Differences between the US and German Corporate Governance Systems Essay - 22

Differences between the US and German Corporate Governance Systems - try ExampleIn contrast, German corporate governance code is the medium that determines the corporate issues in Germany.Unlike US law the German corporate corpse emphasis on protecting the creditors, and gives freedom for accumulating indirect reserves. Another notable feature is that in the German system, accounts are calculated in monetary toll instead of book values. On the contrary, US government permits organizations to create shareholders and to exert their own management control. Moreover, in the US, Sarbanes Oxley Act emphasize on individual responsibilities of CEOs and CFOs whereas, German corporate governance gives importance to collective responsibility.Regardless of the dissimilar business environment, legality Daimler and Chrysler have rather collectively dealt with the common issues by designing policies to charter their business efficiently. They strategically evaluate the business concerns and fo rmulate further plans to meet challenges that are associated with the variance in business cultures. Their formula emphasizes on the submission of DC balance sheet that the whole company has to be committed to. Individuals like the CEO, CFO, and Chairman also come under the ambit of certain obligations. Also, the company has apply cascade signing system in its business operations. Daimler and Chrysler have given more weight to collective and individual responsibility in management concerns.Law Daimler and Chrysler could have initiated some researchers on the major corporate issues to identify the essential areas of strategic change. It should focus on other competitors for learning how they handle the issues related to organisational convergence. In addition, the company might have explored new potential regions for business expansion to overcome the legal barriers in their domestic market.

Equilty Essay Example | Topics and Well Written Essays - 250 words

Equilty - Essay ExampleThere are many issues that are involved in the way citizens are expected to comprise their taxes, which cannot be generalized to bring an agreement. Different levels of income are an example that contributes to these disagreements. The game income earners will not be expected to pay the same tax as the low income earners. This is what economists refer to as the ability to pay principle (Blum and Kalvern 2011). This principle argues that one should pay tax according to his power to pay. People who have high income are able to pay hence they are supposed to pay more tax. This shows that large amounts of taxes will come from rich people.The benefit principle is other system that governments use to get taxes from the citizens (Blum and Kalvern 2011). Everyone who benefits from the outcomes of taxes is supposed to pay it accordingly. This signifies that there will be no balance in paying the taxes among the citizens since, different people gains differently from the functions of the taxes. People in towns will pay more than those in rural areas who get less access to the outcomes of the taxes paid.Conclusion However, equity goes handwriting in hand with fairness. The two concepts mentioned above may both bring disagreements, but an agreement may some how be reached if the benefit principle is enforced. Blum and Kalvern (2011), consumers will always requirement to maximize their utility and minimize the cost. Therefore, people from every part of the country will feel the worth of the payments they make hence no

The Globalization of Health Care Case Study Example | Topics and Well Written Essays - 250 words

The Globalization of Health Care - Case Study ExampleThe beneficiaries of globalization of wellness care include the hospital in the host countries, which are mainly countries undergoing development. Patients also benefit from globalization since they can access quality health care at low cost. The loser are the mother countries, which are mainly the developed countries such as U.S. that train most of the medical personnel who end up working elsewhere. Moreover, the service is paid for at the place of delivery and countries like U.S. are losing greatly due to the large number of people seeking interference elsewhere (Deloitte 1-2).There are risks associated with health care globalization. One risk is that professionals are increasingly moving from curter countries resulting in shortage of care providers in poor countries. Resolving this issue would be hard since the professional cannot be prevented from seeking better payments. Accountability of healthcare providers might be cut b ack since medical morals vary across nations. This can be dealt with through introduction of some international ethics to guide health professionals.On balance globalization of healthcare is god since it has enhanced care provision and ensured that the less advantaged can access quality care at a cost they can afford to pay. Moreover, it has reduced the burden of care provision in countries lacking enough

The first description of Scrooge emphasises Essay Example for Free

The first description of Scrooge emphasises EssayIn his visit from Marley, Scrooge is told that he has a chance and hope of escaping the alike terrible luck that he himself has suffered. Marley is covered in chains which represent his greed during his time on earth and he explains to Scrooge that charity, mercy, forbearance and generosity should digest been and now should be his business in order to redeem his selfish past. Marleys visit as the first vestige represents the beginning of Scrooges change of his slipway and it shows Scrooge the possibility of his own redemption. The second Ghost to visit Scrooge, the Ghost of Christmas past, takes him back to when he worked as an apprentice for his first employer Fezziwig. Scrooge is able to secure a Christmas party held by his kind hearted boss and during this time he forgets the presence of the ghost as he is immersed in the atmosphere created by his unsparing employer. During the whole party Scrooges Heart and soul were in the scene. However the earreach is reminded of Scrooges lack of generosity and greed before Scrooge realises that he has the responsibility to get up his hard working employees laughing(prenominal).This is shown when Dickens explains that whilst Scrooge was speaking unconsciously he believed that the party was a great expense for giving happiness and that only with the federal agency of money could Fezziwig make his guests adroit. On the second ghosts visit Scrooge also sees himself with his first love Bella and sees that he sacrificed love for money which he now fall as he realises his own judgment was wrong. At this point in the novel the audience is shown how Scrooge may be beginning to consider the impressiveness of change. Scrooge is then visited by the ghost of Christmas present who shows him the Cratchits family at Christmas.On this visit Scrooge sees that he is partially responsible for the Cratchits familys welfare as he is the employer of Bob and this makes Scrooge realise the importance of sharing his own wealth and giving. Scrooge also realises that the poor make do with the little money they have but are still able to enjoy themselves and be euphoric. During the third ghosts visit Scrooge begins to show concern about tiny Tims welfare as he can see that the malnourished child is obviously ill and he therefore asks the ghost to tell him with and interest he had never matte before Whether tiny Tim will live.The ghost explains to Scrooge that if he does not change in the future tiny Tim will die and then repeats Scrooges actors line said about decreasing the surplus population. Upon hearing these words Scrooge is instantly full of remorse and this again shows the audience how Scrooges views on the poorer-nation have changed drastically since the fist three ghosts visits. Scrooges regret is then later doubled as even though he had been a cruel employer Bob thanked him for the familys tiny Christmas feast. later on realising the importance o f family after seeing how Bob Cratchit spent his Christmas Scrooge visited his nephew Fred and Scrooge who was embarrassed of his previous arrogance was surprised to be greeted by nephew extremely happy to see him. At this point in the novel Scrooge can see that people who should see him as a terrible person were happy to see him ,he therefore enjoys a wonderful party knowing that he is now not alone and he then sees the true value of a family who loves one another.Whilst being visited by the ghost of Christmas present the ghost presents scrooge from the folding of its robe with two children wretched, abject, frightful, hideous, miserable. Scrooge asks the ghost if they have no mental hospital and again he is confronted with the words he said about the poor before his ghostly visits which Scrooge now obviously regrets. Dickens includes this as it makes the audience believe Scrooge is now changing for the better to benefit not only him, but the poorer nation as well.Finally Scrooge is visited by the ghost of Christmas yet to come who informs Scrooge that he will die a lonely death with no concern from anyone else unless he changes his views on money and companionable classes. On hearing this news Scrooge proclaims that he is not the man he was and at this point the reader will also believe this as Scrooges attitude has changed as the visits from ghost progressed. He truly wants to be a different man and change for the better, not just to secure his own fate but also Tiny Tims.At the end of the novel Scrooges attitude towards money and social classes has changed greatly he believes he will live in the past present and future, take nothing for granted and be the kind hearted man that his business partner Jacob Marley wanted him to be. He is now extremely happy with his own situation with money but also willing to help others that are not so well off like his employee Bob Cratchit who he donated the Christmas turkey to as an act of good will and the charity coll ector.

