The Timucua Indians of Northern Florida Essay Example for Free

The Timucua Indians of Northern Florida Essay The Timucua Indians: All were settled agricultural peoples, as skilled with their hoe as they were with canoes or with bows and arrows. They lived in villages, where they cultivated corn, beans, and other crops. Noted warriors, they fiercely resisted early attempts to bring them under submission, but co existed peacefully with the Spaniards for most of the first 198 years of Spanish occupation. Source: Muller, Peter O., Gannon and Fernald, Edward, A. â€Å"Florida† Microsoft Encarta 2006 (DVD), Redmond, WA: Microsoft Corporation 2005 The Cherokee- were divided into seven matri lineal clans that were dispersed in war and peace moieties (half-tribes) The people lived in numerous permanent villages, typically placed along rivers and streams. Some villages belonged to the war moiety, the rest to the peace moiety. Cherokee families typically had two dwellings: rectangular summer houses with cane and walls and bark or thatch roofs, and cone shaped winter houses with role frames and brushwork covered by mud or clay. The Cherokee crafted pottery as well as baskets. The bask, or Green Corn Ceremony, was a time of Thanksgiving, Forgiveness, Rekendling of Sacred Fires and Spiritual Renewal. It was held in Mid-to late summer, when the corn was ready for roasting. Source: Waldman, Carl â€Å"Cherokee† Microsoft Encarta 2006 (DVD). Redmond, WA: Microsoft Corporation 2005 (Writer’s notes: These are the only pictures I got) Source: University of Washington Libraries, Digital Collections. Comparing the Timucua and Cherokee Indian tribes. Both of them are engaged in Agriculture. I think, the Timucua are the warrior type. Mentioning their skills with canoes and bow and arrow. The attitude of resisting early attempts to bring them under submission. For me, it is a rigid culture and thinking. While the Cherokee, who were subdivided Into seven matri lineal clans or half tribes, were the flexible type of people. Since being a warrior means to kill people, who are supposedly the enemy. The Cherokee, though, they also have their warrior clans. But the practice of Green Corn Ceremony made them the exact opposite of the Timucua Indians, who are more on skills, this is about physical attributes. While the Cherokee is on non-physical attributes. To be a warrior, means being engaged in wars or warfare, which means about being fierce and destructive. But on the other hand, for the Cherokee,I consider them to be the constructive, and productive type of people. Though, the Timucua, for being resistive against their enemies must have spent a lot of time developing and training for the skills in war. It is like choosing two things. You resist, but you will become less productive, yet if you submit, then you will learn something new and perhaps will have a much better life. Now, what it means to submit to a superior force, who were their enemies at that time, is it becoming a slave and their self-respect gone. Perhaps, for the Timucua, it is better to fight and die. At this moment, presently we have the advantages in terms of education. The Indian tribes, are then considered as ignorant, but history is actually the judge of which each of us shall learn something. For me, a warrior thinks differently. And it is something which is unique for a tribe, or a culture, something inherent, of which one cannot take away or get rid of it. The only way perhaps, is to find a way to help him change his mind.

Economic Concepts of Vicarious Liability

Economic Concepts of Vicarious Liability a) Explain the economic logic behind laws related to the concept of vicarious liability The simple definition of vicarious liability is where an individual or firm can be held responsible for torts committed by another, the most common case for that is of employers and employees. Vicarious liability differs from secondary liability as it doesnt deal with cases of negligence on the employers behalf, it instead relates to the scope of employment not the respondent superior. Normally when torts are committed the liability lies with the person who authorises the tort, however this is not always enough hence the introduction of vicarious liability. If companies know that they can be held vicariously liable and face the full cost for a tort then they will ensure they minimise the chances of committing a tort, this is done by better monitoring of the employees. This seems fine for large companies who have the money to monitor and the money to be able to pay any compensation. However small firms are far more disadvantaged as they dont have the resources to monitor or pay compen sation, this will mean the risk of accidents is not likely to decrease. Employers will more often than not be held vicariously liable for their employees actions. The Salmond test was developed in the 1930s to check if a tortuous act was part of an unauthorised act authorised by the employer or one the was instigate by the employee only. This was really the first definitions of vicarious liability and has been used as a test in many cases since. However over the years it has become more watered down slightly in favour of the employers. By 1969 the government had introduced a law forcing companies to take out insurance to cover cases of vicarious liability. The Employees Liability Act meant that any company in the UK would have to insure against liability of its employees and of its own actions. This would now mean that even if the company didnt take care the insurance would be able to pay the full social cost of the tort. The act also made it compulsory to have  £5 million of insu rance to make sure it will cover the full liability claim for compensation. It should therefore be in the employers interest to take more care of what they task employees to do knowing that ultimate responsibility can lie with the employer. The law up to the late 1990s stipulated that the employer could only be found vicariously liable if it was found they had authorised the employee to do something that was unauthorised. If however the employer was found not to have authorised any such behaviour the employer himself would be found liable. Since 2001 the House of Lords sees that we should focus on the link between what it is an employee is tasked to do and the nature of the tort committed. In most cases it makes good economic sense that employers should be found to be liable as well as the employees. Not just because they have a greater ability to pay compensation but because they should take more care when overlooking what their employees are tasked to do. b) In the case of an employer/employee relationship, is there a case for extending liability beyond the employer? To analyse this properly it is best to look at some recent case studies. One of the largest rail crashes on the British rail system was the Hatfield rail crash in 2000, it left 4 people dead and 102 injured. After the crash a long and painstaking enquiry took place to see how the crash happened and who the blame lied with. The enquiry found that a section of the track was badly damaged which led to the train derailing, the section of track was found to have been neglected for a period of 21months. The court held the maintenance company (Balfour Beatty) liable and fined them  £10 million pounds, a record amount for the time. The court also gave the parent company of Balfour Beatty