The Role of Fdi in India Essay Example

The Role of Fdi in India Essay FDI Policy in India FDI as defined in Dictionary of Economics (Graham Bannock et. al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. [3] Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999. The Reserve Bank of India (‘RBI’) in this regard had issued a notification,[4] which contains the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000. This notification has been amended from time to time. The Ministry of Commerce and Industry, Government of India is the nodal agency for motoring and reviewing the FDI policy on continued basis and changes in sectoral policy/ sectoral equity cap. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP). The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (‘FIPB’) would be required. FDI Policy with Regard to Retailing in India It will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010[5] which provide the sector specific guidelines for FDI with regard to the conduct of trading activities. a) FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. ) FDI up to 51 % with prior Government approval (i. e. FIPB) for retail trade of ‘Single Brand’ products, subject to Press Note 3 (2006 Series)[6]. c) FDI is not permitted in Multi Brand Retailing in India. Entry Options For Foreign Players prior to FDI Policy Although prior to Jan 24, 2006, FDI was not authorised in retailing, most general players had been operating in the country. Some of entrance routes u sed by them have been discussed in sum as below:- 1. Franchise Agreements We will write a custom essay sample on The Role of Fdi in India specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Role of Fdi in India specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Role of Fdi in India specifically for you FOR ONLY $16.38 $13.9/page Hire Writer It is an easiest track to come in the Indian market. In franchising and commission agents’ services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India (RBI) under the Foreign Exchange Management Act. This is a most usual mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route. 2. Cash And Carry Wholesale Trading 00% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers. [7] The wholesaler deals only with smaller retailers and not Consumers. Metro AG of Germany was the first significant global player to enter India through this route. 3. Strategic Licensing Agreements Some foreign brands give exclusive licences and distribution rights to Indian companies. Through these rights, Indian compan ies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd 4. Manufacturing and Wholly Owned Subsidiaries. The foreign brands such as Nike, Reebok, Adidas, etc. that have wholly-owned subsidiaries in manufacturing are treated as Indian companies and are, therefore, allowed to do retail. These companies have been authorised to sell products to Indian consumers by franchising, internal distributors, existent Indian retailers, own outlets, etc. For instance, Nike entered through an exclusive licensing agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike India Private Limited. FDI in Single Brand Retail The Government has not categorically defined the meaning of â€Å"Single Brand† anywhere neither in any of its circulars nor any notifications. In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note 3[8] that (a) only single brand products would be sold (i. . , retail of goods of multi-brand even if produced by the same manufacturer would not be allowed), (b) products should be sold under the same brand internationally, (c) single-brand product retail would only cover products which are branded during manufacturing and (d) any addition to product categories to be sold under â€Å"single-brand† would require fresh approval from the government. While the phrase ‘sing le brand’ has not been defined, it implies that foreign companies would be allowed to sell goods sold internationally under a ‘single brand’, viz. Reebok, Nokia, Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would not be allowed. Going a step further, we examine the concept of ‘single brand’ and the associated conditions: FDI in ‘Single brand’ retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate outlets. what is a ‘brand’? Brands could be classified as products and multiple products, or could be manufacturer brands and own-label brands. Assume that a company owns two leading international brands in the footwear industry – say ‘A’ and ‘R’. If the corporate were to obtain permission to retail its brand in India with a local partner, it would need to specify which of the brands it would sell. A reading of the government release indicates that A and R would need separate approvals, separate legal entities, and may be even separate stores in which to operate in India. However, it should be noted that the retailers would be able to sell multiple products under the same brand, e. g. , a product range under brand ‘A’ Further, it appears that the same joint venture partners could operate various brands, but under separate legal entities Now, taking an example of a large departmental grocery chain, prima facie it appears that it would not be able to enter India. These chains would, typically, source products and, thereafter, brand it under their private labels. Since the regulations require the products to be branded at the manufacturing stage, this model may not work. The regulations appear to discourage own-label products and appear to be tilted heavily towards the foreign manufacturer brands There is ambiguity in the interpretation of the term ‘single brand’. The existing policy does not clearly codify whether retailing of goods with sub-brands bunched under a major parent brand can be considered as single-brand retailing and, accordingly, eligible for 51 per cent FDI. Additionally, the question on whether co-branded goods (specifically branded as such at the time of manufacturing) would qualify as single brand retail trading remains unanswered. FDI in Multi Brand Retail The government has also not defined the term Multi Brand. FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof. In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce circulated a discussion paper[11] on allowing FDI in multi-brand retail. The paper doesn’t suggest any upper limit on FDI in multi-brand retail. If implemented, it would open the doors for global retail giants to enter and establish their footprints on the retail landscape of India. Opening up FDI in multi-brand retail will mean that global retailers including Wal-Mart, Carrefour and Tesco can open stores offering a range of household items and grocery directly to consumers in the same way as the ubiquitous ’kirana’ store. Foreign Investor’s Concern Regarding FDI Policy in India For those brands which adopt the franchising route as a matter of policy, the current FDI Policy will not make any difference. They would have preferred that the Government liberalize rules for maximizing their royalty and franchise fees. They must still rely on innovative structuring of franchise arrangements to maximize their returns. Consumer durable majors such as LG and Samsung, which have exclusive franchisee owned stores, are unlikely to shift from the preferred route right away. For those companies which choose to adopt the route of 51% partnership, they must tie up with a local partner. The key is finding a partner which is reliable and who can also teach a trick or two about the domestic market and the Indian consumer. Currently, the organized retail sector is dominated by the likes of large business groups which decided to diversify into retail to cash in on the boom in the sector – corporates such as Tata through its brand Westside, RPG Group through Foodworld, Pantaloon of the Raheja Group and Shopper’s Stop. Do foreign investors look to tie up with an existing retailer or look to others not necessarily in the