cases. This flexible approach as well as the respect and equal treatment that the company provides to all of the employees are the cause for this high performance (Hamen). Here although the company does not specify the professional behavior, the mutual respect and the commitment of the employers is clearly the cause for the employees to behave and also commit themselves to the company to a greater extent. It would be incorrect and untrue to say that the company follows the particular culture due to the success (Mayer). The company has clearly developed and every individual has worked hard to bring the company to the current position. It is the strong culture and bond among the employees and employers and also the flexible work structure that has clearly been the cause for the company’s success (Anthony). Protecting the Culture: As clearly been noted in the case, the company unlike other companies does not punish employees in case of losses. The company is open to making mistakes and taking risks, as long as people contribute to the growth and attempts of the company. As explained in the case, â€Å"...(Larry Page) would rather run a company where people are moving quickly and doing too much, as opposed to being too cautious and doing too little. This attitude toward acting fast and accepting the cost of resulting mistakes as a natural consequence of moving fast...†

Child Protection Essay Example | Topics and Well Written Essays - 2250 words

Child Protection - Essay Example The green paper entitled Every Child Matters made many recommendations including an electronic tracking system for every child in the UK. The recommendations of the green paper were incorporated into legislation by the Children Act 2004. Whilst the new Act incorporated many of the recommendations of the green paper the wording was such that the authorities have more flexibility in the way in which they organise their children’s services and the mandatory requirement as suggested by the green paper that education and social services should be amalgamated was removed in the Act. Guidance was published by the Department of Health entitled Protecting Children: A Guide for Social Workers Undertaking a Comprehensive Assessment in 1988. This became known as the Orange Book and was designed to give guidance on risk assessment and dangerousness for the child in the environment they were living in . The deaths of Kimberley Carlisle in 1987 and Tyra Henry in 1988 led to further inquiries into child protection measures.

Cybersecurity Coursework Example | Topics and Well Written Essays - 2500 words

Cybersecurity - Coursework Example The paper throws light on cyberspace, a mine field for seekers of information. With every interaction with websites, there would be an increasing demand for personal information. Such have been used by malicious persons for their own gains. Air travel has been hard hit by cyber crime and cyber-security in airports has been a challenge with each passing day. The internet has been used for various purposes which include gathering, storage, processing and transfer of vast data amounts, which include sensitive and proprietary personal, transactional and business data. Organizations have heavily depended on computer systems for day-to-day businesses. Even as this capability has been relied more and more by various individuals and organizations, the internet has been plagued by threats of cyber-security. The information available in the internet has been used to create threats to operations of businesses and individuals. These threats evolve with the expansion of the internet and the risks that come with it continue to grow globally. The United States of America remain to be the hardest hit by cybercrime according to the report on internet crime by Bureau of Justice Assistance. There is a wide range of cyber attacks. Insider threats form the core perpetrators in computer crimes. According to Vatis, â€Å"insiders do not need a great deal of knowledge about computer intrusions† as they posses adequate knowledge on the systems which they attack which allows them to have unrestricted access â€Å"to damage the system or to steal system data†. ... ge about computer intrusions† as they posses adequate knowledge on the systems which they attack which allows them to have unrestricted access â€Å"to damage the system or to steal system data† (2002, p.3). Criminal groups have also increasingly used cyber intrusions for monetary gains. Vatis gives an example of such a group referred to as ‘Phonemasters’ who were indicted for stealing and accessing federal interest computer and being in possession of access devices for which they were unauthorized. Virus writers also pose a great threat to security in IT. Viruses propagate quickly because of the high speed networks currently available. Anti-virus software available and being careful with attachments would go a long way in curtailing such epidemics. Other cyber attacks emanate from terrorists, hackers and information warfare. Vatis defines cyber attacks as â€Å"computer-to-computer attacks carried out to steal, erase, or alter information or to destroy or impede the functionality of the target computer system† (2002, p.10). These could be categorized into three, namely; unauthorized intrusions where the attacker uses hacking techniques to break into a computer or unauthorized access by an insider to accomplish unauthorized tasks in the network; destructive worms or viruses spread through computers using forms of data exchange such as emails causing some parts of the network to lose functionality; and denial of service attacks where a computer would be overloaded with communication thus hampering its functionality. Due to the ever increasing critical business partners connected to customers and partners on the internet, many organizations have been left exposed to cyber attacks. There is no guarantee that malicious acts or intrusions would not happen. But aviation

