Nordstrom Case Study Essay

Answer 1: In the 1990s, Nordstrom had six co-presidents who were six cousins belonging to the family’s fourth generation. All six cousins took decisions jointly on major issues concerning the business. Thus, it was necessary that all six co-presidents agree on a decision or a plan for it to be acted upon. This was quite a difficult task as all of them often had differing opinions. Due to this many decisions were delayed or met with resistance by one or the other member. These six co-presidents were compared to a multi-headed hydra. Dismantling the hydra would prevent conflicts on future decisions and would also enable decisions to be taken quickly. It will also vest the ownership for the decisions onto one person. It will also enable a family member to be groomed for possibly leading the company one day. The possible disadvantages of dismantling the hydra is that the six co-presidents could have all contributed their knowledge and experience and have arrived at a better more informed decision. If equal power is vested in six people at the top, it enables them to share the workload.’ Answer 2: Creating departments around products will create independent profit and loss units for each product. The members of each department will have expertise on their products. They will know how to procure those products and effective sales and marketing techniques to sell those products better. This will narrow down their focus and they will concentrate only on the product that they are selling and will gain expertise on how to sell it best. The possible disadvantages of creating departments around products are that the employees will not have a complete picture of the entire business and where they stand. If in future, they are moved to another department, they will have to gain information about that product from scratch. Answer 3: The following changes prompted the move from mechanistic to organic organization. In the 1990s, the company met with stiff competition from its competitors. Its sales began to plateau. Its net income fell 2% and sales edged up only 1.9%. In the stores that had been open for a year, its sales dipped 1.1% after a 2.6% drop the prior year. Nordstrom’s shares fell from a 1999 high of 44 3/16 to under 20 in February. The customers and outsiders complained that top executives spent more time in seeking consensus of all co-presidents on issues and this was a reason for Nordstrom being slow in presenting new fashions for sales. Answer 4: In designing an organization to manage change, an additional structural change that Mr. Whitacre should consider is to start a competition among the departments. In this quarterly competition, the department that has the best sales and profits should be the winner and its members should be given some incentives. They should be asked to share the best practices with the other departments in order to help them manage change better. Employees should be rotated regularly from one department to another.

Chapter 8 Mishkin Notes

An Economic Analysis of Financial Structure Why do Financial Institutions Exist? (Why is Indirect Finance so Important? ) Chapter 8 Chapter Preview W e take a closer look at why financial institutions exist and how they promote economic efficiency. Topics include: †¢ A Few Basic Facts About Financial Structure †¢ Transaction Costs †¢ Asymmetric Information: Adverse Selection and Moral Hazard Chapter Preview (cont. ) †¢ The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ How Moral Hazard Influences Financial Structure in Debt Markets 1Basic Facts About Financial Structure Throughout the World †¢ The chart on the next slide shows how non-financial business get external funding in the U. S. , Germany, Japan, and Canada. †¢ Notice that, although many aspects of these countries are quite different, the sources of financing are somewhat consistent, with t he U. S. being different in its focus on debt. Sources of External Finance Copyright  © 2007 Pearson Addison-Wesley. All rights reserved. 8-5 Eight Basic Facts of Financial Structure 1. Stocks are not the most important source of external financing for businesses [Direct Finance] 2. Issuing marketable debt and equity ecurities is not the primary way in which businesses finance their operations [Direct Finance] 2 Eight Basic Facts of Financial Structure 3. Indirect finance, which involves the activities of financial intermediaries, is m any times more important than direct finance, in which businesses raise funds directly from lenders in financial markets. 4. Financial intermediaries, particularly banks, are the most important source of external funds used to finance businesses. Eight Basic Facts of Financial Structure 5. The financial system is among the most heavily regulated sectors of economy. 6. Only large, well -established corporations ave easy access to securities markets t o finance their activities. Eight Basic Facts of Financial Structure 7. Collateral is a prevalent feature of debt contracts for both households and businesses. 8. Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrowers. 3 W hy is Indirect Finance so Important? †¢ Transactions Cost †¢ Information Cost Transaction Costs †¢ Financial intermediaries to reduce transaction costs (and make profits) through – †¢ Economies of scale †¢ Expertise †¢ Read the municipal bond article. Transaction Costs †¢ Transactions costs ? ? ? E. g. a $5,000 investment only allows you to purchase 100 shares @ $50 / share (equity) No diversification Bonds even worse—most have a $1,000 size 4 Transaction Costs †¢ Financial intermediaries make profits by reducing transactions costs – Take advantage of economies of scale (example: mutual funds) – Develop expertise to l ower transactions costs – provide investors with liquidity and diversification Information Costs – Asymmetric Information †¢ symmetric information—the case where all parties to a transaction or contract have the same information. †¢ In many situations, this is not the case. We refer to this as asymmetric information.Asymmetric Information: Adverse Selection and Moral Hazard †¢ We will focus on two specific forms of asymmetric information: ? Adverse selection ? Moral hazard 5 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Adverse Selection 1. Occurs when one party in a transaction has better information than the other party 2. Before transaction occurs 3. Potential borrowers most likely to produce adverse outcome are ones most likely to seek loan The Lemons Problem: How Adverse Selection Influences Financial Structure †¢ If quality cannot be assessed, the buyer is willing to pay at m ost a price that reflects the average qu ality Sellers of good quality items will not want to sell at the price for average quality †¢ The buyer will decide not to buy at all because all that is left in the market is poor quality items †¢ This result, when bad quality pushes good quality from the m arket because of an information gap, is known as â€Å"adverse selection† †¢ This problem explains fact 2 and partially explains fact 1 Asymmetric Information: Adverse Selection and Moral Hazard †¢ Moral Hazard 1. Occurs when one party has an incentive to behave differently once an agreement is made between parties 2. After transaction occurs 3. Hazard that borrower has incentives to ngage in undesirable (immoral) activities making it more likely that won't pay loan back 6 Health Insurance †¢ Symmetric Information: Suppose, if you get sick, drugs cost $10,000/year †¢ Everyone has a 1/10 chance of getting sick †¢ Solution – Insurance will be offered at $1,000 per year Health Insura nce – Symmetric Information continued †¢ Suppose 10% of the population (2 out of 20) is sickly and has a 50%(1/2) chance of getting sick – independent. †¢ Other 90% (18 people) only has 1/18 chance of getting sick. †¢ This information in known to everyone. †¢ How do you price the insurance? Health Insurance – Symmetric Information ontinued †¢ Sickly types pay? †¢ Healthy types pay? 7 Health Insurance – Asymmetric Information Adverse Selection †¢ Same as previous example, but one’s type (sick or healthy) is private information. Suppose insurance company offers policy at $1,000 per year? Suppose insurance company offers policy at $1,000 per year? †¢ Sickly type happy to save $4,000. †¢ Healthy drop out and go without insurance. †¢ Adverse selection: Bad quality pushes good quality from the market because of an information gap. 8 How about charging less say $555. 56 to everyone? How about charging less say $555. 56 to everyone? Break even on the healthy type, but lose on sickly type. †¢ Only way for insurance company in this case to break even is to charge $5,000 ? Healthy will go without insurance. Adverse Selection and Financial Structure Lemons Problem in Securities Markets †¢ Suppose investors cannot distinguish between good and bad securities, willing to pay only the average of the good and bad securities’ values. †¢ Result: Good securities undervalued and firms won’t issue them; bad securities overvalued, so too many issued. 9 Lemons Problem in Securities Markets †¢ Investors won’t want to buy bad securities, so m arket won’t function well. ?Explains Facts 1 and 2 ? Also explains Fact 6: only large well established firms have access to securities m arkets †¢ Bad quality pushes good quality from the m arket because of an information gap. Tools to Help Solve Adverse Selection Problems †¢ Private Production and Sale of Information ? Free-rider problem interferes with this solution †¢ Government Regulation to Increase Information (explains Fact # 5) Tools to Help Solve Adverse Selection Problems †¢ Financial Intermediation ? Analogy to solution to lemons problem provided by used car dealers ? Avoid free-rider problem by making private loans (explains Fact # 3 and # 4) ?Also explains fact #6—large firms are more likely to use direct instead of indirect financing 10 Tools to Help Solve Adverse Selection Problems †¢ Collateral and Net Worth ? Explains Fact # 7 How Moral Hazard Affects the Choice Between Debt and Equity Contracts †¢ Called the Principal -Agent Problem ? Principal: less information (stockholder) ? Agent: more information (manager) †¢ Separation of ownership and control of the firm ? Managers pursue personal benefits and power rather than the profitability of the firm Tools to help solve the Principal-Agent Problem: †¢ Monitoring ? Expensive †¢ G overnment regulation to increase information Fact 5 †¢ Financial Intermediation ? Venture capital firms provides the equity and place there own people in management †¢ Debt Contracts ? Reduces the need to monitor as long as borrower is performing. Explains Fact 1, why debt is used more than equity 11 How Moral Hazard Influences Financial Structure in Debt Markets †¢ Even with the advantages just described, debt is still subject to moral hazard. ? Debt may create an incentive to take on very risky projects. How Moral Hazard Influences Financial Structure in Debt Markets †¢ Most debt contracts require the borrower to pay a fixed amount (interest) and keep any ash flow above this amount. †¢ For example, suppose a firm owes $100 in interest, but only has $90? It is essentially bankrupt. The firm â€Å"has nothing to lose† by looking for â€Å"risky† projects to raise the needed cash. Tools to Help Solve Moral Hazard in Debt Contracts Lenders need t o find ways ensure that borrower’s do not take on too much risk. ? A good legal contract ? Bonds and loans often carry restrictive covenants †¢ Restrict how funds are used Require minimum net worth, collateral, bank balance, credit rating. †¢ Financial Intermediaries have special advantages in monitoring[Facts 3 and 4] ? 12 STOP HERE!! 13

Please read instructions Essay Example | Topics and Well Written Essays - 250 words

Please read instructions - Essay Example The artwork refers to the historic context of the time of the crucifixion of Jesus Christ where he was covered with the crown of thorns. This is relevant to the Catholics and the Christian family as a whole as it gives them a reason to show their respect to Christ for carrying their own afflictions on their behalf (RiceUniversity, 2009). This artwork dates back to the 17th Century where it was done by an artist known as Andreas Praefcke. The artwork is of Italian origin and is normally placed in most catholic churches in the world. The viewer is engaged through the posture of the artwork where it is placed a way show how painful it was for Christ to be persecuted, and now crucified. The viewer’s attention is captured by the pierced palms and the manner in which Christ was crucified without clothing. The historical context of this artwork simply implies the remembrance of Christ’s crucifixion to the Catholics, Lutherans, Anglicans and the Eastern Orthodox. It is an ancient symbol of the Christ’s body (CEJ,

Act 1 Screen Play Writing Essay Example | Topics and Well Written Essays - 500 words

Act 1 Screen Play Writing - Essay Example He continues to walk swiftly towards the parking space that is a block away from the casino. He continues his struggle to reach his shelter; the car which can help him flee from the expected risk. On his way to the car, he thinks (all his thoughts visually appear on the screen) that he has won honestly by stating to the men in the casino that â€Å"I know how to play cards† and then instantly recalls his childhood memories (appears on the screen in a vague impression), when his father used to take him to casinos at a very early age. (His father is shown on the screen) - teaching him tricks related to cards. He then utters the words â€Å"I just under-sold myself in front of the men†; All this is irking him badly which is shown through his body language. The moment he reaches his car, a screeching sound of the tyres of a vehicle is heard. Joey immediately turns back but then rushes towards his car within no time; but as soon as he opens it with his trembling hands, a black Chevy Pick truck stops next to him and three real big Chinese guys; Bao, Jiang, and Gan, come out of the truck. Joey’s face expresses all his reservations and fears at that moment. Gan runs towards Joey and smashes his head badly on the car. All of them start hitting Joey roughly and then one of them snatches the money from Joey. An expression of relief fills Joey’s face, as he expects them to leave. But the next moment, Joey’s face seems miserable as Gan pulls out a forty-caliber handgun and shouts, â€Å"You Gringo†. Joey (with extreme displeasure exhibited through his face) closes his eyes and feels the last seconds of his life. The next moment, a sound of gunshot is heard and Joey fells down with blood oozing out of his chest like a waterfall. The truck disappears in the dark leaving Joey lying on the corner of Edison Street and the screen slowly blacks out with the sounds of police