business but looking to diversify, as many business groups are doing? An arrangement in the short to medium term may work wonders but what happens if the Government decides to further liberalize the regulations as it is currently contemplating? Will the foreign investor terminate the agreement with Indian partner and trade in market without him? Either way, the foreign investor must negotiate its joint venture agreements carefully, with an option for a buy-out of the Indian partner’s share if and when regulations so permit. They must also be aware of the regulation which states that once a foreign company enters into a technical or financial collaboration with an Indian partner, it cannot enter into another joint venture with another Indian company or set up its own subsidiary in the ‘same’ field’ without the first partner’s consent if the joint venture agreement does not provide for a ‘conflict of interest’ clause. In effect, it means that foreign brand owners must be extremely careful whom they choose as partners and the brand they introduce in India. The first brand could also be their last if they do not negotiate the strategic arrangement diligently. Concerns for the Government for only Partially Allowing FDI in Retail Sector A number of concerns were expressed with regard to partial opening of the retail sector for FDI. The Hon’ble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on ‘Foreign and Domestic Investment in Retail Sector’, laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included: It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, hat the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and soci al tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. LIMITATIONS OF   THE PRESENT SETUP Infrastructure There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mechanism. Though India is the second largest producer of fruits and vegetables (about 180 million MT), it has a very limited integrated cold-chain infrastructure, with only 5386 stand-alone cold storages, having a total capacity of 23. 6 million MT. , 80% of this is used only for potatoes. The chain is highly fragmented and hence, perishable horticultural commodities find it difficult to link to distant markets, including overseas markets, round the year. Storage infrastructure is necessary for carrying over the agricultural produce from production periods to the rest of the year and to prevent distress sales. Lack of adequate storage facilities cause heavy losses to farmers in terms of wastage in quality and quantity of produce in general. Though FDI is permitted in cold-chain to the extent of 100%, through the automatic route, in the absence of FDI in retailing; FDI flow to the sector has not been significant. Intermediaries dominate the value chain Intermediaries often flout mandi norms and their pricing lacks transparency. Wholesale regulated markets, governed by State APMC Acts, have developed a monopolistic and non-transparent character. According to some reports, Indian farmers realize only 1/3rd of the total price paid by the final consumer, as against 2/3rd by farmers in nations with a higher share of organized retail. Improper Public Distribution System (â€Å"PDS†) There is a big question mark on the efficacy of the public procurement and PDS set-up and the bill on food subsidies is rising. In spite of such heavy subsidies, overall food based inflation has been a matter of great concern. The absence of a ‘farm-to-fork’ retail supply system has led to the ultimate customers paying a premium for shortages and a charge for wastages. No Global Reach The Micro Small Medium Enterprises (â€Å"MSME†) sector has also suffered due to lack of branding and lack of avenues to reach out to the vast world markets. While India has continued to provide emphasis on the development of MSME sector, the share of unorganised sector in overall manufacturing has declined from 34. % in 1999-2000 to 30. 3% in 2007-08[12]. This has largely been due to the inability of this sector to access latest technology and improve its marketing interface. Rationale behind Allowing FDI in Retail Sector FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of single-brand retail was adopt ed to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India. FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196. 46 million under the category of single brand retailing was received between April 2006 and September 2010, comprising 0. 16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloon Retail (India) Ltd ended 4. 84% up at Rs 441 on the Bombay Stock Exchange. Shares of Shopper’s Stop Ltd rose 2. 02% and Trent Ltd, 3. 19%. The exchange’s key index rose 173. 04 points, or 0. 99%, to 17,614. 48. But this is very less as compared to what it would have been had FDI upto 100% been allowed in India for single brand. The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner – foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate India’s intentions in liberalising this sector in a phased manner. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income agricultural growth and assist in lowering consumer prices inflation. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of ‘big’ money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers. In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the country’s GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them. Industrial organisations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multi-brand retailers and shopping malls) favour a phased approach toward liberalising FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with. The international retail players such as Walmart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Walmart, Germany’s Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalisation of FDI rules on multi-brand retail for some time. Thus, as a matter of fact FDI in the buzzing Indian retail sector should not just be freely allowed but per contra should be significantly encouraged. Allowing FDI in multi brand retail can bring about Supply Chain Improvement, Investment in Technology, Manpower and Skill development,Tourism Development, Greater Sourcing From India, Upgradation in Agriculture, Efficient Small and Medium Scale Industries, Growth in market size and Benefits to government through greater GDP, tax income and employment generation. Prerequisites before allowing FDI in Multi Brand Retail and Lifting Cap of Single Brand Retail FDI in multi-brand retailing must be dealt cautiously as it has direct impact on a large chunk of population. Left alone foreign capital will seek ways through which it can only multiply itself, and unthinking application of capital for profit, given our peculiar socio-economic conditions, may spell doom and deepen the gap between the rich and the poor. Thus the proliferation of foreign capital into multi-brand retailing needs to be anchored in such a way that it results in a win-win situation for India. This can be done by integrating into the rules and regulations for FDI in multi-brand retailing certain inbuilt safety valves. For example FDI in multi –brand retailing can be allowed in a calibrated manner with social safeguards so that the effect of possible labour dislocation can be analyzed and policy fine tuned accordingly. To ensure that the foreign investors make a genuine contribution to the development of infrastructure and logistics, it can be stipulated that a percentage of FDI should be spent towards building up of back end infrastructure, logistics or agro processing units. Reconstituting the poverty stricken and stagnating rural sphere into a forward moving and prosperous rural sphere can be one of the justifications for introducing FDI in multi-brand retailing. To actualize this goal it can be stipulated that at least 50% of the jobs in the retail outlet should be reserved for rural youth and that a certain amount of farm produce