Should GMO foods be banned in the United States Essay

Should GMO foods be banned in the United States - Essay Example As a result, various research studies try to convince us concerning the truth about the GMO foods from these two perspectives. Regarding this point, the idea about GMO foods could hardly become an exact science. This thought convinces me to go with the idea that GMO foods should be banned in the United States, for as long as there is still no clear point of truth concerning its safety, and for as long as there are prevailing studies trying to convince us of its associated potential health hazards. To illustrate the above point further, the analogy of testing the depth and safety of an ocean is appropriate. One may not automatically take the plunge into it knowing that there are primary or some major considerations that have to be taken into account. Aside from testing its depth, one major concern is its safety. Would it be safer to take the plunge knowing the idea that there might be some creepy creatures down there prowling for their prey? With its deep blue color, nothing from the deeper portion could be vividly observed from the surface, but whatever is down there will have the great chance to see anything coming into their sight. We always have fear of the unknown. Let us consider if this fear of the unknown we have right now for GMO foods is justifiable. ... In some certain level, they both might have all the points. However, this continuous inquiry and investigation is a fundamental way for us to know further down to the truth. The ongoing contradiction against GMO foods is a healthy process towards understanding a far deeper truth about them. Thus, for the mean time that everything might turn out as not an exact science concerning the GMO foods, it is better not to acquire it for commercial use in the United States. The relevant findings for now might just add up to the level of fear we have for the unknown concerning GMO foods. Let us take the case of an alarming pesticide residue in a growing number of products. This was very alarming in the area of US agriculture. According to Chavez, â€Å"We have known for many years that pesticides used in agriculture pollute the air, earth and water, contaminate animals and humans, and are found in the tissue of new born infants and mothers’ milk† (McKibben 691). Some genetically m odified foods contain genetic materials from natural organisms like in the case of BT corn to contain a natural pesticide that would not create any harm to the environment. In fact, aside from the point of gaining higher yield, this was the sophisticated approach to minimize the detrimental impact of chemicals to the ecological balance by deliberately using commercial pesticides. Monarch butterfly and BT corn controversy marked a significant point prior to the level of acceptance we have for GMO foods today. In an experiment, it was found that Monarch butterflies feeding on the pollen of BT corn were found to have high mortality rate. BT corn is a transgenic crop, by which a genetic code of an organism that could kill pest was inserted to the corn’s DNA

Bbc story Essay Example | Topics and Well Written Essays - 500 words

Bbc story - Essay Example However, due to the advancement in technology, there are many options for people to select from the sources of news. Besides TV, radio, and newspapers, there is now internet which provides the latest news at any given time of the day free of cost. This increasing trend has forced the companies to focus just as much on their online presence. The newspaper industry is losing audience to the internet as people are no longer willing to pay for news that they can easily access online for free. Thus, in order to survive, the news companies are not spending big amount to maintain audience both online and offline. A different strategy was adopted by all three of the news companies to compete with each other. BBC was quick in coming up with an online strategy given its vast audience. The company soon announced its decision to go â€Å"digital† under the leadership of Entwistle. The introduction of iPlayer proved to be quite successful both, for the network as well as the VOD market (Andrews, 2012). The main strategy of the company was to focus on vision, audio and music, and digital future media division (Andrews, 2012). The global audience for BBC online is estimated to be 30 million (Horrocks, 2012). Guardian, on the other hand, completely embraced the online media and decided to become â€Å"a digital-first organization† in 2011 (The Guardian, 2011). The company announced that it will be posting complete material online and increase its investment in maintaining audience online as it is the future’s demand. The company is now focusing on reaching out to more people through internet and mobile phones and make efforts to improve its digital services since the entire newspaper industry has been suffering due to this major shift in use preferences (The Guardian, 2011). The guardian is presently the fifth most visited news site in the world with over 30 million online