Good human development indicators and globalization in Kerala Essay Example for Free

Good human development indicators and globalization in Kerala EssayIntroductionThesis Globalization has caused more problems than advantages to the put in of KeralaMuch has been written well-nigh globalization and its personal nucleuss on our manhood. In fact, no corner of the modern world, except in some extreme cases, has escaped the good and bad make of globalization. On the brighter side globalization involves an increased openness in the international business relations, an integration of grocery stores on a worldwide basis, and a movement toward a borderless world. The sources of globalization atomic number 18 varied and include the technological advances and liberalization of trade policies brought into force over the past decades. Of all the effects of globalization, the chief source effect is the technological advances that pay off signifi tin cantly lowered the costs of transportation and communication and dramatically lowered the costs of data processing and i nformation storage and retrieval. electronic mail, the Internet, and the World Wide Web are some of the manifestations of this new technology. While these are the more evident aspect of globalization, the meeting of minds across the constraints of culture and manner of speaking has also be adopt a realityThe impact of globalization and internationalism on society is also huge. Today everybody talks about the global liquidation and nations on either side of the globe are just hours away from each different. Cities are expanding by the hour and the new technologies that are impacting us are creating a unified world culture what many a(prenominal) would like to call as the brave new world. In retrospect, is this new culture based on bravery or untamed consumerism? World cultures are being annihilated by the wave of crass consumerism and scant regard for values. The cosmoss of today have lesser family values and more internal strife, which threatens to tear apart social order. Viol ence due to the lack of family and supportive values are reducing a entirely generation to waste.People are being tempted to think beyond their means, and the end result is that the family has become the casualty. Today we have individualistic aspirations and the feeling of I is strongest in people. The stress on We is almost non-existent. Economically also, at that place is a terrible imbalance in the world. We see a few nations that are well complete economically and the majority does not have enough however to feed their people. We see increased migrations from poor populations to rich economies. Lack of economic power compels these migrants to be dominated by the rich and the influential.One of the many advantages of globalization is the fact that cultures across the world could interact with each opposite and help each different in integrating with each other. It is only natural that such(prenominal) interactions and the inculcation of modern ideas and interaction will br ing about so many changes that come into conflict with the existing norms and belief systems of a society. In fact, the ability to assimilate productive changes and the capacity to discard beliefs that are negative to the interest of the society are the essential qualities of a good social order.If a society allows itself to be dominated by beliefs that are not in tune with the needs and aspirations of the ever-changing times, one cannot say that it is a progressive society. On the other hand, it must also be said that a society that is open to change without considering the detrimental effects that such a change can make in the long run will not add quality to that society. Hence, ideally there needs to be a balance between age old ideas that form the foundation of the society on which modern progressive ideas needs to be implementedThe position of Kerala in the world scenarioThe tiny tell of Kerala, which is located in the southern most end of India, has a place of its own in the global map of developed regions. In many respects, this tiny spec of land and its population has been able to assimilate the good values of globalization mend mostly rejecting its evils even though the undesirable effects of globalization are for everyone to see in the state. The so-called Kerala Model of growth was a few historic period before a role model in developing and shaping a society. (Devi, Lakshmy K R, (2002). Education, Health and Womens Empowerment Keralas Experience in Linking the Triad). Kerala has demonstrated that social development is not always linked to economic superiority. Many human development indicators in Kerala are in par or above international standards and all of them cannot be attributed to globalization, which is a relatively new happening in India.For example, Keralas infant mortality rate comes close to Ireland, which leads the world in this respect (Richard, Douthwaite. (2002). Kerala and Quality of Life Interesting Richard Douthwaite Article ). Similarly, life expectancy is much higher than some of the advanced nations of the world. There are many other factors, both social and political that has helped the state achieve a level of human development indicators that matches the best nations in the world. Progressive redistribution measures like land reforms, and a wide network of the public distribution system has helped the state lay a strong foundation of social upliftment (Franke, Richard W and Chasin, Barbara H. (1995). Kerala State A mixer Justice Model). Similarly, wel furthermoste oriented policies of the state government, in particular with regard to education and minimum wage, and the role of a socially engaged population has also helped the state to achieve a place of its own in the global scenario. (Akash, Kapur. (1998).Poor but Prosperous. Jean, Dreze and Amartya, Sen. (2002). India Development and Participation). It should also be noted that Kerala, which has only a compute of the buying power of most ad vanced nations, has been able to devise a culture that utilizes its resources in an efficient manner. The one single factor that has made Kerala such a success story is perhaps the level of education that Keralites enjoy. With a 100 percent literacy rate and a high level of women literacy, it is not a surprise that Kerala has been able to assimilate the good effects of social and individual development. (Antrobus, P. and Christiansen-Ruffman, L. (1999). Women Organizing Locally and Globally Development Strategies, Feminist Perspectives. Lourdes, Beneria and Gita, Sen. (1997). Accumulation, Reproduction and Womens graphic symbol in Economic Development Boserup Revisited).Effects of globalization in KeralaIt must be said that globalization has affected Kerala in both good and bad ways. still though Kerala has been able to resist some of the destructive effects of globalization, it is not immune to the thrust that globalization has been having on the state. The most important aspect of globalization is that the state has become a hotspot for consumerist tendencies. Evidences indicate that the state is more a consumer than a producer. Agriculture is almost dead in the once comfortable green belt of India and over exploitation of resource is the norm of the society. With a high percentage of Non Resident Indians who are amenable for one of the largest foreign remittances in the world, it is not surprising that the economy of the state is more and more dependent on its citizens working abroad than within it. In the job sector, the state has not been able to provide the required levels of employment to its youth and this has in turn affected the social milieu of the state. The increasing social unrest is often attributed to disgruntled informed youngsters who wants to match their facilities in par with the modern world, but do not have the means to do so. Criticism has also been raised on intellectual property rights and other similar issues, which are also a f allout of globalization.The western world is in a hurry to patent many processes and medicines, especially the indigenous system of medicine in Kerala called Ayurveda, in spite of the fact that these systems have been transferred across many generations in the state. Recently, farmers in Kerala protested against WTO practices that prevented them from conducting their traditional husbandry practices. all(prenominal) this indicates that the process of globalization in not smooth in the country and that there is much resistance to change from within the state.The potential of Kerala in the new worldExperts opine that Kerala, with its unique resources, both natural and human, have certain potentialities to match the increasing effects of globalization. (Nair, A. Balakrishan. (1994). The Government and Politics of Kerala. Structure, kinetics and Development). The essence difference between a manufacturing attention and a service-oriented industry is not only restricted to the way in which business is carried out, but also extends to confused dimensions such as its organizational culture. Companies that have made a transition from a predominantly manufacturing-industry attitude to a service-industry attitude have had to adjust to the phenomenal changes in attitude and culture that goes along with the change.Perhaps, the most important factor that comes into play is how human resources are attuned to respond to the challenges posed by such transitions. Companies that have undergone the transition can provide knowledge on the change to companies that are planning for such a change. A service oriented organization has to create, get along and advance its cultural values in order to cope up with the specific challenges that are posed to it by factor such as status and local culture. It is in this context that cultural values in Kerala attain significance with regard to service-oriented institutions.Within the past two decade, Kerala has increasingly cemented its position as one of the must-see touring car locations in India. Kerala, which was rather obscure to the foreign tourist and even to the Indian traveler, shot into fame only about 10-20 years ago because of a concerted effort by the state government and private operators. The state, which had, and still has, a lot of unexploited tourism potential is one of the most normal destinations in the world and each year an ever increasing number of people are flocking into this state to relish its beauty and rich varied culture. Tourism, which has developed into an industry status in the state has attained the status because of globalization. It is believed that tourism is one of the most prominent symbols of globalization in the state.In terms of other factors that encourage business, a survey by the Confederation of Indian Industry (CII) (Kerala government policy. (2006)), which covered 18 states in India, indicates that Kerala stands 13th as far as its investment climate is concerned. H owever, Kerala ranks first in law and order and education, and ranks high as far as affluence and social sector are concerned. All this indicates without doubt that Kerala has all the potential to attract foreign investment.However, recent event shows that that consumer debt is increasing since the past decade or so. More advertisements that speak about debt integration and take-over of existing debts are a definite indicator of the amount of debts that the average consumer owes to different credit companies in the country. Debts in the farm sector, which has been the worst hit industry because of globalization, is increasing and recently Kerala reported many deaths due to poverty and debts. Many experts believe that bad credit management happens because people are carried away by the features that are offered by modern financial institutions. (Pillai, P. Gopinadan. (1999). Left Movement and Agrarian Relations in Kerala).Keralas stature with regard to globalizationDetractors of glob alization point that much has changed in the state that had been a model of development to the world. Today, reports show that the economy of the state is in tatters and that the advantages that the state had in terms of social comparability and distribution has been whiled away. Advantages that the natives had gained as an agrarian and self-reliant economy had been wasted in favor of consumerist attitudes. Social and political indicators point to the fact that the state has undergone a ocean change in terms of development and expansion. Today, Kerala is a tourist hub and is developing in a manner that is similar to other third world tourist destinations such as Thailand and Singapore. The social system has broken down and people are no more connected to each other as a few decades before.Kerala is unique politically because it had instilled one of the first democratically elected communist regimes in India. It must be said that the spirit of the communist political orientation i s fairly deep rooted in the state. The ideologies of the pioneers of the communism in the state are also largely responsible for the social improvements that the state has so far witnessed. The communists in Kerala, as in other parts of the world are strictly against globalization and capitalist motives in the state. They argue that globalization takes away a lions share of autonomy and that the effects of globalization will further deepen the divide between the deprived and the affluent classes.The loss of autonomy, especially in the farm sector, as evidenced by the recent global against the WTO regimes lends credence to the argument of the communists in Kerala. The communist ideology that globalization, which they infer as hegemony of capitalist nations over poor countries, will deepen the divided between the poor and the affluent is also true to some extent considering the fact that open market policies and regulations, which are by products of globalization will remove a lot of protection that investors used to enjoy previously.Other challenges in maintaining social welfare in KeralaIronically, economic factors are one of the major facts that could affect social welfare in the state of Kerala. Without the flow of money that critics attribute as the ill effects of globalization, social order in Kerala will be very much affected and governments will find it difficult to maintain social order in the state. For example, many experts have mentioned that Kerala in its zeal to maintain its position with regard to health and education has incurred huge deficits that cannot be easily solved without the advantages of globalization. Similarly, the ageing population of Kerala will cause productivity to drop in the near future and it will become mandatory to attract and retain young blood in the state to take care of its own resources and guide development in the state. Globalization has also helped to rectify some of the past mistakes of the leftist governments who w ere also responsible for driving the winds of change in the society.ConclusionThe state of Kerala has been able to so far select the advantages derived from globalization and reject most of the bad effects it ability bring to a countrys overall economy. However, it will not be long before the state will start succumbing to pure market-oriented practices that can destroy the carefully created social advantages the state enjoys today. The advantages that the state enjoys today as a model state is not a fallout of globalization, but were achieved even much before foreign investors invested in independent India.The general degradation of quality in many aspects of social life and the huge cultural changes that the state is going through can be directly attributed to globalization. Hence, it is imperative that globalization is accepted in it right perspective and applied in order to break that the state maintains its inherent advantages while becoming a global role model in many more s pheres. The state has much to offer in terms of both its rich cultural heritage and highly proficient workforce but if it doesnt stride in the right path, the negative effects of globalization might hamper its economical and social progress.Work CitedDevi, Lakshmy K R, (2002). Education, Health and Womens Empowerment Keralas Experience in Linking the Triad. Department of political economy University of Calicut.Franke, Richard W and Chasin, Barbara H. (1995). Kerala State A Social Justice Model. Multinational Monitor. India Open for Business. 2 Mar. 2007 http//multinationalmonitor.org/hyper/mm0795.08.html.Akash, Kapur. (1998). Poor but Prosperous. The Atlantic Online. 2 Mar. 2007 http//www.theatlantic.com/issues/98sep/Kerala.htm.Antrobus, P. and Christiansen-Ruffman, L. (1999). Women Organizing Locally and Globally Development Strategies, Feminist Perspectives . London New York Zed Books.Lourdes, Beneria and Gita, Sen. (1997). Accumulation, Reproduction and Womens Role in Economic Development Boserup Revisited. Nova Scotia Fernwood Publishing Company Ltd.Jean, Dreze and Amartya, Sen. (2002). India Development and Participation. Oxford Oxford University Press.Ester, Boserup. (1970). Womens Role in Economic Development. London Unwin Ltd.Richard, Douthwaite. (2002). Kerala and Quality of Life Interesting Richard Douthwaite Article. 2 Mar. 2007 http//legalminds.lp.findlaw.com/list/ecol-econ/msg03825.html.Gemma, Cairo. (2001). State and Society Relationships in Kerala Explaining the Kerala Experience. Asia Survey. 41 (4) 669-692.Nair, A. Balakrishan. (1994). The Government and Politics of Kerala. Structure, Dynamics and Development. Thiruvanthapuram Indira Publications.Kerala government policy. 2 Mar. 2007 http//www.kerala.gov.in/annualprofile/ind.htm.Pillai, P. Gopinadan. (1999). Left Movement and Agrarian Relations in Kerala. The Eastern Anthropologist. 15 (3) 237-246.