be procured from the poor farmers. Similarly to develop our small and medium enterprise (SME), it can also be stipulated that a minimum percentage of manufactured products be sourced from the SME sector in India. PDS is still in many ways the life line of the people living below the poverty line. To ensure that the system is not weakened the government may reserve the right to procure a certain amount of food grains for replenishing the buffer. To protect the interest of small retailers the government may also put in place an exclusive regulatory framework. It will ensure that the retailing giants do resort to predatory pricing or acquire monopolistic tendencies. Besides, the government and RBI need to evolve suitable policies to enable the retailers in the unorganized sector to expand and improve their efficiencies. If Government is allowing FDI, it must do it in a calibrated fashion because it is politically sensitive and link it (with) up some caveat from creating some back-end infrastructure. Further, To take care of the concerns of the Government before allowing 100% FDI in Single Brand Retail and Multi- Brand Retail, the following recommendations are being proposed :- Preparation of a legal and regulatory framework and enforcement mechanism to ensure that large retailers are not able to dislocate small retailers by unfair means. Extension of institutional credit, at lower rates, by public sector banks, to help improve efficiencies of small retailers; undertaking of proactive programme for assisting small retailers to upgrade themselves. Enactment of a National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the entire retail sector. Formulation of a Model Central Law regarding FDI of Retail Sector Important highlights of Economic Outlook 2011-12 Agriculture grew at 6. 6% in 2010-11. This year’s monsoon is projected to be in the range of 90 to 96 per cent, based on which Agriculture sector is pegged to grow at 3. % in 2011-12! Industry grew at 7. 9% in 2010-11. Projected to grow at 7. 1% in 2011-12 Services grew at 9. 4% in 2009-10. Projected to grow at 10. 0% in 2011-12 Investment rate projected at 36. 4% in 2010-11 and 36. 7% in 2011-12 Domestic savings rate as ratio of GDP projected at 33. 8% in 2010-11 34. 0% in 2011-12 Current Account deficit is $44. 3 billion (2. 6% of GDP) in 2010-11 and projected at $54. 0 billion (2. 7% of GDP) in 2011-12 Merchandise trade deficit is $ 130. 5 billion or 7. 59% of the GDP in 2010-11 and projected at $154. 0 billion or 7. % of GDP in 2011-12 Invisibles trade surplus is $ 86. 2 billion or 5. 0% of the GDP in 2010-11 and projected at $100. 0 billion or 5. 0% in 2011-12 Capital flows at $61. 9 billion in 2010-11 and projected at $72. 0 billion in 2011-12 FDI inflows projected at $35 billion in 2011/12 against the level of $23. 4 billion in 2010-11 FII inflows projected to be $14 billion which is less than half that of the last year i. e $30. 3 billion Accretion to reserves was $15. 2 billion in 2010-11. Projected at $18. 0 billion in 2011-12 Inflation rate would continue to be at 9 per cent in the month of July-October 2011. There will be some relief starting from November and will decline to 6. 5% in March 2012. Foreign direct investment; net (BoP; US dollar) in India The Foreign direct investment; net (BoP; US dollar) in India was last reported at 11008159606. 75 in 2010, according to a World Bank report released in 2011. The Foreign direct investment; net (BoP; US dollar) in India was 19668790288. 40 in 2009, according to a World Bank report, published in 2010. The Foreign direct investment; net (BoP; US dollar) in India was reported at 24149749829. 71 in 2008, according to the World Bank. Foreign direct investment is net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows total net, that is, net FDI in the reporting economy from foreign sources less net FDI by the reporting economy to the rest of the world. Data are in current U. S. dollars. This page includes a historical data chart, news and forecast for Foreign direct investment; net (BoP; US dollar) in India. Indias diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of Indias output with less than one third of its labour force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. Total 933. 2 100 2705. 0 100 231530. 1 100

Sanctions on Iraq essays

Sanctions on Iraq essays The sanctions that have been placed on Iraq by the United States 10 years ago are now being the cause of the death of thousands of children because of inadequate medicine, food and water. The united states have been asked by the united nations and many other countries to remove these sanctions over the Iraqi people so they can go back to living their normal healthy lives and the states has repeatedly refused this move. The whole reason for these sanctions is when Saddam Hussein borrowed money from Kuwait in order to be able to stay powerful on top of his war with Iran. He backed up his military with this money and it helped a great deal in the defeat over Iran. The years went by and Kuwait started asking for the money to be paid back. Iraq refused to pay the money and said that they did not have enough funds to pay of the dept at the moment. Everyone was aware of Iraqs chemical and biological researches that were costing Iraq a lot more than it would if they would intend to pay Kuwait. When things got out of hand and Kuwait demanded that the money be paid back, Saddam Hussein flexed his muscles and military and decided to show Kuwait that if he did not plan to pay then nothing can make him pay, he was willing to go in to war with Kuwait, this is when international powers got in to play with the game. The United States, England and Russia took very high offensive against Iraq and decided that they would escalate things in to a near world war. They bombed Iraqs power plants, bridges, water filters and many other necessities that people cannot live without. As a result people were living with no power in their houses and still do till today, they have no refrigerators for their food, no heating systems for the winter colds and not enough funds to buy medicine if a member of the family gets sick. After the United States and other international powers put Iraqs offensive to a stand still they began ...

History of the Classic Teddy Bear

History of the Classic Teddy Bear Theodore (Teddy) Roosevelt, the 26th president of the United States, is the person responsible for giving the teddy bear his name. On November 14, 1902, Roosevelt was helping settle a border dispute between Mississippi and Louisiana. During his spare time, he attended a bear hunt in Mississippi. During the hunt, Roosevelt came upon a wounded young bear and ordered the mercy killing of the animal. The Washington Post ran an editorial cartoon created by the political cartoonist Clifford K. Berryman that illustrated the event. The cartoon was called Drawing the Line in Mississippi and depicted both state line dispute and the bear hunt. At first, Berryman drew the bear as a fierce animal, the bear had just killed a hunting dog. Later, Berryman redrew the bear to make it a cuddly cub. The cartoon and the story it told became popular and within a year, the cartoon bear became a toy for children called the teddy bear. Who Made the First Toy Bear Called Teddy Bear? Well, there are several stories, but this is the most popular of teddy bear lore. Morris Michtom made the first official toy bear called the teddy bear. Michtom owned a small novelty and candy store in Brooklyn, New York. His wife Rose was making toy bears for sale in their store. Michtom sent Roosevelt a bear and asked permission to use the teddy bear name. Roosevelt said yes. Michtom and a company called Butler Brothers began to mass-produce the teddy bear. Within a year Michtom started his own company called the Ideal Novelty and Toy Company. ï » ¿However, the truth is that no one is sure who made the first teddy bear.