Enzyme Inhibitors in Breast Cancer Therapy Coursework

Enzyme Inhibitors in Breast Cancer Therapy - Coursework Example Among all of the different types of cancer, breast cancer is the highest cause of death in women between the ages 20 and 59, having been responsible for 32 percent of all new cancer cases in 2003. In most patients, the metastases at distant sites of the body become the main cause of death. The rates of metastasis and mortality in breast cancer patients have recently decreased with the aid of early diagnosis by mammographic screening and the implementation of adjuvant therapy. Aromatase inhibitors may be used as adjuvant therapy, first-line, second-line or even third- line therapy (Cunnick et al 2001). Third-line therapy uses the medicine if patients relapse after the second treatment, which followed an initial treatment. Adjuvant therapy, on the other hand, aids in the eradication of breast tumor cells that might have already metastasized to different organ systems by the time of diagnosis. Cancer cells are characterized as having the ability to be viable under stressful conditions. Growth and survival factors activate a variety of intracellular signal transduction pathways; these pathways play a critical role in the regulating growth, differentiation, and senescence, and have been found to prevent apoptosis under many circumstances (Ripple et al 2005). The ability of cancer cells to metastasize to other organ systems results in smaller chances of curing the disease. Common phenotypes of metastatic cancer cells have been found to be (1) unregulated growth and survival, (2) decreased cell to cell adhesion, (3) increased ability in degrading the extracellular matrix, and (4) increased motility (Zhang et al 2005). Cancer cells have been found to possess altered apoptosis signals, which are transduced by the p53 tumor suppressor gene. The said gene regulates the expression of multiply apoptosis-inducing proteins that act upon the mitochondria. Normal cells are induced to apoptosis through the intrinsic pathway, where cytochrome c is released from the mitochondria. The liberated cytochrome c binds to apoptotic protease, activating dactor-1 (apad-1), which assembles into an oligomer called the apoptosome. The apoptosome then recruits and activates caspase-9, which triggers a proteolytic cascade, resulting in cell death. In cancer cells, excessive mitotic signals activate the intrinsic pathway, as a result of mutations within signaling pathways (Mashima et al 2005; Ripple et al 2005).

Differentiated Lesson Plan Essay Example for Free

Differentiated Lesson Plan Essay Dear sir or madam, and sincerely. Send the letters to the following organizations and have the students questions be directed toward what happened to the Native Americans because of Columbus and what happened to them after Columbus came. Differentiated Lesson Plan pg 3 Students performing about or well above grade level will: 1. In at least 3 complete sentences describe the feelings of the settlers as they were making their journey to America. Things to think about, What kind of supplies do you think they brought with them? How much of these supplies do you think they had to bring knowing that they may be without food or shelter for awhile. 2. What if any community rules do you think were implemented when the settlers came to America? 3. Have the students create a time line of when Columbus was born, until he died. Include important dates in Columbus life like the following: the day he set sail for his first voyage, the day he landed, the day he returned to Spain, dates of other voyages, etc. 4. At the conclusion of the readers theater, have the students complete a character sketch of Columbus. Include his origin, his characteristic of endurance, his characteristic of pride and not letting others tell him he was wrong, his great sailing abilities, etc 5. Have the students write letters to different organizations for information about Christopher Columbus. Explain to the students what a good letter needs to consist of. For example, the first paragraph should explain what the students are studying in class. The second paragraph should be the questions that they want answered. The third paragraph should show appreciation. Explain to the children also where to indent, where commas should go in a letter and appropriate words to use such as Dear sir or madam, and sincerely. Send the letters to the following organizations and have the students questions be directed toward what happened to the Native Americans because of Columbus and what happened to them after Columbus came. Students in group A will begin work by sitting in a group at a table or in a separate spot in the room on the floor, depending on how many students are in the class. Each student in the group will work independently on the art project, for students within the group that need additional help with drawing , they will paired with a peer. Then when they are done, collectively they will work on discussion questions. Once all discussion questions and art projects are done, groups A and B will share their work with the entire class. Then we will all come back together as a class and discuss what we have learned. Then to continue the unit we will discuss any letters that the students might have received. Discuss that even though Columbus arrival was a great discovery for the people of Europe, it proved to be unfortunate for the Native Americans. Then ask the students a final question: What do you know about Columbus voyage and also how the voyage affected the Native Americas?