Strategies to Sustain Competitive Advantage

Strategies to Sustain Competitive AdvantageQ1 victimization an appropriate transmit, evaluate the logical argument model of a ac ac companionship of your choice, describing how the club mark offs itself from its rivals and take war-ridden advantage.1. Executive SummaryCummins started off as diesel locomotive engine locomotive engine manufacturing company since 1919 and now growing as power loss exserter in the world. Cummins dist lay off net through company- owned electrical distributor, in thinkent distributor and dealer to exercise guest globall(a)y. In 2009, Cummins reported net income of $428 million in $10.8 billion of gross taxation 1.Cummins make believe been diversifying its employment to broad range of growths from power generation, filtration technology, turbo technology, fuel agreement, dismissal dominances and air manipulation 2. Due to external pressure and growing commercialize in Asia, Cummins recently setup Centre of Excellent in capital of Singapore focalise more(prenominal) on Marine and Offshore market. In this impale module assignment, militant strategy leave sole(prenominal) counsel on Cumminss marine and inshore furrow. In this PMA, the value rick is based on own pains experiences assumption. However, outline on financial will based overall Cummins stage line of products listed in stock market which named CMI.1.1. Vision StatementMaking peoples lives better by unleashing the reason of Cummins 3. Cummins regard in by exploitation new technology will lead to better living for the people.1.2. Mission StatementCummins military commission statement as quoted be busted 3Motivating people to act like owners working unneuroticExceeding node chances by al bearings being first to market the outstrip harvest-tidesPartnering with our nodes to make sure that they succeedDemanding that everything we do leads to a cleaner, healthier, safer environmentCreating wealth for all stakeholders.1.3. Cummins co mp be with Industrial leader body-build 1 Financial outline CMI Vs Industry Leader 4Figure 1 shows overview financial analysis of Cummins (CMI) canvas indoors industry leader 4. Cummins rank 35 among 379 diversified machinery industries in industrial not bad(predicate)s sector for market capitalisation. Cummins stock values increase more than triplet over the chivalric 3 years and promise future growth with its business strategy 4.1.4. naval system oceanic strategy has been familiarized by W.C. Kim and R Mauborge since 2004. Starting then, this strategy is adopted and implemented successfully in various makeups globally. Recently, Malaysias bloom Minister Datuk Seri Najib Razak shargond his experience on Ocean Strategy when relations with increasing crime in the country 5. He is victimization obscure Ocean Strategy as management tools in fix up to promote thought process out of the box. Key successful activities such as leveraged untapped resources when replaced police with soldier doing patrolling around countrys b aver and conduct training for new police lunge in the underutilised army facilities. This initiative save a lot of m superstary from authorities and promote cross functioning role among government agency 5.The precept of the ocean strategy is treating market as universe. There are two oceans forthcoming in the universe named Red Ocean and naughty Ocean. Red Ocean specify as known competition. In this Ocean, reaping is already well defined and adversarys further adequate to(p) to make do with toll 6 .Customer expectation on the product almost generic wine and not much technology can be developing in this area. For diesel engine in marine and seaward market, the foes for Cummins entangle Caterpillar, MTU and Mitsubishi. How Cummins can take apart trough induce market leaders?Cummins grant Blue Ocean Strategy when dealing with its business. Blue Ocean Strategy defines as untapped market which no competition and industri es that do not exist at this point of time 6. This in return will resulting laid-backer acquire discriminate with conventional appeal. This understandably shows in W.C. Kim and R Mauborge studys on business launches in 108 companies. They summarize r reddenue and profit impact of business launches shows in Figure 2. In this study, 86% business launches within own boundaries (Red Oceans) and 14% business launches feel for new opportunities (Blue Oceans) 6.Red Oceans approach focus on vivacious guest by improving their product and study shows that this resulted 62% on natural revenue and 39% on total profit. In contrast, 14% of the businesses launches by creating sorry oceans can bring in high return which about 61% of the total profit 6.Cummins spend firmly on research and victimisation for past 5 years as shown in Figure 3. In 2010 alone, Cummins invest 414million in new technology development 2. whizz of recent Blue Oceans initiatives is shot Marine and Offshore Centr e of Excellent in Singapore. This business focus on the Packaging instead of marketing conventional type of bare diesel engine like other competitor such as CAT, MTU and Mitsubishi. Figure 4 shows pictorial view on the value added ingredients into bare diesel engine1.5. Strategy CanvasFigure 5 shows strategy canvas of the marine and offshore diesel engine. X-axis represents unfavorable success actors of the markets competition and Y-axis correspond to values sensed by marine and offshore customer.Marine and offshore is a mature and work up market. Engine makers always compete with toll, image, brand, delivery, product mental process and wait on availability. Cummins performs second-rately in critical successful factors. However, in social club to compete in the competitive market, Cummins break through conventional way by creating new team to focus on product value added specifically for marine and offshore customer. Cummins example Blue Ocean strategy.Figure 6 shows Red Ocean strategy from others diesel engine maker and Blue Ocean strategy from Cummins.Q2 use either porters generic strategies or the Strategy Clock, identify examples of organizations following strategies of differentiation, low exist or low worth, and stuck-in-the spirit or hybrid. How successful are these strategies.2. Porters 5 forces generic StrategiesUsing the five forces framework, creative strategists may be competent to spot an industry with a great future before this bully futureis reflected in the prices of acquisition candidates Michael Porter 7.Porters five forcesThreat of freshly Entrants Analyse potential new arriver to market is classic to understand potential future competitorsBargaining Power of Buyers Buyers is the political companionship that puddle demand for industry, understand buyers unavoid adequate to(p)ness will help to cite competitive advantages. For example, bargaining power of buyers is high if product is standard.Threat of substitute products or service Buyers always weigh for alternative or cheapest way to labor products or service. Substitute product can bring the overall industry price lowerBargaining Power of Supplier Supplier supply in the altogether material or service to ber. Bargaining power of extendr is high when to galore(postnominal) buyer and little supplier in the marketRivalry among existing competitors Current fast moving industry, its important understand the strategy of existing competitors. face How competitor gain competitive advantages or product differentiation.Porters 5 Forces allowed the company undertand and analyse own industry struture and futher help the management to decide on companys strategy. accord to Porter, organisation is up to(p) to gain competitive advantanges by strategies the company maintain one of the Porters Generic Strategies as shown in Figure 8 1) Cost Leadership, 2) Differentiation, 3) think 8.2.1. Cost Leadership StrategiesCost leadership strategies em phasize on low woo in company strategies. ordinance will offer low per-unit court product or service to customer that sensitive to price. In order to become low make up permitr, company can practise integrating strategies ( loath, advancing and horizontal). There are few factors that will affect the strategies include economies of scale, skill curve, productivity, company structure, relationship with supplier and grapheme wangle. Several example organizations that practice this are Wal-Mart (general merchandiser), charge Asia (budget air passage) and Macdonalds (Fast Food) 9. In this PMA, I will use Air Asia as example to study its business model and look into company successful factor.Air Asia strategy as illustrate in Figure 9, the company mission is to continue to be the markets carrier low exist sufferr.In order to compete with other aircraft carrier and come upon company vision for Lowest approach airline, Air Asia implement a few strategy to fasten act exis t. Strategy implemented as per at a lower place2.1.1. Keep operation bell low- NO frillsIn order to compete in this competitive market, Air Asia able to exert operational cost low by implementing few NOs in the strategy 10NO meal No food or drinks will be provided free in the in-flight service.NO frequent rain handbill program NO Membership or rewarding program which commonly apply for others airline like Kris flyer for Singapore Airline and Skymiles for Delta airline.NO Seat assignment Ticket In order to keep administrative cost lowNO Entertainment NO news paper and diversion system such as pictorial matter, games and music.No slate Ticketless replaced conventional type printed ticketNo waiting lounge NO lounge provide in the airport2.1.2. Single air craft fleetIn order to streamline the operation, Air Asia phasing out its 14 Boeing B737 in 2010 and replace by only operate single air craft which is A320. Few advantages of using single aircraft as stated belowKeep inventory cost low salve cost in service and maintenance such as keeping very(prenominal) model of spares parts.No duplicated resource due to difference Air swap experience needed dress time and training cost due to only one model. This allowed the company avoid going to through the expensive learnedness curve process and also may dissatisfied demanding customer. Michael and Nikos study on the organisation learning curves for customer dissatisfaction across airlines. They plotted estimate U-Shaped learning curve as show in Figure 10 and show evident that accusation rates followed U-shaped function of experienceAble to increase fuel cleverness and improve productivity2.1.3. Simplified distribution systemAir Asia plan mere(a) user friendly system for customer to book and check- in their ticket. Customers are able to check in using own mobile as shown in Figure 11. This ticketless system is able to reduce waiting time for customer queuing to check- in at the airport counter.2.1.4. Point to point net profit ( 4 hrs) tout ensemble Air Asia flight is running by point to point network within 4 hours radius or less as its business model. This model only carry passenger from point A to point B without any connecting flight. This in order to keep operation cost simple in order to reduce be 10.2.1.5. Optimum Aircraft UtilizationAnother way to keep run cost low and maximizes profit, Air Asia increase productivity by optimise flight utilisation. Air Asia is the fastest in the region by achieving 25 minute turnaround time. Air Asia is able to achieve equal or more than 75% for last 5 years on the send factor. Once, Air Asia achieve close to 100% load factor for Bali Perth route. Load factor is defined by AirAsia as numbers of passengers as a helping of number of seats diminishn 10. On top of that, Air Asia applies Tier based system for ticketing which depend on supply and demand. When demand is low, the price is low. When demand is high the ticket price will also go hi gh. This system is efficient curiously during low season allowed Air Asia maintain the reasonable high portion load factor,2.2. Differentiate StrategiesDifferentiation strategies offer service or product which quaint sensed by customer. Differentiation strategies do not guarantee good payback especially current standard product offered in the industry is more than enough to meet customer expectation. There will a risk of infection on implementing this strategy and need to study carefully on customer necessary before implementing. output value added, extra servicing, products flexibility and better compatibility are some of the features that can create divide in the industry. Cost is not an trouble in this strategy hence company can demand higher(prenominal) price if customer strongly attached to offered differentiation features. Typical move in this strategy is product development. Organisations that apply these strategies include apple (Lifestyle product), Raul Lauren (Ap parel) and Maytag (Home appliance)Apple is applying differentiate strategies compare with other competitors in the industry by selling lifestyle product instead of conventional electronic gadget. In first 6 months of 2011, Apple spends 1.2 billion in research and development. This is about 40% increase compare with 2010 13. ace of the successful