CIS Essay Example | Topics and Well Written Essays - 750 words

CIS - Essay Example Nevertheless, along with it has come the intriguing question of "how safe is it to share" (Martinelli, 2006) The advent of the Internet has provided some major breakthroughs. Social networking and virtual worlds are gaining in popularity and are opening new avenues for businesses. VoIP and visio-conferences eliminate the limitations businesses encounter due to geographical boundaries largely. These provide opportunities for various business houses to advertise, share information with their collaborators, receive feedbacks on their products, equipping them with the cutting edge technologies needed to grow. Thus, to be successful in this highly competitive global business environment, enterprises increasingly adopt flexible, distributed working practices. The outcomes from virtual collaborations form the fundamental contributions to corporate information and knowledge assets. These assets are used for later analysis of data to provide assistance in decision-making, designing action plans for the management. They also provide critical information regarding corporate strategies, operating principles, client information, and personnel records and so on. It is thus of much importance that these information assets be protected. As better ways to collaborate keep coming up, the risks involved in it also increase manifold. Increased reports of cyber crimes are quite disturbing to the new age collaborator fraternity. According to the Georgia Tech Information Security Center (GTISC) annual report, five major threats have emerged as major concerns. Malware, Botnets, cyber warfare, threats toVoIPand mobiledevices, and the "evolving cyber crime economy". Malwaredevelopment proficiency is rapidly growing, perfectly suited to exploit the weaknesses of poorly configured sites, in particular social networking web sites. Reports indicate an increase up to 10 times of malware object detection in 2008. A Botnet infection may occur even through genuine Web sites. With subtle delivery techniques, users do not have to do much, except loading a Web page, triggering a Botnet infection. Around 10 million bot computers are used to spread spam and malware over the net every day. A major issue of concern is Cyber war. Nations equipped with computer technology uses its power to decline, curb or confuse their enemies' military, economic and infrastructure assets. VoIP traffic, like e-mails, is being targeted for various scams, frauds and thefts. Mobile devicesdraw cyber criminals as they are easy targets and are used frequently for transacting business and provide access to sensitive data. Cyber criminals have become increasingly specialized, controlled and profit-driven costing businesses a fortune. These concerning issues have forced agencies spending a good amount to ensure information security. Researchers believe in a three-pronged approach to meet these threats. Technology, Regulation and Education might be the answer to them. (Martinelli, 2006) Technical security measures fall into three primary categories: Network Security, Host-Application Security and Subscriber Access Security. Message encryption, Firewalls, Prevention of Denial of Service (DoS) attacks, Spam prevention, Access Control, Server Security are examples of various technical policies in place to counter threats. DomainKeys Identified Mail (DKIM) and Sender Policy Framework (SPF) to sign e-mails, along

Total Integration Essay Example | Topics and Well Written Essays - 2250 words

Total Integration - Essay Example Technology played a big role in setting the pace for these changes. As we approach the era of globalisation and liberalisation, and the channels of communication become diverse and more consumer friendly, reaching out to the customer is not considered the task of marketing department in isolation. Now the customer can be reached through the online route, different types of web-services etc. besides the traditional methods like media advertising, sponsorships, word of mouth publicity etc. Now an increasing emphasis is being laid on creating goodwill amongst the existing as well as prospective customers. Such efforts require that an integrated approach is adopted towards the ultimate objective. Total integration strategy is a broader term which involves an integrated approach in dealing with human resources, manufacturing, marketing, R&D and other supporting wings of the business entity. Environmental concerns and philanthropic efforts have also become integral parts of the creating goodwill and adding more market space. In addition to adding more features, value addition becomes the key component of product differentiation. Market led forces necessitate that the company should come out with a product which appeals to the customer's requirements. Piercy (2002) points out that total integration calls for change in thinking of the company from the traditional functions like marketing, sales, production etc. to the need for seeking active cooperation and coordination from all the stakeholders in the business. Such an approach in fact divides the marketing function also in four different segments namely; Integrated or Full service Marketing Departments: Such marketing departments are the one's which have become a norm now a days. Value addition and customer care happen to be the topmost priority in these types of marketing wings. Lack of adequate time, a fast life, range of available other brands in the market and evolving needs of the customer necessitate such an approach on the part of the manufacturer and the service provider. The emphasis in such an approach is not on operational effectiveness, but on value addition and other effective strategies instead. Porter (1996) points out that, for a company to outperform its rivals it has to establish a difference and subsequently to preserve it. This can be done in a effective manner by delivering a greater value to the customer, creating comparable value at lower cost or to do both. The full service marketing departments are not only meant for soliciting sales orders, but they also have the added responsibility of reaching out to the c ustomer, by integrating marketing campaigns or otherwise. In view of added responsibilities to such department Piercy (2002) states that such departments can wield 'clout' in the company affairs. In fact while product differentiation is key to an integrated approach, the evolving nature of core competencies has also become the hallmark of globalisation and competitive era. Nicholas (1996) also points out towards the changing nature of core competencies when he points out that Core competences can indeed deliver sustainable competitive advantage, but with competitor making inroads into the turf and affecting the needs of the customer, a phase invariably arrives when companies are supposed to unlearn these competencies and a company which can move easily through such a transition process find the sustainable business goal rather easily.

Tourism Industry In Grenada Tourism Essay

Tourism Industry In Grenada Tourism Essay Tourism being the worlds largest and fastest growing industry, has survived many eras for many reasons. The industry is diverse and very easily adaptable. Diverse in this sense refers to the many varying segments making up the tourism industry, for example hospitality, dining, entertainment and travel. This industry is also challenging, from the point of view that each and every experience within this industry is uniquely different. These are some of the features that maintains and sustains this diverse and yet uniquely challenging industry. Tourism according to side store is the travel of anyone for predominantly recreational or leisure purposes or the provision of services to support this leisure travel (side store, 2009). The World Tourism Organization defines tourists as people who travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited (WTO, 2010). Tourism in Grenada went through many eras before reaching the level at which it is today. One can basically say that there are three distinctive periods that tourism in Grenada passed through. These stages are the pre-revolutionary stage from 1955 to 1979, the revolutionary phase from 1980 to 1983 and the existing era which started in 1984. Each of these periods is marked with the occurrence of a major event in Grenadas history. The building of the St. Georges pier in 1939 and the opening of the Pearls Airport together presented a need for basic infra-structure that contributed to the introduction of tourism in a scientific manner to Grenada. However, there are only records to show the storage of visitors from 1955. The feat of the Grenada Revolution in 1979 didnt do well for Grenada as a destination. There was a sudden drop in arrivals from customary markets due to the negative publicity that was bestowed on Grenada as a result of these practices. Nevertheless, there was a bold move by the then