a hefty fine, Balfour Beatty was managed by Railtrack who were handed a  £3.5 million fine for breaching safety rules. The judge said it was â€Å"one of the worst examples of sustained industrial negligence in a high risk industry† the crash could have been easily averted if a safety checking pla n was in place and properly followed. In this case liability had to be extended beyond the employer Balfour Beatty as Railtrack were at fault for not properly regulating the maintenance work. There was however no charges brought against the employees as they were only following the orders of the employer Balfour Beatty. In this case Balfour Beatty should take most of the blame as they are mainly at fault for not implementing the correct maintenance procedures. However Railtrack should and rightly took some of the blame as they should have been more closely supervising the what company they controlled was doing as it was in their interests. If a company van driver for example injures a pedestrian on a crossing who is liable? The employer can be liable for hiring a incompetent driver, but also the driver can be held liable as he was careless in his driving. So in a case like this it is right to extend liability as the company cannot be held solely liable due the driver not taking due care in his job. However it is usual that the pedestrian would only sue the company that employs the driver, this is mainly because it is harder to sue on a personal liability claim and also the companies have a greater ability to pay compensation. c) Is there a case for criminal liability in the context of vicarious liability? In most cases firms are vicariously liable in cases of civil liability, however they can also been prosecuted as part of criminal vicarious liability. The conventional thinking is that adding criminal liability to strict vicarious liability is a good thing, it should reduce corporate crime and also be efficient in its prevention. However more recent analysis suggest that in some cases adding vicarious liability to corporate criminal liability does not encourage corporations to be more cautious. It is widely said that trying to add criminal liability to vicariously liability is extremely complicated. Taking the case of Ferguson vs Weaving as an example vicarious liability was trying to be applied to a charge of aiding and abetting. Weaving was the licensee of a hotel, she was charged with aiding and abetting for allowing drinkers to consume alcohol after the hours permitted by the law. The licensee said that it wasnt her fault as she had instructed the waiters and waitresses to collec t up glasses before 10pm, the time at which she was licensed to allow consumption of alcohol. The court did not sympathise with her and were only concerned with the fact that she had broken the law. Therefore ultimate responsibility lay with the licensee and she was charged with aiding and abetting unlawful drinking. In many ways criminal liability should be extended to the vicariously liable firm as ultimately it is the firm that is responsible for its employees, obviously if the employee does some that is completely unauthorised buy the firm, it should be the employee that receives any criminal charges. Vicarious criminal liability however is not always useful as explained by Kraakman firms seem to be immune to criminal sanctions. The criminal penalties on firms are just not large enough to deter torts. In the case of Railtrack and Balfour Beatty the fines were argued to be non efficient, the money they were fined does not do the general public any good. Money they could have spent on improving the rail service was lost through the fine, instead it could have been better to force criminal charges on the two companies and forced them to invest in the rail network. References: Liability in Tort, 3400 Vicarious and corporate civil liability, Reinier H. Kraakman Vicarious Liability in Criminal Law, The Modern Law Review, Vol. 14, No. 3 (Jul., 1951), pp. 334-340, J. Ll. J. Edwards The Potentially Perverse Effects of Corporate Criminal Liability, The Journal of Legal Studies, Vol. 23, No. 2 (Jun., 1994), pp. 833-867, Jennifer Arlen Employers liability (compulsory insurance) act 1969 http://www.timesonline.co.uk/tol/news/uk/article575881.ece http://www.daviddfriedman.com/laws_order/index.shtml http://www.telegraph.co.uk/news/1524744/Companys-failures-led-to-Hatfield-rail-crash.html http://www.swarb.co.uk/lisc/VicLi19301959.php http://www.lawteacher.net/tort-law/vicarious-liability.php http://www.emplaw.co.uk/content/index?startpage=data/030003.htm http://www.practicallaw.com/0-101-5345 http://www.opsi.gov.uk/si/si1998/19982573.htm http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/cases/UKHL/2001/22.html

Analysis of Nokias Competitive Policies

Analysis of Nokias Competitive Policies Nokia’s Competitive Policies In Handset Industry in Asia Chapter 1. Introduction The progress of technology has altered our daily life routine dramatically. In recent 2 decades, people have seen the big convenience brought by colour TVà £Ã¢â€š ¬Ã‚  telephoneà £Ã¢â€š ¬Ã‚  laptopsà £Ã¢â€š ¬Ã‚  mobile phone and etc. Among them, the contribution of mobile phone is especially prominent: given the integration of technologies of Internet, laptop, and communication etc, the small and good looking handset will enable us ubiquitous application of modern multi-functions. The advantage of 3G even further attracts our minds with colourful imagination. During the upgradation of our living style, we owe a lot to the companies of the handset industry, especially those popular giants including Nokia, Motorola and Samsung. When they change our living successfully, they realize their developing targets as well. For example, according to the Fortune Global 500 in 2005, Nokia and Motorola ranked 130th and 138 respectively1. Thus, they are recognized by the society. It’s unpredictable for a company to achieve great goals without correct strategies to employ. In the fierce competition of handset industry in China, the correct competitive strategies are required for the participant to win market shares. Surely, sometimes the right strategies are difficult for survival. Nokia, as the no. 1 in the handset industry of China, is certainly the biggest winner through exertion of correct competitive strategies. As is mentioned above, the competition in handset industry in China will become even more fiercer along with the emerging trend such as the advent of 3G, the alteration of distributing channels, and the improved leval of industrial centralization etc. So competitors should promptly adopt relevant changes of their competitive strategies to adapt to new environment. This dissertation aims first to analyze the competitive strategies already employed by Nokia 1 Accessed on Feb.23rd, 2007, The List of Fortune Global 500 in 2005 http://brand.icxo.com/brand500/top500_1.htm During the progress of Chinese handset industry. To confirm whether the competitive strategies are acurate, I use Porter’s 5 forces theory as the frame to anatomize the factors such as Economies of scale, Product differentiation, Capital requirements, Cost disadvantages, independent of size, Access to distribution channels, Government policies, and Competitor’s Retaliation. Thereby, the rationalities of Nokia’s competitive strategies in Chinese handset industry may be authenticated. According to the great lots of evidence collected from