Saturday, October 5, 2019
Free topic Research Paper Example | Topics and Well Written Essays - 1750 words
Free topic - Research Paper Example According to Ferraro and Andreatta, systems of arranged marriages assist to maintain the caste system, while the fathers have a role to marry off their daughters before puberty (214). The variation of social ranks affects the stability and formation of long lasting relationships intended between the betrothed couple. Even though the couple may identify each other early enough, the social status matters and has to be considered by the bridesââ¬â¢ family. Most women in the Indian modern society are trying to change the tradition, by involving their free choice of marriage partners based on educational influence. Despite the education level, there has been little effort made in relation to reducing early marriages after increasing education (ââ¬Å"Dommaraju,â⬠cairn.info). The Mahabharata teaching from Yayati story, expresses how Yayati had declined to marry Davayani, since he knew they both belonged to different ranks. Yayati found it unworthy for him to marry a high rank woma n from a Brahmin royalty. The cultural approval of men in the Indian society relates with how Yayati waited for Devayaniââ¬â¢s fatherââ¬â¢s blessing to his marriage. ... According to Thurston, southern Indians superstitions that involve a quivering feeling in the right arm are meant to symbolize a marriage union, with a beautiful lady as some good luck (Gutenberg.org). In the event of a throb or shake of a body part, such an occurrence is identified with a happening and the individuals should be careful to know the next step to take if it was a bad or good sign. This is a body language among the people of India that has been passed from down to the modern generation. Divayani was pulled from the well by the right hand of Yayati, which may have caused a shake on her body. Indian men have to be keen when using their right hands, to avoid extending a burden of marriage on their part. While it may happen, some men and women may feel lucky for having identified a woman of their life based on their traditional cultures. You will find that there is limited shaking of hands in formal and informal gatherings at a public domain, between men and women, even if they are married (Bisht 181). This is probably one of the reasons for young individualsââ¬â¢ disengagement within young individuals, besides an act of showing respect. On the contrary, (Bisht 181) mentions that members of the same sex, like male to male would be free to express their friendship even if it meant walking arm in arm. Women as tempting beings: for a long time the women in the Indian society are considered to be immoral beings, with an ability to seduce men into immoral conduct that the society disassociates from. Women are therefore married at an early age so as to prevent them from engaging into dissolute behaviors. Following Ferraro and Andreattaââ¬â¢s statement, women in Hindu society have for centuries been viewed as lustful beings, who would do any thing to tempt
Friday, October 4, 2019
Lufthansa Austrian Airlines Takeover Essay Example for Free
Lufthansa Austrian Airlines Takeover Essay Taking a brief look on the economic development in Europe up to the year 2008 reveals high GDP growth rates and reminds us about the times of prosperity that we almost all so nostalgically recall. But Austrian Airlines have never seen any boom in revenues, profits and the number of transported passengers. This alone is a reason for big concern as airlines have never been a counter-cyclical business. If the company is unable to sustain itself in the times of prosperity what loss will they carry in the books in the times of economic downswing? Finding a powerful strategic partner seems like inevitable for the Austrian company. In 2008 Austrian Airlines was the 11th biggest airlines in Europe with 10,7 million passengers and 2,5â⠬ billion in revenues. On the other side Lufthansa has 7 times more passengers and makes 10 times more money in revenues. Putting these two categories into relation shows how company? s size creates numerous benefits, particularly financial ones. In 2008 Austrian Airlines had revenue of 233â⠬ per passenger while Lufthansa attained 357â⠬ per passenger. Now it is obvious how size matters and that synergies create great cost-cutting potential and increase profitability. If Lufthansa manages to bring Austrian Airlines to its own level of profitability they would have EBIT of 140â⠬ million if the expenses and passenger number stay on 2008 levels. Not to mention the strategic benefits of this acquisition, and probable Lufthansa? s ability to make use of synergy effects i. e. to cut costs and sell even more flight tickets thanks to wide-spread sales offices all over the world. Acquiring Austrian Airlines proves as lucrative for a Lufthansa if they transform the company and as a good deal for current shareholders who can count on even more losses if Austrian Airlines decide to pursue stand-alone strategy which means that they will eventually lose all the capital they put up . This simple analysis show why did consolidation wave in airlines industry pick up on speed. It really seems that main task for carriers is to get big as fast as they can or to face with a demise of their business. Immediate recapitalization of Austrian Airlines in the amount of 500â⠬ million just supports above statement as even the biggest European airline would be unable to cover such a huge accumulated loss if it weren? t for the help of the Austrian government and the European Union. Lufthansa plans to take advantage of the Austrian Airlines? geographic location and their know-how and expertise in CEE and Middle East. After the fall of communism in Europe Austria has played a crucial role as a gateway to Eastern and Southeastern Europe. Austrian Airlines took its business one step further and established new core market in the Middle East. For an international company like Lufthansa Austrian Airlines represents a cornerstone in the expansion towards Middle Eastern and Asian markets. Austrian Airlines is a first mover in CEE and Middle East and a market leader with 61 destinations in the region whose expertise in the Eastern markets will be of a great use ones Lufthansa decides to go East more aggressively as Austrian Airlines will share their core competence with the group. Cutting overlapping flights and optimization of its joint offer and sales activities will improve Austrian Airlines business activity right away. Further developing of Austrian? s successful hub system at Vienna airport will also bring positive effects in the long run. Since Lufthansa and Austrian Airlines are old partners within the framework of the Star Alliance and they know each other very well integration in the Lufthansa Group should play out without major obstacles. Companies cooperated within the context of a bilateral joint venture for Austrian-German flight traffic as well as in the important foreign markets of Switzerland and Brussels. Even their technical services have been cooperating closely and that is also one of the reasons why Austrian executives have trust in Lufthansa and why did they choose exactly Lufthansa among 12 initial bidders. Companies expect to be able to exploit extensive synergies and assess these to amount to 40â⠬ million in cost savings and additional revenues. Apart from all this, Lufthansa has assured Austrian Airlines that they will be granted extensive autonomy within the group and that they will preserve their Austrian identity which stands for quality and Austrian hospitality. Vienna will remain the hub of all flight operations, so that Austria will continue to feature very good international flight connections. Its central position in the heart of Europe made it easier for Lufthansa to grant them autonomy. No major downsizing of the fleet is planned which would be unthinkable if they wanted to pursue stand-alone strategy. On an organizational level, Austrian Airlines will operate as a profit center within the Lufthansa Group what represents a great incentive to get out of the red once and for all. As a part of Lufthansa Group Austrian Airlines will easier protect its position on the market if the recession hits the economy in 2009 because smaller carriers which are not supported by a strong corporate parent will struggle with insufficient resources and declining passenger numbers. As it will soon become apparent, Austrian Airlines shareholders, especially Republic of Austria, will sign a great deal if transaction proceeds. Keeping independence among the group, operating under its distinguishing identity while improving quality and profitability of its services sounds almost incredible for the company which could declare bankruptcy if it weren? t for its strategic partner. Considering current situation both sides could profit from the transaction. Moreover, the integration in the Lufthansa Group will provide Austrian Airlines with access to new passenger flows and enable them to more effectively build up international brand awareness and be Austrian ambassador all over the world which will strengthen their business model. Lufthansa? s worldwide presence, their size, lobbying power and relationship with gasoline sellers will be of great help to Austrian Airlines. In the light of the bleak economic prospect for 2009 Austrian Airlines can focus on their core business knowing that Lufthansa watches their