Prime Minister, Maurice Bishop, who implored nationals abroad to Come to Grenada and see the positive changes that are happening. This proved a success in some way as there were arrivals of nationals and sympathizers from Eastern Europe and Cuba. The big opportunity for tourism in Grenada came at the start of its third epoch, which was marked by the opening of the brand new international airport. The fact that the airport was very close to world famous Grand Anse beach and other surrounding beaches resulted in a building boom. Unmistakably, this third stage of the development of tourism in Grenada concurred with the emergence of the industry internationally and Grenada has been progressing constantly as a tourist destination ever since. The tourism industry is presently the largest industry in Grenada, in desperation to sustain itself the officials are engaging in numerous strategies to do so. Grenada, as recently as 15 years ago, depended solely on Agriculture as their source of revenue, which was slowly declining. The officials responsible saw the potential of the tourism industry decided to change their focus away from agriculture. Thus investing money and ample time into the industry was their final decision. In this research my sole aim is to link the present global economic recession to Grenadas tourism sector. Determine the areas that were affected as a result of this crisis. Also examine similar countries facing this crisis, so as to reduce the bias on the paper. The tourism industry was affected by the Global recession in many ways which resulted in change in the countrys economy and industries linked to the tourism industry namely; loss of jobs, decline in travel both land and sea, closure of major tourist based businesses and increased crime. The existing economy of Grenada is termed unstable and on a decline, according to Mr. Lennox Andrews (Economist for Grenada). The countrys Gross domestic product is on a decline, in the sense it is below negative. This means that the total market value of final goods and products is less than equal to consumer goods and export goods. In light of this tourism within the country is also declining slowly and displayed inability to sustain itself. The author has therefore decided to do some primary research on the most commonly utilized areas within the tourism industry of Grenada. These areas being; Travel, Hospitality and Entertainment. The sectors were further broken down into samples, for example travel (LIAT), Hospitality accommodation (Grand view inn), Hospitality dining (Le Chateau) and entertainment (Taxi driver). To effectively accomplish this milestone the author has decided to ascertain a list of objectives: Give a history of the tourism industry in Grenada. Give a synopsis of the economy of Grenada. List and discuss the areas within the tourism industry in Grenada that were affected by the financial crisis. Make necessary recommendations. In efforts to help reduce the impact of the existing global recession on the tourism industry The author has come up some possible recommendations; Officials should sort ways to reduce government spending where possible. Implement a contingency fund. They should also seek to reduce the many taxes imposed. Try to optimize the use of recurrent revenue. Try to be self sufficient in their agriculture produce, avoid unnecessary imports. Create an enabling environment for local businesses to thrive. Implement programs to train persons to be versatile in terms of finding alternative employment. Topic: Research question: How has the present global financial crisis affected the tourism industry in Grenada? Aim: Carefully examine the areas within the tourism industry that was adversely affected by this global recession. Objectives: Give a history of the tourism industry in Grenada. Give a synopsis of the economic situation of Grenada. List and discuss the areas within the tourism industry in Grenada that were affected by the financial crisis. Make necessary recommendations. Rationale for the selection of the topic chosen: Like most persons, the global financial crisis has affected me personally. It has reduced my spending power immensely. Therefore it is a growing concern for me as an individual, as to just how long and far is this recession going to progress. Around the world today the issue of the financial crisis is the most popular issue at hand. Judging from the fact it is leaving many persons unemployed, homeless and dead, it should really be a global number one concern. This is the basis for which I have decided to carry out this research, with the hope of finding some logical recommendations. Research Methods: As a means of effectively completing this paper both primary and secondary research methods were utilized. The purpose for undertaking both methods is to avoid bias of information. At the same time give the participants an opportunity to freely express themselves. The authors intent is also to give readers an objective view of the topic. Sample population used: In carrying out research for this paper a suitable sample size was selected. Due to the fact that the tourism industry tends to be such a diverse area, which may involve numerous persons. The author sort it fit to focus on segments rather than individuals. Therefore, utilizing three major segments within the industry here in Grenada. The areas selected were LIAT (Travel), Grand View Inn (Accommodation) and Le chateau (Dining). Historical data was also collected from reputable sources, as a means of completing this paper. Definition of Financial Crisis and Recession: A financial crisis: A situation in which the supply of money is outpaced by the demand for money. This means that liquidity is quickly evaporated because available money is withdrawn from banks (called a run), forcing banks either to sell other investments to make up for the shortfall or to collapse. See also recession (Business dictionary, 2010). A recession: Period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity of economists on its causes (.Business dictionary, 2010) Question/Survey: Dear Participant, This survey/questionnaire is intended to be of utmost confidentiality. This is a survey carried out by Donika Christopher-James, a Tourism and hospitality major at the St. Georges University. The purpose of this survey is to determine some of the adverse effects the existing global recession has on the tourism industry in Grenada. With the sole aim of finding some possible recommendations on completion of this study. Therefore, participants are asked not to submit their name or organization name as a means of keeping this information confidential. Thank you, _______________________ Donika Christopher-James Are you aware of the existing Global financial crisis? Yes No Has the Crisis affected youà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. Directly Indirectly State in what way was your organization was affected? What percent of your business is owed to tourist? Below 30% 30-40% 40-50% Higher than 50% Do you have repeat guest yearly? Yes No What is the percent of return guests yearly? 10- 30% 30-50% Higher than 50% Has there been any change in the patronage of your organization by return guest within the last year? Yes No Indicate whether there was increase or decrease, by how much? Increase Decrease Less than 10% 10-20% 20-30% 30-40% Over 40% In your opinion do you think there is a solution to the crisis? Yes No Can you give some recommendation(s) to the persons affected within the tourism industry? ________________________________________________________________________________________________________________________________________________________________________________________________________________________ Data analysis: Are you aware of the existing global financial crisis? Figure 1.1: The Graph indicates that 75% of the respondents were aware of the financial crisis in the world, where as the remaining 25% was very much unaware. Figure 1.2: This chart indicates how many persons were affected by the financial crisis directly leading to financial decisions being made or indirectly the trickle down effect; 100% were affected directly and there were none indirectly affected. State ways in which you as a business was affected. Figure 1.3: Is an indication as to how the four various sectors were affected by the crisis; 25% indicated they had to make position redundant, another 25% indicated that they suffered higher utility cost e.g fuel, 25% also said that their employees were forced to accept lower wages and the final 25 % stated that they were unable to market efficiently and effectively. What percent of your business is owed to tourist? Figure 1.4: Is an analysis as to how much the various business depend on the tourist for their existence, 25% indicates that 40-50% of their business comes from tourist and 75% of the patrons said that over 50% of their business revenues comes from tourists. Do you have repeat guest yearly? Figure 1.5: This chart indicates that 100% of the participants have repeat guest on a yearly basis. What is the percent of repeat guest yearly? Figure 1.6: This chart illustrates the percentage of repeat guest to the varying sectors yearly; 25% of the participants indicated that over 50% of their guest are repeaters, another 25% indicated that the return guest account for 30-50% of contributions and the remaining 50% said that return guest contributes to 10-30% of business yearly. Has there been any change in the patronage of your organization by return guest within the last year? Yes No 100% 0% Figure 1.7 Was there an increase or decrease in the patronage of tourist and by how much? Participant 1 Participant 2 Participant 3 Participant 4 Increase Decrease 10-20% Over 40% 30-40% 10-20% Figure 1.8 Figure 1.9: This graph is and analysis as to whether the participants believe there is a possible solution to the financial crisis. Where 75% look at it objectively and said yes they believe there is a solution for it and the next 25%indicated no there is no possible solution to the problem. Grenadas employment situation: According to information from the Minister of Finance Grenada (Peter David), unemployment rate at the end of 2009 was predicted to reach 30%. In basic mathematics, this could mean at least 23,000 persons out of work, in a population of roughly 100,000 persons. This is a vast difference in comparison to the (CIAs) Central Intelligence Agencys prediction in 2000 of 12% of potential unemployed persons (CIA, 2010). Present Economic situation of Grenada: The economy of Grenada has rebounded immensely following the devastation and impact of Hurricanes Ivan and Emily in 2004 and 2005, with the recovery centered mainly on reconstruction and the 2007 Cricket World Cup preparations. The economic outlook was most favorable, since several major tourism investment projects were underway. At that point inflation has been subdued. The countrys fiscal performance, however, has been much weaker than programmed in 2006 to 2007, owing it to capital expenditure overruns. Public debt reached 125 percent of GDP at the end of 2006, leaving little room for maneuver in the event of exogenous shocks (CKMC, 2010). According to the Economist Intelligence Unit (EIU), on the 25th of November 2009  Grenadas application for a disbursement of US$6.2m under its three-year International Monetary Fund (IMF) poverty reduction and growth facility Poverty Reduction and Growth Facility (PRGF) was approved, boosting total disbursements under the programme to US$23.5m. The IMF noted the severity of the impact of the global recession on Grenadas economy, appointed to a marked decline in the countrys output. Owing to fall in tourism receipts, Foreign Direct Investment (FDI) and remittance, a rise in the unemployment situation, and large revenue shortfalls in 2009. With estimated public-sector debt totaling nearly 109% of GDP at end-2008 (and estimated to have risen slightly in 2009), the IMF also warned that Grenada remains at a high risk of debt distress. However, the IMF commended Grenada on its efforts to cope with the short-term impact of the external shocks and its commitment to implementing structural reforms, including the introduction of VAT in February 2010. The introduction of the VAT is one of several government initiatives to boost sagging revenue, which has been hit hard by the downturn in the tourism sector (stopover arrivals were down by 14.4% year on year in the first nine months of 2009, which has pulled down earnings). The government has also indicated that it will implement a fraud control plan at customs and boost enforcement to collect tax arrears in 2010. Capital spending is expected to be cut in 2010, by as much as 50% compared with 2009, as the government diverts its scarce resources to boost social spending. Based on preliminary estimates, which reveals that economic activity in Grenada contracted by 7.7 per cent in 2009 compared to real growth of 2.2 per cent in 2008.   This performance reflected declines in construction (52.4 percent), mining and quarrying (29.9 per cent), hotels and restaurants (20.8 per cent), wholesale and retail trade (17.9 percent), transport services (12.3 percent), manufacturing (11.8 per cent), government services (3.8 percent) and communications (2.0 percent).   This therefore indicated there were some bright spots. Agriculture increased by 9.3 percent, Other Services which is dominated by St. Georges University increased by 8.0 percent and Banking and Insurance increased by 8.6 percent. Between January to November 2009, stay-over tourist arrivals declined by 12.8% with a total of 84,240 arrivals in comparison to 96,588 arrivals for the corresponding period of 2008. All the major source markets experienced declines: United States by 1.5%; United Kingdom by 23.2% and the Caribbean by 12.6%. It is believed that the recession experienced in Grenadas major source markets combined with the high cost of air travel contributed to the decline in the number of stay-over visitors. For the period January to November 2009, Cruise Arrivals totaled 276,858 compared to 227,937 for the same period in 2008, an increase of 21.5%. Similarly, cruise calls also increased by 13.5% with a total of 202 calls compared to 178. That said, it is estimated that the average expenditure of these visitors fell reflecting the global economic situation (CKMC, 2010). According to Economist Lennox Andrews the Grenadian economy is projected to grow by 0.8 percent compared with a projected contraction of 2.3 percent for the ECCU.   I should note that Governments projection is higher than the IMF and ECCB projections are a decline of 2.0% and 1.8% respectively but is based on our most recent information on the projects (public and private) which will commence this year. SWOT analysis of the Tourism Industry in Grenada: Strengths: Enrichment of culture- Learning about various cultures is an integral part of any individuals development. It gives one a chance to understand various ways of problem solving; different practices, beliefs, religions, norms and values. In turn this will assist in counteracting the issue of discrimination. Increase in Foreign direct investments- As a result of the evolution of tourism, the Grenadian economy has seen the likes of many new developments in terms of foreign investments. For example; The Port Louis development, Grand harbor development at Egmont point, Bacolet bay Resort development, Prickley bay marina development and the Livera national development. Increase in foreign exchange for the country- This is the main area where the mass foreign exchange for the country is derived. This occurs when tourist engage in tours, dining, outdoor adventures, accommodation and communication via telephone or e-mail. Opportunities for employment- The unemployment situation in Grenada has been a known factor for the country for a number of years, tourism offers opportunities for employment both direct, for example; within the hotels or restaurants or indirect like the vendors and tour guides. Sustain and preserve our environment- The Grenadian officials have seen the need to preserve their natural habitats, numerous historical sites and beaches. Some of the measures they have put in place to do so is regulations and laws like; fees paid to see the forts, no one can visit the mangroves during a certain period and stopping of the locals from mining sand from the beaches. Weaknesses: The industry is very labor intensive- Tourism within Grenada and around the world is seen as a service oriented industry. Therefore it relys on the personal touch of human to bring about the much needed satisfaction to the guest. This may be detrimental, in the event that there is situation like industrial actions or mass outbreaks of illness, the business will be on a stand still. Encourages huge sums in expenditures- Within the island of Grenada over the years it is quite noticeable that there has been a lot of infrastructural development. For example roads, cruise ship terminals and marinas. These development calls for huge sums of expenditure on the part of the Government. Increased in criminal activities- The tourism sector over the years has lured many new investors into the country, though it is seen as an asset it is also negative, since there is the opportunity for white collar crime such as money laundering and theft. Opportunities: The country can create a well known brand- Grenada the isle of spice may seem to be a strong brand, but not everyone is willing to travel thousands of miles for only spice. There is the opportunity to develop the countrys brand. Diversify into various markets- Diversity is imperative as is in any business, this is to gain as much clients and market share as one possibly can. Threats: The present Global recession- Grenada like many other destinations is faced with the wrath of the economic crunch. It has affected the tourism sectors immensely, since most business has