Steve Jobs Assignment Example | Topics and Well Written Essays - 500 words

Steve Jobs - Assignment Example revealed that his experience with experimenting on electronic items began when he was about 5 years with his father’s support and guidance; this experience rooted curiosity, passion and experimentation attitude in Jobs. Steve Jobs was known to have an incredibly curious nature; was a quick learner and had a great love for reading. As a child, Jobs was strongly determined, stubborn, and highly focused on things what interested him rather than what he was meant to do. His interest in electronics kept intensifying as time passed, which earned him friends with similar interests (Imbimbo, 2009). Steve’s first introduction to the world of computers happened when he was 12, at Hewlett-Packard office, which fascinated him to the core, and was the root cause of the revolution he later brought into the world of computers. Apart from electronics, Steve had an inclination towards music and played trumpet. He had a flair for artistic things, for example, calligraphy, which later helped him to design fonts for the Macintosh computer. Jobs was known for his inspiring speeches, referred to as Stevenotes; thousands of people would gather to listen to Steve speak about his new inventions every time (Imbimbo, 2009). Along with his friend Steve Wozniak, Jobs designed a computer which later became the Apple I computer. To make more of such computers, both raised money by selling their personal items and started working on their new R&D project, which was called the Apple Computers in 1976 (Rockman, 2004). Jobs along with Wozniak created the Apple II, and Apple III. Steve Jobs was instrumental in launching the Macintosh. After managing Apple Computers Inc for some time, Jobs left Apple and joined Next Inc in 1985. However, Jobs returned to Apple in 1996, which revolutionalised the world of computers, mobile phones and music with the invention of MacBook, iPhones, iPod and iTunes music software, all meant for consumer markets (Armstrong & Kotler, 2010). As a leader,

The learning and teaching of mathematics Essay Example | Topics and Well Written Essays - 2000 words

The learning and teaching of mathematics - Essay Example The paper tells that decimal notation is a crisis experienced by children in mathematics. The researcher has faced instances where some children are unable to distinguish between small and large values when presented with decimal points. When the subject of decimals is first introduced to primary school children, there is a general belief that when the number is long, the value is high. This means that there is an existing problem in the ability to differentiate the values of digits with decimal points. For example, when the researcher ask children to assign the number with the highest values between 5.555, 5.55 and 5.5, 5.555 is given as the answer. The reasons children give are arguably connected to the way they view whole numbers and denote decimal points. This trend can be explained by a number of misconceptions in decimal notation. There is a general belief that numbers with more digits represent high values than those with small values. 5.555 is believed to have a large value t han 5.5 because 5.555 has four digits that make the number look bigger, and 5.5 has two digits that make the number look smaller. While this explanation may be true in some cases, several combination of numbers may not adhere to the misconception. For example, in differentiating between 0.12, 0.111 and 0.1012, children pick 0.1012 as the number with the greatest value because 0.12 has three digits, 0.111 has four and 0.1012 has five, hence, the more the number of the digits, the higher the value of the number. In reality, 0.12 has a higher value compared to 0.1012.

The effect of remuneration on productivity an appraisal of primark Research Proposal

The effect of remuneration on productivity an appraisal of primark London - Research Proposal Example This paper defines the remuneration as the process of making an employee motivated by offering him a compensation or benefit. It is basically the gains he gets from the employers in exchange for services he performs in the workplace. It is a great way to increase the morale of an employee and boosting his performance level by keeping him motivated toward the job. Employee remuneration is a way to promote the well being of an employee by raising his status through paying salary to him in return for the services he provides for the employer. Employee remuneration can be characterized into two parts by naming them as time rate and piece rate method. The time rate method is characterized by measuring the time that worker spends on the job whereas piece rate method is related to the unit productivity as seen by the input given by employee to produce output. There are many advantages of time rate method of employee remuneration as it leads to producing quality products within a given time frame and the compensation is provided to employees keeping in view the time they spend on the job. For instance, the salary can be fixed based on hourly, weekly or monthly basis. Here the emphasis is more on the quality than quantity and supervision is tight as compared to piece rate method. It is a good method to make a new employee learn the basics of job without caring for the amount of salary he attains as it is based on the time spent on the task. However, the piece rate method is characteristic of the inputs the employee puts in to produce a specified number of outputs. In this type of method, an employee is more focused with quantity than quality and he is not being placed under strict supervision as he has just to produce the specified number of products at his pace. It is a good way to increase motivation among employees to strive for better pay by producing more outputs (Abrams, 2003). There are number of

Aristotle Essay Example | Topics and Well Written Essays - 1000 words - 2

Aristotle - Essay Example Greek was the language of scholarship: it was excellent for reasoning, and since Aristotle was well brought up and educated, his language skills furnished him with the tools for analysis, calculation, interpretation, and reckoning. The Hellenistic time was when the rules of geometry were nutted out, together with the ideas for formal proof. In this area, Aristotle did a lot of thinking and discussing - which was the method of teaching of the day. Without formal rules for proving and establishing the fact, it would be impossible to formalize mathematics or science, so this was an important time in the history of mathematics. Aristotle was fundamental in establishing the ways of thinking necessary to make mathematical calculation possible, against a set of standards. Another factor that made Aristotle important is his recording of things studied, which provided evidence for those who later wrote histories of mathematics. Part of his contribution, therefore, is his perpetuating fact to enable others to read it. Fauvel and Gray, two mathematicians who did a lot of research into ancient Greek mathematics, give many extracts from Aristotle’s sources. Aristotle believed that logic must be applied to the sciences and to mathematics. ‘The sciences - at any rate the theoretical sciences - are to be axiomatised,’ he wrote. How people think mathematically is in part due to his works known as ‘Prior and Posterior Analytics’. In a simple way, this can be explained as a way to analyze, which determines the correct order in which things happen.

The Use of Open System Approach in Managing Change Essay

The Use of Open System Approach in Managing Change - Essay Example It is to be noted that many changes are exciting, leading to new opportunities and challenges. When these changes occur too rapidly or demand too much of the individuals passing through the process of change, they can make individuals very uncomfortable (Heward, Hutchins, and Keleher, 2007, 170-178). Everyone has own assumptions about how organizations work, developed through a combination of experience and education. The use of metaphor is an important way in which one expresses these assumptions. Some people talk about organizations as if they were machines. This metaphor leads to talk of organizational structures, job design and process reengineering. Others describe organizations as political systems. Researchers have works on organizational metaphors, which are good starting points for understanding the different beliefs and assumptions about change that exists. Metaphors are important in the sense that this provides opportunity to think and deepen the understanding. Deep understanding allows, in turn, seeing things in new ways and consequently acting in new ways. One such metaphor is seeing organizations like an organism. This metaphor of organizational life sees the organization as a living, adaptive system. This suggests, that different environments favour different spec ies of organisations based on different methods of organising (Rowe and Hogarth, 2005, 396-405). When the organisation is conceived as a living, adaptive system, congruence with the environment is the key to success. According to this metaphor, in stable environments a more rigid bureaucratic organization would prosper. In more fluid, changing environments a looser, less structured type of organization would be more likely to survive. This metaphor represents the organization as an 'open system'. Organizations are seen as sets of interrelated sub-systems designed to balance the requirements of the environment with internal needs of groups and individuals. This approach implies that when designing organizations, we should always do this with the environment in mind. Emphasis is placed on scanning the environment, and developing a healthy adaptation to the outside world. Individual, group and organizational health and happiness are essential ingredients of this metaphor. The assumption is that if the social needs of individuals and groups in the organization are met, and the organ ization is well designed to meet the needs of the environment, there is more likelihood of healthy adaptive functioning of the whole system (Weiner, Amick, and Lee, 2008, 379-436). Thus it is apparent that there is no one best way to design or manage an organisation. Like in a organism, in such an organisation, the success of its functioning would depend on the transmission of information between different subsystems, and as has been mentioned earlier, the unhindered communication and exchange with the environment would determine its efficiency. Thus, as an organism, the homeostasis is the key. By homeostasis, it means the organisation would tend to maximise the fit between individual, team, and organisational needs. Therefore, it emerges that if one decides to manage the change in such an organisation, rather than using internal focus, changes are made only in response to changes in the external environment. The interaction between an organism and its

Daoism Essay Example | Topics and Well Written Essays - 500 words - 2

Daoism - Essay Example e parts of the Yin-Yang symbol manifest diametrically opposite principles, which have permeated into every phenomena in people’s existence, that is, life and death, male and female, hot and cold, reflections and absence of thought, action and inaction. According to the principle of Yin and Yang all things are characterized by the presence of both male and female parts, being a manifestation of dark and light. Consequently, the basic concept of Daoism is a balanced approach to all phenomena of nature and their adjustment in the context of an inequilibrium. Another important composite part of Daoism philosophy can be found in the Daodejing (Tao Te Ching), which is attributed to Laozi, the founder of Daoism. As a matter of fact, it appears that the author is unknown, as Laozi is not his truly name and only a nickname in the meaning of a wise elder. The title of the scripture in its turn may be translated as the book of the path and virtue. According to the legend, in the decline of years Laozi has decided to leave China and went to the West. Passing through a frontier post, Laozi has been asked by its chief to leave a book in memory of him, which would reflect the wise old man’s thoughts about the path of peace and human’s way in it (Orbinski-Vonk, 2012). This is the very way of the Daodejing appearance. Its importance is great for Chinese history and culture, since it is a document of Ancient China’s thought. Moreover, it is considered to be one of the classical works of Daoism. The views set forth in it have made a massive impact on subsequent development of China’s philosophy. Daoism being a part of traditional cultural heritage serves as a complex component of spiritual culture of modern China. Reflecting the ethnic and cultural peculiarities, it becomes a powerful direct and indirect impact factor. Specifically, Daoist ideals find their expression through art acting as means of expression of thoughts and feelings of people seeking penetration into