Barriers To Effective Supply Chain Management

Barriers To Effective Supply Chain Management supply chain management Abstract Purpose -The aim of this paper is to have a qualitative analysis of benefits,barriers and bridges to effective strategic supply chain management. Design/methodology/approach The author use a case study approach .Interview was conducted from Supplier, SC manager and retailer . Findings- Results shows that customer satisfaction is consider as the primary benefits by all chain partners. And primary barrier and bridge is adequate information system and human factors. Research limitations/implications Due to the resource and time constraint the findings of this research are only based on supply chain of a single organization. Practical implications -This paper provide a understanding of how managers ,suppliers and retailers view benefits .barriers and bridges of SCM. Originality/value Keywords Supply chain management, Strategic management, Relationship marketing Paper type Research paper Introduction In todays business world competition is very fierce. Due to the Globalization, advance technology, and Increase customer demand , organizations need to raise there bar of performance continuously. As Thomas Edison said, If there is a better way, find it. So managers must keep his advice in mind. And supply chain management is a better way to compete in market. Supply chain management is the management of activities from availability and procurement of raw material , their processing into finish goods and then distribution of these goods. The purpose of this encompassing process is to enhance the business of the company and satisfy customers. By Sandra Maria Stammberger Christopher argues that the real competition is not company against company, but rather supplies chain against supply chain. For example, Wal-Mart and its suppliers will battle Carrefour and its suppliers in consumer markets around the world. This study has looked at benefits and barriers to supply chain integration. Vital bridges to supply chain success are also explored. SCM can reduce inventory, improve productivity, enhance quality, and reduce both product development and fulfillment cycles. As attractive as the potential benefits of supply chain management appear; the barriers or roadblocks to achieving them appear equally ominous such as internal external turf protection, inadequate information system, poor collaboration among the chain partners etc. And bridges/solutions are the mirror image of the most of the barriers (e.g., poor management leads to barrier; careful management is the bridge). The purpose of the study is to provide an understanding of the benefits, barriers, and bridges to successful SCM. For this purpose data is collected from the supplier ,SC manager and retailer of PEPSI (Gujranwala). We conclude that there are numerous benefits of SCM but to achieve these benefits we have to overcome two main barriers that is technology and human barrier. Focus of managers and scholars must not be on any specific barrier, but rather consider these two in combination for strategic supply chains to be successful . We hope that the research methodology given in this study provide some useful insight to help managers and their companies as they make headway along the arduous journey to supply chain leadership This research article is comprised as follows: literature of SCM in terms of benefits, barriers, and bridges followed by research methodology.And the main part of article includes findings from in-depth interviews , and conclusion with some suggestions for future research. In this way this article provide valuable insight into the state and direction of supply chain practice research. Background: benefits, barriers, and bridges An enormous amount of material has appeared in current years about supply chain management in both academic journals and trade press. Driving forces of supply chain management The driving forces of SCM stem from two sources: external pressures and potential benefits from strategic SC alignment. External pressures include such forces as advances in technology and increased customer demand across national borders (Mehta, 2004); maintaining lower costs while meeting these diverse needs (Cook and Garver, 2002); and intensified competition utilizing relationships among vertically aligned firms (Togar and Ramaswami, 2004). These pressures have begun shifting the focus of individual firms vying for market presence and power to supply chains competing against supply chains (Bhattacharya et al., 1995). Top ten benefits ,barriers and bridges have been identified by Top ten benefits ,barriers and bridges Benefits Barriers Bridges Increased inventory turnover Internal and external turf wars Information transperancy Increased revenues SCM cost reductions Poor SCM planning Collaborative planning Product availability Lack of SCM vision IT architecture /internet Responsiveness Executive commitment Formal performance tracking Economic value added IT deficiencies Adopt strategic SCM vision Capital utilization Organizational structure /culture Attention to human factors Decreased time to market Lack of SC measures Suppply base reduction Reduced logistics costs Lack alliance guidelines Segmented customers: Poor SCM understanding Shared investment/benefits Benefits of strategic supply chain managemen Increased inventory turnover: Inventory turn reflects how frequently a company flushes inventory from its system. In SCM company has relations both with supplier and customer so they receive material on time and deliver goods to customer on time. So inventory turnover increases. . (Fawcett, S.E. and Magnan, G.M. (2001)). Increased revenues SCM cost reductions: Main source of cost saving is inventory management. Through SCM it is possible to reduce your inventory level and leads to cost saving. Other ways of reducing cost: Better trade relations and lower transaction cost Enhance