seen a decline in clientele as compared to the past. Most persons spending power has reduced critically. Natural and manmade disasters- Natural disasters is a critical issue for Grenada though, history has shown they are far and few. The country is located within the tropics and concerns of hurricanes and storms are growing, for example hurricanes Ivan and Emily in 2004 and 2005. Manmade disasters are likely to occur if care and caution is not taken, for example; fires which is a very destructive feature. Increased competition- Possible completion is always a concern for any industry and business. Within the tourism industry competition will occur with new and emerging destination markets. Areas within the tourism industry that was affected by the financial crisis: The Global recession has affected the tourism industry in Grenada holistically; because there have been persons who are faced directly with this crisis, for example in North America, their spending power has been reduced considerably. The tourism industry like most other countries is made up of numerous sectors. Furthermore the sectors which have felt the wrath of the economic down turn in Grenada are: Travel: (airlines, taxi drivers, tour operators, cruise ship operators and travel agents) Accommodation and dining: (restaurants, hotels, guest houses and travel agents) Shopping: (supermarkets, retail shops, stores and vendors) Entertainment: (Local bands-(steel bands, vocalist), night clubs) Over the past 2 years these sectors has seen a considerable decline in their patronage especially those from tourist, which they were and most cases are still heavily dependent. The key players involved Tourist movement: The tourism industry based on its service oriented nature has numerous key players; these key players are persons involved in the hospitality sector of tourism, the regulatory bodies and the tourist themselves. Within the hospitality sector there are persons or organizations that provide service to tourist. In providing those services they generally ensure that it is sustainable and economically viable to the industry and environment. These sectors are the hotels; who provide accommodation to tourist visiting the island of Grenada, the restaurants; most of these restaurants are located especially within the south of the island are heavily dependent on tourist to sustain them , cruise lines; which is one form of transportation taking persons from varying destinations to Grenada, a large percent of stop-over tourist is accounted for as cruise passengers and airlines; the airline traveling to and from Grenada account for 70% of tourist visiting the country. The second group of persons within the tourism sector of Grenada are the regulatory bodies, which involves; the minister and ministry of tourism who is responsible for a portion of public relations in tourism, as well as implementing rules and policies to help sustain and protect the environment and visitors alike. Another sector within the regulatory body is the tourism board of Grenada who engages in ample marketing for the destination and assists in promoting some of the historical sites. The final major supporters of the tourism industry in Grenada are the tourist themselves, without the much needed tourist travelling from their usual place of resident and work, tourism will not be an industry that Grenada can depend on. Types of effects: The Global recession has affected countries worldwide and more so the tourism sector around the world immensely. Within the Grenadian community the global economic downturn has affected the tourism industry in numerous ways; There is a decline in the visitors to the country. Implementation of new taxes. Loss of skilled laborers within the industry, because of numerous job terminations. Decrease in marketing initiatives and ability by the regulatory bodies. Pull out of airline/transportation service to the island. Higher air fares. Decrease in (FDIs) foreign direct investments. There were businesses facing permanent closure, e.g craft shops, supermarkets. Increase in crime. Measures taken to resolve the situation: Like many of the larger developed and developing countries Grenada has tried numerous strategies to resolve the situation, or to some extent cushion the burden of this crisis. Without success they continue to feel the wrath of this economic downturn. Some of the measures taken by the officials of Grenada to withstand the crisis are; the sort financial assistance to pay out the outstanding debts from the World Bank. The World Bank being an institution that is presently faced with the said situation is unable to assist. Another strategy was to implement the value added tax (VAT), which is only a month old and simply too premature to see any benefits derived. The third and most common strategy was to forcibly reduce wages, rotate and terminate employees positions. The tourism and hospitality sector has felt the blow hardest from this crisis, simply because of its uncertainty and vulnerability in response to change in the economy. Conclusion: While tourism retains the title of the largest and fastest growing industry worldwide, its dynamism is owed to the many efforts to satisfy consumer demands. Similarly within the Grenadian economy tourism today is deemed the number one industry and main source of revenue for the country for over a decade. However, the tourism sector was impacted by many external factors, but most predominantly over the past (2  ½) years by the existing Global financial crisis. The effects of this crisis were as follows and by no means exhausted; Loss of Jobs, decrease in visitors arrivals, decrease in foreign direct investments, loss of skilled workers, higher air fares, decrease in marketing initiatives, pull out of major airlines and crime. Though persons in authority have engaged in numerous measures to counteract the problem of the financial crisis on the tourism sector in Grenada, they were unsuccessful. Based on my analysis of the effects the financial crisis having on Grenadas tourism carried out in this research, it is seemingly unethical and to an extent difficult to try to solve this situation. Because of the nature of a global recession, it is more ethical to let the system take its course. Thus try to implement means to cushion the economy when it is complete at the same time use this era to better prepare for a similar situation. Recommendations: This paper will be deemed incomplete without finding meaningful and yet realistic solutions to the existing problem facing the tourism and hospitality industry in Grenada The Global Recession. In efforts to help resolve this resounding problem the author has come up with a number of recommendations which are as follows: The officials and the key players as mentioned within the paper must develop more programs to encourage spending by the tourist, thus moving away from the usual ordinary activities. Since a recession is usually caused by failure to inject monies back into the economy so it can have the spin off effect, they must implement activities such as; an all you can eat fruit fest for the health conscious tourist or drum by moonlight where they get to hear a bit of our heritage and become a part of it. Implement a contingency fund for the industry, the industry is seen as fickle, but like any other industry it has its peak points and its down falls. Monies must be placed a side or invested to reap profits, in that situations like the financial crisis occurs, the industry will more or less be cushioned and can sustain itself for a longer period. Seek ways to reduce the many taxes being enforced, though taxation is the number one means of most governments revenue. The implementation of taxes will only sort to worsen the recession situation, since a recession is basically failure of the people to inject monies back into the economy. Taxes will only allow them to continually avoid spending. They should try to optimize or maximize the use of the recurrent revenues. Every country, no matter the size has recurrent revenues, which is revenue that is predictable, stable and can be counted on in the future with a high degree of certainty. Try to utilize these revenues for many needed purposes instead of focusing on one given area. Seek to become self sufficient in areas such as agriculture, this is as a means of reducing imports, though the globalization process is inevitable. Create an enabling environment for local businesses to thrive. It is always good for a country to welcome foreign direct investments, but the survival of local businesses is important. Implementing laws and regulations that will not facilitate local business will only put additional burdens on the economy in terms of unemployment. Implement programs to train persons to be versatile in terms of finding alternative employment. This is important in that statistics indicates how many persons are today unemployed within the tourism sector, because of the economic downturn.