Financial Management for a 5 Star Hotel Essay Example for Free

Financial Management for a 5 Star Hotel Essay The service to be marketed is a 5 Star hotel with 380 luxury rooms supported by a range of food and beverage outlets. Located in Dubai, the domestic market will be considered to be the GCC, given the accessibility via short-haul flights and that currencies are broadly all pegged against the US Dollar, and therefore do not fluctuate against each other. The marketing strategy will cover sales in this domestic market as well as a range of global key feeder markets. Through analysis and comparison with economic theories, recommendations to guide the marketing strategy have been made. These point to focussing more strongly on the domestic market based on the higher levels of government spending, backed by a high oil price, the relatively low impact of cross elasticity with airfares and the lack of currency fluctuation risk for sales. Firstly I will consider the cost of production and some scenarios which may impact on the marketing strategy. The main costs in providing a hotel service are labour, rent and upkeep, energy and room servicing supplies (such as linen and tea amp; coffee). In terms of predicting costs for the first half of 2012, it appears likely the cost base will stay fairly stable. All costs are incurred in the UAE, with all items sourced in the local market. The major items, rent, labour and room servicing, are on long term agreements which are already fixed. Longer term macroeconomic effects may impact these, for example expat labour from Asia may be available cheaper next year in the global employment market if the world economy slips into recession. Unit energy costs are variable and could be influenced by macroeconomic factors affecting the oil price. These are difficult to predict, however I have considered that a global slowdown in the period could lead to less demand, forcing the oil price to decline. At the same time, continued tension in the Gulf, particularly around the Straits of Hormuz, could lead to upwards pressure on oil prices. On balance, for this exercise I have assumed that energy prices in Dubai with remain broadly flat. In summary, the overall cost base for the hotel service appears to be relatively flat for the first half of 2012. To assess the service type, I have analysed the price, income and cross price elasticities for the hotel service. I have observed from personal experience in the hotel market in Dubai that a 33% reduction in room rates results in almost doubling of demand, suggesting a relatively high price elasticity of demand of -3. This provides evidence that demand in the hotel market in Dubai is very sensitive to room rates. Whilst the service is considered to be a luxury item, the global tourist market is highly competitive. The income elasticity of demand for such a service is likely to be relatively high, given a luxury hotel’s status as a non-essential item. Since it is a global market it is complex to assess how individual income effects will influence each feeder market, although I would expect that this elasticity will generally be greater than 1. For residents of some countries with high GDPs, such as the GCC, I would anticipate a luxury hotel in Dubai may have a slightly higher income elasticity of demand than for countries with a very low GDP, where increases in income may still not be enough to afford this service. When considering possible cross elasticities, a key factor influencing hotel demand in Dubai is likely to be the cost of air travel to the UAE. Since such a high proportion of guests arrive by air, some from far away with relatively large airfares, there is likely to be a high cross price elasticity between demand for hotel rooms and the price of air travel. Looking to the first half of 2012, possible effects on aviation prices may include additional aviation taxes, such as the EU carbon tax [1]. This cross price elasticity may therefore result in less demand for McKenzie Group’s service from Europe. Assessing the market structure for the McKenzie Group Hotel in Dubai, it is highly competitive. For 2012 STR Global said â€Å"most rooms planned to open in the luxury segment (11,123 rooms amp; 34 projects) and upper upscale category (10,198 rooms amp; 31 projects). The new supply growth in 2012 is expected to reach 9. 6% causing both rates and occupancy to slow down† [2]. Given the range of hotels and brands, my assessment is that the market is near to a perfect competition. Competitive strategies are likely to include discounted room rates, special offers for additional added benefits (such as complimentary transfers, room upgrades and theme park tickets), and increased sales and marketing efforts. Given the analysis above, The McKenzie Group will need to compete on pricing supported by investment in sales and marketing campaigns. In order manage the cross price elasticity risk with aviation prices, The Group should look to focus efforts on the non-air travel local market and pursue pricing opportunities for packages with airlines to give competitive overall costs to global customers. The market for The McKenzie Hotel Group is mainly segmented geographically, location of customers is the biggest influence on buying behaviour. This can be grouped into four key feeder markets: Asia Pacific (10% of sales), Europe (40%), GCC (40%) and North America (10%). Demographically, gender has no noticeable effect and buyers from all markets tend to be middle aged professionals. In the European market government-level economic activity is likely to dominate prosperity given the current crisis. High debt and deficit levels in certain countries will lead to big reductions in government spending and may reduce consumer confidence. Combined with general forecasts for flat growth, if not recession, in the first half of 2012, this could have a large negative impact on overall demand. The GCC market however could be buoyant with high levels of government spending activity, mainly on infrastructure backed by oil and gas revenues. There may also be additional government spending on social schemes as a result of the Arab Spring in Levant countries. As a result of this activity, the domestic market is likely to remain strong. Given the analysis above on the economic climate in key feeder markets and the effects of government spending, The McKenzie Group should target the domestic GCC market much stronger in the first half of 2012. Given the breadth of global feeder markets, a variety of currencies must be considered in relation to pricing effects for customers. Costs are all incurred in UAE Dirhams so the main impact on currencies is not on costs but on sales. Since the Dirham and GCC currencies are pegged to the US Dollar there is no consideration required currency fluctuations with the domestic (or North American) market. However some currency fluctuations could have a major impact on sales in the first half of 2012. The Eurozone crisis may reduce the value of the Euro against the Dollar (and hence the Dirham) which will make hotels in Dubai more expensive for customers in the Eurozone market. As well as the cost of rooms, customers will also be affected by the relative increase in costs for anything bought locally, such as food and entertainment. This risk adds to the argument that Europe is not a good prospect for sales for the first half of 2012. Since the UK is not in the Eurozone its currency (Sterling) moves independently to the Euro and given that it is traditionally a strong market for McKenzie Group, this must be considered. Since the UK may enter recession again in the first half of 2012 it seems unlikely that interest rates will be increased from their current low rates. In addition Bank of England actions might also reduce the value of Sterling and so holidays in Dubai will seem relatively expensive for UK customers. McKenzie Group should reduce its reliance on the UK market in the first half of 2012 to help protect against this risk. Having analysed various macroeconomic and microeconomic influences on costs and sales for McKenzie Group Hotels in Dubai in the first half of 2012, there are some clear recommendations for the marketing strategy. Costs are anticipated to be reasonably stable since they are either already fixed or are incurred locally. Sales are likely to be much less stable. Given the high price elasticity on demand and the near perfect competition in the market in Dubai, price strategies will be key. For sales from the European market in particular, poor economic conditions, low levels of government spending, the risk of weak currencies, and cross elasticity with aviation costs, could all have a negative impact on sales. In contrast, these effects have much less, if any, impact on the domestic GCC market which is also likely to be buoyant from government spending. It is recommended to invest sales effort in the GCC for the first half of 2012.

Tourism Issue Research Exercise and Essay Essay Example for Free

Tourism Issue Research Exercise and Essay Essay 1.0Introduction 1.1 Introduction to essay Tourism has increasingly grown as the economy develops well and the level of living style of human being improves, especially in China. (Jordon Ken, 2001)The dramatically growth of tourism has brought several benefits such as enhancing local economic development and the reduction of unemployment rate. (Philip D. Brian R., 1995) However, it is still questionable that whether it is absolutely profitable if the number of tourists continue to rise. The objectives of this essay are to emphasize the negative impacts of tourism to a Chinese destination. This essay is going to cover how the boosting tourism is affecting the quality of water and air in China. 1.2 Introduction to articlelu This article is discussing about the sudden influx of tourists throughout China during China’s National Day golden week and the negative environmental impacts that it caused. 2.0 Main arguments discussion 2.1 The general fact of tourism Over time, there is a significant growth in tourism all over the world. With reference to appendix A, it is significantly shown that the number of international tourist arrivals doubled from 435 millions to 940 millions from 1990 to 2010. Distinctively in the South Asia region, the numbers rose from 3.2 millions to 11.1 millions in the span of ten years, this relatively attracts a higher number of tourists among the strongest growing areas in 2010. As reported in UNWTO Tourism Highlight (2011), the position of china in tourism indicators moves up in both arrivals and receipts, reaching to the third position and the forth place out of the top ten, respectively. 2.2 The factors involving an increase in tourism It is evident that nowadays, more and more people prefer to choose China as their holiday destination, showing an obvious demand for tourism. It is  notable that there was a 20.8% growth of foreign tourists’ (about 85.4 million tourists) arrivals after the Beijing Olympics and Shanghai Expo. (China Daily, 2009) However, there are several crucial reasons that push people to go out to an unfamiliar place and pull them to China, listed below are the push and pull factors respectively. 2.2.1 Push factors There are several factors involved in influencing the increment of tourism, such as economic expansion, social changes, demographic aspects and technological developments. (Weaver, D. B., Oppermann, M. 2000) Being rich and affluent allows most people to be able to achieve a better sense of purchase power. The availability of greater discretionary household income gains various choices rather than just spending on basic living requirement;( Agarwal and Yochum,1999) Moreover, nowadays people tend to travel overseas during their vacation, in order to escape their busy work schedules. Households have also become smaller, so family members can spend less in bringing up children, thus having more money for leisure activities. In addition, the advancement in technology makes it easier for travelers to reach their destination. To sum up, all these factors boost the demand of tourism. (Weaver, D. B., Oppermann, M. 2000) 2.2.2 Pull factors Referring to Appendix B, Asian tourists make up the majority of China’s tourism market due to their geographical advantage. For example, Japan is the biggest tourist-source market for China as both countries are situated near from each other. It is also cheaper for the Japanese to travel to China as it is relatively cheaper than to other countries. Besides, the 5000-year history of China is always attracting tourists all over the world. In addition, the complement of airline systems and expansion of high speed train are more comfortable, continence and efficient. The quality of service has also grown together with the influx of tourists. (Jeffrey, 2008) 3.0 The negative impacts of tourism to environment However, it is questionable whether it is absolutely good if the number of tourist constantly grow yearly. According to this article, it was a common  phenomenon that china was overly congested with people during the Chinese National Day. 20,000 tourists could not find a hotel to settle down in Pu Tuo mountain (a famous mountain in china); During the same period of time, San Ya beach was described to be a dump because 50 tons rubbish was abandoned along the coast, while vehicles were held up on the expressway, which looked like they were parking in car parks. (Lei, 2012) These events are apparently showing a sign that when the sheer number of tourists is overload for a destination, it will lead to a decline in both socio-cultural and natural environment. However, only natural environment will be discussed about thought focusing on two main pollutions that exit during the rapid development of tourism. They are water pollution and air pollution, respectively. 3.1 Water pollution With the boosting tourism, more water resources are developed to attract travelers. Those people who enjoy the natural attractions of beauty and peacefulness like to boat along the waterways and enjoy the scenery.(Jeffrey, 2008) Thus, an increase of water transports like motorboats, will in turn cause oil emissions which would pollute the water ways.( Jeffrey, 2008 ) Moreover, the rubbish dump by travelers is harmful to the quality of water. Furthermore, hotels resorts built along waterways or coastlines will produce a big amount of sewage as well. These series of events would be obviously harmful to local water system during the holiday and would certainly cost a loss in the economy. For example, a number of 360 million yuan(US $43 million) was invested to clean up the Lijiang River by government. (People’s Daily, 2000) 3.2 Air pollution Nowadays, with advanced technology, majority of people prefer to take air transport to their preferred destinations. Refer to Appendix C, half of the total (51%) tourists chose to travel by air in 2010, while the road transport rank at the second popular choice of all mode of transports. All vehicle transport create exhaust fumes. (Simpson et al., 2008) Air pollution caused by tourist transportation has spread to the whole human being living environment, especially from carbon dioxide production because of the usage  of transportation energy. (Majbritt, 2010) In fact, the air in China, especially in the city area, is suffering from heavy pollution. (Gregory C. Chow, 2008) Amongst 20 worst-air-cities around the world, 16 of them belongs to China. (Jeffrey, 2008) 4.0 Conclusion In conclusion, the negative impacts of tourism to Chinese environment such as water pollution and air pollution have been explained above. These are the consequences that booming tourism has to pay. Thus, it is worth noting that the substantial tourism is calling peremptorily. Increasing tourism does bring a lot of profit for economy, but it is a double-edged sword. If left uncontrolled, tourism can cause both social and environmental problems as seen from China’s case. However, although I believe that the Tourism industry in china reaps more positivity on the whole, although there is no concrete panacea to this issue. Methodology This research essay required gathering relevant facts and information from a vast variety of sources, including book literatures, journals, news articles, specified review and online sources, in order to deliver complete understanding of the main topic – Negative impact of tourism to China’s destination. This research paper focused on gathering crucial data from the most valid and credible sources as reliability and credibility were key concerns. The usage of online journals and articles which were accessible on University Of Newcastle Blackboard were definitely useful in gathering information such as essential Annals of Tourism Research and Studies. In addition to this, Google Scholar played an imperative role in providing relevant information on the topics of Tourism in China as well as statistics on relevant areas. Key words like inbound tourism of china, water pollution were used on Google search engine to obtain further detail figures such as the number of tourism to China in 2010. Other than the methods listed above, the Chinese government reports and UNWTO annual reports were also used to describe and further elaborate changing tourism trend and statistics. The main keyword descriptors used to complete the research include: negative impacts of tourism in China, water pollution and air pollution information Reference: Air Pollution in China. (n.d.). FACTS AND DETAILS. Retrieved April 2, 2013, from factsanddetails.com/china.php?itemid=392catid=10subcatid=66 China Daily. (2009) Tourism in beijing boosts after the olympic games. (2009, 7 29). Cultural China. Retrieved from http://news.cultural-china.com/20090729140321.html Gregory C. Chow (2008): China’s Energy and Environmental Problems and Policies, Asia-Pacific Journal of Accounting and Economics Jeffrey, H. (2008). Facts and details. Retrieved from http://factsanddetails.com/china.php?itemid=392catid=10subcatid=66 Jeffrey, H. (2008). Water pollution in china. Retrieved from http://factsanddetails.com/china.php?itemid=391 Jordon, S., Ken, W. (2001). Causality between trade and tourism: empirical evidence from china. (1st ed., pp. 279-283). Lei, B, (2012). Crowd throughout the great wall during chinas national day. Chong Qin Wan Bao (2012, 10 8). . Retrieved from (http://tour.rednet.cn/c/2012/10/08/2770150.htm) Majbritt, T. (2010). Tourism, transport and environmental pollution. Retrieved from http://www.viewsontourism.info/2010/tourism-transport-and-environmental-pollution/ Philip D. , A., Brian R., P. (1995). An applied general equilibrium analysis of the economic effects of tourism in a quite small, quite open economy. (Vol. 27, pp. 985-994). Simpson, M. C., Gà ¶ssling, S., Scott, D., Hall, C. M. and Gladin, E. 2008. Climate change adaptation and mitigation in the tourism sector: Frameworks, tools and practices, Paris: UNEP, University of Oxford, UNWTO, WMO. Tourism, Transport and Environmental pollution – Views On Tourism. (n.d.).Views On Tourism Knowledge and inspiration to the Bangladeshi tourism sector.. Retrieved February 4, 2013, from http://www.viewsontourism.info/2010/tourism-transport-and-environmental-pollution/ UNWTO. (2011). Travel Biz Monitor: UNWTO Tourism Highlights: 2011 Edition (Part -II). Travel Biz Monitor: India travel news, travel trends, tourism. Retrieved February 3, 2013, from http://www.travelbizmonitor.com/unwto-tourism-highlights2011-edition-part-ii-14272 V.B. Agarwal, G.R. Yochum(1999): Tourist spending and race of visitors, Journal of Travel Research, (pp. 173–176) Weaver, D. B., Oppermann, M. (2000). Tourism management. Brisbane: John Wiley Sons Australia.(pp. 5-68) Wheeler, D., Dasgupta, S. and Wang, H. 2003. â€Å"Chapter 12: Can China Grow and Safeguard Its Environment? The Case of Industrial Pollution†. In How Far Across the River? Chinese Policy Reform at the Millennium, Edited by: Hope, N., Yang, D. T. and Li, M. Y. Stanford: Stanford University Press