examples when Apple launches iPad during 2010 and Steve Jobs defined iPad as entirely new household of mobile devices. Apple sold more than 15 million units worldwide later instauration 14.2.2.1. Innovative and creativity productApple is a turn leading company in the market. The company famous in creating innovative products and able to capture a significant market share after launching new products. Apple spends heavily in research and development because the company believe RD are critical for future growth and are able to create competitive advantages2.2.2. Wide range of software and applicationsApple created some other successful political program for customer to download software and application. Traditional, example like phone, other competitor just focus on few simple features which only contains game, photography function, movie and some basic feature. By introducing new approach, Apple created The App Store. promptly The App Store has more than 350,000 apps available for i scream, iPad and iPod touch globally. The apps offered wide range of application from games, entertainment, utilities, fond networking, music and others. In Jan 2011, Apple announces that more than 10 billion apps have been downloaded .2.2.3. Apple storeUnlike others competitors store which only focus on products price and feature, Apple differentiate by giving customer different shop experience in the store. Apple design Apples retail store to give the patrons good impression of stylish, clean, fashion and stream-lined. The product like i Phone, iTunes and etc will placing in a place that customer can try out the features and appli cation.2.2.4. Provide good service and maintenanceApple provides good service respond compare with others competitors like Samsung and Nokia. In Singapore, Apple provides one to one exchange for i Phone if thither is defect and still under warranty. This is different from some of the competitors, depend on the level of repair, some will take about 2 to 3 weeks. This will create some issue for some consumer that only has one hand phone.2.3. sharpen StrategiesFocus strategies offers product or service to fulfil the requirement for targeted groups of customer in the industry 9. Focus strategies can be categorize into 2 Focus cost leadership which focus on low cost solution in narrow market and Focus differentiation provide customised product or service to niche market 16. Market penetration and market development can be use when applying focus strategies 9. Focus strategies honest when competitors are not able to support on unique requirement of sealed group of customer. Organisati on which pursuing this strategies include IKEA (Furniture), Ferrari (Automotive) and Federal Express (logistic)2.3.1. Focus Cost Leadership StrategyIKEA is the Swedish global article of furniture company that utilize focus cost leadership strategy in their business strategy. IKEA whirl wide range of home furnish product with low price so that legion(predicate) people can afford to purchase. In order to achieve the strategy, IKEA apply below concept2.3.1.1. Design and develop base on priceIn order to keep competitive price, IKEA design and develop product base on price. The price is fix even before the product is launch. The actor will have to work directly with supplier to ensure meet low cost by optimised productivity, material efficiency and process improvement 17.2.3.1.2. Reduce logistic, handling and operating costIn order to reduce logistic, handling and operating cost, IKEA designer always consider flat-pack transportation and self- fiction during design and development p hase. Flat-pack furniture is often delivered in multiple sub assemblies together with simple charge manual and required customer to perform self assembly. This modular concept is able to save transportation, handling and operating cost. For example, assembled furniture tends to be more large and is more expensive to store in warehouse and transportation. Besides, that, IKEA is able to save operating cost by reduce one Assembly process in production .2.3.1.3. Self-Service in IKEA StoreIn order t keep the operating cost low and reduce the needs of sales assistance, IKEA design the flow of store layout and display the product effectively by using developed room concept. For example, sofa is placed in living room fraction and bed is placed in Bed Room section. All the furniture is clearly labelled and useful information like dimension is easily determined in the display product 17.2.3.2. Focus Differentiate strategyFerrari is applying focus differentiate strategy by develop high per formance car within self-propelling industry. Ferrari focus on high end consumer compare with other automotive competitors like Honda, Toyota or Ford which target more broad customer. under is the strategy for Ferrari2.3.2.1. New Way of Purchase CarFerrari compete created innovative approach by introduce new way of purchase car premium Ownership Program to serve its target customer. This program include insurance, maintenance, warranty , Ferrari tailor made driving course and pit stop service which provide the customer mind free after owning and driving Ferrari car 18.2.3.2.2. Innovative technologyFerrari developed own software to meet customer service expectation such as rapid response times, up to date database and personalise customer service. One of the latest features such as, the customer can view the look of the vehicle and change the preference in Service configurator system even in pre-order stage 19.2.3.2.3. Best DealerFerrari believes choosing the right strategic par tner or dealer is the right way to serve the customer. In order to motivate the dealer, Ferrari created honored award Podio Awards for supplier or business partner recognition.2.4. Stuck in the middle or Hybrid StrategiesPorter does not recommend Stuck in the middle or Hybrid strategies if the company want to achieve above average performance in the industry. Company must choose either one of the strategy in the Porters Generic strategy. He claimed that it is difficult for a company to strategies the business to release low cost product but still remain unique perceived by customer 8.However, Rodney Goon argues on Porters theory and commented some of the company such as Singapore Airline (SIA) are able to success using Hybrid strategy. Figure 12 shows business strategy applied by SIA which plotted by Rodney 21. Singapore Airline have been awarded 2nd place in World Top Airline in 2010 by Skytrax in Hamburg 22. Figure 13 shows main operating cost for SIA. Top 3 costs consist of Fue l, Aircraft and People 23. In order to achieve competitive advantages, SIA apply below approach2.4.1. Become Market Leader Differentiation StrategySIA founded in 1972 started as small airline company and now evolve become the world trend leading company for Airline industry. SIA become market leader by setting trend started since 1970s when introducing headsets, drink and choice of meals in Economy Class. Figure 14 shows overview on SIA trend setting for more than 39 years in the industry. In 1991, SIA introduce satellite- based telephone to modify passenger to call to ground during flying. In 1998, in order to improve the tint and standard of in-flight meal, SIA formed International Culinary Panel which involves renowned chef from all over the world. By doing this, the passengers are able to enjoy world class cuisine even during travelling.In order to improve customer service satisfaction, SIA introduce in-flight entertainment system named Krisworld which include Audio and Video system. Passenger can look on movie, listen to music and playing game during flying. In 2004, SIA reach another milestone by flying world longest non-stop flight from Singapore to New York (Newark). In 2007, SIA flying new Airbus design A380 which is world largest passenger Aircraft from Singapore to Sydney .2.4.2. Brand Singapore Girl Differentiation StrategySIA successfully improve its service compare with others competitors by creating unique iconic image for SIAs air air hostess as Singapore Girl and promote Youre a great way to fly started in 1972. This iconic brand is famous of caring, elegant and good looking for girl whom will provide good service for the passenger during on maturate the plane. Singapore Girl has continuously won many awards in Airline and Travel Industry over the years .2.4.3. Low Cost -Cost Leadership StrategyEverything behind The Scenes Is subject To Rigorous Control quoted by Rodney . SIA spend heavily on the area that customer can be seen as discu ssed above in order to remain premium in the industry but cut of meat cost for area that behind the scene in order to remain cost compatible. Total cost for Singapore airline is about 14.2% is the lowest in the market compare with other competitors like American Airline which labor cost is approximately 31% of total operating expense . Other than that, average price per aircraft purchase is less than other airline provider. This is due to SIA is the market leader in trendsetting and always working with aircraft builder like Airbus when there is new product launching. First purchase in world for A380 allowed SIA command a better purchase price.Q3 What are the major advantages and disadvantages of an endogenic strategy?3. compositional strategyOrganisation is able to gain competitive advantages by using integrative strategy. Integrative strategy can be categorized as vertical, backward, precedent and horizontal integrating. There are advantages and disadvantages when applying eac h concept and detail discuss as below3.1. Vertical IntegrationVertical integration is business strategies which pass its business either through gaining moderate over company that distribute or selling its product (Forward integration) or taking control over company that provide the raw material for finish goods (Backward Integration). Figure 15 illustrate 4 typical stages for value added chain in PC industry (27). warning for Dell or Hewlett Packard, in order to kindle a personal computer, assembly components such as chips, microprocessor and disk drive etc is needed from others manufacturing company (Intel/ Micron). Similarly, component parts manufacturing needs raw material like chemical, metal and ceramic to manufacture the component. Kyocera is one of the suppliers for those materials. Backward integration strategy in this case is exhausting to taking control over components parts manufacturing and raw material supplier. Whereas for forward integration strategy, PC maker tr y to gains control over the company that selling or distribute the last-place product such as OfficeMax and ComUSA 27 This company provide platform to reach end user.3.2. Forward IntegrationForward integration strategy involves increase ownership or control over retailers or distributor and illustrates in Figure 16. One of the effective mean of forward integration is through Franchising 9. Approximate $2 trillion revenue created annually through franchising business every year globally. This equal to 4th largest Gross National Product in the world 28. Advantages and disadvantages as discuss belowAdvantages Getting understanding customer betterOne of the companies using forward integration strategy successfully is Dell. Dell founded in 1984 by Michael Dell with one direction selling final products to customer directly 29. By doing this, company able to reach end user and getting feedback instantly through companys distributor and retailer without filtering. Low development and train ing costBy introduce franchising the company are able to reduce development and training cost. Franchisor will provide training, equipment and product to franchisee. This in order to skip the trial error phase for franchisee and able to help franchisee pay profit with less risk. Example companies like Subway, McDonalds and 7-eleven. Provide better servicesCompany can provide better services through its own controlled network and services. Provide lower cost of salesIn order to compete in this competitive world, price of the end product is always one of the critical successful factors for the company. Dell is using this strategy to reduce price bypassing third party involvement such as retailers etc. No mark up from other company in the finished goodsDisadvantages Increase bureaucratic costExpanding business forward which also means that increase bureaucratic cost for completely value- added chain activities. Due to uncertain demand in current market, it will post some risk to the company Increase InventoryGetting control over distributors or retailer, indirectly manufacturer may have to manage alone product cycle inventory include end products. Company may incurred higher inventory cost if wrongly manage3.3. Backward Integration producer need supplier provide raw material in order to produce its end products or service. Backward integration allowed company gain control toward supplier as shown in Figure 16. Advantages and disadvantages as discuss belowAdvantages Getting better quality controlCompany are able to apply standard quality plan throughout the value