website newspapers and catena, new trends of handset industry appear gradually. To grasp the future flux on market share and industrial environment, it is necessary for Nokia to nip in the bud. As a natural extending of the aforesaid analysis on competitive strategies, this paper also expounds the reason causing the new industrial trend in Chinese handset industry and suggests the probable strategies Nokia may adopt. As is well known, according to the Moore’s law, the chips of the handset is developing at a very rapid speed. Moreover, the handset is still influenced by the fluky vanguard fashion. It is not easy to survive in the fluctuate market, and say nothing of being leading company in the industry. I wish textual analysis might benefit the readers to recognize the industrial situation and use Nokia for reference. This text takes a logical sequence to discuss the total analysis, so the chapters are in turn as follows: Introduction to Reportà £Ã¢â€š ¬Ã‚ Introduction on Nokia Corporateà £Ã¢â€š ¬Ã‚  The Mobile Handset Industryà £Ã¢â€š ¬Ã‚ Industrial Analysis Using Porter’s 5 Forces Theoriesà £Ã¢â€š ¬Ã‚  Analysis on Nokia’s Competitive Strategiesà £Ã¢â€š ¬Ã‚ Evolution of Nokia’s Competitive Strategies and Conclusion. The content of each chapter encircles its name, and the detailed discussion will be deployed in the following chapter. Chapter 2. Introduction on Nokia Corporate With hundreds of years’ development, Nokia has successfully realized its industry transform within the world-wide range, and gradually established its leading position in the handset industry in China as well as in other area of all the world. The whole experience is full of legendary color, as is introduced as follows: Section 1. Nokia’s Developing History 1à £Ã¢â€š ¬Ã‚ Brief Review on Nokia’s History According to the introduction from Nokia’s autobiography, the roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in Southwestern Finland by mining engineer Fredrik Idestam. Other relative events were the foundation of Finnish Rubber Works Ltd in 1898 and in 1912 Finnish Cable Works began operations. After decades of operation, the three companies were merged to form Nokia Corporation in 1967. The worlds first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericssons data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. In 1992, Jorma Ollila became the CEO of entire Nokia Group, who made a strategic decision to concentrate solely on telecommunications in the coming Digital Age. Thus, during the rest of the 1990s, Nokia continued to divest itself of all of its non-telecommunications divisions. This strategic shift consolidated the foundation for Nokia to become a worldwide famous leading company in telecom industry.2 2à £Ã¢â€š ¬Ã‚ Nokia’s Performance in Recent Years After the strategic shift in 1990s, Nokia has established its leading position in the global telecommunication market. Every business item, especially mobile phone item, has exhibited high-speed of development ever since. At present, Nokia comprises four main business groups: mobile handsets, multimedia, enterprise solutions, and networks. Among them, the mobile handset is the pillar business for entire group operation. According to annual report of 2005, Nokia ´s net sales arrived at EUR 34 191 million3, realizing an increase rate of 12.56% when compared with EUR 30376 million in 20004. Among the total net sales, sales of mobile phones reached EUR 20811 million, occupying 60.87% of the total net sales. In 1992, the mobile handset business only account for 20% of the total sales of entire group. Nokia ´s operating profit for 2005 reached EUR 4 639 million, representing a 2005 operating margin of 13.6%, and Operating profit in mobile handsets decreased 5% to EUR 3 598 million (operating profit of EUR 3 786 million in 20045), representing a 2005 operating margin of 2 Accessed on Feb.23rd, 2007, The History of Nokia 1865-2002, http://r2.nokia.com/nokiahistory/index.html 3 Accessed on Feb. 23rd, 2007, Key data of Nokia http://www.nokia.com/link?cid=EDITORIAL_4026 4 Accessed on Feb. 23rd, 2007, Annual Information 2000, http://www.nokia.com/A4126501 5 Accessed on Feb. 23rd, 2007, Annual Information 2004, http://www.nokia.com/A4126497 17.3%. However, in comparison with the EUR 83 million in 19926, the operating profit of mobile handset in 2005 represents more than 43 times increase. As is recognized by the global consumers, Nokia brand was ranked 16th among The World 500 Most Influential Brands in 2005 by the World Brand Lab. According to the Fortune Global 500 in 2005, Nokia group ranked 130th and represented no. 1 among the Industry of Network and Other Communications Equipment, taking a position higher than any other competitors. From the aspect of mobile handset, till Sept. 2006, Nokia captures 35.1% of the global market. According to the Gartner institute, Motorola was in second place, with market share of 20.6%, and Samsung of South Korea saw its share of the world market fall to 12.2 % from 12.5 in third quarter 2005. 7 Obviously, Nokia has firmly established its leading position in its industry and has become the worlds leading provider of mobile telephones. Section 2. Nokia’s Development in China The year Nokia traded with China can be traced back to 1950s. And later, until 1985, Nokia opened its first branch in Beijing to initiate its development of early stage in China. In 1995, Nokia set its joint venture in China to produce large scale of GSM system equipment. Then, in 1997, Nokia deliver China the first GSM 1800 network. Soon later, in 2000, Nokia started up the Chinese GPRS network that is first one compatible with newest business 6 Martti Haikio (2003) NOKIA THE INSIDE STORY. Published by Edita Publishing Ltd and Nokia Oyj, Copyright 2002, Chinese Edition First Printed in Sept. 2003. pp.272-273. 7 Accessed on Feb. 23rd, 2007, Nokia is top mobile phone maker for Q3-Gartner, Nov. 23,2006 http://telecomasia.net/article.php?id_article=2793 standards in the world.8 In 2001, Nokia invited its main global partners including mainly hardware providers to invest about RMB 10 billion together in Star Net Industry District in order to form integrated production capabilities and to decrease cost.9 During 2003, Nokia released 15 styles of handsets and ranked no.1 of the GSM mobile handset. As is reported, the top 3 brands of GSM in 2003 are Nokiaà £Ã¢â€š ¬Ã‚ Motorola and Samsung, with market shares respectively 17.23% à £Ã¢â€š ¬Ã‚ 16.46%à £Ã¢â€š ¬Ã‚ and 11.81%.10 When entering into the new century, Nokia strengthens its cooperation with China in the field of communication technology and takes active part in the development of Information Industry in China. At the same time, Nokia commits itself to employment and cultivating of the local talents. To the end of 2004, Nokia arrived at no. 1 of the whole handset sales in China. In 2005, the rising trend continued. It is calculated that Nokia captures 25.8% of domestic handset market share in 2005, realizing 10.8% more than in 2004. By contrast, the second brand Motorola only gets 8.7% of market share11. After decades of tillage, Nokia has really established its leading position in the handset industry in China; it is believed that Nokia will actualize greater success in the mobile 8 Martti Haikio (2003) NOKIA THE INSIDE STORY: Beijing Strategies of Nokia, Published by Edita Publishing Ltd and Nokia Oyj, Copyright 2002, Chinese Edition First Printed in Sept. 2003. pp.234-236. 