asset utilization via shared resources Better product design that cost less (Fawcett, S.E. and Magnan, G.M. (2001)). Product availability: Involvement of supplier in new product development process can solve many problems like communications and new ideas are generated in collaborative design efforts rather than non-colleborative. In todays marketplace there is a need to have the right product available at the right time and right place at a lower cost than the competition. . (Fawcett, S.E. and Magnan, G.M. (2001)). Responsiveness: Responding to customers in a courteous, personal and understandable way is vary important.Quickly response to customers requests is possible through collaboration with chain partners.Close relationship with partners enables them to foresee their collaborators needs and handle unexpected events.Supply chain responsiveness requires exceptional/outstanding manufacturing and logistical flexibility to meet unique or special requests.And it is possible through integration. . (Fawcett, S.E. and Magnan, G.M. (2001)). Economic value added: There are two view points from which share holder value can be measured. 1) Internal view point (Economic value is used) 2) External view point (Market capitalization is used) EVA is calculated by deducting the cost of capital from its operating profit. Drivers of shareholder value are : Operating cost reduction ,fixed capital and working capital efficiency and revenue growth. There is no doubt that supply chain strategy affects all these drivers directly or indirectly. These are some of the strategies: Lead time of all incoming products is reduced by having partnership with the suppliers . By integrating processes .internal lead time can be reduced. By having a strong relation with distributor information flow from demand size is improved. (Christopher, M., Ryals, L. (1999)). Capital utilization: Capital utilization refers to how a companys assets are best used. Capital utilization is dollars of revenue generated in relation to dollars invested in assets such as account receivables, inventory etc. Examples of supply chain management connection: Demand planning Transportation management Inventory management Accurate forecasting (Timme, S.G. and Williams-Timme, C. (2000) Decreased time to market Successful companies create supply chains that respond to the sudden changes in market. Effective supply chain enables a firm to respond to the short term changes in demand and supply in the market because of collaborative relationship with suppliers and distributors. (lee(2004) Reduced logistics costs: In an integrated supply chain ,efficiency and effectiveness of operations can be improved by managing the movement of material throughout the firm in an organic and systematic way. This allow the firm reducing their purchase cost ,transportation cost and inventory and warehousing cost.( La Londe, B.J. and Masters, J.M. (1994), Emerging logistics strategies: blueprints for the next century, International Journal of Physical Distribution Logistics Management, Vol. 24 No. 7, pp. 35-47. La Londe, and Masters,). Barriers to effective supply chain management Internal and external turf wars: Conflicts within the departments and within organizations are fundamental barrier to SC collaboration. In most of the companies all departments such as marketing, finance , operation work independently. But when managers make decisions they only consider their own department and ignore the impact of their decision on other departments and on whole organization. And same is the case with supply chain partners each partner work only for its own interest. So A tug of war begins as each department and partner pull the organization in their favor. (Fawcett, S.E. and Magnan, G.M. (2001) Poor SCM planning: Supply chain management is a way to combine process and entrepreneurship. The concept of SCM begins with customer and integrates all activities from raw material procurement to finished product distribution. In many organizations SCM fails due to insufficient forecasting and poor planning process. For correct forecasting, planning process must involve appropriate players and relevant information. Andraski, J.C. (1998). Lack of SCM vision: One of the major barriers to SCM collaboration is that chain partners dont have clear and common vision of SCM. They hold different beliefs and values and supplier and customer dont share common goal. (Akkermans, H., Bogerd, P. and Vos, B. (1999), Lack of SCM vision: Lack of trust is one reason that channel partners are not willing to share information openly .because they have fear that if they share their weaknesses with their chain partners then they might use their weaknesses against them in near future. So Trust is pre-requisite in effective supply chain management. (Fawcett, S.E. and Magnan, G.M. (2001), Executive commitment: Top management should here be understood as the group of people that together constitute the highest management executive authority in a company. Top management is in a position to play an important role in successful SCM collaboration. A prerequisite for performing SCM is top management support. Almost all of the barriers such as incompatible technology ,conflict among supply chain members ,lack of employee willingness to share information can only be overcome with top management support. According to (Moberg et al., 2003) training and education are Important factors for top management to encourage and intensify. (Sandberg, Erik1; Abrahamsson, Mats(2010)) IT deficiencies: As because of globalization suppliers and customers are located all over the world so integration has become a major challenge .Lack of integrated information system is a major barrier as sharing of information is not possible without integrated information system. IT is like a nerve system of SCM. ( E.W.T. Ngai a,*, A. Gunasekaran b ,(2004) Organizational structure /culture: Organization culture and structure are also very crucial barrier to SC collaboration. If an organization is working independently for a long time then its very difficult for it work in collaboration with other chain partners. Lack of SC measures: In order to have a strong collaboration among the supply chain partners it is crucial to measure the supply chain performance.