chain. This is especially important when dealing with sophisticated components such as crankshaft, piston and turbocharger for engine. By improving the quality of this critical component will increase competitive advantages among the rivals Reduce menace from powerful vendorsBy increasing control over the vendors, it will reduce holy terror from powerful vendors. Optimized supply chainKeeping track of so many suppliers is onerous says Mark Shimelonis of Xerox 9. Nowadays, a number of companies following Japanese firms lead in managing the supply chain to ensure uninterrupted supplies and low prices. cut structure costOutsourcing is one of the examples of the backward strategy. Outsourcing strategy will able to reduce cost when company engaging third party specialist that do charging lower than company own operate value-chain activity. Cummins outsource IT support to India Company and plug-in design to CMR or Auto Maskin to keep the company structure cost lower. Nike outsourcing its manufacturing plant in China due to lower labor cost 27.Disadvantages applied science changeTechnology change is inevitable in current competitive market. But backward vertical integration may lock a company way of doing business and prevent organisation changes due to technology change. One of the examples is when radio manufacturer acquired a manufacturer of vacuum tube in fifties to reduce p roduction cost. When, transistors replace vacuum tube in 1960s, the competitor rapidly change to latest technology. However for this radio manufacturer company, the management recant to change and as the result, lost in the competitive advantages and cause business failure. Thus, backward integration can cause serious disadvantages when trying to match rapid technology change 27 Risk of information lossIncrease control over the supplier which mean also potentially important information flow to the supplier. For example, Cummins need to provide important parameter and interfacing information in the engine control module to backward supplier like CMR and Auto Maskin in order to joints develop the engine protection panel. Technical drawing will be shared among backward supplier and manufacturer. Potential high costLess supplier competition will lead to less efficiencies when produce a product. The backward support company will work in the comfort zone and less initiative. The manufact urer is forced to get the input from internal supplier even there will be some others external supplier can produce lower cost .As the result will cause potentially higher production cost .3.4. Horizontal IntegrationHorizontal integration refers to company that use single industry strategy and seeking control over competitor in same market. A number of the company apply this concept as growth strategy. Merger and acquisition allowed the company to expand its core business and technical capabiStrategies to Sustain Competitive AdvantageStrategies to Sustain Competitive AdvantageQ1 Using an appropriate model, evaluate the business model of a company of your choice, describing how the company differentiates itself from its competitors and sustain competitive advantage.1. Executive SummaryCummins started off as diesel engine manufacturing company since 1919 and now growing as power leader in the world. Cummins expand network through company- owned distributor, independent distributor and dealer to serve customer globally. In 2009, Cummins reported net income of $428 million in $10.8 billion of sales 1.Cummins have been diversifying its business to broad range of products from power generation, filtration technology, turbo technology, fuel system, emission controls and air handling 2. Due to external pressure and growing market in Asia, Cummins recently setup Centre of Excellent in Singapore focus more on Marine and Offshore market. In this post module assignment, competitive strategy will only focus on Cumminss marine and offshore business. In this PMA, the value curve is based on own industry experiences assumption. However, analysis on financial will based overall Cummins business listed in stock market which named CMI.1.1. Vision StatementMaking peoples lives better by unleashing the Power of Cummins 3. Cummins believe in by developing new technology will lead to better living for the people.1.2. Mission StatementCummins mission statement as quoted below 3Motiva ting people to act like owners working togetherExceeding customer expectations by always being first to market the best productsPartnering with our customers to make sure that they succeedDemanding that everything we do leads to a cleaner, healthier, safer environmentCreating wealth for all stakeholders.1.3. Cummins compare with Industrial leaderFigure 1 Financial Analysis CMI Vs Industry Leader 4Figure 1 shows overview financial analysis of Cummins (CMI) compare within industry leader 4. Cummins rank 35 among 379 diversified machinery industries in industrial goods sector for market capitalisation. Cummins stock values increase more than triple over the past 3 years and promise future growth with its business strategy 4.1.4. Ocean StrategyOcean strategy has been introduced by W.C. Kim and R Mauborge since 2004. Starting then, this strategy is adopted and implemented successfully in various organisations globally. Recently, Malaysias Prime Minister Datuk Seri Najib Razak shared his experience on Ocean Strategy when dealing with increasing crime in the country 5. He is using Blue Ocean Strategy as management tools in order to promote thinking out of the box. Key successful activities such as leveraged untapped resources when replaced police with soldier doing patrolling around countrys border and conduct training for new police force in the underutilised army facilities. This initiative save a lot of money from government and promote cross functioning role among government agency 5.The principle of the ocean strategy is treating market as universe. There are two oceans available in the universe named Red Ocean and Blue Ocean. Red Ocean defined as known competition. In this Ocean, product is already well defined and competitors only able to compete with price 6 .Customer expectation on the product almost generic and not much technology can be developing in this area. For diesel engine in marine and offshore market, the competitors for Cummins include Caterpillar , MTU and Mitsubishi. How Cummins can break trough become market leaders?Cummins apply Blue Ocean Strategy when dealing with its business. Blue Ocean Strategy defines as untapped market which no competition and industries that do not exist at this point of time 6. This in return will resulting higher profit compare with conventional approach. This clearly shows in W.C. Kim and R Mauborge studys on business launches in 108 companies. They summarize revenue and profit impact of business launches shows in Figure 2. In this study, 86% business launches within own boundaries (Red Oceans) and 14% business launches looking for new opportunities (Blue Oceans) 6.Red Oceans approach focus on existing customer by improving their product and study shows that this resulted 62% on total revenue and 39% on total profit. In contrast, 14% of the businesses launches by creating blue oceans can bring in higher return which about 61% of the total profit 6.Cummins spend heavily on research and developme nt for past 5 years as shown in Figure 3. In 2010 alone, Cummins invest 414million in new technology development 2. One of recent Blue Oceans initiatives is setting Marine and Offshore Centre of Excellent in Singapore. This business focus on the Packaging instead of selling conventional type of bare diesel engine like other competitor such as CAT, MTU and Mitsubishi. Figure 4 shows pictorial view on the value added components into bare diesel engine1.5. Strategy CanvasFigure 5 shows strategy canvas of the marine and offshore diesel engine. X-axis represents critical success factors of the markets competition and Y-axis correspond to values perceived by marine and offshore customer.Marine and offshore is a mature and establish market. Engine makers always compete with price, image, brand, delivery, product performance and service availability. Cummins performs averagely in critical successful factors. However, in order to compete in the competitive market, Cummins break through conve ntional way by creating new team to focus on product value added specifically for marine and offshore customer. Cummins applied Blue Ocean strategy.Figure 6 shows Red Ocean strategy from others diesel engine maker and Blue Ocean strategy from Cummins.Q2 Using either Porters generic strategies or the Strategy Clock, identify examples of organizations following strategies of differentiation, low cost or low price, and stuck-in-the middle or hybrid. How successful are these strategies.2. Porters 5 forces generic StrategiesUsing the five forces framework, creative strategists may be able to spot an industry with a good future before this good futureis reflected in the prices of acquisition candidates Michael Porter 7.Porters five forcesThreat of New Entrants Analyse potential new comer to market is important to understand potential future competitorsBargaining Power of Buyers Buyers is the party that create demand for industry, understand buyers requirement will help to maintain compet itive advantages. For example, bargaining power of buyers is high if product is standard.Threat of substitute products or service Buyers always look for alternative or cheapest way to get products or service. Substitute product can bring the overall industry price lowerBargaining Power of Supplier Supplier supply raw material or service to manufacturer. Bargaining power of supplier is high when to many buyer and less supplier in the marketRivalry among existing competitors Current fast moving industry, its important understand the strategy of existing competitors. Example How competitor gain competitive advantages or product differentiation.Porters 5 Forces allowed the company undertand and analyse own industry struture and futher help the management to decide on companys strategy. According to Porter, organisation is able to gain competitive advantanges by strategies the company using one of the Porters Generic Strategies as shown in Figure 8 1) Cost Leadership, 2) Differentiation, 3) Focus 8.2.1. Cost Leadership StrategiesCost leadership strategies emphasize on low cost in company strategies. Company will offer low per-unit cost product or service to customer that sensitive to price. In order to become low cost provider, company can practise integration strategies (backward, forward and horizontal). There are few factors that will affect the strategies include economies of scale, learning curve, productivity, company structure, relationship with supplier and quality control. Several example organizations that practice this are Wal-Mart (general merchandiser), Air Asia (budget Airline) and Macdonalds (Fast Food) 9. In this PMA, I will use Air Asia as example to study its business model and look into company successful factor.Air Asia strategy as illustrate in Figure 9, the company mission is to continue to be the markets carrier low cost provider.In order to compete with other aircraft carrier and achieve company vision for Lowest cost airline, Air Asia imple ment a few strategy to reduce operation cost. Strategy implemented as per below2.1.1. Keep operation cost low- NO frillsIn order to compete in this competitive market, Air Asia able to keep operational cost low by implementing few NOs in the strategy 10NO meal No food or drinks will be provided free in the in-flight service.NO frequent flyer program NO Membership or rewarding program which commonly used for others airline like Kris flyer for Singapore Airline and Skymiles for Delta airline.NO Seat assignment Ticket In order to keep administrative cost lowNO Entertainment NO news paper and entertainment system such as movie, games and music.No ticket Ticketless replaced conventional type printed ticketNo waiting lounge NO lounge provide in the airport2.1.2. Single air craft fleetIn order to streamline the operation, Air Asia phasing out its 14 Boeing B737 in 2010 and replace by only operate single air craft which is A320. Few advantages of using single aircraft as stated belowKeep inventory cost lowSaving cost in service and maintenance such as keeping same model of spares parts.No duplicated resource due to difference Air Craft experience neededReduce time and training cost due to only one model. This allowed the company avoid going to through the expensive learning curve process and also may dissatisfied demanding customer. Michael and Nikos study on the organisation learning curves for customer dissatisfaction across airlines. They plotted estimate U-Shaped learning curve as show in Figure 10 and show evident that complaint rates followed U-shaped function of experienceAble to increase fuel efficiency and improve productivity2.1.3. Simplified distribution systemAir Asia design simple user friendly system for customer to book and check- in their ticket. Customers are