9 Accessed on Feb.23rd, 2007, Explore Star Net Industry District, by Wangshucheng, Huoxiaoguang, Yujingzhong, Source from Xinhua Agency. Yesky.com-Chinese IT website, http://www.yesky.com/135/215635.shtml 10 Accessed on Feb.23rd, 2007, Synthesized analysis report on handset in China by YiGuan, Jun. 29th, 2004, http://www.c114.net/zhuanti_simple/3g/Read_3g.asp?action=3gzlkstyptID=3articleID=26 11 Accessed on Feb.23rd, 2007, Domestic Handset Market Share Declines March, 28th, 2006, http://www.chinamobile.gov.cn/200603/61242.shtml communication market in China under the 3G era. Chapter 3. The mobile handset industry As is well known, competitive strategy is the outcome resulting from competitive environment. Without given circumstance, it will become meaningless to discuss whether the employment of certain competitive strategies by some enterprises is successful. Therefore, before anatomizing the competitive strategies of Nokia, we need to describe the notion of mobile handset industry and its main composing elements. 1. Definitions —What is a mobile handset A mobile or cellular phone is a long-range, portable electronic device for personal telecommunications over long distances. Most current mobile handsets connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception are satellite phones). Cellular networks were first introduced in the early to mid 1980s (the 1G generation). Prior mobile handsets operating without a cellular network (the so-called 0G generation), such as Mobile Telephone Service, date back to 1945. Until the mid to late 1980s, most mobile handsets were sufficiently large that they were permanently installed in vehicles as car phones. With the advance of miniaturization, currently the vast majority of mobile handsets are handheld. In addition to the standard voice function of a telephone, a mobile handset can support many additional services such as SMS for text messaging, email, packet switching for access to the Internet, and MMS for sending and receiving photos and video.12 2. Brief Introduction on Global Mobile Handset Industry Broadly speaking, the mobile handset industry consists of upstream suppliersà £Ã¢â€š ¬Ã‚ whole handset 12 Accessed on Feb. 23rd, 2007, Mobile phone Definition Introduction, Sirchin-The Free Encyclopedia And Other Stuff Beta. http://www.reference.sirchin.com/?wiki:directories:mobile-phone manufacturersà £Ã¢â€š ¬Ã‚ network operatorsà £Ã¢â€š ¬Ã‚  downstream distributorsà £Ã¢â€š ¬Ã‚ terminal retailers etc. From raw materials to handset product, from hardware suppliers to software providers, from the handset per se to service and content providers, mobile handset industry can be identified as the whole value chain encircling the handset’s substance concept. From the narrow sense, mobile handset industry consists of the companies engaging in producing hardwareà £Ã¢â€š ¬Ã‚ componentsà £Ã¢â€š ¬Ã‚ and accessories of handset ¼Ã…’as well as assembling handset. As is well known, the worlds largest mobile handset manufacturers include Audiovox, BenQ-Siemens, High Tech Computer Corporation, Fujitsu, Kyocera, LG, Motorola, NEC, Nokia, Panasonic (Matsushita Electric), Pantech Curitel, Philips, Sagem, Samsung, Sanyo, Sharp, SK Teletech, Sony-Ericsson, TA Alcatel and Toshiba. And the worlds largest mobile phone operators include Orange SA, China Mobile and Vodafone. According to report on global mobile market in Q4 2005, the top 5 manufacturing companies are Nokia, Motorola, Samsung, LG, and Sony-Ericsson, with their global mobile handset market of 35%, 16.3%, 12.1%, 7.2% and 6.9% respectively13. As is calculated, the mobile handset sales continue to grow worldwide, going up from 482.5 million in 2003 to 561 million in 2004. This growth rate is expected to gradually slow down over a period of five years. The estimated growth figures for these five years are—10% in 2005, 7.7% in 2006, 6.4% in 2007, 4.8% in 2008 and 2.6% in 2009.14 Clearly, the global handset industry has been growing fast and will continue to grow for next 3 years. However, the rate of industrial growth will calm down, a status leading to prudential optimism. 13 Accessed on Feb.23rd, 2007, Big Six Dominate Expanding Mobile Phone Market, by John Leyden. Feb.28th, 2006, http://www.theregister.co.uk/2006/02/28/gartner_mobile_market_2006/ 14 Accessed on Feb.23rd, 2007, Changing Faces of The Global Mobile Handset Market –2007, Research and Consultancy Outsourcing Services, March 2005, Pages: 95 Researchandmarkets http://www.researchandmarkets.com/reportinfo.asp?report_id=63375 3. Mobile handset Industry in China Since China ushered in mobile handset in 1987, the handset users has reached 0.443 billion people, with the penetration rate of 33.9%; and the business revenue from mobile communication has occupied about 50% of whole revenue from telecommunication. Mobile communication has grown to be the main impetus of industrial development. 15 —3.1 Network operators After many years of evolution, there are now 6 network system operators in China: Chinatelecomà £Ã¢â€š ¬Ã‚ Chinanetcomà £Ã¢â€š ¬Ã‚ Chinamobileà £Ã¢â€š ¬Ã‚ Chinaunicomà £Ã¢â€š ¬Ã‚ Chinasatcomà £Ã¢â€š ¬Ã‚ and Chinatietong. Till May 2004, Chinamobile is No. 1, because it occupied more than 30% market share according to the business revenue. According to the 2005 annual report, Chinamobile achieved revenue of 243.04 billion RMB and net profit of 53.549 billion RMB, with customers covered 0.257 billion16. —3.2 Overview of industrial developing situation Chinese mobile handset industry keeps its rapid development in recent 5 years, and this trend is forecasted to be extended in the coming years. According to the MII, the handset output from year 2000 to 2005 is 52.57à £Ã¢â€š ¬Ã‚ 83.97à £Ã¢â€š ¬Ã‚ 120à £Ã¢â€š ¬Ã‚ 186.44à £Ã¢â€š ¬Ã‚ 231.75à £Ã¢â€š ¬Ã‚ 303.67 million units respectively. The relevant yearly increasing rate reaches 59.73%à £Ã¢â€š ¬Ã‚  42.91%à £Ã¢â€š ¬Ã‚ 55.37%à £Ã¢â€š ¬Ã‚ 24.30%à £Ã¢â€š ¬Ã‚ 31.03% respectively. Along with the high-speed increase in handset output, the handset users reaches 0.3934 billion people, and the popularization rate of mobile handset increase rapidly, arriving at 30.3 units per hundred people. However, compared with 60-odd units per hundred people in western developed countries, the future increasing space for handset is still optimistic.17 15 Accessed on Feb.23rd, 2007, The address on the Seminar of Constructing Green Handset Culture by Mr. Xiguohua, vice Minister of Mii of China in 21st Nov 2006, Beijing, on Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/11/23/art_223_27118.html 16 Accessed on Feb.23rd, 2007, the financial highlight, http://www.chinamobileltd.com/ 17 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html 2001-2005 Handset Output in China83.97120186.44231.75303.6759.73%42.91%55.37%24.30%31.03%050100150200250300350200120022003200420050.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%OutputYearly Increasing Rate(%) (Note: Amounts in millions of units. Source: Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html) Simultaneously, China has gradually become the export base of mobile handset. According to the statistics of MII, the handset export in 2005 is 228 million units, occupying 75% of total handset production. Compared to the 43.3% of export rate in 2000, the higher rate for export in 2005 indicates the excess capacities of handset production and the advent of market maturation in China.18 It is estimated that in 2006, the output of handset will arrive at 0.34 billion units including 0.25 billion for export purpose19. Generally speaking, the developing trend of handset industry in China will maintain rapidà £Ã¢â€š ¬Ã‚ healthyà £Ã¢â€š ¬Ã‚ and harmony progress. 18 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html 19 Accessed on Feb.23rd, 2007, Comment on the 2005 development of handset industry in China, Website of Ministry of Information Industry of the People’s Republic of China http://www.mii.gov.cn/art/2006/03/15/art_62_8307.html —3.3 Brand vendors As is reported (Aug.13/2002, People’s Post Newspaper), Chinese mobile market was totally occupied by foreign brand handsets before 1998. According to the result of investigation on consumer products in main cities in China in 1998, the market share of mobile is as follows: Motorola 37.3%, Ericsson 28.6%, Nokia 15.6%, and the left 20% market share was distributed among other foreign brands such as Philips, Siemens, Alcater, and Sony etc.20 Following the market booming of handset, Chinese domestic brand vendors began to dissatisfy their original position of OEM only. In addition, with the reformation of approval system, more domestic powerful competitors enter handset industry. As is reported, there are now about 70 companies granted license to produce mobile21. Although domestic brand vendors showed its competence and achieved brilliant performance in 2003, due to the lack of core technology and small scale of production, their total domestic market shares begin to fall down from the zenith of 60% in 2003 to 40.6% in 2005. And the ranked top 3 domestic brands occupy only 17.5% shares in comparison with 31.6% in 200322. According to the 2005 rank on sale of GSM handset in China, the top 10 brand is in turn as follows: Nokiaà £Ã¢â€š ¬Ã‚ Motorolaà £Ã¢â€š ¬Ã‚ Samsungà £Ã¢â€š ¬Ã‚ Birdà £Ã¢â€š ¬Ã‚ Amoià £Ã¢â€š ¬Ã‚ Sony-Ericssonà £Ã¢â€š ¬Ã‚ Lenovoà £Ã¢â€š ¬Ã‚ TCLà £Ã¢â€š ¬Ã‚ Koncaà £Ã¢â€š ¬Ã‚ Haier. Among them, top 3 brands occupy 60.05% of domestic market share, a number overpassing the total result of domestic brands23. 20 Accessed on Feb.23rd, 2007, The competitive situation in handset market in China, http://www.china-qg.com/articleHistory/yingXiao/4/275.html 21 Accessed on Feb.23rd, 2007, Handset Market Increasingly Open, by Zhugangqi, Nov. 29th, 2006, http://www.cww.net.cn/consultation/shownews.asp?nid=207 22 Accessed on Feb.23rd, 2007, Market Shares of Foreign Handset Increasing Rapidly, Mar. 21st, 2006, Source: MII. http://www.ccw.com.cn/news2/mobile/htm2006/20060321_09RRM.htm 23 Accessed on Feb.23rd, 2007, Domestic Rank of Handset Sales, by YiGuan, Source: CNETNews.com.cn, http://www.cnetnews.com.cn/news/review/story/0,3800057985,39445251,00.htm The following is the overview on the major participants, which probably possess potential capacity to challenge Nokia: 3.3.1 Motorola Motorola is known around the world for innovation and leadership in wireless and broadband communications. Motorola came to China in 1987 when it opened a representative office in Beijing. In 1992, Motorola (China) Electronics Ltd. was established in Tianjin, a major manufacturing base where Motorola produces mobile phones, two-way radios, wireless communications equipment for the Chinese and global markets. 24 Today, Motorola has one holding company, three wholly owned companies, five joint ventures, 16 RD centers and 25 branch offices across China. At the end of 2005, the number of employees exceeded 10,000, and the total cumulative investment in China reached US$3.6 billion, making it one of the largest foreign investors in China. Investment in RD has reached US$600 million.25 The goal of Motorolas China strategy is to build China into world-class production and RD bases. While pursuing and maintaining market leadership in both mobile devices and infrastructure equipment, Motorola continues to develop businesses in digital trunking, broadband products, solutions and services. As a runner-up in the mobile industry, Motorola keeps fighting its way for market leading position all the while. Undoubtedly, relying on its high-tech RD and cogent brand, Motorola can be qualified as the strongest challenger for Nokia in the mobile handset manufacture industry, no matter in China or in global market. 24 Accessed on Feb.23rd, 2007, Motorola China is the biggest wholly foreign invested enterprise Source: Tianjin Developing District Investment Net, Jun. 26th, 2003, http://www.investteda.org/zxzx/tdtzdt/t20051025_6324.htm 25 Accessed on Feb.23rd, 2007, Motorola in China, http://www.motorola.com.cn/about/inchina/inchina_en.asp 3.3.2 Samsung Since it’s founding in 1938, SAMSUNG (Group) has maintained a mission statement that responds both to its own change, and to new developments in the world. After unremitting struggle for decades, the company grows from a domestic industrial leader into a global consumer electronics powerhouse. Following its management philosophy-We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society, Samsung achieves quick pace of development. And Samsung’s brand value, a key engine of business growth, increased to US$8.31 billion in 2002 from US$6.37 billion in 2001 and was recognized by Interbrand Corporation as the fastest growing global brand.26 As one of its emphasized fields, Samsung endows mobile handset market with great efforts. It was reported that the expenditure of total RD in Samsung reached 5 billion USD, including 2 billion especially for mobile handset RD. Moreover, as an industrial newcomer compared with Nokia and Motorola, Samsung adopt several special developing strategies to overtake advanced companies, for example: à ´Ã¢â€š ¬Ã‚ Ã‚ º Samsung prefer cooperation with strong technology leader to research alone. Samsung plays more attention on how to obscure know-how in shorter period, and to avoid confrontation with powerful competitors. Then, through reverse engineering, Samsung can absorb the newest technology with high efficiency. à ´Ã¢â€š ¬Ã‚ Ã‚ º Based on owned technology, Samsung inclines not to further dig, but to emphasize on developing additional value of product in order to occupy the market rapidly. It’s not difficult to understand that Samsung’s mobile handset exhibits first design and fashionable appearance, the important feature attracting majorities of users. This feature benefits Samsung to be among global top 3 brands of mobile handset. 26 Accessed on Feb.23rd, 2007, Samsung’s Managing Philosophy, http://china.samsung.com.cn/public/gongyi.asp?sm=menu7 à ´Ã¢â€š ¬Ã‚ Ã‚ º Expand rationally based on technology on hand. At present, Samsung has occupied already 65% of CDMA market in Korea, and the target at 20%-30% CDMA market share in China has become its next step, which means about 7.5-11million handset units. Believably, along with the deeper cooperation between Samsung and Qualcomm Incorporated, which is the owner of CDMA patent, Samsung will achieve more opportunities on market of CDMA handset, which is used by nearly 1/3 of global mobile user. In conclusion, Samsung, as an active and ambition participant in mobile industry, has found a unique way to boom, and has grown to be an important industrial power unable to be neglected. 3.3.3 Indigenous Brands Before 1998, domestic handset comes into the market in the form of joint ventures. During that period, they just assemble international brand handset. After 1998, domestic handset companies began to produce handset through OEM (Original Equipment Manufacturing) for international brands such as Samsung of Korea and SAGEM of France, which still not entered into China at that time. Simultaneously, some companies began to launch its own handset brand such as EC528 of Eastcom. In 1999, the market share of indigenous brand handset is less than 3% in China. However, until 2003, indigenous mobile handset arrived at its height of development, with a market share of 60%. However, indigenous brand soon began to decline all- the- round, with a market share of less than 40% at the end of 2004. During 2005, this declining trend continues, with 10 more percent market share lost than 2004 at the year-end. Relying on indigenous marketing advantage and OEM technology, domestic mobile handset manufacturers, as a whole, have grown up and gradually captured medium and low-end market. Although they encounter fierce competition and face present embarrassment, and even 3 brands that is Kejianà £Ã¢â€š ¬Ã‚  Pandan and Gaoke fade away in 200527, certain individual brand still actualize rapid development against the current and emerge. It is Lenovo that achieved 4.1% market share and ranked 7th in 2005; by contrast, its market share rises to 6.5% with a rank of 4th in June 2006 (from IDC report), an achievement invigorating all indigenous brands. 28 Considering the advantages of indigenous brands such as: flexible distributing- channelsà £Ã¢â€š ¬Ã‚ sensitive price reflectionà £Ã¢â€š ¬Ã‚ strong end-user networks and deep understanding of domestic fashion trend ¼Ã…’we have no reason to doubt the future of indigenous handset development. In addition, Chinese government has shown its resolution to support domestic handset companies; surely the relative policies will be improved further. It is believable that indigenous brands, as a whole, will soon rally to enhance their market position. Generally speaking, due to the recent situation of handset industry in China including the advent of 3G, all the brand vendors are adjusting each competitive strategies referring to individual inherent and existing advantages. In a word, new turn of reshuffle on handset industry in China is unveiling. 27 Accessed on Feb.23rd, 2007, March 16th, 2006, by Pengxuzhi, http://mobile.csonline.com.cn/jzsl/200512/t20051228_423095.htm 28 Accessed on Feb.23rd, 2007, Lenovo handset’s market share, Source: IDC, http://telecom.chinabyte.com/243/2576243.shtml Chapter 4. Industrial Analysis using Porter’s Five Forces Analysis Porter’s Five Forces Analysis is arguably the most influential analytical model in analyzing industrial environment. Logically, it will greatly facilitate comprehending the rationality of Nokia’s competitive strategies to use Porter’s Five Forces model to analyze the competitive environment where Nokia is operating in China, before expounding Nokia’s detailed competitive strategies. 1. Theory Brief Five Forces Analysis is a method used to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but focuses on an industry. It looks at five key forces namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. Porter’s five-force model is arguably the most influential analytical model in strategy. In practice, it is best applied to cases in which strategic decision-making is closely associated with industry conditions. Porter’s Five Forces of Competitive Position New Market Entrants, e.g.: †¢ Economies of scale †¢ Proprietary of product differences †¢ Brand identity †¢ Switching cost †¢ Expected retaliation Supplier Power, e.g.: à ´Ã¢â€š ¬Ã‚ Ã‚ º Differentiation of inputs à ´Ã¢â€š ¬Ã‚ Ã‚ º Supplier concentration à ´Ã¢â€š ¬Ã‚ Ã‚ º Presence of substitute inputs à ´Ã¢â€š ¬Ã‚ Ã‚ º Switching costs of suppliers and firms in the industry à ´Ã¢â€š ¬Ã‚ Ã‚ º Importance of volume to supplier Competitive Rivalry, e.g.: †¢ Industry growth †¢ Fixed costs/value added †¢ Intermittent overcapacity †¢ Product differences †¢ Brand identity †¢ Switching costs †¢ Corporate stakes Buyer Power, e.g.: †¢ Buyer choice †¢ Buyer information †¢ Ability to backward integrate †¢ Substitute products †¢ Buyer switching costs relative to firm switching costs Threat of Substitutes, e.g.: †¢ Relative price performance of substitutes versus firm concentration †¢ Switching costs †¢ Buyer propensity to substitute 29 Henry Mintzberg, Joseph Lampel, James Brian Quinn, Sumantra Ghoshal, (2002) THE STRATEGY PROCESS Concepts, Contexts, Cases FOURTH EDITH Prentice Hall, Upper Saddle River, New Jersey 07458, pp95. The only deficiency with his model lies that the same analysis often applies equally well to more than one company (hence, the notion of â€Å"strategic groups†). And Porter’s emphasis on the importance of external context is balanced by Barney’s insistence that sustainable advantage depends as much or more on the internal resources of the firm. As Jay Barney argued that sustainable competitive advantage is not the product of correct position in the external environment but is derived from the firm’s internal resources. More specifically, resources must meet four criteria to confer sustainable comp

J.R.R. Tolkien Biography Essay -- J.R.R. Tolkien

J.R.R. Tolkien was born in South Africa, although he considered himself a British man throughout his adulthood. He experienced World War I firsthand in the trenches. He was a professor of Old English and other archaic languages and had a strong love for such languages. Tolkien also felt a strong tie for his homeland, England, and desired to create mythology for England. Tolkien was able to write the first modern fantasy novel through his life experiences and his love for archaic languages and British lore. Tolkien's mother, Mabel Suffield, left England in March of 1891 for South Africa to marry a man by the name of Arthur Tolkien. They had been engaged for years; however Mabel's father had denied Mabel her marriage due to her young age. Tolkien's father, Arthur Tolkien, had sailed to South Africa a few years earlier to try out his luck in the diamond discovery craze. Only a few short years later, Arthur and Mabel gave birth to a son, named none other than John Ronald Reuel. Tolkien lived in a village surrounded by wilderness in his first few years and faced several adventures. Three of his pinafores were chewed off by a monkey. He avoided several snakes. He stumbled upon a tarantula, and ran around until his nurse grabbed him and sucked out the poison. Perhaps this is why Tolkien includes poisonous spiders in his future tales (Carpenter 13). Mabel and Arthur gave birth to a second son, and within two years Arthur passed away from a severe case of rheumatic fever. After Arthur's death, Mabel and Tolkien's younger brother Hilary returned to England to the West Midlands of England. Tolkien was exposed to the rural and industrial sides of England. The area was heavily polluted and could be the reason for Tolkien... ...orld of JRR Tolkien. URL: http://www.indepthinfo.com/tolkien/biography.shtml (8 May 2005). Rosebury, Ryan. " Tolkien, J. R. R. ". The Literary Encyclopedia and Literary Dictionary. Ed. Robert Clark, Emory Elliott and Janet Todd. URL: http://www.litencyc.com/ (8 Jan. 2001). Tolkien, J.R.R. The Fellowship of the Ring. New York: Ballantine Books, 1977. Tolkien, J.R.R. The Hobbit. New York: Ballantine Books, 1977. Tolkien, J.R.R. The Return of the King. New York: Ballantine Books, 1977. Tolkien, J.R.R. The Two Towers. New York: Ballantine Books, 1977.

Mobile Advertising : A New Communication Media :: Mobile Phones Cell Phones Technology

Mobile Advertising : A New Communication Media Mobile marketing is becoming the most productive and cost effective medium for reaching a highly desirable demographic. It purposes are numerous : canvassing, building up customer loyalty and of course selling. The mobile phone is a good tool to exchange information with customers with several medium : Small Message Service (SMS), Mini Message Service (MMS), video MMS or internet. Today, it is also possible to pay with your mobile phone and some people think that mobile-phones will replace credit-cards or loyalty-cards in a next future. The mobile marketing is born thanks to a huge development of high-technologies, which allow to have high-performances cell-phones. It is particularly targeted on young people, who use cell phones of the new generation. The market on mobile marketing should reach 150 millions of dollars in 2006 (three times more comparing to 2005). The market will grow very quickly to reach 1 billion of dollars in 2009. Companies such as AvantGO were born, just in order to provide services in terms of Mobile Marketing Advertising and Campaigns. Services provided include a huge database and mobile research surveys. Some major companies trust in AvantGo to build their mobile website : American Airlines or Rolling Stone for instance. Building up customers loyalty : it is common acknowledged that it costs about five times less to build up loyalty with a customer than to find another one. That is why companies have to focus on existing customers. And because they often have a databases with a lot of information about their customers (including mobile phone numbers), sending SMS or MMS is an easy way to reach customers. And when effective, this type of campaign can contribute to significant brand awareness and loyalty, especially for a young demographic. Today most ambitious marketers try to associate a specialist ringtone or wallpaper with their brand. They are convinced that it could spread awareness of their own brand. Canvassing : the method to canvass people with mobile marketing is not difficult. Companies have to buy a cell-phone database or to constitute it by their own, corresponding to their respective targets and then to send a message and/or pictures. They can ad an internet website, a call-centre number. Selling: in Japan and South-Korea it is already possible to pay small bills like restaurants, cinema seats or public transports with mobile phones. The concept is being tested in the USA now.

With Reference to at Least 2-3 of Amichai’s Poems, Identify the Main Stylistic Elements of His Work and Comment on Their Effectiveness.

With reference to at least 2-3 of Amichai’s poems, identify the main stylistic elements of his work and comment on their effectiveness. The main stylistic elements of the work of Yehuda Amichai greatly reflect the time in which he was writing and the place in which he was located whilst writing. Being born in Germany in 1924 and then living in Israel in the 20th century meant that Amichai was exposed to a turbulent stage in world history as Israel had only just been created as a separate state after World War II and Hitler’s persecution of the Jewish race.At this time politics, war and religion were all at the centre of the world’s attention, and particularly for the Jewish people living in Israel as there was the constant threat of violence from the Arab people in neighbouring Palestine. Throughout his work, Amichai is able to effectively convey the disruption and confusion caused by this conflict by using techniques such as scattered imagery and irregular struc ture.To better understand the effectiveness of the stylistic elements used by Amichai, it is important to look at how he uses these techniques in his works. The first area of focus that is important to understand Amichai’s style is to study where and when each poem is set. With contextual background it seems to be that nearly all of his poems are set in Israel or some sort of similar desert-like place. ‘God Has Pity on Kindergarten Children’ is one of Amichai’s earliest works and it gives a good indication as to the importance of place in his poetry.The importance of place is that in many of his works the setting is very much abstract and sense of a place in which the poem is set appears to change constantly, making the poem more universal and often with religious additions to the poems the setting is taken to a metaphysical, God like, all seeing dimension. In ‘God Has pity on Kindergarten Children’, Amichai changes place from a ‘first-a id station’ to a desert like place as he describes ‘sand’ before moving to a ‘public bench’ and lastly a ‘school’.Then the idea of a metaphysical dimension is introduced with the reference to God and religion suggesting that God is all seeing and is watching over the world from the place in which he is located. The idea of there being another dimension from which God can look down on the world is reiterated in the poem, ‘God’s Hand in the World’ where Amichai asks the question, ‘What does God see through the window while his hands reach into the world? ’ These religious images ink to the creation of a metaphysical place within the poems and they provoke the reader to think about how Amichai see’s religion and how he responds to his own thoughts about God and his faith in general. The religious imagery that is recurring in many of his poems leads the reader to a conclusion that this is one of the ma in themes which much of Amichai’s work is centred around. The next key feature is the focus on time and how this affects the subject of his work whether it is a person, object or place.Amichai uses many ellipses in his work which makes the poems very radical which is mirrored in the constant change of place and the progression in time. In the poem, ‘There Are Candles That Remember’ there are three main measures of time given; the first is ‘twenty-four hours’ which is followed by ‘eight hours’ and then there is a reference to candles that are ‘eternal’. In this poem, Amichai appears to be measuring life, and in particular his life, against the age of Israel which is a very new country in this period.The inclusion of ‘antiquities’ shows another dimension in the time references in the poem as it shows the past, but not the recent past as ‘antiquities’ signifies relics that are possibly thousands of yea rs old. In some of Amichai’s poems there is modulation in tense, ‘God Has Pity on Kindergarten Children’ shows modulation between stanza one and the other two stanzas with the shift from present tense to future tense.There is also modulation in ‘There Are Candles That Remember’ however it is internal modulation in the lines, ‘Late in my life I had a daughter who will be twenty-two in the year 2000. Her name is Emanuella†¦Ã¢â‚¬â„¢ In these two lines the tense changes from past to future to present with the words ‘had’ followed by ‘will’ and ‘is’ which is another way in which Amichai shows the radical and unpredictable nature of his work. Prominent in Amichai’s work is the inclusion of fragmented and scattered imagery and structure.The sudden shifts between subject matter in many stanzas are mirrored by the non-clustered imagery within the poems. ‘There Are Candles That Remember’ has an irregular structure with lots of enjambed lines leaving the poem without a strong structure. The imagery within the poem also contains many non-sequential and strange images such as the ‘candles that remember’ where Amichai has personified the candles, this is then followed by the metaphorical reference to a ‘bowl full of precious liquid’. The images that follow are unrelated to the ones already mentioned, like the imile of the diaspora of old people that are said to be ‘scattered about like antiquities’ and then the comparison to how Amichai’s soul is ‘built like mountain terraces’. This style of scattered and mostly unrelated imagery helps to add to the sense of confusion and chaos in the life that he lives especially in the time in which he is living as the creation of the new country of Israel along with the conflict between the world superpowers meant that the 20th century was a time when tension and war were ever p resent threats to peace.Some of Amichai’s imagery that is used in his work is very graphic and the use of the human body no matter how much or little is prominent in many of the poems. One of the best examples of this use of imagery is the poem, ‘A Pity. We Were Such a Good Invention’ which opens with the image of a surgical procedure as the opening line reads, ‘They amputated your thighs from my hips. ’ The body part imagery makes the poem seem more physical and possibly is an attempt by Amichai to highlight the loss of intimacy with someone that he loved. A Dog After Love’ is a good example of the use of body part imagery as well as an example of the indignation felt by Amichai which is expressed through his poetry. His anger and frustration is usually caused by love, politics and religion, and in the case of ‘A Dog After Love’ it is the loss of love that causes the anger expressed by Amichai. This poem probably shows the most v iolent and graphic response to the loss of love as Amichai writes, ‘I hope it will find you and rip your lovers balls to shreds and bite off his cock’.This image effectively conveys the indignation felt by Amichai in a highly graphic way which makes it more impacting on the reader and therefore it has a greater immediate effect. Overall the main stylistic devices used by Amichai are the scattered imagery, irregular structures, often undefined place and changing times in which the poems are set. Furthermore, his work is always very personal with a great use of the words ‘I’ and ‘my’ in almost all of his poetry.All of these elements help to create very unique poetry that often has an impacting effect on the reader as the individual style of Amichai’s writing makes it necessary for the reader to think carefully about what he is writing about and what emotions he is trying to convey. Personally, I feel that Amichai’s work very effecti vely conveys the emotion felt by the events he is writing about and the personal nature of his work sometimes provokes sympathy, sadness, happiness or disdain which is a sign of an effective style of writing.

Emirates Airline: Penetrating the North American Market

Emirates Airline is known for going against conventional thinking when running its business. Thus far, this strategy has been profitable for the company. In November 2001, the airline announced that it would begin a 13 ? non-stop flight from Dubai to New York starting in June of 2003. However a postponement in the delivery of the Airbus A380-800 aircraft that would service the new route has caused a delay. This will be Emirates’ attempt at penetrating the North American market. In the current politically charged climate there is debate as to whether or not it will be profitable to expand service to this new route from Dubai to New York. Tensions between Washington and the Arab world create restraints as to when Emirates will be able to expand service. However, the main question currently facing Emirates is whether it should expand to New York at this point in time. Unlike many other airlines, Emirates sees no threat surrounding the tensions in the Middle East. The climate has been this politically charged for the past ten years. In fact, during the first Gulf War in 1991, Emirates Airlines was the only airline that did not cancel any of its flights. They continued flying to Kuwait when a majority of its competitors stopped. Emirates continued business as usual and picked up additional business from those airlines that downsized and stopped flights in the region. This strategy exemplifies how Emirates has gone against conventional thinking and come out ahead. Country Risk Analysis Middle East Region Overview The Middle Eastern region is characterized by economies that are over-dependent on oil; however, they differ on size, wealth, and political agendas. A few of the key players in this region include: Iran, Iraq, United Arab Emirates, Qatar, and Saudi Arabia. Of these countries, the United Arab Emirates is quite comparable in many aspects to its neighbors. The UAE and Qatar are not expected to suffer from as much government instability in the threat of war as the other countries. Iran and Iraq, however, have had their share of political unrest, which has drastically affected their oil exports and prices. To counterattack these effects, Iraq has put pressure on the other OPEC countries to increase oil prices and decrease oil exports to the US and Great Britain. As a result, the GDP of all Middle Eastern countries will decrease due to the heavy reliance of oil revenues in exports and as a percentage of GDP. While oil is what makes these countries wealthy, the UAE, Saudi Arabia, and Qatar enjoy higher GDP per capita over Iraq because of their political situations. Dictatorial governments in Iraq allocate funds to programs that will not necessarily aid the country in the long-run. Literacy rates of Saudi Arabia, Qatar, Iran, and the UAE have increased steadily over the past decade. This is mostly owed to government beliefs that educated citizens will 3 augment the status of the country in all aspects. All five countries export to and import from similar countries including; Japan, Italy, China and the US. The main export for these countries is oil and the main imports are machinery and equipment, chemicals and food. United Arab Emirates The United Arab Emirates (UAE) is located in the Middle East between Oman and Saudi Arabia, bordering the Gulf of Oman and the Persian Gulf. The country is slightly smaller than the state of Maine, which makes it a very small country within the Middle East region. The population of the UAE is approximately 3,480,000 people. The literacy rate for the UAE is 79. 2% for the total population above 15 years. When categorized by sex, men and women have comparable literacy rates, a rarity in the Middle East region. The population is predominantly Muslim (96%), with the remaining 4% of the population consists of Christians, Hindus and others. Although Arabic is the official language of the country, Persian, English, Hindi and Urdu are also spoken. The UAE is a federation state formed on December 2, 1971 and is composed of seven emirates. The emirates included in the UAE are Abu Dhabi, Dubai, Ajman, Fujairah, Sharjah, Ras AlKhaimah, and Umm Al-Qaiwain. Prior to the formation of the federation state, the UAE existed as the Trucial States that belonged to the British for the previous 150 years. The Rulers and the British signed a Perpetual Treaty of Maritime Truce in the 1850s that guarantees peace and protection from external threats. In exchange, the British had direct involvement in its foreign affairs and external defenses. When the British intended to withdraw from the Gulf in 1968, the rulers of the seven emirates came together and formed the federation state with hopes to increase their role in global politics. Economic Environment United Arab Emirates’ economy is heavily dependent on oil production. Abu Dhabi is the largest producer, followed by Dubai, and to a much lesser extent, the remaining emirates. Although oil’s contribution to GDP has been declining in the past few years, government revenue and the non-oil economy continue to be heavily reliant. GDP for the year ending 2001 was 67. 6(US$bn) and 21,000(US$bn) per capita, and 70% of government revenue resulted from oil production. Fluctuations in oil prices impact the growth and volatility of the UAE’s economy. The UAE is a member of the WTO, but has been slow to comply with its requirements for liberalizing trade and competition. The banking sector is closed to foreign investment and other ventures must be 51% owned by a local partner. The exceptions to these rules are in free zones, where 100% foreign ownership is permitted. The limitations on foreign direct investment deter the process of economic diversification. Abu Dhabi is the most resistant to opening its economy, but it has pursued private sector involvement to improve infrastructure regarding water and power. Dubai has chosen to focus its efforts on expanding its services sector by creating Dubai Internet City (DIC) and Dubai Media City (DMC), which are free zones where investors can retain 100% ownership. Dubai also allows foreign investors to own property and purchase shares in UAE listed companies. The UAE typically runs a budget deficit, and the 2002 budget projects one of Dh2. 17bn. Federal spending is expected to increase by 2. 2%, and revenue is expected to grow by 3%. Abu Dhabi, Dubai and the UAE Central Bank are the main contributors to the federal budget.