(Brewer and speh ,2001;) Measuring supply chain performance Lack alliance guidelines: Each channel partner in the supply chain has a separate plan for activities such as production plan and schedules. If an organization only have understanding of their on process and they dont have understanding of their customers and suppliers processes then there is a gap exist and organization cant improve their processes as external processes have an influence on internal processes. Lack of same performance measures across different departments and across the channel partners leads to conflicting behaviors both internally and externally. ( Barratt, M. (2004a) Poor SCM understanding: Employee dont have understanding of how SCM is beneficial for the organization and how it will benefit their job .This poor understanding is one reason they are not willing to contribute in SCM implementation. Bridges to effective supply chain management Information transperancy: ( yu zhenxin (2001) Each member of the supply chain should have complete information about the other members. If members are willing to share information then this leads to the improve performance of the whole system . Collaborative planning: Planning should be made with the involvement of all parties involve in the supply chain. Such as demand forecasting, production schedules etc may not be effective without the involvement of all partners. IT architecture /internet: With the passage of time SCM is becoming more and more complex and require online communication system .In order to enhance the buyer- supplier relationship different information technologies such as Electronic Data Interchange ,Internet And World Wide Web Are Used. Formal performance tracking: In order to have a strong collaboration among the supply chain partners it is crucial to measure the supply chain performance. (Brewer and speh ,2001;). Measurement of supply chain performance can help in Reducing cost ,Identify and target those segments of market which are more profitable((Lambert and Pohlen, 2001),better and improves decisions and test and employ new strategies Adopt strategic SCM vision: Chain partners should have clear and common vision of SCM. They should hold same beliefs and values and supplier and customer share common goal. (Akkermans, H., Bogerd, P. and Vos, B. (1999), Attention to human factors: A fundamental factor for the successful SCM collaboration is the human factor . People resist changes and they dont want to share information with others .So attention must be paid to human factors first as their willingness to implement effective SCM is the key to success. . (Fawcett, S.E. and Magnan, G.M. (2001)). Suppply base reduction: Supply base reduction is use by the firms to enhance quality , increase responsiveness , and reduce cost . Coke has adopted N+1 rule of thumb for determining maximum number of supplies. It means they have just 1 more supplier then required. (Fawcett, S.E. and Magnan, G.M. (2001)). Segmented customers: Organization should collaborate only with those suppliers and customers who are strategically important for the business. This segmentation play a very important role in successful collaboration.(Tang and Gattorna, 2003). Segmentation of customers is done on the basis of their buying behavior and services needed. Different supply chains are made for different segments. A different strategy and supportive culture and leadership style is required for different supply chains. To serve the segmented supply chain a further step is to segment the suppliers according to their abilities. Shared investment/benefits: For SCM to be more effective and successful there is a need to share benefits resulting from integrated SCM. Benefit sharing is as much important as information sharing . even though reliable and trust worthy information is available ,there should be a need to fairly allocate benefits among members otherwise it weakens their relationship. (Fawcett, S.E. and Magnan, G.M. (2001)). Methodology SCM removes the boundaries of the organization therefore it is known as boundary spanning activity (Bowersos et al,1999) . To Have a macro picture ,information is collected through channel analysis. In this way more generalized view about the benefits ,barriers and bridges can be obtained. Case studies The case study method is used for answering questions regarding what, why, and how related to SCM implementation. This method put emphasis on in detail qualitative analysis. In order to have a cross-channel analysis interview is conducted from supplier ,SC manager and retailer. A structured ,face-to-face interview was conducted and Confidentiality was ensured .Structured interviews are those conducted when it is known at the outset what information is needed. The interview has a list of predetermined questions to be asked. The interview guide was divides into general questions and questions about the benefits ,barriers and bridges faced by the organization. Average interview duration was 1 and half hour. And face-to-face interview helps in repeating and rephrasing questions if not understood by respondents, and clarify doubts. Interview consist of Open-ended questions. Results and discussion Top five benefits ,barriers and bridges Benefits Barriers Bridges Customer satisfaction Inadequate information system Adequate information system On time delivery Lack share risk and reward Sharing of risk and reward Response to customer request Lack willingness to share information Willingness to share information Order fulfillment lead time Lack employee empowerment Senior management interaction Cost reduction Measuring