able to check in using own mobile as shown in Figure 11. This ticketless system is able to reduce waiting time for customer queuing to check- in at the airport counter.2.1.4. Point to point net work ( 4 hrs)All Air Asia flight is running by point to point network within 4 hours radius or less as its business model. This model only carry passenger from point A to point B without any connecting flight. This in order to keep operation cost simple in order to reduce costs 10.2.1.5. Optimum Aircraft UtilizationAnother way to keep operating cost low and maximizes profit, Air Asia increase productivity by optimise flight utilisation. Air Asia is the fastest in the region by achieving 25 minute turnaround time. Air Asia is able to achieve equal or more than 75% for last 5 years on the load factor. Once, Air Asia achieve close to 100% load factor for Bali Perth route. Load factor is defined by AirAsia as numbers of passengers as a percentage of number of seats flown 10. On top of that, Air Asia applies Tier based system for ticketing which depend on supply and demand. When demand is low, the price is low. When demand is high the ticket price will also go high. This system is effic ient especially during low season allowed Air Asia maintain the reasonable high percent load factor,2.2. Differentiate StrategiesDifferentiation strategies offer service or product which unique perceived by customer. Differentiation strategies do not guarantee good payback especially current standard product offered in the industry is more than enough to meet customer expectation. There will a risk on implementing this strategy and need to study carefully on customer requirement before implementing. Product value added, extra servicing, products flexibility and better compatibility are some of the features that can create differentiate in the industry. Cost is not an issue in this strategy hence company can demand higher price if customer strongly attached to offered differentiation features. Typical move in this strategy is product development. Organisations that apply these strategies include Apple (Lifestyle product), Raul Lauren (Apparel) and Maytag (Home appliance)Apple is appl ying differentiate strategies compare with other competitors in the industry by selling lifestyle product instead of conventional electronic gadget. In first 6 months of 2011, Apple spends 1.2 billion in research and development. This is about 40% increase compare with 2010 13. One of the successful examples when Apple launches iPad during 2010 and Steve Jobs defined iPad as entirely new category of mobile devices. Apple sold more than 15 million units worldwide after launching 14.2.2.1. Innovative and creativity productApple is a trend leading company in the market. The company famous in creating innovative products and able to capture a significant market share after launching new products. Apple spends heavily in research and development because the company believe RD are critical for future growth and are able to create competitive advantages2.2.2. Wide range of software and applicationsApple created another successful platform for customer to download software and application. Traditional, example like phone, other competitor just focus on few simple features which only contains game, photography function, movie and some basic feature. By introducing new approach, Apple created The App Store. Now The App Store has more than 350,000 apps available for iPhone, iPad and iPod touch globally. The apps offered wide range of application from games, entertainment, utilities, social networking, music and others. In Jan 2011, Apple announces that more than 10 billion apps have been downloaded .2.2.3. Apple storeUnlike others competitors store which only focus on products price and feature, Apple differentiate by giving customer different shopping experience in the store. Apple design Apples retail store to give the patrons good impression of stylish, clean, fashion and stream-lined. The product like i Phone, iTunes and etc will placing in a place that customer can try out the features and application.2.2.4. Provide good service and maintenanceApple provides good se rvice respond compare with others competitors like Samsung and Nokia. In Singapore, Apple provides one to one exchange for i Phone if there is defect and still under warranty. This is different from some of the competitors, depend on the level of repair, some will take about 2 to 3 weeks. This will create some issue for some consumer that only has one hand phone.2.3. Focus StrategiesFocus strategies offers product or service to fulfil the requirement for targeted groups of customer in the industry 9. Focus strategies can be categorized into 2 Focus cost leadership which focus on low cost solution in narrow market and Focus differentiation provide customised product or service to niche market 16. Market penetration and market development can be use when applying focus strategies 9. Focus strategies beneficial when competitors are not able to support on unique requirement of certain group of customer. Organisation which pursuing this strategies include IKEA (Furniture), Ferrari (Autom otive) and Federal Express (logistic)2.3.1. Focus Cost Leadership StrategyIKEA is the Swedish global furniture company that applied focus cost leadership strategy in their business strategy. IKEA offering wide range of home furnish product with low price so that many people can afford to purchase. In order to achieve the strategy, IKEA apply below concept2.3.1.1. Design and develop base on priceIn order to keep competitive price, IKEA design and develop product base on price. The price is fix even before the product is launch. The designer will have to work directly with supplier to ensure meeting low cost by optimised productivity, material efficiency and process improvement 17.2.3.1.2. Reduce logistic, handling and operating costIn order to reduce logistic, handling and operating cost, IKEA designer always consider flat-pack transportation and self-assembly during design and development phase. Flat-pack furniture is often delivered in multiple sub assemblies together with simple i nstruction manual and required customer to perform self assembly. This modular concept is able to save transportation, handling and operating cost. For example, assembled furniture tends to be more bulky and is more expensive to store in warehouse and transportation. Besides, that, IKEA is able to save operating cost by reduce one Assembly process in production .2.3.1.3. Self-Service in IKEA StoreIn order t keep the operating cost low and reduce the needs of sales assistance, IKEA design the flow of store layout and display the product effectively by using actual room concept. For example, sofa is placed in living room section and bed is placed in Bed Room section. All the furniture is clearly labelled and useful information like dimension is easily located in the display product 17.2.3.2. Focus Differentiate strategyFerrari is applying focus differentiate strategy by develop high performance car within automotive industry. Ferrari focus on high end consumer compare with other autom otive competitors like Honda, Toyota or Ford which target more broad customer. Below is the strategy for Ferrari2.3.2.1. New Way of Purchase CarFerrari compete created innovative approach by introduce new way of purchase car Premium Ownership Program to serve its target customer. This program include insurance, maintenance, warranty , Ferrari tailored made driving course and pit stop service which provide the customer mind free after owning and driving Ferrari car 18.2.3.2.2. Innovative TechnologyFerrari developed own software to meet customer service expectation such as rapid response times, up to date database and personalise customer service. One of the latest features such as, the customer can view the look of the vehicle and change the preference in Service configurator system even in pre-order stage 19.2.3.2.3. Best DealerFerrari believes choosing the right strategic partner or dealer is the right way to serve the customer. In order to motivate the dealer, Ferrari created pres tigious award Podio Awards for supplier or business partner recognition.2.4. Stuck in the middle or Hybrid StrategiesPorter does not recommend Stuck in the middle or Hybrid strategies if the company want to achieve above average performance in the industry. Company must choose either one of the strategy in the Porters Generic strategy. He claimed that it is difficult for a company to strategies the business to produce low cost product but still remain unique perceived by customer 8.However, Rodney Goon argues on Porters theory and commented some of the company such as Singapore Airline (SIA) are able to success using Hybrid strategy. Figure 12 shows business strategy applied by SIA which plotted by Rodney 21. Singapore Airline have been awarded 2nd place in World Top Airline in 2010 by Skytrax in Hamburg 22. Figure 13 shows main operating cost for SIA. Top 3 costs consist of Fuel, Aircraft and People 23. In order to achieve competitive advantages, SIA apply below approach2.4.1. Bec ome Market Leader Differentiation StrategySIA founded in 1972 started as small airline company and now evolve become the world trend leading company for Airline industry. SIA become market leader by setting trend started since 1970s when introducing headsets, drink and choice of meals in Economy Class. Figure 14 shows overview on SIA trend setting for more than 39 years in the industry. In 1991, SIA introduce satellite- based telephone to enable passenger to call to ground during flying. In 1998, in order to improve the quality and standard of in-flight meal, SIA formed International Culinary Panel which involves renowned chef from all over the world. By doing this, the passengers are able to enjoy world class cuisine even during travelling.In order to improve customer service satisfaction, SIA introduce in-flight entertainment system named Krisworld which include Audio and Video system. Passenger can watch movie, listen to music and playing game during flying. In 2004, SIA reach a nother milestone by flying world longest non-stop flight from Singapore to New York (Newark). In 2007, SIA flying new Airbus design A380 which is world largest passenger Aircraft from Singapore to Sydney .2.4.2. Brand Singapore Girl Differentiation StrategySIA successfully improve its service compare with others competitors by creating unique iconic image for SIAs air stewardess as Singapore Girl and promote Youre a great way to fly started in 1972. This iconic brand is famous of caring, elegant and good looking girl whom will provide good service for the passenger during on board the plane. Singapore Girl has continuously won many awards in Airline and Travel Industry over the years .2.4.3. Low Cost -Cost Leadership StrategyEverything behind The Scenes Is subject To Rigorous Control quoted by Rodney . SIA spend heavily on the area that customer can be seen as discussed above in order to remain premium in the industry but cutting cost for area that behind the scene in order to rema in cost compatible. Total cost for Singapore airline is about 14.2% is the lowest in the market compare with other competitors like American Airline which labor cost is approximately 31% of total operating expense . Other than that, average price per aircraft purchase is less than other airline provider. This is due to SIA is the market leader in trendsetting and always working with aircraft builder like Airbus when there is new product launching. First purchase in world for A380 allowed SIA command a better purchase price.Q3 What are the major advantages and disadvantages of an integrative strategy?3. Integrative strategyOrganisation is able to gain competitive advantages by using integrative strategy. Integrative strategy can be categorized as vertical, backward, forward and horizontal integration. There are advantages and disadvantages when applying each concept and detail discuss as below3.1. Vertical IntegrationVertical integration is business strategies which expand its busine ss either through gaining control over company that distribute or selling its product (Forward integration) or taking control over company that provide the raw material for finish goods (Backward Integration). Figure 15 illustrate 4 typical stages for value added chain in PC industry (27).Example for Dell or Hewlett Packard, in order to produce a personal computer, assembly components such as chips, microprocessor and disk drive etc is needed from others manufacturing company (Intel/ Micron). Similarly, component parts manufacturing needs raw material like chemical, metal and ceramic to manufacture the component. Kyocera is one of the suppliers for those materials. Backward integration strategy in this case is trying to taking control over components parts manufacturing and raw material supplier. Whereas for forward integration strategy, PC maker try to gains control over the company that selling or distribute the final product such as OfficeMax and ComUSA 27 This company provide pl atform