A Business Plan of Medical Services Marketing Essay

A Business Plan of Medical Services Marketing Essay The medical tourism industry is in a rapid state of growth, both in Singapore and globally. Growth in consumer demand for health services delivered by foreign medical professionals continues to grow for a variety of reasons, including insufficient regional health care systems and the growing expense of performing domestic procedures in their countries of origin. Sometimes, booking a medical tourism package is simply an excuse to visit a foreign land whilst also to consolidate their travel interests and save costs. This growth in medical tourism provides enormous opportunities for launching Singapore MedTours and ensuring it can grow and be sustained. Medical Services Tourism is not without many business risks, including high levels of competition from intermediary companies designed to help consumers plan itineraries for medical services. There are also risks to the client that must be considered, including ensuring that they fully understand their own health risks so as to secure liability factors for the business itself. In terms of strategic objectives, a comprehensive risk management system must be developed. However, outside of these risks, profit potential is quite considerable due to the large customer demand that exists in many different foreign countries. Singapore was chosen as the country to launch the new Medical Services Tourism Company because of its award-winning infrastructure, the ability to raise new capital through a variety of means and even for the education system that can provide quality employment for the business by skilled professionals. Singapore is ideal for Medical Services Tourism and this business plan provides a comprehensive plan for the launch of the company. 2.0 Business description Medical tourism involves availing medical procedure in a foreign country. Westerners form a large segment of medical tourists who are attracted to quality healthcare and large savings as compared to the medical costs in their own countries. The patients then can take a vacation in the host country after receiving their medical treatments. Often patients can cover their surgery expense, flight and hotel accommodation charges for quarter of the operation cost they would have paid in their country (Puah, 2008). The Company would be named Singapore MedTours and it will be a Private Limited Company (See Appendix 1). The firm will act as an agent that facilitates tourism of international citizens looking for quality and affordable health care that they might not be able to achieve in their home country. It will be a start-up company with an onsite facility for receipt of travellers and to satisfy their inquiries on medical tourism. The agency will make profit by charging commission on these transfers and any additional profitability received from supplementary, non-medical tourism that might be booked through the agents or its online website. Mission Our mission  is to provide Safe, Affordable and Quality health care options to our customers through world class health care system of Singapore. Source: Author 2.2 Industry background The medical tourism market has nearly doubled in recent years, and is currently valued at over $20 billion every year (Gaddum, 2010). This makes medical tourism ideal as a profit-generating business with huge growth potential. Medical tourism fills a valuable niche that is desperately needed in countries with bureaucratically flawed or unaffordable healthcare (discovermedicaltourism.com, 2008, p.2). One of the reasons that make foreign travel so appealing to a variety of international tourists is in areas of cost. For example, in the United States, it might cost approximately $30,000 for a knee replacement surgery, where in Singapore these costs will be much less at only $18,000 (placidway.com, 2010). It is largely this cost difference, for the same medical expertise, that is making medical tourism such a booming business not just in Singapore. Some of the major countries that are offering Medical Tourism in the world are: Countries Medical Inbound Tourists 2002 2004 2005 2006 Thailand 390,000 520,000 Malaysia 210,000 320,000 374,000 410,000 Singapore 117,000 179,000 India 100,000 150,000 Source: http://www.ihf-fih.org/pdf/25-28.pdf Singapore is among the most attractive destinations for health care travelling. The country has been awarded as the Best Medical/Wellness Tourism Destinationin 2007 and will be the Leading Destination for Health Care Service in Southeast Asia (MedTourismReview, n.d). 2.3 Goals and Potential of the Business According to Singapores minister of trade and industry; Singapore is a good place to raise funds, both equity and loans, including venture capital. (Satapathy, 2003, p.1745). Singapore was chosen as the start up location because of the ease of access for funds related to the launch as well as securing future loans or capital for improvement and expansion of the business. Because of the quality availability to investment funds and other loan-generating entities in Singapore, the business has several goals for short term gain: Source: Author A long term goal of Singapore MedTours is to create an internationally-recognised name in medical tourism that outperforms competition. There is massive potential for creating a strong marketing presence internationally based not only on growing consumer demand, but because of the systems already in place in Singapore to assist in developing a sound advertising programme with higher global exposure. 2.4 Uniqueness of service Singapore MedTours will have several unique features designed to make it outperform competitive entities in this industry. Singapore MedTours would offer a low-risk guarantee to enable the customers in moving forward with their medical tour with strong faith. In any case if after arriving at the destination, the conditions of treatment seem unacceptable to the client, we will give the liberty to cancel the surgery. The only charge the client will be responsible of is the air fare and accommodation. To our knowledge, were the only medical tourism company  that  offers this type of protection in Singapore. Also MedTours would be unique in supplementary services related to medical tourism that will improve profitability and improve the word of mouth reputation for the business. Offers the founder of Scotland-based Company Globe Health Tours; This is a huge word of mouth business (Crawford, 2006, p.1). Therefore, Singapore MedTours will be equipped with high quality service dimensions that please the travelling tourist and also improve customer relationships using advanced CRM systems (Customer Relationship Management software). 3.0 Marketing Marketing will be crucial to the success of this new business launch because of the importance of word of mouth to the company. With high levels of competition in this industry, an improved and superior marketing presence must be available and the funds needed to make this a reality will be allocated to this effort. 3.1 Target market identified There is no one, singular market available to this business because of the ability to capture the attention of many different consumers hailing from many international locations. No two patients are the same, either in their needs or the type of journey they either want or require (newsweekshowcase.com, 2010, p.1). This means that it would be quite difficult for the business to isolate a single target market strategy that would fit the needs of the majority of travellers who look toward our services. However, despite these unique consumer needs, medical tourism industry is dominated by patients from United States. In 2008 alone estimates put that more than 1.3 Americans travelled abroad for the exclusive purpose of seeking medical care (Health-Tourism.com, 2008). The marketing strategy should take into consideration the high volume of customers that will come from this region and use communications strategies that fit the needs of this high profit-generating customer client. Other international customers will be measured using software and database tools to determine which international location brings the highest volume of customers, and ongoing, future research methods will be used to determine their needs as they arise. Market Survey Research Objectives To analyze the growth potential for the business. To analyze the consumer needs according to their relative priority. To analyze the level of favourable consumer expenditure. Customer Profiling and Characteristics Customer profiling is important as it aids in identifying and catering to customers in every possible way (Anderson, 1997, pg 71). Based on the market survey conducted, most of the respondents show favourable response for medical tourism. A majority of respondents with negative response towards medical tourism shifted to need more information aspect when medical tourism benefits were mentioned. However the two main factors motivating respondents to be favourable to medical tourism are cost savings and high quality healthcare from internationally accredited hospitals. The most preferred service attribute is high standards of service with considerable savings indicating that not all consumers bargain hunters. It also indicates that respondents are not willing to compromise on quality for cost reduction. Determining the critical factors for success majority of respondents preferred English speaking population and highly accredited hospitals. The most influential means of promotion is word of mouth followed by hospital referrals and company website. In addition, with the various competitors positioning and competitive comparisons, most consumers decisions are influenced by Brand equity and awareness play an important role. Target market Based on the Market Survey conducted, Singapore MedTours will focus on target markets which are of high growth potential. The market is divided into the following segments which in turn will provide the company with clear focus to direct its marketing strategies Geographic segmentation: North American Citizens. Demographic segmentation: Age: 45-65 Income: U.S $24000- $70000 Psychographic segmentation: Customers keen on quality of service and interested in good savings while not in favour to comprise on safety. US Medical Tourism Market According to the Market indicators United States medical tourism has got good prospects in coming decade and beyond. In the United States, medical surgeries are very expensive, and every year millions of Americans default to pay for the health care expenses they require they are either uninsured, uninsurable or underinsured. According to a study in 2007 50% of personal bankruptcies are related to medical crises (Star Health Vacations, 2010). 3.2 Market size and trends In 2006, Singapore drew 410,000 international customers that received medical services primarily in form of Liver Transplants, Cardiac Surgery, and Joint Replacement (Hadi, 2009). And this number of inbound patients will exceed 1 million by 2012, with forecasted value of 3 Billion USD (The Internet Journal of healthcare Administration, 2010). Scotland-based Globe Health Tours experienced a 600 percent increase in business only after six months of operations (Crawford, 2006). In all, Singapore Medical Tourism is aiming to become a leading health care destination in all Asia and it witnessed a steady growth of 11.9% per year from 2004 to 2008 (prlog.org, 2009). 3.3 Competition Intensive competition exists in medical tourism, both internationally and in Singapore itself. Therefore, the company must create strong marketing presence and advertising know-how to make the business outperform competition step by step or service by service. Within the country, there are currently 29 hospitals that already provide health services to foreign travellers, with services being performed by over 7,000 physicians and 15,000 registered nurses (health-tourism.com, 2010). Because these hospitals already have contracts and/or relationships with other health tourism agents, there is a great deal of marketing work that needs to be performed by the business to make it stand out and be the preferred agency for these profitable customer groups. This well-developed network of physicians and agencies can be quite risky to the business model and require competitive focus to ensure improved customer preferences for the company. U.S agencies operating in Singapore: There are several U.S based medical tourism agencies, like Health Base Medical Tourism Agency, Planet Hospital, which are providing health tourism services in Singapore to patients of America. The companies are similar to each other only differing in the fact that they are tied up with different hospitals in different locations. U.S Agencies operating in other medical tourism countries: These agencies are tied up with budding medical tourism countries such as India, Thailand, etc. Key players include World Med Assist, Indus health, Quest Tourism, Med Journeys, Med Retreat SWOT Analysis of Singapore MedTours Strength Well trained staff with heavy focus on building customer relationship before and after their stay in Singapore. Creating an easy to use Website and employing advance Customer Relationship Software to attract and retain clients interested in Medical Tourism. Singapore is ranked 6th in world for the quality of health care provided by the World Health Organization (WHO). Medical tourists should not be able to witness chaotic events during their stay in comparison to the other Asian countries as Singapore is urbanized and clean country. JCI-certified hospitals and healthcare facilities are found in abundance throughout Singapore. English is one of Singapores official dialects. Though the cost of healthcare in Singapore is not as low as India or Thailand but they are still lower in comparison to Western Europe and the USA. Weakness The cost expenses in medical processes and treatments in Singapore are relatively high when compared to other Asian medical tourism countries like Thailand, Malaysia and India. The geographical location of Singapore is such that the climate is rather hot and humid which maybe a hindrance to the westerners especially during the post procedure and recovery stages. Accommodation, transportation and the cost of goods in Singapore is more expensive as compared to other Asian countries The travel times to Singapore are considerably very lengthy for the US medical patients. Opportunities World-class tourism service industry present in Singapore can help in recruiting best talent for the Medical Tourism. High market Growth Healthcare services from countries with aging population increasingly seek medical tourism. U.S. workforce is seen to be increasing more in context to globalization Low-cost global air travel had made Singapore all the more accessible for inbound patients. Employers and health plans targeting commercial populations have become accepting of the various benefit of medical tourism. Threats There is seen to be fierce competition posed by other Asian medical tourism countries like Malaysia, India and Thailand. Popularity of Medical Tourism may encourage more competition to open business in Singapore. New technological breakthroughs can make previously very expensive healthcare affordable in the clients home country. Global endemic outbreaks like H1N1, SARS, and Bird-flu etc in western countries can inhibit travel of foreign travellers to Singapore as government may impose restrictions. Source: Author 3.4 Estimated Market Share In order to estimate the market share few of the assumptions has been taken into account: That the rate of people seeking foreign medical services continues to grow at the same pace, with 1 million people entering Singapore in 2012 for this purpose. Very High volume of competition present in the country. Based on the above two considerations the firm is taking the minimum target of just 0.1% Market share, i.e., 1000 customers for the 1st year which it plans to grow to 1,500 in 2nd year and by 2013 the target is to reach 2,000 customers. The firm believes that this extremely low market share can be easily achievable by utilizing good marketing and promotion strategy and following best practices in the business. 