customer demand Supply chain training Benefits Customer satisfaction: Company customers are satisfied because company is in a position to fulfill their needs, deliver goods on time and at low cost through integrated SC. On-time delivery: The development of closer, cooperative relationships with chain partners together with the establishment of integrated systems and processes make it possible to consistently deliver goods and services to customer at the right time and at the right place. Respond to customer requests: Business analysts have been saying for years-that customers matter most. So response to customers need as quickly as possible is very important for the success of business. One way of doing this in todays competitive market is to develop strong relationship with suppliers, retailers and distributers. This collaborative supply chain enables all parties to respond to their customer speedily. Order fulfillment lead times: Supply chain integration also reduces order fulfillment lead times by having exact quantities on-hand when needed . Cost reduaction: One way of cost reduction is to reduce cost of inventory. Another is sharing of resources with your chain partners and also by reducing product development cost through integrated process. Some other benefits includes: Handle unexpected challenges More open and trusting relationships enable more accurate information to be shared on more timely basis. This helps in making Supply chain partners better able to foresee their collaborators needs and handle unexpected events (e.g unique or special requests ) Productivity One of the most important benefit due to which organizations are adopting SCM is to increase revenues and decrease costs. Productivity is the ratio of Outputs/inputs. if planned and managed correctly, changes in supply chain relationships can help in producing same outputs with low cost of inputs and ultimately revenue increase . This doubleimpact of supply chain management is motivating factor for organizations to build strong relationship with chain partners in order to constantly reduce the costs of purchased items and to work with them to improve their processes in ways that increase productivity. Product innovation lead times, Collaborative product development help to minimize product innovation lead time. Involvement of all the partners results in higher quality,lower cost and less time to market. To gain these benefits there should be a need to build strong relationship base on trust and communication is necessary to share technology, co-locate personnel, and accept supplier-generated design improvements. Overall product quality Through supply chain integration it is possible to shift the responsibity of quality to the supplier. Better quality is assured by supplier certification programs . Barriers Inadequate information system: Inadequate information system is that lack in quantity and quality of information if not enough information is shared or the information shared is of little value strategic SCM may fail. Lack of willingness to share risk and rewards: As employee dont have clear understanding of what SCM is and how will benefit their job so they are not willing to share their risk and reward. Lack willingness to share information: Lack of trust is one reason that people are not willing to share information openly .because they have fear that if they share their weaknesses with their chain partners then they might use their weaknesses against them in near future. So Trust is pre-requisite in effective supply chain management. Lack employee empowerment: Lack of employee empowerment is a barrier to SCM to be successful. As employee empowerment is one way to motivate employees to participate in making SC collaboration successful. Employee empowerment is a form of decentralization it means giving employees the power to make decisions regarding their job and tasks. One of these decisions includes making purchasing decisions .i.e. when and how much is to be purchased..This will leads to successful implementation of Just-in Time manufacturing concept. Measuring customer demand: Accurately forecast customer demand is very important for successful SCM integration . In case manufacturers and distributers fails to accurately forecast customer demands then there are chances of stock outs and organizations face difficulties in maintain adequate inventory level. Some other barriers includes: Organizational boundaries There are two kind of boundaries in any organizarion intra and inter-organizational boundaries. These boundries should be removed for successful supply chain integration. For successful supply chain integration intra and inter -organizational boundaries should be removed. inter -organizational boundaries overcoming the company boundaries and working closely with suppliers and customers. (i.e., functional, business process, information/materials flows, and information/communication technology integration) intra -organizational boundaries Integration between different discipline and functions, such as manufacturing, distribution, marketing, accounting, information, and engineering. Measuring SC contribution, à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Measuring Supply chain contribution is very important . these four measures can be used to measure supply chain contribution. Delivery: percentage of entire order deliver to the customer when he or she wanted it. Quality: for this purpose Customer satisfaction and customer loyaty is checked. Customer satisfaction includes giving customer what they expects. Customer loyaty is the percentage of customers who still purchase their products after purchasing once. Time: order fulfilment lead time is effected by inventory level. For total order-fulfilment lead time, first The time spent in inventory should be computed for each part of the supply chain (supplier, manufacturer, wholesaler, and retailer) and then added. Cost: measure cost