to reach end user.3.2. Forward IntegrationForward integration strategy involves increase ownership or control over retailers or distributor and illustrates in Figure 16. One of the effective mean of forward integration is through Franchising 9. Approximate $2 trillion revenue created annually through franchising business every year globally. This equal to 4th largest Gross National Product in the world 28. Advantages and disadvantages as discuss belowAdvantages Getting understanding customer betterOne of the companies using forward integration strategy successfully is Dell. Dell founded in 1984 by Michael Dell with one direction selling final products to customer directly 29. By doing this, company able to reach end user and getting feedback instantly through companys distributor and retailer without filtering. Low development and training costBy introduce franchising the company are able to reduce development and training cost. Franchisor will provide training, equipment and product to franchisee. This in order to skip the trial error phase for franchisee and able to help franchisee generate profit with less risk. Example companies like Subway, McDonalds and 7-eleven. Provide better servicesCompany can provide better services through its own controlled network and services. Provide lower cost of salesIn order to compete in this competitive world, price of the end product is always one of the critical successful factors for the company. Dell is using this strategy to reduce price bypassing third party involvement such as retailers etc. No mark up from other company in the finished goodsDisadvantages Increase bureaucratic costExpanding business forward which also means that increase bureaucratic cost for whole value- added chain activities. Due to uncertain demand in current market, it will post some risk to the company Increase InventoryGetting control over distributors or retailer, indirectly manufacturer may have to manage whole product cycle invento ry include end products. Company may incurred higher inventory cost if wrongly manage3.3. Backward IntegrationManufacturer need supplier provide raw material in order to produce its end products or service. Backward integration allowed company gain control toward supplier as shown in Figure 16. Advantages and disadvantages as discuss belowAdvantages Getting better quality controlCompany are able to apply standard quality plan throughout the value chain. This is especially important when dealing with sophisticated components such as crankshaft, piston and turbocharger for engine. By improving the quality of this critical component will increase competitive advantages among the rivals Reduce threat from powerful vendorsBy increasing control over the vendors, it will reduce threat from powerful vendors. Optimized supply chainKeeping track of so many suppliers is onerous says Mark Shimelonis of Xerox 9. Nowadays, a number of companies following Japanese firms lead in managing the supply chain to ensure uninterrupted supplies and low prices. Lower structure costOutsourcing is one of the examples of the backward strategy. Outsourcing strategy will able to reduce cost when company engaging third party specialist that performing charging lower than company own operate value-chain activity. Cummins outsource IT support to India Company and panel design to CMR or Auto Maskin to keep the company structure cost lower. Nike outsourcing its manufacturing plant in China due to lower labor cost 27.Disadvantages Technology changeTechnology change is inevitable in current competitive market. But backward vertical integration may lock a company way of doing business and prevent organisation changes due to technology change. One of the examples is when radio manufacturer acquired a manufacturer of vacuum tube in 1950s to reduce production cost. When, transistors replace vacuum tube in 1960s, the competitor rapidly change to latest technology. However for this radio manufacturer c ompany, the management refuse to change and as the result, lost in the competitive advantages and cause business failure. Thus, backward integration can cause serious disadvantages when trying to match rapid technology change 27 Risk of information lossIncrease control over the supplier which mean also potentially important information flow to the supplier. For example, Cummins need to provide important parameter and interfacing information in the engine control module to backward supplier like CMR and Auto Maskin in order to joints develop the engine protection panel. Technical drawing will be shared among backward supplier and manufacturer. Potential high costLess supplier competition will lead to less efficiencies when produce a product. The backward support company will work in the comfort zone and less initiative. The manufacturer is forced to get the input from internal supplier even there will be some others external supplier can produce lower cost .As the result will cause p otentially higher production cost .3.4. Horizontal IntegrationHorizontal integration refers to company that use single industry strategy and seeking control over competitor in same market. A number of the company apply this concept as growth strategy. Merger and acquisition allowed the company to expand its core business and technical capabi

Relationship Between Visibility and Invisibility

Relationship Between Visibility and InvisibilitySeeing is believing, but sometimes the most real things in the world be the things we cant see. It is with these understated, wise words from the conductor in the recent childrens movie The Polar Express that this exploration into loving excommunication begins. How is sight related to affectionate exclusion? Quite simply, if a person, population or space is non or cannot be perceive it cannot be engaged with. In m whatsoever instances it ceases to exist as part of functioning mainstream connection, to stretch the sight metaphor, it disappears in societys blind spot. What causes the location of same in this blind spot of society is to be examined elsewhere, but as a process it certainly exists. This es secern attempts to bring outline the relational nature of the societal seen and undetected with some specific ethnographies pertaining to social exclusion.To give a geomorphological grounding, this essay examines firstly the nat ure of visibility and invisibleness, both theoretically and in dress which allows this work to be contextualised. The notion of how this visibility or invisibility feeds into social exclusion is outlined and finally specific references to extra ethnographic texts are made, with substitute literature being called on where necessary. The core ethnographies are Bourgois (2002), In Search of Respect and two works of Saris (2002a, 2002b) on the Cherry Orchard community assert and Culture, and The meaning of art. Concrete examples will be drawn to make reference to both the visibility and invisibility of persons, populations, causal connections and social forces in no finicky order. The interplay between same will be loosely traced throughout and is dealt with in depth before the closing remarks.The construction of the notion of visibility and invisibility is a ubiquitous yet largely un-theorised dimension of contemporary anthropology. Much like its sister subject or indeed even mot her subject of social exclusion which is yet to be clearly defined in modern anthropology due to its fluid nature. For the sake of this essay I propose that social exclusion be understood as that process through which race or groups are prevented from participating. As to the family relationship between social exclusion and visibility, if one is nonvisual either as an individual or group how is one to participate? So too if a social force is imperceptible it cannot be dealt with or controlled. This essay asks the question of how is visibility formed? What does it take to be constructed as a viewable subject, citizen or consumer in societys eyes, the market or local anesthetic and spheric power structures? Which persons, populations and groups are forced to lead invisible lives or to make their existences seen through drastic behaviour and so-viewed misconduct? What illegal activities and lives are constructed and maintained in the shadow of usual attention?The anthropological theoretical construct of visibility and invisibility, that is to say the manner in which anthropologists highlight the existence of these phenomena permeate numerous aspects of the discipline, society and gloss. Numerous forms of visibility and invisibility can be constructed whether that is a rendering of human subjects, groups or events visible or invisible based on local moral, societal or hierarchical views. Take for example the employment of social norms and national constabulary in addition to the varying forms of challenging these. Take the enforcement of toughie laws of the Irish State against horse owners in Cherry Orchard, whereby the government constructed the view that horses in suburban communities, in this instance Cherry Orchard, were undesirable and had the Gardai (police) take possession of same (Saris 2002b). Even the preparation, writing and presentation of ethnographies can be made invisible by the mainstream academic community, often due to the issues dealt with which some would rather go forward neglected and silenced. Take for example the nature of how these ethnographies are received into modern anthropological thought. Bourgois (2002) has been criticised, just like mevery other ethnographers in the past, for their representation of a particular reality, for Bourgois life in El Barrio. Its rawness and uncensored violence challenge and disgust many that would prefer it remain hidden or rather invisible in academic writing and thought.Bourgois examines how the inner-city avenue tillage developed in reaction to inequalities suffered by people when they interact with the mainstream society of New York. Bourgois proposes that street culture offers an alternative forum for autonomous ain dignity (2002 8). Respect, he goes on to say, is integral to this subculture. The construction of this follow as a social manner of placing oneself in a hierarchy within the community of drug ridden El Barrio is important in term of its making visi ble a social force, that of respect, and how that articulates itself in toll of actions within the community. Even within the community which is viewed as invisible the dynamics of visibility and invisibility exist.Although the street rescue is based on the sale of disassemble cocaine, it is important to note that, substance abuse in the inner city is merely a symptom and a vivid symbol of deeper dynamics of social marginalization and alienation (Bourgois 2002 2). Crack, then, is not an end in itself or the aim of the subculture, but rather a centre it operates around. As Bourgois observes, The crack economy, in fact, sprang from the anticipate for respect people needed an alternative to undesirable minimum-wage jobs, to fit with the street-defined dignity of ref victimisation to work honestly for low wages (Bourgois 2002 130). The residents of El Barrio could not earn respect or feel respected in the inferior positions they would be working in Obedience to the norms of high- rise, office-corridor culture is in direct contradiction to street cultures definitions of personal dignity (Bourgois 2002 115). Dealing crack provides a different visual representation for dignity and respect. Although the majority of eastmost Harlem residents are not involved with drugs in any way, the minority who are sport managed to set the tone for public life (Bourgois 2002 10). therefrom, the crack economy, serves as an important structural force in the culture of East Harlem.The ways of earning respect in East Harlem inner-city street culture vary drastically, even defiantly, from those in mainstream American society. One method of achieving respect is through violence, whereby ceaseless displays of outward violence are essential for protecting against rip-offs by colleagues, customers, and professional holdup artists. Bourgois explains that upward mobility in the underground economy of the street-dealing world requires a arrogant and effective use of violence against ones colleagues, ones neighbours, and, to a certain extent, against oneself. Behaviour that appears irrationally cherry, barbaric, and ultimately self-destructive to the outsider, can be reinterpreted according to the logic of the underground economy as judicious public relations and long-term investment in ones human capital development (2002 24). thus within the context of inner-city street culture violence is a part of the order of society and a legitimate way to earn respect, even though to an outsider violence may reckon like a symptom of chaos. The extremely visible nature of violence when expressed acts as a blusher point of socialisation in El Barrio.In El Barrio Bourgois highlights one aspect of the invisible becoming visible. Violence and violent activity among the invisible community of El Barrios drug underworld makes a very