Human Resource Development and Strategy Essay

Abstract The purpose of this portfolio project is to assess the learning experienced and my development during my group project. Also, to explain the methods and approaches implicated in completing the training plan; my involvement and participation in the group project. This Final HR Portfolio Project will present the reader a thorough analysis of my contribution to the group project. Final HR Portfolio Project Introduction The purpose of this portfolio project is to assess the learning experienced and my development during my group project. Also, to explain the methods and approaches implicated in completing the training plan; my involvement and participation in the group project. I will conduct a self-evaluation of my participation in the project and express my beliefs and perceptions. In addition, I will answer the following questions: †¢Was the training program the team developed effective in meeting the written objectives †¢The challenges the team and I met and the actions I took to address and resolve the problem †¢I will explain how the interpersonal relationships within the team change from the beginning to the end of the project †¢Convey the effectiveness of the overall team project to me as an individual learning activity and what I learnt that was totally new to me †¢What I would do differently if I had it to do all over again and why? †¢I will describe how could the project have been a better learning process? With specific thoughts on improving the course. †¢Lastly, particular attention will be given to the team experiences and the effectiveness of communication Statement about my own perceptions I went into this project not knowing the amount of work it takes to assess, design, develop and evaluate a training program. I believe that I emerge from this project with new profound knowledge and I learnt how to enhance my training program development for future training needs of my employees. Self-evaluation for participation in the project In completing a self-evaluation for my participation in the group project, I found that I had put forth a lot of time into completing this project. My strengths in the project were as follow: I was able to research my part of the project efficiently and I found some very useful information, I compiled and refined the paper. My weakness in this team assignment was my impatient with the team’s leader continuous duplicate posting of the same information, but I the end of the day, I had to remind myself that it was her managing style and to bring the project to fruition, I had to overcome my impatience. I believe that I have done this assignment to the best of my abilities and if I could have improve my part of the assignment, it would have to be instead of having done so much research that was not even use in the final project; I should have had research only the key points that was going in the slides. Lesson learned and I now know better for next time. Effectiveness of team meeting written objectives The training program strategy our team developed epitomizes the approach that the Dell Company need to implements to make sure that presently and in the future, the call center customers interactions support the attainment of its goal of customer satisfaction by widening the skills and aptitudes of the call center’s employees and managers alike. I judge that it can be expressed that the team’s training program development has indeed met its written objectives and if Dell HR strategically implements the plan, then I believe the group’s training program should be successful. What challenges did you and your team meets? What actions did you take to address and resolve the problem? Whenever a team assembled together there bound to be some challenges and the action and reaction of each individual member of the team can make or break the team. Such a statement is true in the case of my involvement in this group’s training program plan. Since I was the compiler for this group project; I believe one of our major challenge was the fact that we misunderstood the direction given by the instructor and some group member’s portion of the research for the project were somewhat off topic, some were trying to evaluate the training program (when the directive stated otherwise) and some of the suggestions were not helping moving the project forward. Another challenge was the fact that we ended up with a vast amount of data from different team member and most of them were unusable. The action I took to address and resolve the challenges were by omitting some of the data and ensure that the remaining information was suitable to satisfied the requirement of the training program Interpersonal relationships Changes The interpersonal relationships within the group did change somewhat. But to put this into prospective, after taken many upper-level courses for my BS program here at Walden, which required my involvement with group projects–I had my share of interpersonal relationships changes and some were never amended. However, the changes that occurred during this group project were minor, compared to others and the team experience/interaction was pleasant. Nadler (1998) point out: â€Å"Develop and communicate a clear image of the future state† (Nadler, 1998). To be specific, Nadler’s point of communication was taken to whole new level during this project. For example, one interpersonal relationships change that transpired during the beginning to the end of the project were the fact that the project leader did not give the team members a chance to select their own question(s) to answer; she assigned the questions and some of the roles without the prior agreement from the te am members. Additionally, when the timeline set forth by her was not followed down to the minute, she sent constant emails and posted many messages on the group discussion board that went unanswered by most of the team members. Nonetheless, for the sake of completing the project on a timely manner, our interpersonal nuisances were resolved, team members had became more flexible and useful, members were offering helpful suggestions for the completion of the training program plan and at the end of the project, the group discussions were more lively and our training program plan were effective. How effective was this overall team project to you as an individual learning activity? What did you learn that was totally new to you? The group project Rubric stipulated the context and design measurements for the competition of the group’s project, which, in conjunction with our groups’ own research, led to the development of the call center training program plan. The training program design, development, instruction, and evaluation were further enhanced with each individual contribution to ensure that the training program meets all design requirements and capable of accomplishing the call center staffs training needs. As Honey et al (1996) defined learning as: â€Å"Learning has happened when people can demonstrate that they know something that they did not know before (insights, realizations as well as facts) and when they can do something they could not do before (skills)† (Honey et al, 1996). I believe that I have gained plenty of knowledge from this group project experience. From the training program development, to the detailed training program, I judge that it was indeed effective for my individual learning endeavor and I learned the mechanics necessary to create a successful training program. What I learned that was totally new was the formatting of the contents for the training program utilizing PowerPoint. What would you do differently if you had it to do all over again? Why? Having the chance to redo this project all over again, I probably make myself available to be the project leader and direct the team to focus their attentions toward the requirements of the project. By doing so, I would be able to filter out any unnecessary tension between the group members. How could the project have been a better learning process? I believe that as a team, we could have made better use of the tools available to us to streamline the completion of the project and tools such as the chat-room, and file sharing could have been incorporated to foster a smoother workflow. As far as improving the project itself, I am not able to provide any clear assessment because of the fact that I do not have any other groups to compare our work with ¬Ã¢â‚¬â€œfor as such has been my experience here at Walden. On the other hand, I do think that the formation of the groups should be done at the end of the first week of class to allot plenty of time to the group members to get acquainted before the start of the project. If such a suggestion is not feasible, then changing the due date for submission of the project could better the learning process. Conclusion The group training program plan has outline all the essential assessment, design, development, instruction, and evaluation (ADDIE) of training development planning and the proper implementation of the training program will ensure that the call center will be effective. In addition, in case of decreased in the call center productivity or an increased in customer dissatisfaction, could force the organization to take a careful look at its training program, Dell should put together a systematic way to evaluate and do a retraining assessment of the call center staffs to help lessen the number of customer issues. Additionally, our team did a great job creating the training program plan and our instructor’s feedback made a big difference. References Blanchard, P. N., & Thacker, J. W. (2010). Effective training: Systems, strategies, and practices (4th ed.). Upper Saddle River, NJ: Pearson Prentice-Hall. Honey, P., & Mumford, A. (1996). The Manual of Learning Styles (3rd ed.). Maidenhead, NJ: Honey Publications. Nadler, David A. (1998). Champions of change: How CEOs and their companies are mastering the skills of radical change. San Francisco: Jossey-Bass