3.5 Market strategy Positioning MedTours intends to work on a clear positioning statement of Quality, You can be Assured off which encourages customers to have complete faith in the company. The company will position itself as a reliable and friendly agency with utmost importance given to customer safety. The point of difference which separates the company from its competitors is the Quality Guarantee what the company provides and the idea of personalization of medical tours. This will help the company stay competitive while being positioned as a differentiated medical tourism agency. To be able to live up to the positioning the company will tie up with best in class hospitals and service providers with highest priority given to details of service dimensions. The company will purchase advanced CRM systems to improve overall delivery of customer services. The business will use, as one, marketing strategy, advanced training for its employees related to customer service to make the short encounter with the company one that is remembered and would help in creating good word-of-mouth publicity. Product Singapore MedTours will offer best of the medical services present in the Singapore by getting tie-ups with world-class hospitals of Singapore. Specific focus will be made on JCI-Accredited (Joint Commission International) hospitals like Alexandra Hospital, Changi General Hospital, Raffles Hospital, Parkway Group etc; so that inbound patients from US and other countries are assured that they are getting best quality service in a very safe environment. Services Offered By Singapore MedTours The following are the exact nature of services being offered by Singapore MedTours. Personal  preferences of patients would be given priority to select best hospitals and doctors. Source: Author Place Singapore MedTours will have a dedicated well-furnished office from where its entire staff can operate. Also in this office the customers would be received first and will be given initial briefing about the Medical Services they would be going through as well as general information about Singapore, its culture, famous tourist attraction etc. The main purpose of the office would be to make sure customers have one single easily identifiable and approachable location from where they could satisfy all their queries and solve their problems during their stay in Singapore. Promotion Approximately 78 percent of all medical travellers use the World Wide Web as their first choice for booking medical tourism (medicaltourism.com, 2010). Because of this high volume, market strategy will include a strong Internet presence that will require the expertise of information technology specialists to give the business a colourful, interactive and engaging online booking experience. The majority of the business will likely come from Internet exploration, therefore the budget must be allocated to a web design that outperforms competition and has the necessary information to make Singapore MedTours their first choice in booking their travel needs. The first publication of choice to improve visibility and awareness in customer groups will be the Medical Tourism Magazine, a bi-monthly publication that is distributed in a variety of international countries. Costs for these ads are $4000 for a full page ad and $2000 for a half page ad (medicaltourismassociation.com, 2010). This is a respected and well established advertising publication that will give Singapore MedTours better marketing presence. The company will purchase half page ads several times yearly to update its literature based on consumer research and success with other marketing formats. Additionally, web-based advertising will be part of the ad strategy that includes links to visit our business website on partnership or contract agreements with different hospitals, travel agencies, and physician websites. The goal of this rather inexpensive advertising method is to simply give the company more ad presence and ensure budget needs are met. Since most customers will not visit the business location prior to making their travel needs, web presence is vital to building higher profit and consumer demand. 3.6 Pricing Cost of Medical Treatment in Singapore If the procedure would cost $6000 in the U.S. financial savings might not be realized by the patients even if the same surgery costs $1500 in other country. By the time the airfare, accommodation and stay charges are covered patients may only realize a break-even scenario (Med Retreat, 2010). Hence with careful consideration the following procedures would be offered by Singapore MedTours. Comparison of cost between Medical procedures in USA and Singapore Source: http://www.health-tourism.com/singapore-medical-tourism/ Although the industry standard is 15% (See Appendix X) for each referral to the hospital by an agency but the firm would initially keep the commission fee at minimum 12% in order to gain competitive edge while start-up. This also aligns with our market survey where cost saving has been attributed as most important consideration for the customers. People Since this is highly service-oriented industry and the mission of Singapore MedTours is to have best customer experience as possible, so Singapore MedTours will make sure that it will hire competitive employees. Furthermore sufficient training would be given so as and when needed in order to cope up with market demands and competition. Lastly special packages and policies will be design to reward and retain the best employees of the firm. Process Process is extremely important part of any Service-oriented industry. Hence Singapore MedTours will make sure that its process is as efficient and as customer-friendly possible. Quality Control would be done regularly to identify and improve any bottlenecks and promote the best practices. Reviewing and Approving Online Membership Forms: Once an application is filled, detailed information based on the customer requirement will be provided allowing customers to make an informed decision. Assignment of an U.S Consultant to the patient: The consultant would cater to patients medical needs by designing a health tour plan. Informing the Medical Doctor: By sending digital copies of clients medical transcripts to the affiliated doctors for their approval to receive patient. Arranging for a Facilitating interaction between the Client and Surgeon: The process will be coordinated via email, teleconference etc. in this stage. Collection of Expectations Form and Desired `Travel Dates: To plan for exact tour plan. Checking Hotel Reservation at desired dates: The information will be obtained in this stage in order to be able to provide price quotations to the clients. Submitting the final price quotation for the health tour to the client: This is to avoid any further confusion and also to provide relevant information to the client. Deposit of necessary funds for health tour by client into Singapore MedTours bank account. These next few processes occur simultaneously: Finalize Clients medical consultation and surgery dates with the preferred doctor and hospital. Assisting clients in acquisition Passport/Visa Book clients Air Travel Itinerary which best suits their preferences. Reservation of accommodation for client Sending the booked travel and hospital information back to client: Now the client will make the trip from his or her own country to host country (Singapore). Assigning Destination Program Manager (DPM) to the client: Upon arrival of client in Singapore a DPM will be assigned permanently to client and the person will be their Personal assistant throughout the visit. This person will accompany the client to all their doctors appointments and medical treatments. Arranging for Pre-Surgery consultation with the surgeon: This process would be completed within 24 hours of clients arrival. The surgeon would review medical transcripts and tests to ensure that procedure can be performed on the specified dates. Assistance to client during surgical procedure and post surgery recuperation: After the client would be discharged from the hospital they would be accommodated in resort or hotel to begin recuperation process. Arranging for Post treatment vacation: After obtaining an authorization letter from surgeon, an enjoying vacation would be arranged for in Singapore. Assisting for Safe Return home of the clients: At the end of the tour the client will be send back to home country and the assigned US consultant would assist in any post-medical needs. 4.0 Operations Operational aspects of how the business is managed and structured will be key to its success. 4.1 Identify location The main requirements of indentifying the location for our business are: Low cost per square feet, large pedestrian volume and easy access to transportation (Abrams Kleiner 2003, pp67-68). Thus, after searching on the internet and checking the reality of the information with the agent, following address can be an alternative to the location of our business. Source:http://www.singaporeexpats.com/housing-in-singapore/singapore-property/code4349017-commercial-industrial-buy-FRONTIER.htm This location, compared with other places, satisfies the above requirements. The charge for buying this office is expected at around 570,000 SGD, and by using the yellow line MRT routine, the dense population of UBI become bigger and bigger. Also two MRT stations (Tai Seng and Macpherson) are very near to the location (gothere.com). The business prefers to buy the office instead of renting because in 3-4 years time the amount of rent paid would be equal to the total value of the office and since Singapore MedTours is looking for long term viability of the business hence it is buying the office. Source: http://www.gothere.sg/maps#q:52%20ubi%20avenue%203 4.3 Zoning Various Districts of Singapore: Source: http://www.propertyhub.com.sg/images/M_images/singapore_district_map.jpg The Zoning of the office was carefully selected while keeping the following considerations: The office should have as low as possible per square feet cost. It should be present in or near the heart of the city. Also the office should be near the Changi International Airport. The current identified location of the office is in district 14 which is quite near the Central Districts 6 12 of the Singapore. Simultaneously the location is near the District 17 in which the Changi Airport is located. It is very important for the office to be near airport as majority of its firms clients would be international medical tourists who would be arriving via air-travel. 4.4 Taxes The low tax rates and positive and encouraging business policies give Singapore a reputation of attracting FDI. The taxes in Singapore are much lower than most others developed countries and regions (Asia Biz). Whats more, the tax rates have continued to decline significantly over the years (Appendix 2). Therefore, from the tax perspective, Singapore is an attractive nation to do the business. Overall, to our service business, the following kinds of taxes are needed to be considered before starting the business: Income Tax: The amount of Income Tax is based on the income of our companies, and according to Appendix 1, the income tax rate is 17% and as a new start business, some partial tax exemption will be applicable to us. Goods Services Tax GST, also known as VAT, is a broad-based consumption tax levied on the  import of goods, as well as nearly all supplies of goods and services in Singapore. And the rate of GST is 7% (IRAS 2008). Only the sales and leases of properties and financial services need not to pay GST. Therefore, our company needs to pay 7% GST. Stamp Duties Stamp duty is a tax on executed documents relating to properties or interest in properties and shares or interest in shares. Documents such as a lease, sale and purchase, or mortgage of property need to pay stamp duties (Appendix 3). Thus, our company needs to pay this kind of tax. 4.5 Proximity to supplies There will be little concern over supply chain issues because of the quality distribution system that exists in Singapore. But also, the business will only need access to marketing literature and internal office/software support systems that can be easily procured with its renowned infrastructure for these tools. If the need arises for additional supplies, there are 3,000 logistics and supply chain companies operating in Singapore to assist with these needs at no risk to the business (worldcustomsjournal.org, 2007). All supplies needs can be easily satisfied. 4.6 Access of transportation Singapore has a well developed transportation network consisting of Metro Rail Transport (MRT) systems, Bus systems and Taxi Services that are all air conditioned. As it can be found in the location map, the location of our company near to two MRT stations, which provides convenience to our customers to reach our company. The mass rapid transit system in place is comprehensive and connects to almost all parts of the country (Lim, 2008). It is also considered among the best in the world (app.www.sg, 2009). Also with one of the world best airports, Changi International, the access of transportation to other nations is unobstructed (Changi). Transport is no risk to the business and can sustain all traveller needs. 5.0 Management 5.1 Management Team and Key Personnel Singapore MedTours being a private business therefore Management team would initially be comprises of the primary investors of the organization. The following will be the structure of the Management Team: Source: Author Deep Kamal Agarwal (CEO / Financial Director): Deep Kamal Agarwal is successful Information Engineer from an Internationally Accredited College in India. His both parents are respected doctor with over 25 years of experience and hence he has natural affinity and knowledge about the Medical Service Industry. He posses 2 years industry experience as an operational manager in Sunrise Naturopathy Health Resort in India. His forte lies in encountering any business problem and working out prompt solution for it. He believes in holistic business approach and is critical person for the firm to provide vision

Mercury: A toxic poison Essay -- Chemistry Metal Papers

Mercury: A toxic poison No other metal better illustrates the diversity of effects caused by different chemical species than does mercury. On the basis of chemical speciation, there are three forms of mercury: elemental, inorganic, and organic compounds. The major source of mercury is the natural degassing of the earth's crust, including land areas, rivers, and the ocean, and this source is estimated to produce on the order of 2700 to 6000 tons per year. The total man made release into the atmosphere is about 2000 to 3000 tons, and it is difficult to assess what quantities of mercury come from human activities and what quantities from natural resources. Run-off into natural bodies of water may contain mercury from both anthropogenic and natural sources, so it is difficult to assess how much released into the atmosphere is from man made or natural sources. Nevertheless, mining, smelting, and industrial discharge have been factors in the environmental contamination in the past. For instance, it is estimated that loss in water effluent from chloralkali plants, one of the largest users of mercury, has been reduced to 99% in recent years. Industrial activities not directly employing mercury or mercury products give rise t o substantial quantities of this metal. Fossil fuel may contain as much as 1 ppm of mercury, and it is estimated that about 5000 tons of mercury per year may be emitted from burning coal, natural gas, and from the refining of petroleum products. Calculations based on the mercury content of the Greenland ice cap show an increase from the year 1900 to the present and suggest that the increment is related both to an increase in background levels of mercury in rainwater and to man made r... ...lbut, K.M., FASEB 1992, 6, 2472-2476. 19.Boyd, N.D., Benediktsson, H., Hooper, D.E., Vimy, M.J., American J. Physiology 1991, 261, R1010-R1014. 20.Molin, M. Bergman, B., Marklund, S.L., Schutz, A. Acta Odontol. Scand., 1990, 48, 89-202. 21.Summers, A.O., Wireman, J., Marshall, B., Antimicrob. Agents & Chemotheraoy, 1993, 37, 825-834. 22.Gilbert, M.P. and Summers, A.O., Plasmid, 1988, 20: 127-136. 23.Intercontinental Medical Statistics, Canada, 1992. 24.Cohen, M.L., Science, 1992, 257, 1050-1055. 25.Thompson, C.M., Markesbery, W.R., Ehmann, W.D., Vance D.E., Nerotoxicology, 1988, 9, 1-7. 26.Palkiewicz, P., Zwiers, H., Nuerochem. 1994, 62, 2049-2052. 27.Lundstrom, I.M.C., Int. J. Oral Surgery, 1983, 12, 1-9. 28.Austrian Minister of health, Austria to be amalgam free by the year 2000. FDI Dental World, March/April, 1993, page 6.

McDonalds, what does it mean to you? Essay -- essays research papers

Marketing Management 3-4:30 Current Issues Paper McDonald’s, What Does It Mean to You?   Ã‚  Ã‚  Ã‚  Ã‚  McDonald’s Corporation has held a prominent position in the fast-food market for much of its existence. A person would be hard pressed to find consumers who would not readily recognize the famous golden arches, as the company has expanded its market globally. However, as global consumer tastes shift to a more heath-conscious public which cares less about â€Å"super sizing† and more about â€Å"slenderizing† the popular burger chain has been experiencing a drop in sales. McDonald’s strategy for its globalization plan has included the concept of localizing their product (to a degree) for an international market; for example, local managers in British versions of the restaurant are able to make their own decisions that pertain to adapting to the current market. A difficult challenge for the corporation’s marketing team is how to reposition this wildly successful brand in a stagnant British market.   Ã‚  Ã‚  Ã‚  Ã‚  McDonald’s, which has operated in London successfully for thirty years, has recently become aware of dropping sales which have been attributed to the country’s growing health concerns. The plan the British marketing team has developed includes sending the famous â€Å"golden arches† on hiatus while a new campaign will attempt to reposition the fast-food chain as a healthy choice for consumers. The theory is interesting, due to McDonald’s strong consu...

Caring for An Angina Patient Essay -- Nursing Essays

Nurses play a very important role in managing a patient from the moment of his admission up to making a discharge plan. Each part of the nursing process is vital to the wellbeing of the person he is taking care of. Clinical reasoning is always essential in each part of the nursing process from assessment, setting up goals and intervention. Effective nursing management is done when a nurse looks for the early and right cues at the right patient and implementing it at the right time. This essay will delve deeper into the case of Rob Geis, a patient who was suffering from angina, given his history and the signs and symptoms he experienced up to the time when his condition worsened to Myocardial Infarction. This essay will also look into how the nurse should provide effective nursing care to the patient with this condition. Etiology and Pathophysiology of Angina Angina is pain felt in the chest area as a result of lack of inadequate supply to the myocardium (Better Health Channel, 2013) Atherosclerosis or the hardening and narrowing of arteries caused by the build-up of plaques, the insufficient supply of oxygen and its increasing demand are some of the factors that can cause ischemia in the myocardium (Lewis et al., 2012). When there is a total blockage of the coronary arteries for a few minutes, the myocardium cannot receive oxygen and glucose for aerobic metabolism thus anaerobic metabolism occurs (Lewis et al., 2012). The lactic acid builds up and stimulates the nerve fibres in the myocardium resulting to chest pain (Lewis et al., 2012). The cells are repaired and the aerobic metabolism and the contractility of the arteries are restored when there is return of blood flow (Lewis et al., 2012) Subjective and Objectiv... ....). New South Wales: Elsevier Australia. MedlinePlus. (2010). Atenolol. Retrieved April 4, 2014, from http://www.nlm.nih.gov/medlineplus/druginfo/meds/a684031.html Rull, G. (2011). Cardiogenic Shock. Retrieved April, 2014, from http://www.patient.co.uk/doctor/Cardiogenic-Shock.htm Smeltzer, S., Bare, B., Farrell, M., & Dempsey, J. (2011). Smeltzer & Bare's Textbook of Medical-Surgical Nursing (2nd Australian and New Zealand edition ed. Vol. 1): Lippincott Williams & Wilkins Pty Ltd. WebMD. (2012). Electrocardiogram. Retrieved April 1, 2014, from http://www.webmd.com/heart-disease/electrocardiogram Williams, B. R., Lewis, D. R., Burgio, K. L., & Goode, P. S. (2012). Next-of-Kin's Perceptions of How Hospital Nursing Staff Support Family Presence Before, During, and After the Death of a Loved One. Journal of Hospice and Palliative Nursing, 14(8), 541-550. Caring for An Angina Patient Essay -- Nursing Essays Nurses play a very important role in managing a patient from the moment of his admission up to making a discharge plan. Each part of the nursing process is vital to the wellbeing of the person he is taking care of. Clinical reasoning is always essential in each part of the nursing process from assessment, setting up goals and intervention. Effective nursing management is done when a nurse looks for the early and right cues at the right patient and implementing it at the right time. This essay will delve deeper into the case of Rob Geis, a patient who was suffering from angina, given his history and the signs and symptoms he experienced up to the time when his condition worsened to Myocardial Infarction. This essay will also look into how the nurse should provide effective nursing care to the patient with this condition. Etiology and Pathophysiology of Angina Angina is pain felt in the chest area as a result of lack of inadequate supply to the myocardium (Better Health Channel, 2013) Atherosclerosis or the hardening and narrowing of arteries caused by the build-up of plaques, the insufficient supply of oxygen and its increasing demand are some of the factors that can cause ischemia in the myocardium (Lewis et al., 2012). When there is a total blockage of the coronary arteries for a few minutes, the myocardium cannot receive oxygen and glucose for aerobic metabolism thus anaerobic metabolism occurs (Lewis et al., 2012). The lactic acid builds up and stimulates the nerve fibres in the myocardium resulting to chest pain (Lewis et al., 2012). The cells are repaired and the aerobic metabolism and the contractility of the arteries are restored when there is return of blood flow (Lewis et al., 2012) Subjective and Objectiv... ....). New South Wales: Elsevier Australia. MedlinePlus. (2010). Atenolol. Retrieved April 4, 2014, from http://www.nlm.nih.gov/medlineplus/druginfo/meds/a684031.html Rull, G. (2011). Cardiogenic Shock. Retrieved April, 2014, from http://www.patient.co.uk/doctor/Cardiogenic-Shock.htm Smeltzer, S., Bare, B., Farrell, M., & Dempsey, J. (2011). Smeltzer & Bare's Textbook of Medical-Surgical Nursing (2nd Australian and New Zealand edition ed. Vol. 1): Lippincott Williams & Wilkins Pty Ltd. WebMD. (2012). Electrocardiogram. Retrieved April 1, 2014, from http://www.webmd.com/heart-disease/electrocardiogram Williams, B. R., Lewis, D. R., Burgio, K. L., & Goode, P. S. (2012). Next-of-Kin's Perceptions of How Hospital Nursing Staff Support Family Presence Before, During, and After the Death of a Loved One. Journal of Hospice and Palliative Nursing, 14(8), 541-550.

Regional Interactions Essay

†¢ As in the previous chapter, this time period witnessed a tremendous growth in long-distance trade due to improvements in technology. Trade through the Silk Road, the Indian Ocean, the trans-Saharan trade route, and the Mediterranean Sea led to the spread of ideas, religions, and technology. During the period known as Pax Mongolia, when peace and order were established in Eurasia due to the vast Mongol Empire, trade and cultural interaction were at their height. †¢ Major technological developments such as the compass, improved shipbuilding technology, and gunpowder shaped the development of the world. AP EXPERT TIP When you are reading about a given situation, try to visualize where in the world those developments are taking place. Alternatively, reproduce a blank world map and take notes in the proper geographic region as you read. †¢ The movement of people greatly altered our world. Nomadic groups such as the Turks, Mongols, and Vikings, for instance, interacted with settled people—often because of their technology—leading to further change and development. One of the worst epidemic diseases in history, the bubonic plague (or Black Death), spread during this period due to the movement of people and their increased interaction. †¢ Religions such as Islam, Christianity, and Buddhism promoted the equality of all believers in the eyes of God. And though patriarchal values continued to dominate, the monastic life available in Buddhism and Christianity offered an alternative path for women. †¢ The spread of religion aided by the increase in trade often acted as a unifying force, though it sometimes caused conflict. Christianity and the Church served as the centralizing force in Western Europe, and throughout East Asia, the spread of Confucianism and Buddhism solidified a cultural  identity. The new religion of Islam created cultural world known as dar-al Islam, which transcended political boundaries. †¢ The political structures of many areas adapted and changed in response to the new conditions of the world. Centralized empires like the Byzantine, the Arab Caliphates, and the Tang and Song dynasties built on the successful models of the past, while decentralized areas (Western Europe and Japan) developed political organizations that more effectively dealt with their specific conditions. The movements of the Mongols altered much of Asia’s political structure for a time, and recovery from that Mongol period introduced political structures that defined many areas for centuries to follow. Look more:  asian foot binding essay POST-CLASSICAL CHINA Tang Dynasty (618 to 907 CE) POLITICAL DEVELOPMENT Following the fall of the Han dynasty, China returned to rule by regional small kingdoms for the next 400 years. It was not until 581 CE that the Sui dynasty emerged, using Buddhism and the Confucian civil service system to establish legitimacy. The Sui dynasty started the construction of the Grand Canal and launched numerous campaigns to expand the empire. Rebellions overthrew the Sui in 618. The Tang dynasty that followed was more focused on scholars than on soldiers. It did, however, expand its territory beyond China proper to Tibet and Korea. It also completed the Grand Canal and offered support to Buddhism, Daoism, and Confucianism. The capital, Changan, was a major political center, which foreign diplomats visited from the Byzantine and Arab worlds. In the middle of the eighth century CE, Tang power declined as higher taxes created tension within the population. Peasant rebellions led to more independent regional rule and to the abdication of the emperor. After this, there was a period of rule by regional warlords for the next 50 years. ECONOMIC DEVELOPMENT The dynasty established military garrisons, which allowed for the protection and security of Silk Road trade. An equal field system was established in which all peasants were given land in return for tax in grain and unpaid labor; at death they were to return the land to the government. Changan was a major trading center and cosmopolitan city. The West Market there flourished with Indian, Iranian, Syrian, and Arab traders and their goods. By 640 CE, its population reached 2 million, making it the largest city in the world. Neighbors, such as Japan or Siam, became tributary states to China. CULTURAL DEVELOPMENT Culturally, the Tang dynasty was heavily influenced by the spread of Buddhism. Empress Wu started a school dedicated to Buddhist and Confucian scholarship and art. Toward the end of the dynasty, Buddhism, a â€Å"foreign religion,† was attacked for its economic and political power. From 841 to 845 CE, an anti-Buddhist campaign destroyed many monasteries. In the wake of this backlash, neo-Confucianism developed: Confucian scholars wanted a new form of Confucianism that would limit foreign influence. The result was an integration of Buddhist and Confucian ideas. Some ideas included individual self-improvement, the goodness of human beings, and the goal to strive and perfect oneself. Women’s marriages during the Tang dynasty were arranged within their own social class, but upper-class women could own property, move about in public, and even remarry. Poetry flourished with such poets as Li Bai and Du Fu. Song Dynasty (960 to 1279 CE) POLITICAL DEVELOPMENT By 960 CE, the Song dynasty had re-established centralized control over China. The civil service exam system retained great prominence, successfully checking the power of the aristocracy. The Song de-emphasized a military approach and instead re-established the tribute system with its nomad neighbors. This involved â€Å"paying off† the nomads with such gifts as bolts of silk to keep the peace. The Song, however, experienced military and economic problems. The scholar-controlled professional army was often ineffective,  and too much paper money in circulation caused inflation. By 1126 CE, they had lost the northern half of the empire to nomads. The Southern Song continued to flourish until 1274, but military threats continued, and finally the greatest of all northern groups invaded in the 1200s, absorbing the Song dynasty into the new Mongol Empire. ECONOMIC DEVELOPMENT Rice production doubled due to new fast-ripening rice from Champa. Internal trade from the Yellow Sea and Grand Canal flourished due to the increased number of merchants and the growth in population. The capital of Kaifeng became a manufacturing center with its production of cannons, movable type printing, water-powered mills, looms, and high-quality porcelain. China had more per capita production than any other country in the world. Minted copper coins were used as money and eventually were replaced with paper currency. Officials collected taxes in cash—not goods—and letters of credit (known as flying cash) were used by merchants. The Southern Song established their capital at Hangzhou, and commerce soared. With their cotton sails and magnetic compasses, the Song had the most powerful navy in the world. As a result, the dynasty’s power shifted from the north to the south, and the Song became leaders in trade. Song goods made their way to Southeast Asia, India, Persia, and East Africa. CULTURAL DEVELOPMENT During the Song dynasty, women were entitled to keep their dowries and had access to jobs as merchants, but they also were subject to a practice called foot binding. The practice originated with the aristocratic class and was viewed as a sign of wealth and status. Girls as young as six had their feet bound in order to secure a better marriage. Tang and Song Innovations †¢ The first use of the compass to aid maritime navigation †¢ A water-powered clock, demonstrating facility in mechanical engineering †¢ The invention of gunpowder—first demonstrated during the late 1000s CE, the  explosive combination of sulfur and saltpeter would alter weapons technology forever and lead to the first cannons, rockets, and incendiary bombs. †¢ Philosophy—neo-Confucian thought delved into ancient texts and further codified traditional Chinese philosophy; it blended Confucianism with elements of Daoism and Buddhism. †¢ A printing press with movable type †¢ Stylized and symbolic landscape painting †¢ Paper money, letters of credit (flying cash) JAPAN (around 800 to 1200 CE) POLITICAL DEVELOPMENT Japan’s geography as a group of islands led to the development of small isolated, independent communities. Clan members cooperated with each other much like a large, extended family. By the 600s, the Yamato clan had religious and cultural influence over other clans and wanted to copy China’s model of empire building. Its leaders began to call themselves emperors of Japan. The Fujiwara clan, which dominated between the ninth and twelfth centuries CE, sent emissaries to China and modeled their capital, Nara, on Changan. They could not, however, successfully introduce a Chinese-style bureaucracy, and a strict hereditary hierarchy developed instead. During the Kamakura Shogunate (1185–1333 CE), the emperor and his court kept their capital in Kyoto, yet a military dictatorship existed, ruled by powerful landholding clans. A Japanese form of feudalism developed in which the Shogun—supreme general—controlled the centralized military government and divided the land into regional units based on military power. The regional military leaders were the daimyo, and the warriors who fought for them were the samurai. Over the centuries, the samurai military class developed a strict warrior code called bushido. The emperor remained in power throughout this period, but served only as a symbolic figurehead. Many Shoguns were overthrown but the emperor was not. ECONOMIC DEVELOPMENT Japan was a predominantly agrarian society with a local artisan class of weavers, carpenters, and ironworkers. Trade and manufacturing developed more in the Kamakura Period, when it focused on markets in larger towns and foreign trade with Korea and China. Most people were peasants who worked on land that was owned by a lord or by Buddhist monasteries. Though their freedom was limited, peasants could keep what was left of their harvest after paying their tax quota. Those unable to pay their taxes became landless laborers known as genin and could be bought and sold with the land. CULTURAL DEVELOPMENT Japan adopted many foreign ideas but remained culturally true to its own traditions. According to Shinto, the religion native to Japan, everything possesses a spirit, or kami. Natural forces and nature were awe-inspiring, and shrines were built to honor kami. The first ruler from the Yamato clan claimed descent from the supreme Shinto deity, the Sun Goddess. Japan was also strongly influenced by Korea and China. It adopted Chinese technology, Chinese script, and Buddhism (though Japan developed its own version of Buddhism, which added a strong aesthetic dimension, known as Zen Buddhism). In the Heian period (794 to 1185 CE), contact with China was cut off, and the culture turned to expressing Japanese values. Participating in a lavish court lifestyle, women dominated literature. The Tale of Genji, for instance, was written by Lady Murasaki. Wives inherited land from their husbands and often owned land, and priestesses dominated religious life. Over time, though, women lost power and influence. ISLAMIC CALIPHATES Islam: The Religion Prior to the spread of Islam, Arabs lived in separate, loyal, tribal groups and were often involved in overland and maritime trade. The city of Mecca later developed into an important religious site with a large influx of traders and pilgrims. The Kaaba, a black meteorite placed in the Great Mosque by Abraham, was in the center of the city, and most people  worshipped idols. Muhammad was born in 570 CE in Mecca. When he was 40, the angel Gabriel appeared to him and revealed that he had been selected to receive a divine message that there was only one all-powerful and all-knowing God, Allah, and that Muhammad was to be God’s messenger. Muhammad preached that all people were to submit to Allah and that everyone was equal in the eyes of Allah. Muhammad’s message was not met with enthusiasm in Mecca, and he fled to Medina in 622 CE, a journey known as the hegira. In Medina, he was viewed as a prophet and a political leader. Muhammad taught that he was the last of a long line of prophets from the Jewish and Christian scriptures that included Abraham, Moses, David, and Jesus. In 630 CE, he and his followers returned to Mecca, captured the city, and destroyed religious idols. After his death, Muhammad’s revelations were written down by his followers in the Quran. The word Islam means â€Å"submission to God’s will†. Islam is a universal religion that is open to everyone. Islam appealed to women because they had equal status to men before God, they could keep their dowries as wives, and there was a prohibition on female infanticide. POLITICAL DEVELOPMENT By the time of Muhammad’s death, almost all of Arabia was under Islamic control. There was disagreement, however, over his successor. One group, the Shia, believed that the leader should be a descendant of Muhammad. The other group, the Sunni, preferred the community of Muslims to determine who would succeed him. The leader of the Muslims, the caliph, was both a political and spiritual leader. Five Pillars of Islam 1. Statement of faith: There is no God but Allah, and Muhammad is his messenger. 2. Pray five times a day facing Mecca. 3. Give alms (charity) to the poor. 4. Fast during the holy month of Ramadan. 5. Make a pilgrimage, or hajj, to Mecca during one’s lifetime if able. After the first four caliphs, the Umayyad clan took control in 661 CE and transformed the caliphate into a hereditary monarchy, with its government  centered in Damascus. They continued on to conquer Syria, Egypt, Persia, and Byzantine territory in West Asia, North Africa, and Spain. Their military skills, the soldiers’ commitment to Islam, and the promise of plunder helped them in these conquests. The Umayyad Caliphate set up a bureaucratic structure in which local administrators governed their areas. All cultures were tolerated as long as people obeyed the rules, paid their taxes, and did not revolt. Arabic became the language of administration, business, law, and trade. The Abbasid clan overthrew the Umayyad dynasty in 750 CE and moved the capital of the empire to Baghdad, a political center and the second largest city in the world next to Changan. Eventually, the only remaining Umayyad prince settled in Spain and established a separate caliphate there. Berber tribesmen controlled much of the northern African coast, and the Mamluks revolted and gained control over Egypt from 1250 to 1517 CE. The term Dar al-Islam, or â€Å"all under Islam,† refers to those areas in which a Muslim is welcome. ECONOMIC DEVELOPMENT Trade flourished throughout the caliphate and improved irrigation led to productive agriculture and an increase in tax revenues. Artisans flourished in the cities, making pottery, fabrics, and rugs. Paper was imported from China, and soon paper mills were set up. The vast Islamic empires also spread many types of agriculture, including sugarcane, citrus fruits, and coffee. Islam spread to West Africa through trans-Saharan trade, to East Africa and Southeast Asia through Indian Ocean trade, to Central Asia and China along the Silk Road, and to India through the migrations of the Turks. CULTURAL DEVELOPMENT Mosques, hospitals, schools, and orphanages were built throughout the empire. Intellectual achievements included the development of algebra, the concept of longitude and latitude, and the study of Greek philosophers such as Aristotle. The House of Wisdom, built in Baghdad in 830 CE, obtained Greek and Persian texts and translated them into Arabic. In art and architecture, the use of images was forbidden; instead, geometry and calligraphy were used to beautiful effect. Byzantine Empire (300 to 1453 CE) POLITICAL DEVELOPMENT The Byzantine Empire, a continuation of the Eastern Roman Empire, was the only survivor from the classical age. The Roman Empire had officially been divided in 375 CE, with the western half severely weakened because the east produced the majority of grain and controlled the major trade routes. Emperor Justinian, who ruled from 527 to 565 CE, tried unsuccessfully to reconquer Western Rome. His Body of Civil Law (Justinian’s Code) was written, and he replaced Latin with Greek as the official language of the empire. The central government was a hereditary monarchy. It made law, had an efficient military, oversaw effective land distribution, and had a bureaucracy that answered to the emperor. The emperor was considered a co-ruler with Christ and appointed the patriarch. Military generals were appointed to rule, and free peasants were given land for military service. ECONOMIC DEVELOPMENT Its location on the Mediterranean Sea contributed to strong trade in the Byzantine Empire. Silkworms were smuggled out of China, which allowed a Byzantine silk industry to develop. Artisans produced glassware, linen, jewelry, and gold and silver work. CULTURAL DEVELOPMENT Most people spoke Greek. In theory, there was social mobility through the bureaucracy, army, trade, or service to the Church, but in reality, mobility was limited. Constantinople was the political and intellectual center, with libraries containing Greek, Latin, Persian, and Hebrew texts. The Byzantine and Roman Christian churches had been growing apart since the fall of Rome, and a disagreement over the worship of icons—images of saints—was the final straw. The Pope and the Patriarch excommunicated each other, and in 1054 CE, the church officially split into the Roman Catholic Church and the Eastern Orthodox Church. This Eastern Orthodox form of Christianity later spread to the Slavic people and Russia. DECENTRALIZED STATES IN EUROPE Western Europe—Early Middle Ages (around 500 to 1000 CE) POLITICAL DEVELOPMENT Western Europe remained politically decentralized. The Franks came closest to re-establishing imperial control with the leadership of Clovis and, later, the Carolingian Empire of Charlemagne. Europe developed a feudal system in which land was given to vassals in exchange for military service, allowing them to gain power. The centralizing power during this period was the Church, and by the 13th century, the Church owned one-third of all the land in Europe. ECONOMIC DEVELOPMENT During this time, peasants became serfs; they had the right to work a portion of the land and could pass that right on to their children, but they could not leave the land. They could keep a portion of what they grew, but the majority of their earnings went to the lord. Serfs paid taxes for use of the lord’s mill, had to work on the lord’s lands, and had to provide gifts on holidays. These estates became large walled manors that were economically self-sufficient. They maintained mills, bakeries, and breweries. They had their own private armies served by armor-clad knights. The introduction of the heavy plow led to an increase in agricultural production. CULTURAL DEVELOPMENT Beginning in the 12th century, the code of conduct called chivalry developed. It stressed honor, modesty, loyalty, and duty. Monasteries were the dominant feature of social and cultural life, and they often had large landholdings. Monks preserved classical knowledge by hand-copying great literature and philosophical works. NOMADIC CULTURES Vikings (Dates of Influence—around 800 to 1100 CE) The Vikings were a nomadic group who had settled in present day Scandinavia.  In order to supplement their farm production, they conducted seasonal raids into Europe and ransacked towns. Using small and maneuverable boats, they terrorized coastal communities in France, Scotland, Ireland, and England. The Vikings eventually evolved from plunderers into traders and established communities in Scotland, northern France, and Eastern Europe. Scandinavia was gradually Christianized during this period. These outstanding seafarers also traded actively throughout the North Sea and Baltic Sea. In the 800s, they colonized Iceland and Greenland, and around 1000 CE, they established a colony that lasted only a few decades in Newfoundland, modern Canada. The transplanted Viking settlements in France became known as Normans (or â€Å"Northmen†). In 1066 CE, a Norman lord named William from northern France invaded England with his army. He defeated the Saxons and established Norman power in what is now Britain. Turks (Dates of Influence—around 1000 to 1450 CE) The Turks, a pastoral nomadic group from the central Asian steppes, began gradually to migrate out of the steppes at the end of the first millennium. They were often hired by Muslim leaders as mercenaries, or hired soldiers. The Seljuk Turks, who had converted to Islam, invaded Abbasid territory and captured Baghdad in 1055. The caliph was left as the spiritual authority of the empire, but the Seljuk Sultan became the secular monarch. By 1071 CE, they defeated the Byzantine Empire and took most of Anatolia (modern-day Turkey). The Afghan Turks were nomads from Afghanistan and began a series of raids into India in the 10th century. They looted cities for gold and jewels and destroyed Hindu temples and then left. It wasn’t until the 12th century that they invaded and then started to govern. This started the Delhi Sultanate, which ruled northern India from 1206 to 1526 CE. These Turks introduced a strong Muslim presence in India. Mongols (Dates of Influence—around 1200 to 1550 CE) A second pastoral nomadic group from the central Asian steppes, the Mongols would go on to create the world’s largest empire. These nomadic herders’ lives revolved around their sheep, goats, and yaks for food, clothing, and  shelter; their camels for transportation; and their horses for mobility. This clan-based society was organized around bloodlines. Genghis Khan successfully united the various Mongol tribes, and their greatest strength was their mobility and military power. Once united, Genghis led his troops into Central Asia, Tibet, northern China, and Persia. In 1215 CE, the Mongols attacked and destroyed present-day Beijing. The Mongol charge continued into Afghanistan and Persia, yet by 1227 CE, the Great Khan died, and his empire was divided amongst his four sons. CHINA: THE YUAN DYNASTY In 1276 CE, Genghis Khan’s grandson, Kublai Khan, defeated the Southern Song dynasty, and for the first time, China was under foreign rule. Khan created a Chinese-style dynasty, adopting the Chinese name Yuan for it, with a fixed and regular tax payment system and a strong central government. Foreigners, not Chinese, were employed in the bureaucracy, and the civil service exam was not used. The Chinese were subject to different laws and were separated from the Mongols. Connecting Beijing to Vienna was a communication system using horse relays and 1,400 postal stations. In time, overland and maritime trade flourished, and though the Mongols were not directly involved in the trade, they welcomed merchants and foreigners. Merchants converted their foreign currency to paper money when they crossed into China. MIDDLE EAST: THE ILKHANATES In 1258 CE, Kublai’s brother, Hulegu, defeated the Abbasid Caliphate. The Mongols in the Middle East employed local bureaucrats in the government and converted to Islam by 1295 CE. The local rulers were permitted to rule, as long as they delivered the tax revenue and maintained order. Though they did not support agriculture, they did facilitate trade, and Mongol culture often mixed with that of the conquered people. As the Mongols continued west, they met with their first and only major defeat. The armies of the Mamluks, a slave dynasty in Egypt, defeated the Mongols in 1260 CE and stopped the movement of the Mongols in that region. RUSSIA: THE GOLDEN HORDE The Mongol ruler Batu conquered and ruled Russia but kept a large number of the local rulers in power. The taxes on the peasants were heavy, but they were collected by Russian bureaucrats. Trade was supported, and although these Mongols were Muslim and conversion was encouraged, Christian missionaries were allowed to visit. PAX MONGOLIA At the peak of Mongolian power, with huge areas of Asia and Europe under one rule, there was a period called the Mongol Peace. For about a century, Mongol rule united two continents and allowed for relatively safe trade and contacts between very different cultures. It did so by eliminating tariffs. During this period, the Silk Road trade reached its greatest height. Paper money—a Chinese innovation—was used in many parts of the empire. It was also common for the Mongols to convert to or adopt the local religions, or at least be religiously tolerant. MONGOL DECLINE In 1274 and 1281 CE, the Mongols tried again to expand their empire—they invaded Japan. Typhoon winds destroyed their fleet both times, however. The Japanese believed these â€Å"kamikaze,† or â€Å"sacred winds,† had protected them. Despite great military accomplishment, the Mongol Empire lasted hardly three or four generations. While the Mongols were successful conquerors, they were poor administrators. Overspending led to inflation in different corners of the empire, and after the death of Kublai, leadership was weak and ineffectual. Rivalry among the successors of the great Khan further destabilized the empire, and the vast domain was divided among various generals. By 1350 CE, most of the Mongols’ huge territory had been reconquered by other armies. RESULTS OF MIGRATION AND COMMUNICATION West African Kingdoms The introduction of the domesticated camel allowed for an increased flow of trade across the Sahara Desert, and as a result, Muslim and North African merchants began to establish commercial relations with West Africa. Ghana (around 500 to 1200 CE) Ghana was a regional state around the 400s or 500s CE, and an increase in trans-Saharan trade led to its growth in power and influence. By 800 CE the many farming villages in the area were united to create the kingdom of Ghana. It became an important commercial site and a center for trade in gold from the south, which it controlled and taxed. In return, it received ivory, slaves, horses, cloth, and salt. As Ghana’s wealth increased, it built an army funded by the tax on trade. In the 900s CE, the kings converted to Islam, which led to improved relations with Muslim merchants. Islam was not forced on the people, however, and traditional animistic beliefs continued to be important. Those who engaged in trade often converted to Islam. After 1000 CE, Ghana found itself under assault from northern Berbers and other tribal groups nearby. It was eventually absorbed by the West African kingdom of Mali. Mali (1235 to late 1400s CE) The trans-Saharan trade in gold and salt continued to increase. Mali controlled and taxed all trade. The rulers honored Islam and provided protection and lodging for merchants. The Sundiata is an epic poem that tells how the first Mali emperor came to power; it was composed and recited by Mali griots or storytellers. The most famous Mali emperor was Mansa Musa, who ruled from 1312 to 1337. He built libraries, Islamic schools, and mosques throughout the kingdom. Timbuktu was the political capital and a regional cultural center of Islamic studies and art for all of West Africa. After 1350 CE, provinces began to assert their independence.