distinct, and ugly, presence felt when gang members quarrel. The public display of violence or fighting is visually noticed by the members of the visible community and is highly problematic. Deaths register on the polices radar and the media, which only manage to reinforce mainstreams societies need to repress or hide the region of El Barrio. Violent incidents, even when they do not physically threaten bystanders, are highly visible and traumatic. For example, during my first thirteen months of residence in El Barrio I witnessed a slew of violent incidents .a deadly shotgun shooting a bombing and a machine-gunning. a shoot-out and a police car chase .fire-bombing of a heroin house.. a half-dozen screaming, clothes-ripping fights. (Bourgois 2002 34)Saris (2002b), brings an Irish context to this visibility/invisibility argument through his example of Cherry Orchard, capital of Ireland 12. Described as an unfashionable Dublin suburb that most people in the capital have never been to (and that many people would never want to visit) (Saris 2002b 14). Saris goes on to say that Irish public policy towards poverty has been spatia lised, feel to address the social exclusion of areas and populations in line with continental, especially French, models. (Saris 2002b 14) When Cherry Orchard intrudes on the Irish national consciousness at all, it is world(a)ly through the reporting of severe problems to be found therein. Perhaps the most spectacular demonstration of this tendency in recent years is the media coverage of the serious troubles in the area around Halloween 1995. At that time, the Gallanstown Housing Estate in Cherry Orchard erupted into a major civil disturbance which was described by the Garda at the time as an organized riot. On Halloween night, several units of the Garda were lured into the area in hot pursuit of joyriders in stolen cars. They were then surrounded and driven off the street by crowds bearing rocks and petrol bombs. The Gardai came back in force and were driven off the streets again. Over the course of several hours, tens of people were injured, two children very seriously, and sl ews of arrests were made. Indeed, the Halloween Riots are still viewed by the authorities as one of the most disturbing incidents of public unrest in the Republic of Ireland within living recollection (Saris 2002b 15).Interestingly the Cherry Orchard community, as a population, have expressed themselves through art, in specific wall murals. A number of local active groups joined together and began to cast around for a way to put the riots behind them (Saris 2002b 15). It was eventually decided that, to symbolize the new birth of the area, the dreary walls in and around the housing estates of Cherry Orchard, which had hitherto been little more than convenient graffiti canvases, were to be repainted by the youth of the area. These walls allow a space for public expression of the community identity. They are also spaces of conflict in that they are used by rival gangs to pass messages, for example, let the games begin (Saris 2002b 14). This is a coded didactics which visualises an o therwise unseen threatening reality. This lends another dimension of how groups of people, in this case gangs, make themselves visible. That is to say they articulate their warfare to the outside world, and indeed make a statement within their own community. A specific gang is now visible in the community. The community can also now by identify by this gang. Hence a small group or gang can control external perception of the entire community as they have expressed themselves and take aim to be visible. They have gone from being hidden and hiding behind the wall to making their presence felt by using the wall as a canvas. Interestingly in response to this invisible community making a visual stance the authorities, in this case Dublin Corporation, repaints the wall rendering these expressions invisible again. This particular example also begs the question as to who exactly controls what is and is not visible. On these same walls a statement fix Hall was killed by the Gardai (Saris 20 02b 16) was placed expressing a perception of a particular gang and using this to incite further violence. Marks mother defaced the wall herself removing the guideword saying that enough is simply enough. Individual actors in the society or community can have influence over their visibility or invisibility.all(a) the measlyer suburbs of the Dublin fringe, Fettercairn, North Clondalkin and Cherry Orchard, including high-rise urban areas like Ballymun, have recently completed, or are currently building Equestrian Centres, under the security of community development. (Saris 2002 171) These horse based projects are undertaken to aid those communities who are perceived as being socially excluded. It is through this representation of these neighbourhoods as visibly poor that they have gained such financial assistance for this project. The importance of horse ownership in these communities historically is quite significant in that they used horses for the transportation of goods, for g eneral transport and for work. The tradition of maintain horses continued, unnoticed by most of the sprawling suburban Dublin. The fact of horse ownership in Dublin was invisible, and would have remained so had that invisible world overlapped with the mainstream visibility of middle class Dublin. Saris details an event whereby a number of horses strayed onto the M50, a busy motorway which is a ring highway for Dublin. The issue of horse ownership in a city travelled from the invisible quarters to the visible and this transition was problematic for the society at large. The relationship between the visible and invisible is a tentative one. When the two overlap both become visible in their sharing. This forces the visible community to deal with the issues presented and for the most part his means returning the invisible to their invisibility. Legislative and police enforcement means were chosen by the middle classes to exercise this control and boxing back into community. These law f ocused deeds were socially exclusive means to deal with the problem whereby those in these poorer areas lacked the social credit to engage with such policies and drawing up of same. Hence the Dail passed legislation which made it all but impossible to have a horse in the city. Thus legislating horses from visible to invisibility.The final work which I wish to examine in terms of visibility is that of Lemanski Spaces of Exclusivity or Connection? Linkages between a Gated Community and its Poorer Neighbour in a Cape township Master Plan Development. Even from this binds title the relational nature of the article is apparent. I propose that the gated community in question is constructed visibly whereas the poorer neighbours are constructed into invisibility. The article deals with an analysis of the relationships between residents of a gated community, Silvertree Estate, and their poorer neighbouring, non-gated, area called Westlake colonization. The attitudes and perceptions that e xist amongst residents of each both communities towards the other neighbourhood are addressed, as well as the nature of any direct contact between residents. The case study for this paper is located in a master plan private development, constructed in 1999 in the tone of Cape Towns wealthy (and predominantly White) southern suburbs. The development hosts two vastly different residential areas that despite spatial proximity are socially and functionally isolated. (Lemanski 2006 397) The development comprises two housing areas Westlake village, a state-assisted low-income housing area providing home-ownership for Black African and Coloured community and also Silvertree Estate, a luxurious security Village with 24-hour surveillance. The development also includes non-residential land use with an exclusive private school (thus attracting high-income families to Silvertree), a business park, office park, retail centre and the US Consulate office.In terms of visibility of persons Westlake village is a prime example Westlake respondents were relatively easy to locate by walking the streets, knocking on doors and gaining referrals by befriending residents (Lemanski 2002 399). This again echoes the before examples of notions visibility depending on perspective. Whereas the Westlake village community is considered by those outside to be unworthy of recognition and hence written into invisibility, within the community itself individual actors are as real as the residents of Silvertree Estate. To refer back to the opening remarks of this essay the most real things in the world are the things we cant see. In subscriber line the residents of Silvertree are more were less willing to pass on their neighbours contact details and security measures ensured that all interviews required a pre-arranged (usually by telephone) appointment thus it was harder to access Silvertree residents (Lemanski 2002 399). The residents of Silvertree are somewhat invisible to each other to within the highly visible community of Silvertree Estate, the walls within walls in which they live are an out-of-door expression of this interrelation-ally distant outlook. The nature of what brings about this difference is striking. Silvertree residents wish to remain independent, up in their ivory towers, and do not interact easily or frequently with their neighbours. The etiquette is one of polite distance, not wishing to pry on the other and a passion to maintain security as a priority. They choose to remain invisible. The notion of access is raised, in that Silvertree residents are difficult to access. This reflects the nature of invisibility itself, it is hard to access that which is hard to perceive.As to the enforced invisibility of the Westlake Village, the structural factor of planning has planned them into physical invisibility thanks to specifically designing the two communities in such a manner that the sight-line from Silvertree Estate does not intersect with any house of the invisible Westlake Village community. In the words of one Westlake resident due to the design of the compound the sight line of residents of Silvertree is such that they cannot directly see Westlake village. They build high walls like Jericho. They dont want to see us (E.T., 11 March 2004).(Lemanski 2006 408) To give an opposing perspective, that of a Silvertree Estate resident speaking about Westlake people As far as were concerned theyre not even there (A.K., 28 April 2004), (Lemanski 2006 409). The social factor of being undesirable, that is to say in this context poor and coloured, has resulted in their being built into invisibility.The relationship between visibility and invisibility is one which functions for the betterment of the visible community. A desire to repress or hide the other is satisfied by this process, its success is evident in the Westlake and Silvertree housing project. While Silvertree has become a sought-after address, with proportion values far exceedi ng original hopes, Westlake village has become the forgotten part of the development and is barely visible even from within the development, let whole from the surrounding roads and neighbourhoods. (Lemanski 2006 406) Lemanski even goes on to say that this invisibility was intended by the original master-plan design, hence hinting that such an apartheid-esque approach is still considered acceptable by both developers and the city town planners. Hence invisibility can be used as a tool to socially construct and control communities.Hence it is evident that finding the truth is a matter of representation, into visibility or invisibility. Social constructs are related by their ways of making visible, or their pointing out ways of obscuring, a fundamental reality, perhaps the defining quality, of our historical moment that of gross inequalities and their systematic reproduction. Whether that be the apartheid which still exists in South Africa through particular planning and the rewardin g of same with success. That is when undesirables are written into invisibility in a particular estate and the whites can exist independently in their visible world they are rewarded by increased property prices. That violence in El Barrio is rewarded with respect.It can therefore be derived that the relationship between visibility and invisibility is complex and centred on power relationships. The nature that if a person, population or space is not or cannot be perceived it cannot be engaged with is key to the usefulness of invisibility for visible communities. So to the desire for invisible communities to stay invisible is demonstrated by Saris (2002) in Cherry Orchard where once their horses ventured into a visible sphere that which the community valued was challenged. The construction of the notion of visibility and invisibility and their relationship is an ever-present dimension in societal action, which feeds directly into or is part therein of social exclusion, in that the ai d they process through which people or groups are prevented from participating.