back. This strategy could work well as Austrian Airlines received numerous awards in 2008 including the so-called ââ¬Å"Oscarsâ⬠of the industry and a first place ranking as the best airline in Europe according to a survey carried out by ââ¬Å"Capitalâ⬠magazine. Austrian Airlines have a reliability rate of over 99. % and is among top five most punctual carriers in Europe and could improve Lufthansa? s business model too by sharing their expertise. A fully restructured Austrian Airlines will be forced to become a thriving member of the Lufthansa Group once the company is aware that the Republic of Austria will not back them up if anything goes down the drain. Concerning a history of mutual cooperation between Lufthansa and Austrian Airlines executives in charge need to be particularly careful to avoid accusations of conflicting self-interest as these may arise due to close ties between two companies. Since there were 11 other bidders at the start and Lufthansa was chosen in the end both parties need to be adequately informed about all facts relevant to this transaction so that they can clearly explain why is this transaction undisputedly the best possible solution for both sides. Considering that Lufthansa is taking over a company which made huge losses in the past years and whose balance sheet reveals equity ratio of just 11% (which is appalling even for a bank) strategic rationale needs to be explained clearly and concisely together with all future advantages because otherwise someone could think acquisition is completely irrational. Even after the restructuring aid Austrian Airlines will remain highly indebted and Lufthansa? s executives have to justify their reasoning by outlining benefits. Transaction Overview After signing initial agreements (CA;LOI) which provide a foundation for any further steps, Framework Agreement is often cited in the underlying Voluntary Public Offer. Basic arrangements between parties should be outlined in the letter of intent and then once more stipulated in the Framework Agreement. The underlying Voluntary Public Takeover offer stipulates conditions precedent which are to be fulfilled before closing. From that reason they all represent potential deal-breakers since there is a possibility that some of them will not be fulfilled. According to Framework Agreement an extraordinary shareholders meeting will be called just before the closing of the Share Purchase Agreement so that recapitalization can be authorized, new supervisory board appointed and articles of association amended. In order to mitigate any negative impact of information leakage on the transaction Lufthansa and Austrian Airlines had signed a confidentiality agreement. Both parties are obliged to use confidential information just for the purposes of the ongoing transaction and will not disclose any information to the third parties in order not to bring any company in an unfavorable position. Letter of intent is a second important document signed which outlines Lufthansa? intentions and give an overview of the basic transaction, purchase price, determines break-up fee and division of costs incurred as well as court under which jurisdiction any disputes will be solved. For Lufthansa it is of extreme importance to include an exclusive dealing clause so that Austrian Airlines obliges to negotiate just with Lufthansa and no one else at the time. Since Lufthansa plans to take over a company in an extremely bad shape it would be inappropriate of Austrian Airlines not to bring in all their energy and foc us to close the deal. Letter of intention needs to include details about a stake purchase and subsequent mandatory public offer. The details of the purchase price (maximum 4,49â⠬ per share) should also be included i. e. the price paid for the 41,56 % of shares held by Osterreichische Industrieholding AG which includes the details on the earn-out option (under which conditions will Lufthansa pay an amount of up to 162â⠬ million depending on Austrian Airlines? future economic performance and on the outperformance of the Lufthansa? s share price). It should also stipulate the conditions of the offer given to a minor shareholders so that Lufthansa holds at least 75% of the permanent voting shares (without consideration of the treasury shares) in Austrian Airlines after the end of the initial acceptance period. Lufhansa? s intention to fully take over Austrian Airlines should be clearly pointed out particularly their wish to acquire 90% of all shares so that they can launch a squeeze-out. The important conditions precedent should be included in the Letter of Intent. Approval by the competent antitrust authorities in the European Union and other countries should be right away designated as ââ¬Å"conditio sine qua nonâ⬠. Approval of the restructuring aid is also deemed as extremely important and it should be stipulated in the Letter of Intent as 500â⠬ million granted by the state of Austria and the European Union are absolutely necessary to compensate for the negative shareholder value of Austrian Airlines and make Lufthansa willing to take them over. Recapitalization will also further dilute the free float shareholders making it easier for Lufthansa to launch a squeeze-out procedure. Letter of intent should also arrange who bears the break-up cost in the case of a regulatory disapproval. This is seen as one of the major risk since Lufthansa and Austrian Airlines partly operate the same lines and consolidation would lead to a further concentration of power. Considering negative financial results of the Austrian Airlines letter of intent should already include frame of the future executive structure while definitive agreement should include exact top-management structure in the Austrian Airlines which will facilitate integration in the Lufthansa group and turn around the profitability. Since Shareholders Agreement of Austrian Airlines syndicate had already dealt with issue it might be a bit cumbersome renegotiating it. Letter of intent should also state that Lufthansa has no intention whatsoever to dismantle Austrian Airlines i. e. that brand, headquarters and route network favoring Austrian national interests will be kept. Lufthansa should try to avoid the matter of employment until the very end (final agreement) so that they are not bound by pre-signed clauses once they negotiate the final contract because restructuring of the Austrian Airlines is necessary by all means. Considering that Lufthansa is the biggest European airline company it the approval of antitrust authorities will not come smoothly. Second condition precedent, approval of 500â⠬ million is not deemed as problematic as this pay-out coincides with Austrian national interests to preserve a national carrier which serves its interest. (Besides it wouldn? t make almost any sense for the European Union to grant the acquisition but rejects the aid. ) Acquiring Austrian Airlines will only increase Lufthansa? s size and market power. Holding such a dominant position could incite abusing it e. g. by charging unfair prices or refusing to innovate. This horizontal agreement will put competition in an unfavorable position but on the other hand Lufthansa can argue that consolidation in the European airline industry is inevitable. However, only consolidation will ensure survival of the European airlines in the long run, fragmented market structure leaves them susceptible to either bankruptcy or takeover by Asian od American airlines who are fortunately by law not allowed to be major shareholders. Since regulation is the real obstacle to consolidation alliances in Europe prevail. Unfavorable circumstance is also the fact that at the time of this pending transaction Lufthansa bought a big chunk of Brussels Air. The regulators will certainly not like that. Like in any deal representations and warranties play an important role as they typically make up the largest part of the share purchase agreement. They have an informational, protective and supportive role in the transaction . Austrian Airline? epresentations and warranties, coupled with the Lufthansaââ¬â¢s due diligence, enable Lufthansa to learn as much as possible about the business prior to signing the definitive acquisition agreement. Second, they are protective. This is crucial for Lufthansa who acquires highly indebted company which value without restructuring aid is negative. The sellerââ¬â¢s representations and warranties provide mechanism for the Lufthansa to step back or possibly to renegotiate the terms of ac quisition. The second major feature of merger the agreement is the inclusion of various pre-closing covenants, or promises to do something or not do something during the period between the signing of the acquisition agreement and the closing. Generally, covenants should be absolute and Lufthansa? s goal is that none material changes take place until the closing and that business condition does not aggravate in any respect because if such events took place it would mean that they overpaid. The reasoning behind the indemnification is the same. One should emphasize the importance of reps and warranties relating to financial statements (compliance with accounting standards) , taxes and employees (manager contracts, severance terms and compensations) and no pending litigations which breech would surely threaten the envisaged transaction. The role of all above named provisions is risk minimization and these provision should also act as an incentive for a fair dealing.
Thursday, October 3, 2019
Concentric Circle Approach To Defence And Foreign Policy Politics Essay
Concentric Circle Approach To Defence And Foreign Policy Politics Essay Security perspective after Cold War has changed tremendously. Not only that state has to deal with external military aggression, it also has to go through overwhelming challenges of non-traditional security issues. Among the issues are terrorism, ethnic conflict, sea piracy, smuggling of illegal weapon and drug traffickingà [1]à . In this case, Indonesia is not an exceptional. Although Indonesia has been cautious to any action taken by any states within its geostrategic area since 1945 (after independent today), the concentration given by Indonesia government since mid-1990s is more on the non-traditional issues that impede states domestic political stability, unity, territorial integrity and thus to its sovereignty. This is partly due to the region where it is located, that is (to a certain extent) stable and less prone to the state-to-state conflict. In this case, the traditional threat of aggression from other countries is very unlikely to happen in this regionà [2]à , its military preparedness has to be intact to overcome all mentioned non-traditional security issues that it is currently confront withà [3]à . For Indonesia, the dynamic shift of threat from non-taditional to traditional security may manifest themselves in the form of invasion or aggression from other countriesà [4]à especially when considering the case of 9/11 terrorist attack and the reaction taken by United States and its allies in their mission on the global war on terror in Afghanistan as an instance. Concious with the challenges that impede Indonesia lately particularly when we look at terrorist Bali bombing in 2002 and J.W. Marriott bombings in 2003à [5]à , the twin-suicide bombing at the J.W Marriott and Ritz-Carlton hotels in 2009, as well as its unresolve issues of armed separatist movement imposed by Free Papua Movement (OPM)à [6]à , has made Indonesia aware that if the government did not overcome such non-traditional security issues effectively, it would cause more political, economic and social instability than what Indonesia is currently facing with. Thus, in order to overcome such situations, Indonesia through its defence and foreign policy has been used as a guideline to maintain states order as well as its national interest or national security. The question is what is Indonesias defence and foreign policy? How does Indonesia utilise its resources to overcome the traditional and the non-traditional security threat considering the challenges that it has to face especially when domestic instability is eminent. Apart from that, how does Indonesia synergise its defence and foreign policy to overcome the problem? What kind of approach that Indonesia use to preserve its own national interest? And what exactly is Indonesia national interest? By considering its security threats this paper argues that i) on one hand, Indonesia mobilises or use its armed forces to tackle the problems that occur, in which the preservation of states sovereignty and territorial integrity is its primary goal. ii) Indonesia, on the other hand utilises its foreign policy as a synergy in maintaining and achieving states national interest through different type of strategies. iii) This paper will conclude that, as in the case of Indonesia; foreign and defence policy cannot be separated especially when discussing states security perceptions and the strategy that it use to overcome it. In this case, state (Indonesia) uses its two statecrafts (state strategies) through the use of force as well as diplomacy as its major instrument in preserving and maitaining its national interest. Therefore, this paper will highlight, first, Indonesia internal and external security threats. Second, Indonesia defence policy in addition to its strategic national interest and third, this paper will focus on its foreign policy and approach taken by Indonesia in synergising its defence and foreign policy as a method of preserving and maintaing its national interest. 2.0 INDONESIA INTERNAL AND EXTERNAL SECURITY THREAT As the Republic of Indonesia enters the year of 2010, and celebrates its 65th Independence Day in August of the same year, it is evident that the security concern of the state will continue to be dominated by the same issues that it faced a decade ago. In fact the major concern of Indonesian government is unlikely from external threat of aggression rather their internal or domestic political instability. It was stated in the white paper issued in 2003 when Indonesian government acknowledged for the first time on the persistence of non-traditional security issues that occurs in the countryà [7]à . A glance at Indonesias security perceptions, internally; despite a relative improvement in the economic development as well as its political situation, Indonesia faces tremendous difficulty in overcoming at least three [3] key security issues or challenges: i) the threat of terrorism, ii) protracted secessionist movements, and iii) the return of communal violence. Externally, the war on terrorism both at the regional and global levels continues to place Indonesia at the centre of regional and global attention. In this case, the nature of Indonesian government responses to the problem of terrorism, in which the government is constrained with its domestics capabilities in pertaining to the communication network level and its locals sensitivity to curb terrorism within the country, is putting the Indonesian government in a state of strain particularly on its relations with the outside world; regionally ASEAN as the whole, its close neighbour Australia as well the United States. The security environment of Indonesia remains volatile since it retains independent status in 1945. In this case, the most security challenges faced by the government of Indonesia now remain the threat of terrorismà [8]à 910. Being the world largest archipelago with the biggest Muslim and multicultural population in the world, Indonesia certainly has a multi-diverse complexity in maintaining order and security. In this particular context, terrorism has become the threat to the safety of the nation, even a threat to democracy and civil societyà [11]à . Despite the successes of arresting and prosecuting hundreds of terrorism suspects, radical groups were still active in recruiting new members. Since the bombing of Toserba Ramayana, Jakarta on January 2nd 1999 until the twin-suicide bombing at the J.W Marriott and Ritz-Carlton hotels in 2009, terrorism threat in Indonesia has increased tremendouslyà [12]à . Ten years of receiving consistence terrorisation from the terrorist group, there has been a serious doubt, if not pessimism, in the country whether the government has the ability to find and deal with the impact in a swift and firm manner. The government faced a difficult task of balancing the need to crack down terrorist networks and the imperative of taking into account terrorist group activitiesà [13]à . Apart from terrorism, Indonesia at the same time faces major threats from armed separatist movementà [14]à . In fact, the armed separatist movements were not new to Indonesian government. As early as 1950s (during the tenure of Sukarno until today; President Bambang Yudhoyono), the primary objective given by Indonesia government are still the same which is maintaining order at the domestic level especially to the case that derived from armed separatist movements which happened in East Timorà [15]à (now Timor Leste), West Papuaà [16]à (still happening), and even in Acehà [17]à provinceà [18]à 19. In other words, its main task is safeguarding Indonesias territorial integrity. Aside from territorial integrity comes national economic strategic interest and states sovereignty. All these interest embedded in the Preamble of the 1945 Constitution. Among others, State has to safeguard and protect the sovereignty of the state, territorial integrity of the Republic of Indon esia, the nations safety and pride, and at the same time involve actively in efforts to create world peaceà [20]à . Communal conflicts that happened in Maluku, South Sulawesi (Poso), in Kalimantan (Sanggau Ledo, Sampit, Sambas) was also considered as one of the major security threat facing by Indonesia from withinà [21]à . So much so, it requires serious attention from the central government. Indonesia is a heterogeneous state. With a vast number of ethnic residing in a country as well as the geographical characteristic as an island nation; makes it easy for communal conflicts to occur. The issue that triggered the conflict was mainly due to a religious (Maluku and Poso, Sulawesi) and racial (West Kalimantan) backgroundà [22]à . In fact, to some extent it was also triggered by an intergroup exclusivity and the socio-economic gap. According to Jonesà [23]à , in her report says, one of the things we see is how changing population balances among different ethnic and religious groups has led to certain kinds of tensions, often with one group feeling that it is under siege by another. The l oss caused by communal conflict is enormous; it causes waves of evacuation, tremendous suffering of people, casualties and large material loss. In fact, the biggest communal conflict is ruined national solidarity and the bond of unity as a nation. Indonesias external threat perceptions on the other hand remain shaped primarily by internal sources of instability and conflict and suspicious of involvement of foreign actors in those internal conflicts. Indonesias elite, both civilian and military, continue to express concern over the possible involvement of foreign countries not only in the regional rebellions such as Aceh and Irian Jaya (Papua) but also in the spate of terrorist attacks across in the country, especially the Bali bombings. Some Indonesians believe that there is an international conspiracy (especially by the West) to undermine Indonesias stability and security through the issue of terrorismà [24]à . Many also recent the fact the international community, especially the United States, has come to see Indonesia as a hotbed of terrorism. These sensitivities among government officials, political, community leaders, and the public at large have in turn brought about a degree of uneasiness for Indonesia in both its r elationship with neighbouring countries in the regional war on terrorism and its relations with the United Statesà [25]à . 3.0 INDONESIA DEFENCE POLICY AND ITS STRATEGIC NATIONAL INTEREST In analysing Indonesias defence policy and its strategic interest, this paper will highlight few important things. First, this paper will look at its defence policy, the nature of its national interest as well as its strategic interest in overcoming states security challenges. The map of Indonesia. Source: http://www.electricscotland.com/thomson/reflections10.htm. Date of Accessed: 1 October 2010. The primary legal documents bearing on defence policy are the 1945 Constitution and the Defence Act (Law No.20) of 1982à [26]à . Constituted under article 30 of the Constitution, it is stated clearly that the duty of the state government is to protect all Indonesians (citizens) in every aspect from any threat. The notion to protect Indonesias citizens, however, is part and parcel of Indonesias national interest that is; to safeguard and to protect the sovereignty of the state, the territorial integrity, the nations safety as well as its prideà [27]à . The foci of Indonesias defence and security are thus, represented in conventional term as a series of concentric cirle emanating from Jakarta. In providing a clear picture of this defence and security strategy, the main area that covers the most or hot area of Indonesias security is its land and maritime borders (strecting up to its Zone Economy Exclusive, ZEE). The second circle, on the other hand covers the area of its neighbouring countries as well as the region where it is located. In this particular context, what ever happens in the region will directly or indirectly gives impact on the security aspect of Indonesia especially when it is located at one of the most important trade sea-lane that connect the West and the East; streching from Indian Ocean to the Straits of Malacca and the South China Sea. Thus, on account of its strategic position, it is important for Indonesian Armed Forces to maintain its national jurusdiction especially when almost all countries in the world rely heavily on Indonesias stability and security as well as its self-defence capacity for its own national resilienceà [28]à . In other words, the development of a strong and flexible state apparatus, political and social cohesion and a ruboust economic infrastructure which enables Indonesia to defend itself and contribute to the defence of the region. Defence Act 1982, on the other hand provides a basic provisions of the defence and security of the Republic of Indonesia. It is a notable document that mentioned the social and political functions of Indonesian Armed Forces. Lowryà [29]à stated that; The act states that national defence and security includes defence against both external and internal threats amd that these threats may be directed against national freedom, sovereignty, national unity and solidarity, the integrity of the nation and national jurisdiction, and the values of the national idealogy; Pancasila as well as the constitution. The Act also explained that the threat can be overcome by total peoples resistance within a system of total peoples defence (Sishankamrata). It was designed to marshal and mobilise the nations physical, moral and material resources. In order to attain the desired goals, Indonesia has highlghted few startegies. Among them are permanent strategic interest, urgent strategic interest and the international cooperation in defence which underlies in future strategic interest. All of these embedded in Indonesias Strategic Defence Interestà [30]à . The permanent strategic defence interest of Indonesia is the administration of defence to guard and protect the countrys sovereignty and the unityof Indonesia and the countrys honour from every threat, either from outside or from inside of the country. In order to protect all these interests, it is important to be prepared to defend the country without regard for the argument as to whether or not a concrete threat exists. In carrying out permanent defence interest, Indonesia will always maintain a love for peace, independence and sovereignty. Thus, in resolving every conflicts and dispute, Indonesias will always first put forward diplomatic efforts and the use of force wil l be mobilised if the diplomatic means fail. Therefore, the Indonesia chooses an active defensive strategy in its defences. Indonesias urgent strategic interest on the other hand is directed to overcome actual security issues, which action could undermine and distrupt indonesias sovereignty and unity. In line with this, there are few security threats that Indonesia has to overcome with. The security issues, nonetheless, are heavily concentrated on the non-traditional security issues that emerge within the country. This includes fighting and overcoming the international threat at home and abroad, overcome the disturbances of armed separatist movements, counter radicalism and solve communal conflicts, overcome international crime as well assisting the government in handling natural disaster or any humanitarian activityà [31]à . As part of the international community, Indonesias pursue its third form of direct defence strategy based on international cooperation interest. In this case, Indonesia realise that other than the use of force as part of its statecraft strategy, Indonesia is committed to create a peace and good relations with other countries especially with its neighbour, the regional context and the world based on trust and cooperation. In fact, it cannot release itself from any connection with the world in the effort to achieve its desired goals. For Indonesia, this is the best strategy that could protect the nation from any external aggression especially in a form of state-to-state war. It is ecapstulated as part of Indonesias regional resilience. As a former secretary general of the Department of Defence and Security put it: we must defend further forward by befriending our neighbours and even by possesing the same threat perceptions (Quoted in Lowryà [32]à ). Recognising the limitations of i ts resources, Indonesia thus seeks a balance of interest rather than a balance of powerà [33]à . In order to fulfil the requirement in upholding states national interest, Indonesia defence policy has come out with a strategic defence in which it should ensure the accomplishment of its national interest and its international cooperation. 4.0 INDONESIA FOREIGN POLICY AND THE LINGKAGES TO ITS DEFENCE POLICY IN PRESERVING ITS NATIONAL INTEREST Although Indonesian government recognises and stressing oftenly on the need to maintain internal order or domestic political stability as well as territorial integrity as a primary objective for its defence strategy, this does not mean that other form of strategy is neglected. Indonesia, like other country in the world, pursue diplomatic statecraft as its first agenda especially at the international level. In this case, Indonesia apply active defensive approach or as what Lowryà [34]à coined as forward defence. As its defence policy, Indonesias foreign policy is also uniquely influenced by its domestic events. Indonesias foreign and defence policy has always been a reflection of the beliefs and the actions of policymakers who are influenced, in varying degrees and ways by the society and the international system in which it operates. Although Indonesia has withnessed different kind of leadership and approach that has been taken on its foreign policy, there has been no major changes being made by the Indonesian leaders except for some concentrations at the substantial issues like, the issuence of stabilising political order and combating terrorism by President Megawati and diliberating and extending economic resilience during the tenure of Abdul Rahman Awahid and B.J. Habibie. All of these could be said as the extraneous variables that has influnced Indonesias foreign policy. Over all, the domestic imperatives such as commitment on the need to stabilise domestic politics, to preserve states territorial integrity and sovereignty as well to maintain states economic development has dominantly influence Indonesia foreign policy until today. What kind of approach that has been taken is rather different from one leader to another. As mentioned ealier, Indonesia foreign policy is a synergy to Indonesias defence policy. In this case, it requires extensive participation at the regional level as well as at the global level. For instance, under the tenure of President Bambang Yudhoyono, Indonesia is currently focusing on a new foreign policy outlook claimed as securing Thousand friends and Zero Enemiesà [35]à . Under this policy Indonesia is moving towards attaining and trying to emerge as a responsible power (Middle Power) in the Southeast Asia region. It is carefully articulated as to improve relations with every nation in the region through bilateral and multilateral means. This includes promoting justice and order at the international arena, better investment policy for economic development, democracy and consolidation in regional integration as well as maintaining national unity. All of these strategies are important for Indonesia as one of the method that could improve Indonesias image at the internatioal fora esecially against all allegations of human rights abuses conducted against armed separatist movements in Aceh and Papua. For that, Indonesia is pursuing an active and independent approachà [36]à 37 The necessity in conducting its foreign policy in constructivist approach is to denotes the ability to turn adversary into friend and to turn friend into partner. All of these are important as to provide a conducive environement in the region for the better future development based on thrust, confidence buildingà [38]à . With such sitiation, all disputes and conflicts could be settle at the table of discussion through a diplomatic approach rather than aggressiveness. In this case, Indonesia will therefore not to use its forces as a method of finding solution. To prove this kind of things as important as it is, Indonesia, as of to this date, has not engaged in any military alliance with a foreign policy especially in securing its own capacity to influence world order or international relations. For that, Indonesia advocates that all Southeast Asian states develop their full economic, political and social potential while cooperating extensively with each other. This is the hope tha t could boster external aggression or challenges. At one level, this could be a security buffer for Indonesia if the region could be persuaded to act in unison to twart the incursion of hegemonic influence. However, no other nations are enthusiastic to serve as security buffer for Indonesiaà [39]à . Indonesias contributions to international security remain limited and focused on the regional level, especially in the war against terrorism. Indonesia has signed a number of antiterrorism agreements with some regional states. The Bali bombings and the Marriott bombing have not persuaded Jakarta to publicly-support the involvement of external powers in regional problems in which Indonesia continues to prefer regional solutions to regional problems. Apart from that, Indonesias foreign policy goal is to emerge as a responsible power in the Southeast Asian region. It is a unique amalgamation of the two schools of thought and policy of adaptation to the changing geopolitical and geostrategic compulsions. Being the world largest archipelago with the biggest Muslim population is again trying to gain leadership position in the region through a constructive and cooperative gestures and balanced bargaining between major powers. In fact, Indonesias foreign policy is based upon a number of cherished principles that reflect the countrys sense of national identity, how it wishes to protect and pursue its national interests vis-à -vis other countries, and the shape of the desirable world order. On 19 September 1999, President B.J. Habibie signed Act no. 37 of 1999 on Foreign Relations, which was actually the first such Act on foreign policy, signed since trigger Indonesias independence. This Act formally stipulates key principles of Indone sias foreign policy that had been practiced for most of the countrys existence. In that context, Indonesia consistently expresses the hope that the ASEAN will continue to serve as the main vehicle for regional countries to cope with security challenges in the region, especially non-traditional threats such as terrorism. During the 2003, ASEAN Summit in Bali, Indonesia obtained agreement from other ASEAN members to transform the organisation into a security community by 2020. Indonesia has also called for an increase in intra-ASEAN maritime cooperation to provide more and more security aspect of the region as well as to its own country. 5.0 CONCLUSION Being the world largest archipelago with the biggest Muslim and multicultural population, Indonesia is trying it best to play a leadership role and at the same time struggling to maintain order mainly from its domestic instability as well as external security threats. Overseeing its defence, security as well as its foreign relations has proven complex in sense considering its size, location, economic underdevelopment, geographical fragmentation and ethnic and religious diversity. However, since its Independence, Indonesian leaders have managed to manoeuvre the state and provide cohesion and national identity under a unitary state. Looking at its foreign affairs, Indonesia has become a major political force in Southeast Asia. With its power resources mainly from its population, huge area of territory, vast number of natural resources and its potential market makes it important at the international arena especially in the region of rapid economic growth. Indonesia has taken a traditional-middle power role or approach in encouraging continued US engagement in the region as a stabilising force during the current period of transition (referring to Indonesias domestic politics from guided democracy with vast amount of military involvement in the administration to civilian control). Moreover, the encouragement is also due to the fact of uncertainty especially with the rising of Chinas power in the future regional order. Nonetheless, it also need China to participate into the regional community is some form of cooperative or common security arrangement to prevent the formation of competing power blocs. Indonesia sought to change the pattern of its external relations. The pattern usually occurred in terms of partnership as well the type of activity that it involves. At home, Indonesias traditional defence strategy has been one of national self-reliance based on total peoples defence with the armed force as the core of the nations arms. However, there are some challenges that it has to overcome with. Indonesia in this case acknowledged that their major difficulties are to cope with the vast number of islands as well as with the vast number of ethnic residing in the country. All of these could be tackled through an active participation from the population to help maintain order. However, globalisation is somehow another and big challenge to Indonesia as more and more population becoming more political democratic, appreciate interdependence economic development based on open market, there is no way that it could avoid for the population to become more individualistic than ever. It has somehow deteriorating the nationalism of the population. ENDNOTES
Wednesday, October 2, 2019
Ophelia and Hamlet :: GCSE English Literature Coursework
Ophelia and Hamlet à à à à à Norrie Epstein in ââ¬Å"One of Destinyââ¬â¢s Casualtiesâ⬠presents her testimony in favor of Ophelia in Shakespeareââ¬â¢s Hamlet outranking the protagonist in her ability to draw an empathetic reaction from the audience: à It is Ophelia, not Hamlet, who most commands our sympathy. One of destinyââ¬â¢s casualties, sheââ¬â¢s swept along by political events just as she is borne by the river at her death. . . .At her first appearance we see an innocent, trusting, and spirited young girl, but by her last scene she is contaminated, mad, and knowing. Whatever she might have become has been blighted. Insane, Ophelia at last speaks the truth, although no one understands her, and Shakespeare gives her one of the most cryptic lines in the play: ââ¬Å"Lord, we know what we are, but know not what we may be.â⬠Ophelia goes mad because she discovers what others ââ¬Å"may be.â⬠(74) à It is the intent of this essay to examine the victimized and empathetic aspect of Ophelia, as well as many other facets of the interesting personality of Hamletââ¬â¢s girlfriend ââ¬â with the help of literary criticism on this subject. à The protagonist of the tragedy, Prince Hamlet, initially appears in the play dressed in solemn black, mourning the death of his father supposedly by snakebite while he was away at Wittenberg as a student. Hamlet laments the hasty remarriage of his mother to his fatherââ¬â¢s brother, an incestuous act; thus in his first soliloquy he cries out, ââ¬Å"Frailty, thy name is woman!â⬠Ophelia enters the play with her brother Laertes, who, in parting for school, bids her farewell and gives her advice regarding her relationship with Hamlet. Ophelia agrees to abide by the advice: ââ¬Å"I shall the effect of this good lesson keep as watchman to my heart.â⬠After Laertesââ¬â¢ departure, Polonius inquires of Ophelia concerning the ââ¬Å"private timeâ⬠which Hamlet spends with her. He dismisses Hamletââ¬â¢s overtures as ââ¬Å"Affection, puh!â⬠Polonius considers Ophelia a ââ¬Å"green girl,â⬠incapable of recognizing true love: ââ¬Å"These blazes . . . you mu st not take for fire.â⬠He gets her assurance that she will not talk with Hamlet anymore. à When the ghost talks privately to Hamlet, he learns not only about the murder of his father, but also about the unfaithfulness and adultery of his mother. Gertrude was seduced by ââ¬Å"that incestuous, that adulterate beast,/With witchcraft of his wit, with traitorous giftsâ⬠ââ¬â Claudius himself ââ¬â prior to his brotherââ¬â¢s passing.
things change Essay -- essays research papers
The book Things Fall Apart, by Chinua Achebe tells the story about a native living in Africa during the period of European imperialism. By placing the book during this time period Achebe can first explain traditional Ibo culture and then talk about the effect that the white European evangelists had on Ibo society. The book dispels the commonly held view of Africans before colonization as savage and godless beings. Achebe explains the very advanced social order in Umuofia and the complex Ibo religion. In bringing together what I have learned about Europe and Africa during the time of Imperialism I will draw a comparison between the two continents politically, religiously, and economically. Europe was ruled by a set of very powerful and competing monarchs during the time of imperialism. In these monarchies a king and queen had supreme power over their countries. In Umuofia there was a democratic system of government with no one ruler and a complex system by which people could gain political power through economic success. I think it is very ironic that when the white missionaries came they lectured the natives on how everyone was equal in the eyes of God, but yet they had supreme rulers in their own countries and a very unfair social caste system. Contrary to popular belief the Africans had a very complex religion before Christianity came. Everyone in the community was extremely religious, even obeying their religious leaders when they were told to kill their own children ...
Tuesday, October 1, 2019
The Effects of the Media on Body Image
The pressure to be thin has amplified significantly due to the growing influence of the media. Despite numerous of other factors that contribute to society's view of the ideal body image, the media by far has the largest influence on society through icons that constantly reinforce unrealistic beauty standards and idealize the thin. The media persistently glamorizes the extremely skinny, which greatly impacts how society views different body types. Pictures of impossibly thin models are continuously pasted all over billboards and magazines. The skinny are looked up to, and the obese are shunned. Popular television shows that include overweight characters depict them either as comical outcasts or failures. There is also an abundance of television programs that focus solely on overweight individuals attempting to lose weight. For instance, The Biggest Loser is a very successful television series and publishing enterprise which selects participants based on body size. According to John Whyte, MD, in ââ¬Å"Media Portrayal of People Who are Obese,â⬠ââ¬Å"The Biggest Loser promotes the perception that obesity is caused by individual failure rather than a mixture of individual, environment, and genetic sources. The popular television show also suggests that obese people are fat because they are lazy and that the only way for them to be respected and accepted is to lose the extra weight. These type of shows portray obesity in a certain way that promotes negative perceptions and fosters prejudice against the obese. Viewers don't consciously think about it, but the more they a re around the media that subtly promotes these perceptions, the more likely the perceptions are to be engrained in their minds. Moreover, the high standards of beauty that the media implements daily are nearly impossible for the majority of people to meet. Even though the average American is at least slightly overweight or obese, popular media pushes out derogatory themes that discriminate unfairly against the obese. The media's strong influence on society against bigger body types has caused numerous of dire effects on the way people think today. As stated by Shelly Grabe of Medical News Today in her article ââ¬Å"Concern over Strong Media Influence on Women's Body Image,â⬠researchers have recently conducted a meticulous study on the extent to which the media affects women. They found a tremendous difference between those who were exposed to media and those who were not; the women who had been exposed reported less satisfaction with their bodies (Grabe). Exposure to media that depicts dangerously thin actresses and models significantly increases people's distress about their bodies, thereby influencing dissatisfaction and chances of engaging in unhealthy eating behaviors. Furthermore, research has ââ¬Å"repeatedly shown that constant exposure to thin models fosters body image concerns and disordered eatingâ⬠in many people. Eating disorders such as anorexia and bulimia have been steadily more common in younger generations today. Subliminal messages from the media about what the ââ¬Å"idealâ⬠body should look like molds the naive teenagers' mindset and influences their definitions of what is ugly and what is beautiful. There are few that escape the inundating influences of the media. In fact, ââ¬Å"the average American sees three thousand ads per dayâ⬠(Jean Kilbourne). Therefore, the media does not just play a small role in influencing society's view on different body types. The media relentlessly bombards society with negative connotations of the overweight and the fat, unwelcomingly shaping America's perception of the ideal body. Discrimination against body types that do not fit into the media's definition of beauty has immensely impacted society. However, the media does not have to be such a big influence. There have been a plethora of organizations that exist to help boost the self esteem of those who suffer from harmful messages sent by the media about what their bodies should look like. According to the National Association to Advance Fat Acceptance (NAAFA), a civil rights organization, was started in 1969 to ââ¬Å"eliminate discrimination based on body size and to provide obese people with the tools for self-empowerment though public education, advocacy, and support. â⬠NAAFA delivers a message to society that belies the media's input of the ideal body type. The non-profit organization seeks to better society and to limit discrimination against the obese. There are many similar organizations and groups that help support people who are facing discrimination from their peers. Additionally, there has been an ongoing growth of celebrities who embrace their bodies for what they are. Celebrities such as Adele serve as an excellent inspiration and role model to people who look up to them. Seventeen Magazine has also initiated a Beauty Peace Treaty which encourages females all around the world to pledge to accept their bodies. The treaty has gained the signatures and vows of over four thousand people and continues to grow in popularity. Even though popular media is the root of the negative impressions of the obese, society does not have to be anchored in place to those stereotypes. The media has the greatest incessant impact on societyââ¬â¢s view of the ideal body type. From advertisements to song lyrics, popular media is ubiquitous, constantly reinforcing erroneous standards of beauty and flawed perceptions of the obese. However, there are a variety of different resources that help combat the negative influences from the media and encourage those that suffer from low body image.
Monday, September 30, 2019
Tobacco Industry Analytic
The barriers to entry in the tobacco industry are initially low and it is easy for small local and regional companies to enter into the market, but the barriers to enter the market nationally are very high. The economies at scale in manufacturing, distribution costs, and marketing at the national level make it very difficult for start-up companies to enter into the national market. There are substantial costs in raising the capital needed to build manufacturing facilities that can mass-produce tobacco products at the national level. Also, the costs of packaging goods such as cigarettes, at a mass level can generate high costs. Brand identity can also pose a barrier to entry for new entrants. Advertising restrictions imposed on electronic media by the U. S. government make it hard for any new entrant to gain brand awareness and also make it difficult for current top players in the market to increase their brand awareness. While many companies once relied on brand incentives in order to increase customer loyalty, they agreed to no longer use these incentives in the Master Settlement Agreement (MSA) in 1998. Also with many already established brands such as Altriaââ¬â¢s Marlboro Cigarettes brand already have a huge stake in the market place. They have generated a lot of brand loyalty and awareness making it difficult for a new company to generate enough brand awareness to enter the market. Suppliers In the tobacco industry farmers supply the tobacco to dealers and manufacturers. Many of the tobacco farmers in the U. S. are located in the Southeastern states such as North Carolina, South Carolina, Georgia, and Florida. Farmers usually sell their tobacco at public auctions to the highest bidders. A federal program that started with the Agricultural Adjustment Act of 1933 once protected tobacco farmerââ¬â¢s prices. The tobacco growers were guaranteed minimum prices in exchange for limiting their production through allotments and quotas. U. S. grown tobacco is generally more expensive than non-U. S. grown tobacco because of the U. S. governments price-support system. Then in 2004 the government allowed for buyouts of the quotas, thus eliminating the price support system. However, in recent news many tobacco farmers are protesting for the entire buyout of their quotas and equipment. They say that the U. S. tobacco growing industry is on the verge of disappearing and they blame the high taxes on cigarettes and cheap tobacco imports. Thus illustrating that the farmers have little bargaining power due to the government interaction. Buyers Buyers in the tobacco industry are greatly affected by the economy and the level of their disposable income. Whenever a buyerââ¬â¢s disposable income declines, they are more likely to purchase cheaper brands of tobacco, and if a buyerââ¬â¢s disposable income increases, then they are more likely to buy more expensive brands. Buyer power was displayed in 1993 whenever Phillip Morris USA Inc. slashed their prices on leading brands such as Marlboro by 20% to raise their share of the market, thus leading many other leading companies to also reduce the prices of their popular brands. After many companies lowered their prices, discount cigarette brands saw a drop in their percentage of the market. However, in 2003 premium cigarette brands raised prices, then allowing discount cigarette brands to gain more of a share in the market, but the discount brands share in the market has been declining ever since. Consumers in the United States are now increasingly becoming more concerned with health issues. Consumer health awareness has hurt the market for tobacco sellers and has also led to the increase for government regulation. Many companies are now going international to focus on the increasing demand for tobacco products abroad. They are focusing on developing countries where the population is increasing much faster than in the United States and many of these countries have less government regulation, which can help with advertising and prices. Countries that have less taxation on tobacco sales can lead to higher revenues and sales of tobacco products because the costs involved are less. Industry Competitors/Intensity of Rivalry Within the tobacco industry there are three main competitors that control 90% of the domestic market. These three main players are: Altria Group, Inc. (Domestically known as Phillip Morris USA); Reynolds American; and Carolina Group. Phillip Morris USA, the United Stateââ¬â¢s largest tobacco company since 1983, controlled 50. 3% of the market share in the year 2006. Phillip Morris USAââ¬â¢s leading brand Marlboro had a 40. 5% share of the market in 2006; thus, displaying the importance of brand identity in the tobacco industry. Phillip Morris USA also offers different brands such as their premium brands Virginia Slims and Parliament, while also targeting the discount market with its brand Basic. The United States second largest tobacco company is Reynolds American, which offers premium brands such as Kool, Winston, Salem, and Camel; and two different discount brands, Doral and Capri. Reynolds American controlled 29. % of the market in 2006 and is also the second largest moist smokeless tobacco producer in the United States. The third largest company in the United State is Carolina Group with their premium menthol brand cigarette Newport that controlled 9. 7% of the market in 2006. For the cigarette industry unit volumes have declined and the price of cigarettes has increased,thus creating higher net revenue for companies. Many companies are u sing cost efficient strategies and are merging to help gain profits in the industry. For example, R. J. Reynolds and Brown & Williamson Tobacco merged and now have a higher share of the market. Tobacco consumption declined a lot from 1994 to 2004 and the decline has started to slow down in the past couple of years, the growth rate is still not what it once was. [pic] Figure 1 : Market share holders in 2006 Rivalry in the menthol sector of the tobacco industry has been a strong focus of the leading companies in recent years. Menthol cigarettes offer a chance for domestic growth opportunities and premium pricing in the tobacco industry. Carolina Group controls this sector with its leading brand Newport, while Reynolds American offers two brands, Kool and Salem, which have been in the market for a long time. With the potential growth in the menthol sector, the leading tobacco company Marlboro introduced their menthol brand with strong promotions to compete with already existing brands. Other potential areas of domestic growth in the tobacco industry include cigars, which are on the rise again; and snuff or smokeless, which is one the rise due to smoking restrictions in public places. By using the Porterââ¬â¢s Five Forces Framework I was able to discuss the five basic competitive forces within the tobacco industry. The level of difficulty for new entrants; the lack of bargaining power of suppliers; the bargaining power of buyers between different brands; the high level of potential substitutes; and the competition rivalry, as well as domestic growth areas; were all analyzed within the tobacco industry using the Porterââ¬â¢s Five Forces Framework. Dominant forces such as government regulation and health awareness influence change in the tobacco industry. The potential impact that theses forces could play on the tobacco industry could be harsh if companies donââ¬â¢t adjust and change with them. Strengths: Altria and R. J. Reynolds both display much strength within the tobacco industry. Both companies display high levels of brand identity and brand awareness with many different well-known brands. Altria has dominant control of the market with their diversified Marlboro brands of cigarettes that dominate the market, contributing a 40. 5% share in the market. R. J. Reynolds also has many well-known diversified brands such as Kool, Winston, Salem, and Camel that help to control 29. 8% of the market. Both companies can use their strong brand awareness to build customer value with existing and new products. B oth companies are aligned with their mission statements to provide for their customers and maintain levels of responsibility and integrity for their operations. Altria, for instance offers a wide array of information concerning health issues, tobacco laws, cigarette ingredients, and youth smoking prevention on their website. While R. J. Reynolds offers information to the public on legal and regulatory issues, maintaining responsible marketing, and also health issues related to their products that consumers can access on their website. Also, both companies produce mass amounts of tobacco products and in order to be the top two producers in the United State they must both have strong manufacturing infrastructures. Weaknesses: Both companies face the weakness of selling dangerous products to consumers. Tobacco products obviously involve a great deal of health risks and consumers have been made well aware of the risks involved in tobacco use. Both companies face liability issues and litigation for the sale of such a dangerous product, which can cost the companies a lot of money. These companies must place a great deal of concentration on defending themselves in numerous lawsuits that come about frequently due to the health liability issues. Recent cases involving the ââ¬Å"lightâ⬠cigarettes have been brought against Altria, these cigarettes have lighter amounts of nicotine and tar but still can be just as harmful as regular cigarettes. Also a lot of blame for such high health care costs in the United States is placed on these companies as well. Another weakness that Altria and R. J. Reynolds suffer from is their dependencies to rely solely on the sale of tobacco products in order for them to remain such profitable companies in the market place. Sales from 2000 to 2005 declined at around an average rate of 4% a year and a decline of about 1% in 2006. If sales continue to decline every year, this could lead to substantial effects on profits. With the cigarette consumption declining, companies such as Altria and R. J. Reynolds have began to look towards international markets with growth opportunities. With so much concentration on tobacco sales both companies also have the weakness of being so heavily invested in the success of the tobacco industry. These companies could face a great deal of losses if the tobacco industry keeps declining. Opportunities: Both Altria and R. J. Reynolds have the opportunity to expand the ir companies internationally to target new customers in areas that provide potential for growth in sales. With the help of countries with rising personal incomes, high per capita cigarette consumption, and less government regulation in foreign countries Altria is taking action to expand their horizons abroad. An article from Wall Street Journal by Vanessa Oââ¬â¢Connell describes how Altria is using spin off, Phillip Morris International to focus on international markets such as Pakistan, where smoking consumption is up 42% since 2001; Ukraine, where smoking consumption is up 36%; and Argentina, where smoking consumption is up 18%. She also explains how China offers 50 million more tobacco buyers than in the United States, thus showing that China offers great potential market opportunities. R. J. Reynolds is also focusing on the global market with creation of R. J. Reynolds Global Products. R. J. Reynolds is participating in joint ventures in European countries and Japan, collaborating with other companies to produce American-like brand cigarettes in foreign markets. They have also been establishing a business presence in Puerto Rico and the Caribbean and are supplying cigarettes to the U. S. military outlets and U. S. Duty Free sectors. R. J. Reynolds also manufactures cigarettes to be sold by other companies in foreign countries. Both companies are taking advantage of the potential growth in international markets. Another opportunity that both companies are focusing on is the opportunities of marketing new tobacco products to consumers. With more consumers looking for alternatives to smoking Altria has been f ocusing on developing its smokeless tobacco product line. With snuff being providing potential growth in the market, Altria is exploring the moist snuff or chew market as well as a new product called Snus. Altria is currently test marketing its Marlboro Snus products and its Marlboro moist smokeless tobacco in certain areas of the United States. They are also using the strong brand identity of Marlboro to help their new products enter into the market. R. J. Reynolds is also developing new products that have potential market opportunities. Reynolds is developing new exotic brands of Camel cigarettes and also trying to capitalize on smokeless tobacco opportunities with their brand of Camel Snus. Both brands are using their already existent brand awareness to help romote new products in the market. Threats: Companies in the tobacco industry such as Altria and R. J. Reynolds have a negative public perception because of providing such dangerous products and must deal with this perception accordingly in order to remain in the market. With the threat of being seen so negatively in the public eye companies must provide support in educating consumers about the dangerous health risks involved wi th smoking. Government regulation also poses a threat to both companies. In the 1998, the Master Settlement Agreement between tobacco companies and the government came to an agreement that tobacco companies would have to pay $250 billion over a 25 year span to help reimburse healthcare systems for to higher costs due to many patients with tobacco use related illnesses. The threat of government regulation poses high cost threats dealing with litigation and taxes. Both companies have been affected by the high taxes placed on the sale of tobacco products, thus causing them to have to raise prices, which could have a negative effect on sales. Also the threat of changes in the legal atmosphere pose a problem on companies. As new laws are adopted both companies must adapt to stay profitable, such as the new public smoking laws that threatens both these companies that rely on cigarette sales. The threat of Altriaââ¬â¢s and R. J. Reynoldsââ¬â¢ consumer base growing old and dying off from tobacco related illness and Americaââ¬â¢s new focus on healthy living styles display how these companies are affected by the benefits of substitutes for smoking and quitting smoking. There has also been a huge decline in the number of smokers in the United State over the past 40 years, which has cut the consumer base in half. With the number of smokers in the domestic market declining both companies also face the threat of marketing restrictions in the United States. Tobacco products cannot easily be marketed to consumer in the United States, which threatens the growth of tobacco products. Both Altria and R. J. Reynolds are aware of the threats that they face and that can explain why they are developing new products and moving towards international markets. The SWOT Analysis displayed how strengths such as brand identity have played a huge role in the success of both Altria and R. J. Reynolds. Altria leads the market with its well-known brand Marlboro and is taking on opportunities with new products and international markets. While R. J. Reynolds has a smaller share in the market they are also trying to grow by focusing on the same opportunities. Both companies also face many of the same weaknesses and threats, that being in the tobacco industry pose, such as government regulation and health awareness. They are taking action to deal with them by exploring new opportunities.
Subscribe to:
Posts (Atom)