along the supply chain is to measure efficiency in value added or productivity. One measure of efficiency is as follows: Efficiency = sales cost of materials / labor + overhead Lack resources for SCM Resource constraints represent Serious hurdle in supply chain integration efforts Although companies are trying to best utilize the people resources that they have, but due to their nature of always trying to do more with less, create problem of lack of resources. e.g The managers who are Conside to be best for handling supply chain initiatives because of their experience, work ethic, creativity, technical knowledge, and personal credibility are always in high demand. interviewed managers identified other critical resources constraints including capital and technology Bridges Adequate information system: EDI LINKAGES: ERP system is a single unified system in which several computer hardware and software components are used . This unified system helps in cross functional integration (e.g between all departments , accounting departments, as well as marketing, strategic management, and human resources, in addition to warehousing, Information Technology, logistics, and production. ). Organizations adopt ERP system in order to integrate data and process into a single unified unit rather than trying to synchronize data and process across different systems Sharing of risk and reward: Interview manager also highlighted the point that in order to build closer relationship they share both Risk and reward with their chain partners. Frequent communication: Open and clear broad line of communication should be develop (Mohr and spekman (1994)) Senior management interaction: Top management is responsible for integrated supply chain management. Only senior manager can remove the walls between the organization and between the organizations. Supply chain training: As supply chain is becoming more popular and technology focused ,the individuals directly involve with it are required to give additional training. Some ways of giving training to individuals are On the job training Take classes out of work Online training Some other bridges includes: Suppply base reduction, Vendor managed inventory (vmi), Use of total cost analysis, Common goals and shared mission statement, Use of cross-functional teams and cross-functional processes Suppply base reduction: Supply base reduction is use by the firms to enhance quality , increase responsiveness , and reduce cost . Coke has adopted N+1 rule of thum for determining maximum number of supplies.It means they have just 1 more supplier then required. VENDOR MANAGED INVENTORY (VMI). Supplier is responsible for managing inventory at customer s location .Customer is not required to reorder .Its the duty of supplier to maintain the stock of customer at optimum level. Use of total cost analysis As we all know that Competition in todays markets is much more then before.so in order to compete in market , organizations need to offer products at low price and high quality. Through SC collaboration it is possible to reduce Total production cost . by having long term relationship with supplier, supplier reduce the cost of their supplies.in this way total production cost is reduced. Common goals and shared mission statement For SCM cooperative efforts to be successful, increase understanding and respect for partners businesses is very important. This process involves common golas and shared mission statement.When they all have a common goal , combine efforts are made to achieve that goal .And decisions are made for the success of each party. Use of cross-functional teams and Cross-functional processes Effective supply chain requires coordination across businesses and within the business. Coordination within the business is possible through Cross-functional teams and process. . For example, a cross-functional team is often used to plan and control the master schedule for manufacturing. The team consists of representatives from marketing/ sales, production, human resources, and accounting/ finance. The team develops a forecast of future expected orders, plans the capacity of manufacturing, and schedules customer orders. Everyone then agrees to work toward executing this plan. Without a cross-functional team of this type, marketing makes a forecast, production uses a different forecast to plan production, and the capital is not made available to provide the capacity needed. Clear Alliance management guidelines. alliance management techniques, none of the interviewed firms have every one in place. Clear roles and responsibilities are defined and communicated. Risks and rewards are shared on a mutually acceptable basis Technology linkages can be used to routinize information exchange. Overall product quality Through supply chain integration it is possible to shift the responsibity of quality to the supplier. Better quality is assured by supplier certification programs . Conclusion and Limitations This article attempts to identify potential benefits ,barriers and bridges of successful implementation of SC integration . Results shows that all chain partners are enjoying many benefits from SC collaboration. Primary benefit mentioned by all chain partners is Customer satisfaction. In supply chain ,Supplier want to satisfy their customer (i.e. manufacturer) and manufacturer want end user to be satisfied. So for this purpose they must be aware of what customer expects from the product or service and then make efforts to meet their expectations . SC manager ,supplier and retailer do not share the same values and beliefs regarding the primary barrier and bridges of supply chain management. SC manager identify human factors as the primary barrier to SC collaborati

Regulatory Frameworks of Indias Industrial Policies

Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave Regulatory Frameworks of Indias Industrial Policies Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave