Food Essay Essay

Food. When people see or hear that word, many of them think of food as something that just keeps us healthy and alive. In my perspective that is true. But there is so much more to it than many people see. It is cultural, a tradition, and can have many different meanings. It can also be seen as edible art and a way to express yourself. To me, it is a way to get away from everything. As a child, I didn’t enjoy eating what my parents wanted me to. I was obsessed with sugary treat and that is almost the only thing I’d enjoy eating. Going to the dentist was always a pain because I was always scared of the dentist which till this day I don’t like going to the dentists. My mother would always think I would have a lot of cavities but to her surprise I never had any cavities as a child. But the bad side was, I would always get stomach aches because of the amounts of sugar I would eat. Even that wouldn’t stop my sweet tooth. As I got older I slowly realized that there are so many other foods that taste amazing! I would begin eating more and more foods that were different. And nowadays I love food! I eat everything that my mother will cook; I am not the same picky child as I was before. I not only love to eat food, but I love to cook as well. I’m definitely not an amazing cook but I still love it and it means a lot to me. Just give me a recipe and the ingredients and I will be fine. Just like anyone my age, I started off cooking small and easy foods. I would begin with cooking eggs, omelets, brownies and pancakes. And I would slowly make more and more types of food. For example I love cooking pasta and making sushi with my mother. It doesn’t seem like very high end kind of foods to make but it does the job well and tastes great and is healthy at the same time. Now that I am an adult, more is more expected from me from both my parents and my boyfriend. All three of them are making me learn to cook more and more because it’s something everyone my age should know how to do. Food is not only great tasting, but also is a stress reliever; a mood changer. Whenever I am feeling down, sad or maybe even bored I can always count on my kitchen because it isn’t going anywhere and is always there when I need it. Especially when I have an anxiety attack and I just want to be alone, I plug in my earphones, turn up my music and eat of course. It really helps me at home and helps me cope with being away from my boyfriend who is stationed on the other side of America and who just got home from Afghanistan. Just something about food that helps me feel better all the time. As a child I remember always watching my mother cooking and all. And just like every other child I always wanted to help because it would make me feel more grown up. So as awesome as my mother is, she would let me help her. Of course she gave me the easiest things to help her with. For example, if she was baking a cake she would let me crack the eggs, put in the butter, use the measuring cup to put in the right amount of flour. And she would even let me mix the batter too sometimes. When my mother would let me do all those things it made me feel so empowered and I felt like a responsible adult. As I got older, cooking had a special place in my heart. She would slowly let me make on my own, with her by my side of course. Making sure I’m doing it right. Till this day I remember always sneaking into the kitchen and steal some batter from the cake she was making and run off giggling. I would also sneak the chocolate she was using. Every time my mother bakes, I always have these memories. The house would always smell so good when she would cook. Food isn’t just plain and simple. It is unique and is almost fragile. While cooking even the smallest change in the recipe can change the taste of the dish dramatically. With spices especially it can change the food because if you put too little it won’t taste good, same if you out too much. You have to put in the perfect amount for it to taste good. Not only is the taste of the food good, but also the smell of the food while cooking is amazing. While cooking the smell of the food cooking just makes you want to eat it a lot more. When it comes to cooking, my mother is my biggest inspiration because no matter what is going on at home, when my mom fixes us some food; it of course doesn’t fix any of the problems but it does lighten the mood and helps us feel a little better. I’ve noticed that many arguments are when people are hungry or have an empty stomach. She absolutely loves cooking and it makes her happy and it’s the same for me as well. As I was younger, I would love to watch cooking shows where they compete over who can cook the best, also I would love watching the shows where they show a lot of cooking gadgets. Those shows always caught my attentions. Watching those shows just amazes me because of the things people can create with food, it’s just breath taking and makes me so happy! As for being Ukrainian and Polish, we h ave many different types of food that we make. In my culture we eat a lot of potatoes. Many people think it’s funny and weird that we eat a lot of potatoes but to me it tastes good and it is very healthy. We also make many different salads. Being Ukrainian and Polish and coming from a fairly large family, we eat a lot so it opens my eyes to many different types of food and makes me interested in trying everything. If I had to describe food in my perspective in the least amount of words I’d have to say that food to me is not just food, it’s a way I live my day to day life and what I create with food is not just to keep me stress free but is also a hobby and a way I keep people I know happy. Food isn’t just something we can just describe as a culture or what goes in our stomachs.

My Philosophy of Nursing Essay

Philosophy is defined as the study of the basic principles and concepts of a particular branch of knowledge; embracing and seeking wisdom through reason and the logical presentation of ideas. This concept, I believe, is to strip an idea down to its fundamental basis or theory, analyzing cause rather than effect, then through investigation and exercise, begin to find understanding. When this concept is applied to an existing practice, all parties benefit from an equal and larger pool of knowledge. As a nurse, I see firsthand how philosophy applies to my profession. How do we define nursing as a practice? After reviewing many journals and textbooks, I found one statement that defines nursing as I see it. Ramona T. Mercer, who is known for her Maternal Role Attainment theory, states that the three major foci for nursing are, â€Å"health promotion and prevention of illness, providing care for those who need professional assistance to achieve their optimal level of health and functionin g, and research to enhance the knowledge base for providing excellent nursing care. † (Alligood, 2009, p.586) I believe that these three applications stem from the following ideals: family values, happiness, sense of accomplishment, honesty, and responsibility. In order to succeed at these applications, there must be a balance between practice and concern. There are three major branches of philosophy, natural philosophy, metaphysical philosophy, and moral philosophy. When speaking of nursing philosophy, it is the moral aspect that comes into play most, driving guiding and defining the practice. This paper will address the theme of the Philosophy of Nursing. I will define nursing as a whole and discuss its primary goals, discuss the aspect of nursing as an art or science, and introduce theory and how it pertains to the philosophy of  nursing. I will then discuss how this philosophy relates to me, how my morals and ethics are shaped by not only knowledge, but belief as well. Primary Goal of Nursing Nursing is a profession steeped in rich values based on the work of Florence Nightingale. This profession has not degraded over time due to the character of the individuals that commit to this career. It is reasonable to think that each of us chose nursing because of some key beliefs or values that we possessed. These values and beliefs ultimately guide us in formulating our own definition of nursing and what we believe to be its primary goal. Friberg (2011) related to this quote from Florence Nightingale (1860) â€Å"put the patient in the best condition for nature to act upon him†. This essence of nursing practice continues to be reflected in contemporary nursing. My personal goal in nursing is to give the greatest care with the best of my ability to a patient and his family. To do this, I make a commitment on my part to keep myself up to date with new technologies, evidence-based research, and new protocols, and, to trust in my moral philosophy and beliefs in order to put t hese tools to best use. Nursing is an Art and a Science Scholars have debated for years over the perception of nursing as an art or a science. Those closer to the field see nursing more as an art form; working through medium, process, and product. Those who look at nursing from the outside, however, tend to view nursing more of a science; practice through systematized knowledge and exercise. For much of the history of nursing, the argument has stemmed from the idea of which practice is most beneficial. First, let’s address nursing as an art. The pioneer’s theorists such as Florence Nightingale are referenced as practicing the art of nursing as it pertains to compassion, feelings, trust, and performing tasks with skills. Each of these ideal is a foundation to the next; without caring the nurse cannot connect with the patient, if the nurse cannot connect, trust will not develop, without this trusting relationship, therapeutic nursing cannot take place. Therefore, caring is at the center of all-successful nursing encounters. In her book Novice to Expert Benner states, â€Å"One way to separate the instrumental and expressive aspects of  nursing is to regulate caring as the art of nursing (Benner, 1984, 170). Also, the art of nursing is the ability to form trusting relationships, perform procedures skillfully, prescribe appropriate treatments, and morally conduct nursing practice (Johnson, 1994). As important as the art is, however, it relies on the science to guide it; as a hand guides a brush to canvass. Now, let’s address nursing as a science. The nurse should have knowledge in biology, chemistry, pathology and current guidelines for pharmacological therapy. This is an ever-changing body on knowledge. Science also encompasses the skill required to perform technical tasks. Benner’s Novice to Expert model explains the science behind skill acquisition. As nurses we are all on a continuum to achieve â€Å"expert† in each of the seven domains of competencies. Science makes up the foundation for current practices exercised in nursing. It shapes and drives this practice through knowledge, understanding and technology. However, the science of nursing can only be applied through the art of the practice; especially in a field where case are seldom similar. I believe that, in order to be a successful nurse, one must be able to provide the â€Å"art† of caring through form, as well as continuing to obtain knowledge, or â€Å"science†, through function. The balance of these two styles is essential to providing optimal treatment; each encourages the other. Roles that Theory plays in my BN Nursing Practice The study of existing theories provides framework and guidelines for the nursing field; and it has since as far back as Florence Nightingale in 1850’s. Each of the many theories, as taught in the Bachelor of Nursing program, has something different to contribute to nursing, depending on which area of health care it is applied to. That is not to say that we, as nurses today, cannot think outside of the boundaries of these theories; technological advancement, scientific breakthroughs, and persistent research are ever-changing the way we understand our practice. Theory should be used as the groundwork of which all other teachings are built upon; by studying the past, we are more prepared for the future. The foundation of nursing theories is based on knowledge which is gained through four ways of knowing: empiric, ethics, esthetics, and personal, according to Carper (1978). By building upon the fundamentals learned from obtaining a nursing diploma, my  undergraduate education in nursing (BN) gives me the additional tools necessary to establish my nursing practice. Through the study of established methods and practical training (empirically and esthetically), I have laid a strong foundation for practice and exercise. Through observation and experience (ethically and personally), I continually expand my critical thinking and improve ability with my newly acquired knowledge. Once these theories are established, we use reasoning to be able to formulate them into research, practice, and philosophies. The three most common methods of reasoning are deductive, inductive, and abductive as stated by Johnson (2010). For most of my nursing career, I have relied on abductive reasoning and intuition, as I have worked in varied intensive care units. Because circumstances vary greatly from patient to patient and case to case, we can never assume an outcome based solely on previous situations. It is in these experiences where common theories are shaped into our personal philosophies. Nursing Practice as it relates to my philosophy? As I research this paper, I reflect back with a fresh perspective on the nursing theorist past and present. Having been a nurse for many years now, I find that my views and beliefs I held at the beginning of my career differ greatly from those I keep today; whereas early on I supposed that nursing was primarily based on assessment and exercise, now I find that personal values and belief are just as important as practice. Teachers and mentors established a base for nursing philosophy; however, my experiences, both good and bad, have helped shaped my own. I have come to understand and relate to Florence Nightingale’s approach to nursing, placing caring at the center of all practice. My philosophy is based on key values that place care of the patient foremost: honesty, trust, empathy, advocating, education, observation, and responsibility. Honesty, trust and empathy are important for me to be able to establish a relationship with the patient. Education and observation are importa nt in be able to provide the best care available; and in worst case scenarios, providing comfort. Advocating is important when the patient is not able to speak for themselves. And finally, we have responsibility. Responsibility drives me to be ever improving and learning so that I can be assured of providing the best possible care. All of which are reliant on the others. Having 22 years of  intensive care experience taught me a great deal about myself. There were situations where I felt extremely vulnerable and ineffective, such as dealing with aggressive or confused patients that basically rendered me emotionally distraught for some time after the events. In that situation, I needed to learn coping mechanisms to deal with the situations or needed the support of my colleagues to trade with me or help me when those times got tough. We all need to support and help each other get through our tough days. Ethical issues are a current component of health care. A sound personal nursing philosophy is required to deal compassionately and comfortably with issues such as medical futility, allocation of resources, withdrawal of treatment, use of restraints, caring for homeless people, etc. This also means that we are consummate advocates for the patient and willing to speak up when we do not feel the environment is as safe as it can be. For me, investigation and development of my own nursing philosophy is a prerequisite for a meaningful life and a fulfilling career in nursing. I believe we should be our patient advocate, especially in the intensive care unit where the patients are very vulnerable, and unable to speak because they are sedated, unconscious, or intubated. I face challenges every day at work to the best care I can give to my patients. On one of those days, I was taking care of an elderly patient who had been hospitalized in the ICU for a prolonged stay and she was on life support. Her condition was not improving and the family was asked to make a decision about withdrawal of treatment, but the family was afraid of the guilt and responsibility for her death. This family needed reassurance that everything had been done to improve the patient‘s conditio n but with no success. I sat down with them to explained what withdrawal of treatment meant. After our discussion, the family understood that by removing the machines, we were allowing natural death to occur. This was the key decision factor because they originally thought they were killing the patient by removing the life support. After our discussion, the family agreed to remove life support and to initiate comfort measure. I believe everyone is entitled to quality of life and when we have exhausted all possible treatment, remove life support while keeping the patient comfortable. Personal experience is a very important influence in developing one’s philosophy of nursing. It adds diversity to known ideals which, in turn, increases the collective knowledge pool and improves  nursing as a whole. But, however great the benefits might be, each philosophy must still adhere to the practice standards of their work place, and the regulations set by their nursing order. I believe my philosophy of nursing clarifies the requirements in knowledge, human values, and technical skills so they can be organized, analyzed and evaluated. Throughout my career, I have constantly been evolving my philosophy. Each case, each patient, each experience, all contributing insight to who I am and what kind of nurse I want to be. Through it all, though, the one nursing theory that I relate to the most and the keystone of my nursing philosophy, is listed by Dr. Moyra Allen (1987) in the McGill model; health, family, collaboration, and learning. At the beginning of my career, I was working at Royal Victoria Hospital which is now part of the McGill University Health Center. I remember using a primary nursing care concept. It is basically continuity of care; same nurses are assigned patients from their admission to their discharge. It gave the nurse an opportunity to participate with the multidiscipline team about the patient’s care, and incorporate the family. I have always believed that that family needs to be incorporated into our care of patients. Too many times, I have seen nurses go in and out of patient’s room without interacting with the family or ignoring them. Families are a big part of the McGill model and in my own nursing practice. Conclusion My philosophy of nursing takes into consideration the elements of nursing practice which are the beneficiaries of care, their family, health/illness, and the society around them. It shapes my life and drives my daily experience as I interact with my family, strangers, my environment, and society around me. As our knowledge increases our philosophy grows; the two becoming tightly woven about one another and becoming ultimately inseparable. It is very difficult to face the demands of caring for people from day to day without the solid foundation of a personal philosophy. We are more effective in anything that we do when we understand ourselves, the way we think, and where our values are in reference to others as well as our personal strengths and limitations. This paper provided a different and valuable perspective for reinterpreting my knowledge on concepts, theories, and philosophy in nursing. It was interesting to document my journey as I  reflected on my philosophy of nursing and my career as an intensive care nurse. Our own values and beliefs must be clarified in order to authentically respond to the health care needs of our patients and to society as a whole. The main reason I chose this profession was because of the endless possibilities that are available to care for people. As an ICU nurse, my duties entails patient and family care, educating and mentoring new and fellow nurses, and assisting with policy and procedures. We need to rid society of the totally false dichotomy that nurses are either highly educated or caring. References Alligood, M. R. & Tomey, A. M. (2009). Nursing Theorists and Their Work (7th Edition). Maryland Heights, MI: Mosby Elsevier. Benner, P. (1984). From novice to expert: excellence and power in clinical nursing practice (2nd edition). Menlo Park, CA: Addison – Wesley. Burkhardt, M. A., Nathaniel, A. K., & Walton, N. A. (2010). Ethics and issues in contemporary nursing (1st Canadian edition). Toronto, ON: Nelson. Darbyshire, P. (1999). Nursing, art and science: Revisiting the Two Cultures International Journal of Nursing Practice. 5: 123–131. Friberg, E. & Creasia, J. L. (2011). Conceptual Foundations: The Bridge to Professional Nursing Practice (5th Edition). St-Louis, MI: Mosby. p. 49. Johnson, J. L. (1994). A Dialectical Examination of Nursing Art. Advance in Nursing Science. 17(1), 1-14. Johnson, B. M. & Webber, P. B. (2010). An Introduction to Theory and Reasoning in Nursing (3rd Edition). Philadelphia, PA: Wolters Kluwer/Lippencott, Williams & Wilkins. Michalis, R. (2 002). Nursing as an art. ICUs and Nursing Web Journal, 9. Tourville, C. & Ingalls, K. (2003). The living tree of nursing theories. Nursing Forum. 38(2), 21-36. Zander, P. E. (2007). Ways of knowing in nursing: The historical evolution of the concept. Journal of Theory Construction and Testing, 11(1), 7-11.

Modern marketing techniques Essay Example | Topics and Well Written Essays - 1250 words

Modern marketing techniques - Essay Example This imply that consumers are driven by some preconceived ideologies about goods or services and this influences the decision making process by the consumers. Attitude would refer to the ideological conception that exist in one’s mind about the product and which greatly influence the buying habits of the consumer. They sought to study the consumer behavior and the green marketing through special focus on gasoline products. By collecting data through surveys and then analyzing them through regression method, the group found supportive evidence that the consumers’ behaviors have greatly influenced the marketing procedures within the context of gasoline products in that most preference is now banked on the environmental friendly gasoline products. This has therefore the implications that majority of suppliers of the energy products such as the gasoline products are driven to market their products in ways that are most appealing in manners of environmental appeal. This expl ains the modern branding mechanisms that are adopted by the firms dealing with these products (Singh et al, 2011, p.101). The character or traits that are exhibited by consumers are what is called the consumer behavior and is revealed while searching for, purchasing, using, disposing and evaluating products as well as services that are useful and through which they gain the utility required. Through these considerations then, consumers are influenced in making decision as well as spending their resources for the satisfaction of need and wants. The information that marketers get from the consumers is thus seen to be very important while directing o n the appropriate marketing procedures as well as practices in order to achieve efficiency within the market. This describes why majority of modern marketing revolves around consumer behavior while carrying out a market analysis, target market selection, market-mix determination as well as the marketing strategies mostly reliable within a certain market segment (Bello, 2008, p.1-4). This therefore explains the various marketing mechanisms that are in use today, and which are determined by the consumer behaviors exhibited. Advertising is one tool of marketing and which describes a mechanism that is employed by marketers to pass across valuable information to the potential customers in a bid to win their attention in purchases. As an avenue for informing, advertising is efficient in customizing the consumers’ behavior through appealing to their emotions as well as through group identity. A study carried to ascertain the relationship between effective advertising and the behavior of consumers in buying revealed that there is actually strong evidence to link the consumers’ behavior to the advertisement activities. An in depth analysis also revealed a strong relationship between emotional appeal as well as the consumer purchasing behavior (Abideen and Saleem, nd, p. 55). This therefore revealed that there is a strong base to ascertain that consumers purchase more the goods or

COMPETITIVE DIALOGUE AND THE NEGOTIATED PROCEDURES Essay

COMPETITIVE DIALOGUE AND THE NEGOTIATED PROCEDURES - Essay Example Such goods may include some IT application gadgets as well as some security and military equipments. In the latter category, the procurer customizes and specifies the characteristics required and the manufacturer produces the goods in the customized traits. This provision entitles the procurer to identifying probable suppliers, who with the specifications of the procurer, manufactures and supplies the required products. This has led to devising of the tendering mechanisms such as the competitive tendering and the negotiated procedures of procurement by both the private as well as the public domain besides the open and the closed tendering procedures. The competitive dialogue involves customized discussions that involves many bidders and, applied in complex procurement procedures. The competitive dialogue method is characterized of two basic stages where the contracting authority starts by advertising the opportunities. Interested participants apply and gives the information through w hich the contracting authority to determine the competitiveness of the applicants for the contracts and thus few of the qualified applicants are shortlisted for the second phase which is the actual competitive dialogue. The dialogue entails thorough discussions with the shortlisted participants and the contracting authority stops to engage when it is assured of proposals that will meet her requirements. After the dialogue, the authority then invites tenders for the contract and the evaluation of the tenders stick to the formula of most economically advantageous. On the other hand, negotiated procedures involve the negotiation of procurement by procurer (contracting authority) and the potential bidders where the most cost effective bidders get the contract award1. The competitive dialogue pass through the two stages as with the prior procedure with the difference notable in that within the negotiated procedures the contracting authority requires proposals from the shortlisted partici pants before engaging in negotiations. In the analysis of procurement through competitive dialogue as well as the negotiation procedures, the most outstanding thing is that both the procurer and the supplier has information that the other has not and is important for the tendering process to be efficient as well as successful. The success of the negotiated as well as the competitive dialogue procurement procedures rest on the ability for the parties involved to use the information at hand convincingly to win the contract award. The two procedures therefore run hand in hand and are thus reviewed together. In the event that competitive dialogue becomes strenuous, then procurer would source for a probable supplier within the market and thus negotiate the procurement procedures. Competitive Dialogue According to the directive 2004-18-ec, the member states have the provision of choosing what kind of contracting that the authorities would be permitted to use either through central purchas ing bodies, auctions by electronic means, dynamic purchasing systems as well as through competitive dialogue procedure2. Competitive dialogue is a mechanism or a procedure through which institutions achieve bidding mechanisms for the purpose of procurement by discussions. It is a provision through which all economic operators are allowed to request to participate in the competitive dialogue leading to assignment of a contract. A newly devised procedure, Competitive dialogue is most applied in public procurement and bidding practices. It was designed to be used in contract procedures, which the open or closed procurement proce

Heart disease in older people Term Paper Example | Topics and Well Written Essays - 500 words

Heart disease in older people - Term Paper Example Heart diseases mostly affect the aged since they have a very weak system. According to Elliot, Aitken & Chaboyer (2006) about 43% of deaths among the aged population in Australia is usually caused by heart diseases. This paper will focus on smoking and obesity as factors causing heart diseases. The paper will focus on diabetes pressure as the heart disease. According to the Diabetes Atlas (2007), diabetes is chronic condition which is result of an individual having too much sugar in their blood system. Diabetes is also associated with a low production of insulin in the blood system. An insight on obesity as a causing factor indicates it as a major cause. Less generation of insulin in the body can be caused by lack of physical exercises. An obese person has fewer activities which lowers the activity levels of the metabolic system (Williams, 2002). An inactive metabolic system generates very low levels of insulin in the body. Reduced insulin levels make it difficult for one to control their blood sugar levels. In the older population, obesity makes it difficult for them to recover from diabetes. As a factor causing heart diseases high cholesterol levels are the main factors. Obesity in older people is accompanied by greater levels of cholesterol. High cholesterol causes hardening of arteries. This in turn leads to blood clots in the arteries and sudden heart attacks. In Australia the causes of heart attacks and obesity caused by high cholesterol is at 23% annually (Mitchell & Zwaan, 2007)). From the percentage 19% of the diagnosed individuals are above the age of 25. In Australia, smoking is the leading cause of heart diseases in older people. From the heart diseases, diabetes is one of the major diseases diagnosed. Apart from nicotine cigarettes contain other chemicals which have harmful effects to the heart. The chemicals heart the rhythm of the heart, cholesterol levels in the heart and the blood pressure. In older people the effects

Seminar on Marketing Personal Statement Example | Topics and Well Written Essays - 500 words

Seminar on Marketing - Personal Statement Example Again, the key is on strategic planning and execution of the plan. Marketers should be able to draw a specific image of their products or service offerings and be able to implement them efficiently. For a typical customer like me, it never occurred to me that marketers are designing each touch point in order to create the brand image that they desire. Yes, I have had spent countless hours chatting and socializing with colleagues at Starbucks but never really understood how the specialty coffee retailer orchestrate everything in order for me to enjoy my stay and differentiate itself from another coffee house like Dunkin Donuts. Through the concepts and tools I have learned in class, I am now able to grasp while Starbucks invest in "green coffee beans," why the place really looks laid back, why they don't offer quick meals, and most importantly why their products are priced at least $3 while I can get coffee from McDonalds are less than 50 cents. Marketing has opened a new road to discovery and understanding for a consumer like me. I hope to utilize everything that I have learned from the seminar discussions in my future career.

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

Nationalism - Essay Example In fuelling their war efforts, the spirit of nationalism played a huge role on both opposing sides during the Second World War. Both the Allied forces and the Axis factions made use of nationalistic sentiments to bolster their military capacities and political resilience during the wartime period. Most of the Allied nations used nationalism to simply stir its citizens to defend their homeland and aid in their war efforts. However, the Allied nation of the Soviet Union, and the Axis nations of Germany, Japan and Italy, used nationalism more than just to keep their military forces driven. The nationalistic sentiments of these nations reached to the point of either political or racial hatred for those not among them. The Russians, Germans, Japanese and Italians used nationalistic propaganda to bolster their forces for absolute annihilation of their enemies in the most ruthless manner. Nationalism was also used to by these countries to further justify their authoritarian rule as to keep its people unified by a strong central power or leadership. The British and Americans used nationalism to keep their resilience from the horrors of war. However, they kept their democratic system despite the ongoing war to keep the flames of nationalism

Data Analysis Assignment Example | Topics and Well Written Essays - 1000 words

Data Analysis - Assignment Example However, this region is poorer than other parts of U.S. This can be seen from the economic characteristics of the population. The average family income in this region is $36,299, whereas in the other parts of the U.S, the average income is $50,046. This again reiterates the point that this region is poorer than other U.S regions and luxuries won’t do well in this region. The products that should be developed for this region should be necessities like food, basic clothing and other necessary household items. Another piece of statistic that shows that luxuries cannot prevail in this region is the fact that almost 25% families are living below poverty lines in the region. The total U.S average below poverty lines is only 9%. This shows that designer goods and luxuries won’t do well in this region. However, this region is at par in terms of education with 24% of the people having bachelor’s degree, which is equal to the U.S national average. In short, this market can be served well if the goods produced for this region are cheap and are less costly. The median age is about the same in Chicago and the U.S. This shows that same products can be offered to this region as being offered in the rest of U.S. The median of Chicago 34.1 years, whereas in 35.3 years. This shows the population pattern is more of less very same, and the products that are offered in the entire U.S region can be offered to the region 60616. In Chicago around 79% of the population is above18, whereas the figure reduces to 75% in the entire U.S.A. This can be used by marketing experts when devising the adverts for their product. They should keep in mind to make adverts which are factual because the majority of the population is mature. Here, the information should not be incorrect, because then a lot of people will not buy the firm’s product. Overall, the chunk of population above 18 is quite similar, but in Chicago the share is higher and as a result advertisers should take into

How will professional organizations play a role in your professional Assignment - 1

How will professional organizations play a role in your professional life - Assignment Example More powerful processors are used in the mobile phones, cameras to process the various types of signals, playing of multimedia. We think that fridges, gas cooker, iron, etc. devices will have much developed microprocessor to process various tasks. People’s desire to make all processes automatically done, force people to use various processors-integrated devices, for instance, processor in the microwave can decide how to heat products, and in the future processors will automatically cook dishes, almost without the people’s intervention. We should underline that professional organizations assist their members in finding their jobs, or offer them job listings and they help members to find their job. And I think that in my professional life it will be the start of my career. We know that after the study process we do not have enough experience to present good job and professional organization can help with mentoring.. And it can be considered as the cornerstone of our professional life, as professional organization can give the worker ability to gain experience from other much experienced workers from the same field. Professional organization can also offer professional development through the courses, publications, workshops, and they can have some special information available only for website members (Anderson, 2012). They can send necessary information to the worker to know new industry trends, and will help in dealing with them. We can also underline special annual conferences aimed on the networking. This is a good opportunity to mix with others workers who for long time work in field. Moreover, such conferences can be a job fair, where one can make contacts with the future boss (Anderson, 2012). Anderson, L. (n.d.). 5 Reasons Professional Organizations are Worth Joining. Retrieved February 23, 2015, from

Groups in High School Essay Example | Topics and Well Written Essays - 750 words

Groups in High School - Essay Example The gentlemen ask questions but only when necessary. They ask questions solely to clarify their concept. Whether or not the class pays attention to their question does not matter to them. All they want is clear concept from the teacher. They don’t tend to become prominent through speaking in the class or acting in the ways that are expected of the capable children. They are quite likely to be seen in spectacles. Most of them lose their eye-sight as a consequence of their obsession with studies. The gentlemen assume a higher status amongst the class fellows. They are idealized by the regulars and envied by the back benchers. The Regulars The regulars are seated in between the gentlemen and the back benchers. They make a bulk of the class and are the main source of income for the schools. They are the question raisers. They raise questions not because they are quite as interested in the lecture, but because they want to make their presence felt. Quite often, the regulars establi sh a gentleman as a benchmark and commit to themselves that they would beat that particular gentleman in the upcoming exam. Sometimes, the regular works hard enough to achieve this goal and thus, be promoted from the status of a regular to a gentleman. The regulars are generally quite vocal about their ambitions and challenges. If one regular establishes a gentleman as a benchmark, his friends would most likely know it. The regulars are all-rounders. They are not bad at studies but also not very good either. They have a wide array of topics to discuss with their friends on everyday basis. They are the first to know which movie is expected to release when and how much business would it do. They know what is going on in the national and international political scenario. In other words, their attention is diverted to so many areas at the same time that they are not able to do as good in studies as they are capable of doing. In a vast majority of cases, the regulars are more brilliant t han the gentleman, but they cannot help paying attention to activities other than studies. If they focus entirely upon their studies, they can do much better than most gentlemen. Many regulars are in this community because of their laziness. If they overcome their laziness, they are quite capable of becoming the gentlemen. The Back Benchers The back benchers are just as many as the gentlemen in the class. They occupy the rear-most seats in the class and are least enthusiastic about studies. They come to class just for the attendance. They bunk the classes yet make sure that they attend the classes just enough to have their case forwarded to the board for enrollment in the exam. The back benchers come into the classroom with earphones plugged in. They listen to the songs on MP3 while the lecture is on. Some of them sleep with their heads down on the table. They are artists. Most of them sleep in a way that you cannot catch them from a distance. They hold the book high in the hands to hide the face behind that. Somebody from a distance can take a back bencher for a gentleman. They are mostly found in the cafeteria with a cup of tea in one hand and a cigarette in the other. Their most favorite topic of discussion is girls. One back bencher consults the other for ways to make friends with girls. They discuss how they spent the weekend and the plans for the upcoming weekend. The back benchers

Pharaonic Civilization Essay Example for Free

Pharaonic Civilization Essay Pharaonic Civilization Civilization of the ancient Egyptians is the civilization that Egypt lived under the pharaohs with 30 different families. The pharaohs began ruling Egypt in 3000 B. C. , they considered themselves to be living gods who ruled with absolute power (Pharaohs, 2010). The ancient Egyptian excelled in building. They built pyramids as testimony of their greatness. Also, they left a significant cultural momentum in science, art of embalming and symbols for gods and goddesses they believed in. The Egyptian Pyramids  The pharaohs believed that death on the earth was just the start of a journey to the next world, and all the evidence referred to that the pharaohs worked in their life preparing for the afterlife. As so, they built the pyramids to be their tombs, to keep their jewelries and their bodies to take it with them to the other life. Booth (2010) stated that it was believed that if the discarded body were preserved, it would remain a focus for the spirit that had left it, exerting an attraction that pulled it down to earth (para. 1). Pyramids of El-Giza  There are many pyramids have found in Egypt, but the most famous three are those which found in El-Giza, couple hundred meters south from Cairo. The three pyramids are Khufu, Khafre and Menkaure. Khufu pyramid also known as the Great Pyramid is considered as the tallest pyramids and the oldest wonder of the Seven Wonders of the World. The Great Pyramid needs more than 10. 000 laborers working in three-month shifts took around 30 years to build the pyramid (Egyption Antiquities Organization, 2001). All the three pyramids of El-Giza contain corridors led to the chambers inside each one. For example, according to Romer (2007), There are three known chambers inside the Great Pyramid. The lowest chamber is cut into the bedrock upon which the pyramid was built and was unfinished. The Queens Chamber, Kings Chamber are higher up within the pyramid structure. Not only the magnitude of the pyramids which make it famous and great, but also the archaeologists have found many mysterious about the pyramids. For instance, the sides of all three of the Giza pyramids were astronomically oriented to the north-south and east-west with no any small fraction of degree. In addition, they found that the pyramid of Menkaure contains a small hole in one side of the pyramid does not exceed 20 cm in diameter. The secret of this hole is that the sunlight enters through that hole only one day a year to the tomb of the pharaoh completely, the odd thing is this day is the Pharaohs birthday, according to Kamal (2000). The Sphinx The largest and most famous sphinx is the Great Sphinx of El-Giza. The sphinx is located in the north and below the pyramids. The ancient Egyptians believed that lions are symbolism for power. So, the king Khafre symbolized himself in a lion body with his head. Also, some researchers said that he considered himself as the guard of the pyramids. Mummification Preservation of human bodies after death is usually known by two expressions, Embalming and Mummification. Undoubtedly, mummification is the most distinctive technique or art which developed in Ancient Egypt. As I said at first, the pharaohs believed that keeping their bodies will help the spirit to find its body when its the time to join the afterlife journey. Mummification Process  According to Alchin (2012), the embalmers used a range of tools during the mummification process (some of which were left inside the mummies). The embalmers tools included bronze hooks, knives, tweezers, needles and awls (a small point tool used for making holes) for opening, emptying and closing up the corpse. The mummification process which included the removal of organs were conducted on a special slightly slanted table which allowed the blood and bodily fluids to drain into a built in basin. The removal organs was placed in 4 jars as follow: * The container with the human head protect the liver. The container with the Baboon(kind of Monkeys) head protect the lungs. * The container with the falcon head protect the intestine. * The container with the fox head protect the stomach. The embalming processes were accompanied by rituals stand for more than two months. Specifically, the process lasted for a period of 70 days divided into 15 days spent on cleansing and purification, 40 days drying period, and 15 days wrapping, bandaging and paintings. Then, the wrapped body was put in more than one coffin. Sometimes, up to five coffins, and the last one must have the buried pharaohs face.

The Wetherspoons company in UK

The Wetherspoons company in UK JD Wetherspoon PLC is a UK based company involved in the development and management of public houses in the UK (REUTERS). The company is listed on the London Stock Exchange and operates its business through 793 pubs all over the UK (WETHERSPOON). It provides food and a variety of alcoholic and non alcoholic drinks to its customers at competitive prices. Wetherspoon is known for its cheap drinks and food promotions. It also focuses heavily on its breakfast and coffee menus. In addition to traditional pubs, the company also operates newer styled bars providing a more vibrant and contemporary atmosphere under the Lloyds No 1 brand name. It also operates a relatively new hotel chain consisting of 16 hotels. Wetherspoon was founded by Tim Martin in 1979 with the first pub in London. In its early days, the company grew by opening pubs in unusual former retail locations. Over the 80s the company differentiated itself from other pubs by ridding itself of music, television and games and thus created a unique identity. In 1992 it was listed on the London Stock Exchange as a UK wide chain of around 40 pubs. Going public, provided wetherspoon with the required funding to expand and within the next four years the number of pubs in the chain quadrupled to 160. In the late 90s, the company diversified into the lodging business which still represents a very small proportion of their revenues. Over the past ten years wetherspoon has continued to expand and has successfully established a reputable network of pubs throughout the U.K. This report focuses on critically analysing JD wetherspoons strategic, financial and stock market performance over the past five years in comparison with its competitors and the industry as a whole. In conclusion the report will attempt to make recommendations to a potential investor regarding potential in the company. Strategic Analysis Pubs lie at the heart of British life and culture. Going to pubs has been one of the primary sources of entertainment in the country. According to the Social Issues Research Center (SIRC), an Oxford based not for profit social research organisation, over 75% of the adult British Population goes to pubs and over a third are regulars who go to pubs at least once a week (SIRC). This represents an industry with a customer base of roughly 37 million people. Broad business environment The broad business environment in the UK has changed drastically over the last decade. There have been about 300 pieces of government regulation in the public house sector along with tax increases, smoking ban, and changes in consumer lifestyles and attitudes towards going out and drinking. Pubs have needed to change with the times in order to retain their margins and remain profitable. Those successful have adopted an active strategy of evolving their business with the changing times. A detailed PESTEL analysis has been conducted to analyse the broad business environment and its effects on the Pub industry. Please see Appendix A for the full analysis. The most significant factors responsible for shaping the business environment in the pub industry have been discussed below. Political Factors The UK pub industry has been highly regulated over the past few years. On the other hand, alcohol duty is rapidly increasing and is many times more than in other European nations. This coupled with the rising VAT and increased government activism against binge drinking and alcohol abuse has made it difficult for the pub operators to operate and maintain their margins. Economic Factors The Global economic crisis has led to consumer spending cuts, thereby leading to a decline in pub sales. Moreover rising national minimum wage and aggressive price competition with supermarkets are narrowing pubs margins and leading to reduced profits. However government intention to ban sale of below cost alcohol might come as a slight respite to the pub industry. Social Factors The rising national concern over Britains alcohol habits, have manifested itself in a number of ways. People are beginning to fully understand the problem and the government is taking steps to curb binge drinking and alcohol abuse. The UK drinks industry has launched a huge campaign to address this concern and to make people more aware about the problems associated with irresponsible drinking. Technological Factors The advent of technology has changed societys idea of entertainment, shifting it more inside the confines of the household. This has led to declining public interest in pubs. Pub operators have also increased their investment in technology considerably, in order to enhance the pub experience. These include among others, investments in television systems for sports, electronic point of sale systems and refrigeration systems to store alcohol at precise temperatures. Environmental Factors Pub retailers are becoming environmentally conscious and have taken steps to recycle most of the waste products particularly food, in order to reduce the amount of waste going to landfill sites. This is a great opportunity for pubs to portray themselves as socially responsible. Legal Factors The Licensing law allowed licensed pubs to potentially open 24 hours a day. This has been a huge opportunity for the pub industry and has increased competition. The law is currently under scrutiny by the government. Any changes to it might have a major impact on the industry. The drink driving laws over the past few years have also been made stringent. This has resulted in consumers avoiding driving to pubs and preferring to drink at home in order to avoid committing a drink driving offence. The above factors have had a very profound impact on all the major pub operators. They have responded to the environment and adjusted their strategy in order to succeed in these conditions. There has been a strategic focus on innovation in the pub industry through food development, skills training, interior enhancement etc. With growth in alternative forms of entertainment, socio-political pressures on pub operator margins, and tough economic climate, most of the market players are looking to diversify into the relatively less volatile and high margin businesses. Industry analysis With over 50,000 pubs catering to over 35 million customers, the pub sector represents a highly fragmented industry. The industry consists of a few big players with a chain of pubs throughout the UK. The six biggest pub chains own only about 42% of the total number of pubs. The biggest players in the industry by turnover, along with their main brands and number of outlets are as follows. Source : Mintel Pub Catering UK September 2010 While wetherspoon operates only managed pubs at city centre locations in major towns and cities throughout the UK (MINTEL, 2010), the business models for some of the other major players in the industry are very different and diverse. Punch Taverns operated both leased and managed pubs. Although a major proportion of their business comprises of leased pubs, they still have over 800 managed pubs in the UK. Enterprise Inns on the other hand only operates leased and tenanted pubs. Greene King has a much more segmented business model wherein its operations are divided into over 2400 managed, leased tenanted pubs and restaurants, two breweries, and a number of wholesale depots. Marstons has a similar mix of activities with over 2100 managed and tenanted pubs and bars, five breweries and wholesale facilities. Mitchells and Butlers (MB) operates managed pubs and pub restaurants mainly in the UK, but also has a small number of pub restaurants (43) in Germany. A very small proportion of their total estate consists of leased and franchised sites. They are the largest operator of managed pubs with over 1800 managed pubs in the UK. Competition for the smaller 58% of the pubs is largely limited to players in the local market. For example an individual pub in Leeds only competed with other individual pubs in Leeds. In order to analyse the pub industry in detail a full analysis has been conducted based on Porters five forces framework (Appendix B). The major outcomes of the analysis are as follows Threat of Entry Starting up a pub is reasonably easy process due to an undifferentiated market, and fairly low set up costs. Obtaining the individual pub license is fairly straightforward. Besides easy access to supply channels and low cost capital, have led to a significant threat of entry. However, a large scale of operations, popular brand identity, experience in the industry and established distribution channels are essential to operate competitively in the industry. Moreover increased government legislation and extraordinary levels of taxation in the sector have made it unattractive to new entrants, thus restricting the threat of entry to some extent. Threat of Substitutes Supermarkets, restaurants, hotels and off licensing shops represent a group of substitutes to public houses. Supermarkets in particular enjoy huge economies of scale and are in a position to undercut pub-prices. The perceived performance to price ratio to the consumer defines their choice between pubs and their substitutes. Although supermarkets cannot replicate the value added services provided by pubs, with the global financial crisis affecting disposable incomes, consumers have become highly price sensitive, thus increasing the threat of substitutes to a moderately high level. Bargaining power of buyers Buyers bargaining power has traditionally been moderately high due to low switching costs and easy availability alternatives. Recent trends categorised by declining alcohol consumption, low consumer disposable incomes, consumer preferences of drinking at home have further increased buyers power. Bargaining powers of suppliers The bargaining power of suppliers is quite high as the industry due to the dominance of a concentrated group of suppliers. A number of suppliers own powerful brands and hence pubs have to buy from them in order to satisfy consumer demands. Moreover, supply agreements such as tied house contracts give the suppliers an upper hand. The high power suppliers mean that pub operators, who have their own breweries and wholesale depots, have an obvious advantage. Competitive Rivalry The industry has traditionally been a growth industry with most major players looking to expand and open more pubs. However, pub margins have declined over the years and large volumes have become increasingly critical for pub companies to survive. The threat of competition from supermarkets has also become significant and combined with moderately high threat of entry, and strong bargaining power of customers, has led to increasing levels of competitive rivalry. The industry is categorised by low levels of product differentiation and aggressive price wars between competitors. The declining alcohol consumption, sluggish market growth, high taxes and pub closure rates have resulted in aggressive competition for retaining revenues. The pub industry is in a state of consolidation. The business environment has been tough and falling margins has made it difficult for pubs to meet their costs. With pub closure rates having reached record levels in 2009; all the major pub chains are in the process of reviewing and reorganising their business in order to adapt to the changing conditions. Wetherspoons Strategy Wetherspoon has adhered to simple principles of cleanliness, cheap drinks and good value food. With no music, wetherspoon pubs are seen as places where people can interact with friends over a round of drinks or food. The principle strategy that separates wetherspoon from most of its competitors is its focus on the consumer. Whilst a number of competitors lease their pubs out and are therefore less concerned about the ultimate consumer, wetherspoon makes constant efforts to innovate and enhance the consumer experience. This has given them the competitive edge over their competitors and hence they have chosen to stick to the 100% managed pubs business model. Wetherspoon has traditionally been quick to foresee impending changes in the business environment and strategise in order to adapt. They have stuck to their low price high revenue pricing strategy. Their efforts to provide products at the lowest price possible has been considerable success in recent times as customers have become highly price sensitive and are looking for value for money. They expect their promotions to remain a key driver to high revenues. Wetherspoon is aiming at rapid organic and inorganic growth by opening up new pubs and developing and refurbishing the existing ones. The economic downturn has provided it with the perfect opportunity to expand given low property prices and continued profitability of their pubs. Wetherspoon plans to open 250 new pubs in the period 2009 2014 (RICHARD WACHMAN, 2009). Their expansion strategy involves taking over underperforming bargain pubs and turning them around to profitability. The company rents most its pubs as opposed to buying them in a bid to keep its debt levels low. This has approach has enabled them to reach a position where they have considerable amounts of money to invest whilst their competitors are finding it very difficult to service their rising debts. Wetherspoon is focussing on developing their high margin food and coffee business. Wetherspoon started opening their pubs at 7A.M. to capitalise on early morning coffee and breakfast demand. This has also led to increase in overhead costs but having been rewarded with a 40% increase in coffee and breakfast sales, wetherspoon will continue to focus on the diversified product mix to stabilise and improve their overall margins. The company have invested significantly towards improving their service and standards. They have focussed on personnel and training and are making efforts to enhance customer experience in order to further boost the value provided for the money they charge their customers. Their strategy involves a number of efforts to portray themselves as a responsible business by taking on ethical business practices such as proper implementation of Challenge 21, conserving resources, recycling waste and reducing energy consumption. Wetherspoons chairman, Tim Martin owns around 23% of the company. This helps to reduce agency costs as the objectives of owners and management are likely to be more closely aligned. His 31 year long experience in the industry gives wetherspoon a strategic advantage over its competitors. The companys CEO John Hutson, has also been with the company for more than 20 years. There have been a few problems with the companys management in the past, most significantly the technical breach of the Companies Act 2006 in 2008, when the company failed to file the interim accounts with the registrar of companies prior to paying the 2007 final dividend and repurchasing its shares from the market (JD WETHERSPOON, 2008). Such incidents lead to financial and reputational losses and dent the public image of the firm. More recently, the unexpected resignations of the companys finance director Keith Down and its cheif operating officer Paul Harbottle have raised concerns about the managerial longevity of its board of directors. Financial Statement Analysis This section will analyse wetherspoons financial performance over the past five years as compared to its competitors and the industry in general. Of the competitors identified in the above section, Mitchells Butlers and Punch Taverns have a more similar business model to wetherspoon and hence their performance has extensively been used as a benchmark in this section. Year 2009-10 2008-09 2007-08 2006-07 2005-06 Revenues (Â £million) 996.33 955.12 907.50 888.47 847.52 Table: Wetherspoons revenues for the past five years Turnover and Profitability Wetherspoon has experienced consistent growth in revenues over the past decade. Rebasing the revenue at the 2006 levels, wetherspoon seem to have outperformed most of the competition in terms of revenue. Although its revenue growth is one of the highest in the industry, it is still far behind Mitchells Butlers and Punch Taverns in absolute sales numbers. A significant proportion of Wetherspoons revenue comes from its new pubs. Over the past few years absolute revenues from new pubs has remarkably increased with wetherspoon opening more pubs year by year. In 2010, an extraordinary 97.68% of the growth in revenues was attributable to revenues from new pubs while like for like sales only accounted for 2.38% of the revenue growth. This is up from new pubs contributing 77.13% of revenue growth in 2009 and 57% in 2006. This indicates saturation in the revenue capacity of the already established pubs and exemplifies the importance of wetherspoons growth strategy to its revenues. Wetherspoons cost of sales (COS) is the highest amidst the competitors. Over the past five years, the wetherspoons average COS has been over 80% of revenue. This combined with other operating costs leads to an average operating profit of just under 10%. This is considerably low, compared to its competitors specially Enterprise Inns which has an average operating profit of over 55% in the 5 year period. The big difference in operating profit is to a large extent representative of the differences in business models of these companies. As JD Wetherspoon operates managed pubs only, the cost of retail sales is significant. On the other hand, the revenues of some of the competitors like Enterprise Inns, Marstons and Greene King are composed of the less costly rent, lease receipts and proceeds from the wholesale sales from their breweries and other alcohol manufacturing facilities. Since wetherspoons activities are more direct cost intensive, the higher cost of sales is understandable. A unique factor which distinguishes wetherspoon from its competitors is the low and stable debt interest levels. Wetherspoons interest expenses on debt were lower by over 210 million as compared to Punch Taverns for the financial year 2009-10. Besides lower levels of total debt, a low effective weighted average rate of interest on debt has contributed to the smaller interest charge. While wetherspoon are able to borrow at an average of 5.47%, the weighted average interest on debt for Punch Taverns in 6.8% on secured loan notes and 6.5% on finance leases. This is either due to relatively good swap management of interest rate, a safer credit profile, or lower principle amount and maturity period of the loans. This gives wetherspoon a big competitive advantage and enables them to retain a sizeable proportion of their operating profit as Net profit. Excluding the interest charge, Punch Taverns net profit would have been higher than that of wetherspoon. This illustrates the real impact of interest on debt on the relative profitability of these firms. Wetherspoons exceptional items solely comprised of impairment of property and fixed assets and amounted to 10.6 million this year. This represents a steep reduction of 47% from last years figure of 19.9 million and is primarily attributed to no litigation costs and property related write downs. Wetherspoons net profit has been very consistent over the past few years as opposed to its competitors. The tough global economic climate and the hostile business environment in the pub sector have led to a sizeable decline in profits for both Punch Taverns and Mitchell and Butlers. On the other hand wetherspoons consistent growth in revenue combined with low relative impairment losses and interest on debt has enabled it to maintain a profit of 40.78 million in 2010. This is a 61% rise from its profits in 2009. This compared with losses of 84 million and 159.90 million from Mitchells Butlers and Punch Taverns, reflects an overall superior performance by wetherspoon in terms of profitability. As per the chart above, wetherspoons return on assets and return on capital invested are immensely higher than both of its competitors. The two ratios rose 37.42% and 48.78% respectively from their 2009 levels. These jumps are primarily because of the 61% jump in earnings and represents excellent management of resources by the companys management. Wetherspoon rents a majority of its pubs and hence has a low level of noncurrent assets. This is the primary reason for the high asset turnover and return on assets. Wetherspoons revenues are 1.12 times of their total assets as opposed to Punch Taverns 0.22. This astoundingly high ratio represents wetherspoons highly competitive pricing strategy and its low margin, high volume operations. Wetherspoons ability to extract over 3-4 times more revenue than its competitors, gives it a clear competitive edge. Liquidity A majority of the assets in pub businesses tend to be non-current and hence the short term liquidity ratios tend to be lower. Moreover since the current assets in managed and operated pubs are mostly cash and other very liquid items, slightly lower current ratios are not deemed to be very risky. Wetherspoons current ratio of 0.37 is amongst the lowest in the industry. This has been fairly stable over the past five years with a standard deviation of a mere 0.064. Mitchell and Butlers and Punch Taverns have much higher current ratio of 0.64 and 1.27 respectively. Similarly, Wetherspoons quick ratio of 0.18 is nearly a fifth of Punch Taverns ratio. Wetherspoons current and quick ratios are both the lowest and the most stable in the industry with standard deviations of 0.064 and 0.036 respectively. The incredible stability of the ratio indicates a strategic approach to business operations. Very low liquidity ratios generally mean trouble for businesses, as they are indicators of inability to honour short term obligations. Theoretically, if all the current liabilities need to be paid off, wetherspoon will not have to resort to selling its fixed assets in order to arrange for the payment. However, cash payments from its customers along with favourable and stable credit terms with suppliers ensure that wetherspoon are able to manage will low current and quick ratios. They attempt to keep the current ratio at a reasonably low level in order to extracts maximum value from their current assets. Nevertheless, a current ratio of 0.37 is too low compared to the competitors and hence liquidity issues are more likely. Punch Taverns liquidity ratios are a lot higher primarily due to a high amount of receivables mainly caused by its leased and rented pub business. In those businesses, punch taverns tenants are likely to have a payment period within which they can settle the rent/lease payments. This leads to a significant amount of trade receivables. On the other hand almost all of wetherspoons revenues are retail cash revenues and hence the receivables are either due to prepayments or accrued income Wetherspoons receivables are only about 10 of Punch Taverns which it converts into cash within 1.64 days. This is many times lower than its competitors. Moreover inventories held days is a mere 8.5 days representing a quick and highly efficient cash cycle. Gearing Wetherspoons business model of operating with low level of debt is quite unique in the pub industry. The company enjoys the lowest level of long term debt amidst its competitors. Wetherspoons long term debt of 411.64 million is just 8.6% of that of Punch Taverns. MB and Punch Taverns on the other hand have debts of over 2 billion pounds. A low level of debt despite an active growth strategy and a consistent rise in its plant property and equipment (PPE) is a rare phenomenon. Wetherspoons managed to make this happen by renting quite a few of its pubs and managing debt efficiently. The extraordinarily low levels of debt at wetherspoon are matched by an almost equally low relative level of common equity. As a result wetherspoons Debt equity ratio is not as different from its competitors. Wetherspoons total debts are 2.56 times its equity as compared to 2.89 for Mitchells Butlers and 2.42 for Punch Taverns. The ratio used to be 1.83 in 2006, before the company initiated massive share repurchase programme which was largely financed by additional debt. As per the above table, their Total Debt to Earnings before interest and tax ratio has been the lowest in the industry. Over the years, as other companies have taken more debt relative to their earnings, wetherspoon has continued to utilise its debt with the same efficiency in order to generate earnings. Dividends Wetherspoons dividend payout ratio is incredibly high for a company which is in the growth stage of its lifecycle. In 2010 wetherspoon paid 64.19% of its net income as dividends. This represents a 292% jump from the 2006 dividend payout and is the highest in the industry. While Mitchells Butlers and Punch Taverns havent paid dividends in the past two years, wetherspoon has continued to pay dividends at an average of about 39% of their net profit in the past 5 years. Wetherspoon declared a yearlong dividend freeze in during the financial year 2008-09 in order to direct its cash flows towards debt reduction. The freeze was ended in March 2010 once the new 530 million banking facility was renegotiated. Now with the financing issues sorted, a progressive dividend policy can be expected from wetherspoons management as a measure to signal a bullish future outlook. Cash Flow Analysis In 2009, the pub industry experienced a sharp decline in cash flow as most of the players make efforts to deleverage themselves post the credit crunch. Wetherspoons went from being a cash generator of 7.15 million in 2007 to a cash sink of 2.6 million in 2008. The financing outflows jumped threefolds mainly due to dividend payments of 17.38 million and repurchases of one million shares from the market. The net cash flow continued to be negative in 2009 primarily due to the repayment of long term debts to the tune of around 45 million pounds. Since then the cash position of the company has recovered and the company was a cash generator of 2.48 million in 2010. Wetherspoons has a positive growth in cash inflow from operating activities, but the overall level of operating inflow is low. While Punch Taverns operating inflows are declining due to dwindling revenue and profits, Mitchells and Butlers in contrast, enjoy a much better cash flow from operating activities and hence has access to a bigger pool of funds for its investing and financing activities. Wetherspoons growth policy has led to increased cash outflows from investing activities by over twice the amount in 2006. On the contrary Mitchells Butlers has decreased their cash outflows in investing activities. This is due to their strategic sale of a number of pubs in order to concentrate on the high margin food business. Wetherspoons repayment of the USD 140 million private placement was accompanied by a further advancedment of 96.68 million pounds of long term loans. As a result the cash outflow from financing activities decreased significantly from last year. The total cash flow position would have been much worse, if the company hadnt put a freeze on dividends in 2009. Wetherspoons decision to not declare a final dividend for the financial year 2008-2009 ensured prevented a further cash deficit, given the high levels of capital expenditure in 2009. Accounting policies and Problems in Comparison Given the immaterial size of the companies hotel business, and no international operations, wetherspoon doesnt split its results by business or geographical segments in accordance with the IAS 14. Wetherspoon follows a historic cost model and does not revalue its non current assets. Punch Taverns follow the same method, however Mitchells and Butlers actively revalue its assets. This can lead to distortions in actual value of non current assets and makes them uncomparable. For example Wetherspoon unlike Mitchells Butlers ignores the effect of inflation on the value of its assets. While wetherspoon depreciates fixtures and fittings over a time period of 3-10 years, Mitchells and Butlers do it over a period of 3-20 years. This can further make the asset values uncomparable. Stock Market Analysis The FTSE 350 index seems to be very highly correlated to the FTSE 350 Travel and Leisure index. Prior to the subprime crisis, the travel and leisure index seems to be doing marginally better, while post crisis, the FTSE 350 has slightly outperformed the FTSE 350 travel and leisure index. JD Wetherspoon has outperformed both the indices almost all the time during the last 5 years except for a brief period in 2008 because of the immediate effect of the economic crisis. As per the above graph, JD wetherspoon has consistently outperformed Punch Taverns throughout the past five years. It has also better than Mitchells Butlers since the middle of 2008. This is primarily due to relatively higher revenues and profits at wetherspoon. Wetherspoons expansion strategy has enhanced its future outlook and given a boost to the companys share price. January 06 March 07 The period from Jan 2006 until the beginning of 2007 saw a very sharp increase in wetherspoons share price. While the travel and leisure index only rose up by around 25%, wetherspoon rose by a phenomenal 120%. The football world cup kick-started the 8 month long rally in the travel leisure index. Wetherspoon took advantage of the opportunity by abandoning its no television policy and showing the matches in its pubs. Moreover, they also started to establish a very strong foothold in the coffee and breakfast market. Besides strong financial performance in 2006, wetherspoons purchase of 800,000 of its own shares in September 2006 (REUTERS, 2006) , the interest of Schroder Investment Management in 12.05% of its total common shares, along with significant interests from Aegon UK and Global Value fund Sicav, were one of the primary reasons why wetherspoons rose to its all time high level of 761 pence in March 2007. April 07 September 2008 The smoking ban was implemented in the UK with effect from July 2007. As expected, the ban put immense downward pressures on pub revenues, thereby leading to a crash in share prices. The travel and leisure index crashed around 30% by the end of the year and wetherspoon lost 50% of its value. 2008 presented even worse economic conditions for the pub industry with the advent of the credit crisis. All major pub operators continued to face loss of revenues and hence saw a significant decline in their share price. The extreme volatility in credit markets forced Mitchells Butlers to shelve a 4.5 billion pound property deal (BLAND, Ben, 2007) leading to losses of 274 million pounds on hedges tied to the transaction. Moreover, failed efforts by Punch Taverns to acquire Mitchells Butlers, led to further decline in share prices of both companies. On the other hand Wetherspoon continued to strengthen its revenues due to increased revenues in its food business. In September 2008, wetherspoon d eclared a 5.5% increase in sales and a 12p per share dividend as opposed to zero dividends and huge losses by punch taverns. As a result wetherspoons share price started to consolidate and by the end of

FDI Trends in India and China: An Analysis

FDI Trends in India and China: An Analysis Chapter 1: Aim and Objectives All nations need a vision for future which stirs the thoughts and motivates different segments of society to a greater effort and thus inclines them to work toward the common cause that is economy growth of the individual nation. The market oriented policies normally have exclusionary impact which needs to be prevented through articulate response of the policy makers. India is the third-largest economy in the world in PPP (purchasing power parity) terms foreign direct investments (FDI), But China is currently a favourite nation and is more successful in attracting FDI over India Ballabh (2008). Hence, this thesis strives to analyse the past trend of FDI in India and China, its types, its critical analysis with regards to host country and investing firm, important factors of globalisation and foreign direct investments (FDI) strategies to be adopted, Finally, Its comparison with Chinas FDI and empirical evidences would help us cover aim of our thesis which is among India and China, Wh y is China more successful in attracting FDI than India and is favoured over India? Therefore this paper has been divided in seven sections. It starts with brief introduction to FDI and its types in section 1. Section 2 covers background information and literature review that gives us a picture of the FDI policies in the past, Its trends and impact on MNCs in context to India and China, FDIs role on host economy and MNCs, , Its critical analysis based on Morans model, and finally investment strategies adopted by MNCs where to invest and what to invest. This would give us greater insight into the chosen topic by discussion of various forms of FDI, its impact on MNCs, on host economy and presenting an argument on discussion. Section three; presents the discussion on methodology to be used for the data collection and analysis. Section four is our data analysis and discussion section that is further divided into two sections, first half covers Chinas FDI spread-its Sectoral regional trends, the figures from the data sorted to analyse the growth in FDI over years and in different sectors, FDI distributions and opportunity sector that is playing increasingly important role by embracing FDI growth. The other half covers Indias FDI Spread-Sectoral and Country wise distribution. Again we use graphs and charts to analyse the trend. Comparative analysis of China with India would act as an indispensable step in structuring a consensus on a broad national development strategy to attract foreign investors that encompasses the roles and responsibilities of different agents in the economy, like Central, the private corporate sector, State and local government. Therefore finally presenting a logical explanation why China is a favourable nation over India and is highly successful in attracting FDI, hence the same is to be discussed in section five. Section Six is about building a feasible policy framework toward attracting FDI for the interest of the MNCs and host economy with reference to Chinas successful strategy in attracting FDI and summary of the literature followed by the concluding remarks are presented in the last section. The Concept of FDI is now an integral part of every nations economic prospect but the term remains vague to many, despite the thoughtful effects on the host economy and MNCs, despite the extensive studies on FDI, there has been little illumination forthcoming and it remains a contentious topic. The research findings will throw up a range of interesting possibilities in two countries, critical issues and crucial decision-points for government and private bodies to decide upon investment for future action in the favoured country. Therefore, the paper would explores the uneven beginnings of FDI in two countries, examine and present many important theoretical and empirical evidences on FDI and its impact on economy and MNCs, and would find reasons why China is more successful in FDI over India develop a feasible policy framework towards FDI in particular sector in India or China and making most out of it. Chapter 2: Introduction Foreign direct investment has multiple effects on the investing firm and on the economy of a host country. FDI influences the production, employment, income, prices, exports, imports, balance of payments, economic growth, and general welfare of the receiving economy Maniam (1998). Hence this section covers definition and types of Foreign Direct Investment, FDIs role been so far based on background information, discussion of resources and finally the theoretical aspect of why and where firms decide to invest abroad for benefits with special reference to India and China alongside host countrys motive to attract FDI. Definition of FDI Bergman (2006) defined FDI as a direct or portfolio investment. A direct investment is an acquisition or construction of physical capital by a firm from one source country into another (host) country. The FDI is an investment that involves a long-term relationship and control by a resident entity of one country, in a firm located in a country other than that of the investing firm. There is more involved in the direct investment than only money capital, for instance, managerial or technical guidance. FDI is generally defined as resident firms with at least 10% of foreign participation (UNCTAD, 2002). Types of FDI MNCs have various options to enter into a foreign market. FDIs Different types have different levels of control and risks. For example, Green field investment is when a firm establishes a subsidiary in a new country and starts its own production. In this type of investment a new plant is constructed rather than the purchase of an existing plant or firm. For this reason, there is large risk and has high set up costs because the foreign firm most likely does not have enough legislation knowledge, nor it has an existing distribution network and neither a local management skills. But still, the foreign firm has more control. On the contrary, Brown field investment is FDI that involves the purchase of an existing plant or firm, rather than building of a new plant. Joint venture is an equity and management partnership between the foreign firm and a local firm in the host market. Most host countries prefer the formation of joint ventures, as a way to build international co-operation, and to secure technology transfer (Samli Hill, 1998). In This type of investment the foreign partners contribute toward technology or products, the financial resources, and at the same time the local partner provides the manpower, skills and knowledge required for managing a firm in the host country (Bergman 2006). On UNCTADs website we can have a comprehensive understanding of it and its types. It defines FDI as an investment that involves a long-term relationship and reflects a permanent interest of a resident entity in one economy (direct investor) in an entity resident in an economy other than of the investor. The direct i nvestors idea is to put forth a significant degree of influence on the management of the enterprise resident in the other economy. FDI covers both the opening and subsequent transaction between the two entities and among affiliated enterprises, both incorporated and unincorporated. FDI may be undertaken by individuals, as well as business entities. It further is classified as follows: FDI Stock: it is the value of the share (For associate and subsidiary enterprises,) of their capital and reserves (including the retained profits) attributable to the parent enterprise (this is equal to the total assets minus total liabilities), plus the net indebtedness of associate or subsidiary to the parent firm. For branches, it is value of fixed assets and the value of current assets and investments, excluding amounts due from parent, less liabilities to third parties. Reinvested Earnings: The part of an affiliates earnings accruing to the foreign investor that is reinvested in that enterprise. FDI Flows: FDI flows (For associate and subsidiary enterprises) consists of the net sales of shares and loans (including non-cash acquisitions made against equipment, manufacturing rights, etc.) to the parent company plus the parent firms share of the affiliates reinvested earnings plus total net intra-company loans (short- and long-term) provided by the parent company. And, for branches, FDI flows consist of the increase in reinvested earnings plus the net increase in funds received from the foreign direct investor. Equity Capital: The foreign direct investors net purchase of the shares and loans of an enterprise in a country other than its own. Other Capital: Short- or long-term loans from parent firms to affiliate enterprises or vice versa. Also included are trade credits, bonds and money market instruments, financial leases and financial derivatives. Chapter 3: Background Information and Literature Review History of FDI in India Indias foreign trade and investment regime has been identified in two different phases- Pre-1991 reforms phase and the post-1991 phase. Pre-1991 reforms phase that stretched over to four decades is worth reviewing in some detail as although the regime was marked by extensive regulation of trade and investment, it did not shun foreign enterprise participation in the economy and the nature of the regulatory framework was mostly complex and cumbersome. This has been extensively analysed by Kidron (1965) Kumar (1994). The specification of sectors in which both foreign financial and technical participation were allowed, those in which only technical collaboration was permitted, and those in which neither technical and nor financial participation was allowed, reflects the desire to restrict foreign ownership and control to sectors of the economy in which its contribution was deemed to be essential. A preference to technical collaboration agreements instead of foreign equity ownership refl ects the desire to promote the twin objectives of preserving freedom from foreign control over operations and simultaneously gaining access to foreign technology and know-how. The Foreign Exchange Regulation Act (FERA) of 1973 under Prime Minister Indira Gandhi was considered a hostile act. The FERA required foreign firms to dilute their equity holdings to less than 40% or export a substantial share of their total output. This resulted to closure of renowned MNCs like IBM and Coca Cola to shut their operations in India.1967-79, the number of collaborations agreements per year reached an all-time low of 242. The Mid- 1980s saw a considerable though not a radical relaxation of the dirigiste trade and investment regime, with a relatively benign attitude towards foreign enterprise participation. The major crucial change during this period was a significant change in the pattern of foreign investment in India away from plantations, minerals and petroleum toward the manufacturing sector. By the end of decade of eighties manufacturing accounted for nearly 85% out of total stock of FDI of about Rupees 28 billion. Inflows of private capital remained meagre in the 1980s: they averaged less than $0.2 billion per year from 1985 to 1990 (Kapur Athreye 1999). In the year 1991, India too liberalised its highly regulated FDI regime, in place for more than three decades. Arguably Balasubramanyam (2004) in his book stated that, it took an economic crisis for India to liberalise its trade and FDI regime rather than a fundamental change in attitude towards the role of FDI in development process. Nonetheless, the 1991 reforms marked a major break from the earlier dirigiste regime with its regulation of the spheres of foreign enterprise participation on its mode of operation. And the policy framework was opaque with the implementation of policy based on bureaucratic consideration of each case on its merits. Hence the 1991 reforms were to change all this: The abolition of the industrial licensing system, controls over foreign trade and foreign investment were considerable relaxed, including the removal of ceilings on equity ownership by foreign firms. The reforms did result in increased inflows of FDI during the decades of the nineties as it consi derable relaxed the dirigiste regime that prevailed for more than four decades (Balasubramanyam Mahambare 2004). Hence with the liberalisation of the economy, fresh foreign investment was invited in a range of industries. Inflows to India rose steadily through the 1990s, exceeding $6 billion in 1996-97. The fresh inflows were primarily as portfolio capital in the early years (that is, diversified equity holdings not associated with managerial control), but increasingly, they have come as foreign direct investment (equity investment associated with managerial control). This was further supported by historically low interest rates in the US that encouraged global investment funds to diversify their portfolios by investing in emerging markets. International flows of direct investment, which had averaged $142 bn per year over 1985-90, more than doubled to $350 billion in 1996, with the developing countries receiving $130 billion (Kapur Athreye 1999). 1996-1998, the period of the coalition government has been an imperative period in our study; Singh (2005) classified this as a period when government has shown willingness to understand FDI by placing policies that would result in an increase in FDI and further liberalization for the common cause. There was an increased understanding on the role of FDI in all sectors. Industries still lead the reforms whereby automatic approval of FDI was increased up to 74% by the Reserve Bank of India (RBI) in nine categories of industries, including electricity generation and transmission, non-conventional energy generation and distribution, construction and maintenance of roads, bridges, ports, harbours, runways, waterways, tunnels, pipelines, industrial and power plants, pipeline transport , water transport, cold storage and warehousing for agricultural products, mining services including silver and precious stones, manufacture of iron ore pellets, pig iron, semi-finished iron and steel and man ufacture of navigational, meteorological, geophysical, oceanographic, hydrological and ultrasonic sounding instruments and items based on solar energy (indiabudget.nic.in). January 1997, Government announced the first ever guidelines for FDI speedy approval in areas that are not covered under automatic approval. Above trends illustrates the earlier point of the government recognizing and carrying forth of the previous work done by the Rao government. While the advantage of FDI did not reach the mindset of the common man but government seemed to show possibilities of overall development through FDI. For example when Indian industry registered a modest growth rate of 7.1% in 1996-97, which was much lower than the 12.1% in 1995-96, there was research carried out which revealed this was partially attributable to the mining and electricity generation sectors which recorded very low growth rates of 0.7 % and 3.9 % respectively. Hence, the policy was immediately rectified and re-enforced by expanding the list of industries eligible for foreign direct equity investment under the automatic approval route by RBI in 1997-1998 (indiabudget.nic.in). 2004-05, embraced FDI for being an integral part of national development strategies. Its global popularity along with positive output in augmenting of domestic capital, productivity and employment; has made it an essential tool for initiating economic growth for nations. During this phase, India evolved as one of the most favoured destination for FDI in Asia. It has displaced US as the second-most favoured destination for FDI in the world after China. According to an AT Kearneys FDI Confidence Index, India attracted more than three times foreign investment at US$ 7.96 bn during the first half of 2005-06 fiscal, as against US$ 2.38 bn during the corresponding period of 2004-05. FDI in India has contributed effectively to the overall growth of the economy in the recent times. FDI inflow has an impact on Indias transfer of new technology and innovative ideas, improving infrastructure, a competitive business environment (Indianground.com). Ballabh (2008) in his article mentioned about the Balance of payments (BOP) since independence, Indias BOP on its current account has been negative. Since liberalisation in the 1990s (precipitated by a BOP crisis), Indias exports have been consistently rising, covering 80.3% of its imports in 2002-03, up from 66.2% in 1990-91. Although India is still a net importer, since 1996-97, its overall BOP (including the capital account balance), has been positive, largely on account of increased FDI and deposits from NRIs; until this time, the overall balance was only occasionally positive on account of external assistance and commercial borrowings. As a result, Indias foreign currency reserves stood at $141bn in 2005-06. Indias recently liberalised FDI policy (2005) allows up to a 100% FDI stake inventures. Industrial policy reforms have significantly reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign dir ect investment FDI. History of FDI in China FDIs main source in China from 1950s had been Soviet Union. However, it was after 1978 that China began to open up itself to the rest of the world for FDI inflows. From the start of 1978 China witnessed its exit from its self-dependent strategies since Maos era with the country announcing a remarkable program to reform its economic system by opening itself up to the outside world. From the beginning of 1978, FDI in China became desirable and began to add in the development of the Chinese economy. In general, the development of FDI in China can be divided into following five stages. Experiment Stage (1979 1983) China started from an experimental approach, which they called crossing the river by feeling the stones under the water. FDI was permitted into China in a step-by-step manner. One key action of the first step was the establishment of four Special Economic Zones (SEZs), namely Shen Zhen, Shan Tou, Zhu Hai and Xia Men, in July 1981. These SEZs were chosen for the absorption and utilization of foreign Investment. These provided foreign investors with preferential treatment for their Businesses. As Chinas window to the world, these zones succeeded in attracting FDI. Meanwhile, China was putting up effort to complete its legislative system. First to come was, the Equity Joint Venture Law (the Law of Peoples Republic of China on Joint Ventures Using Chinese and Foreign Investment) that was enacted in July 1979. The legislation validated the existence of FDI in China and guaranteed the right and benefits of foreign investors. Second important policy taken at this stage included Regulation f or the Implementation of the Law of the Peoples Republic of china on Chinese -foreign Equity Joint Ventures (1983). Growth Stage (1984 1991) Until 1984 there were flaws in Chinas handling FDI. Chinas restraints on FDI outside the SEZs remained rigid. Laws and regulations limited foreign ownership. FDI projects often encountered a long approval process even though they provided sufficient materials and explanation. This was simplified gradually between 1983 and 1985. Following is the list of new laws and regulations at this stage year on year basis. Wholly Owned Subsidiaries (WOS) Law (1986) Provision for the FDI Encouragement (1986) Constitutional Status of Foreign invested Enterprises in Chinese Civil Law (1986) Adoption of Interim provision on guiding FDI (1987) Delegation on approval of selected FDI projects to more local governments (1988) Laws of cooperative joint ventures (1988) Revision of equity joint venture law (1990) Rules for implementation of WOS law (1990) Income tax law and its rules for implementation (1991) 1984 witnessed two historic activities. First was when Deng Xiaoping remarked that China needed to open wider instead of checking upon the opening process (Zheng, 1984). Second was when Chinese government announced the decision on reform of the economic structure, and called for the building of a socialist commodity economy by assigning a larger role to the market in the domestic economic. Besides SEZs, Chinese government took a further step to give FDI access to other parts of the country. Fourteen coastal cities were announced to be opened to the outside world. They are Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai. The local government from these cities could approve FDI projects with capital investment up to certain level. For example, Shanghai could approve all FDI projects under 30 million USD (Yuan, 2006). They were also given the right to spend foreign exchange yielded by local FDI for t heir own growth. The approval procedures for FDI projects were eased. The Law of Peoples Republic of China on Wholly Foreign-owned Enterprises (WFOEs) of 1986, was laid to protect the profits and interest of foreign investors. In addition to this series of other laws and regulations further relaxed Chinas restriction in promoting FDI with measures for enterprise autonomy, profit remittances, labour recruitment and land use. In December 1990, the central government promulgated Detailed Rules and Regulations for the Implementation of the Peoples Republic of China Concerning Joint Ventures with Chinese and Foreign Investment. The regulation aimed to encourage joint ventures that adopted sophisticated technology or equipments, saved energy and raw materials and upgraded products. Peak Stage (1992 1993) This stage has witnessed the rise of Shanghai as Chinas economic hub. The Chinese government wanted to develop Shanghai into an international hub for finance, economy and trade. Their intention was to carry out the experiment of new policies and apply successful practices within the rest of Shanghai and across the country. Shanghais location in Southeast China drew attention of Chinese governments in shifting emphasis to the area to avoid overly concentration of FDI. Hi-tech enterprises, established manufacturers and financial companies were encouraged to set up their China operation at Pudong with various preferential treatments from central and local government. With the implementation of a new framework for further opening up the economy, the Chinese government showed great effort to encourage FDI. A number of new Sectors were also opened up to foreign investors, including banking and insurance, accounting and information consultancy, wholesaling and retailing at the same time, go vernmental procedures were simplified in terms of FDI administration. The year of 1992 witnessed the remarkable growth of FDI in China. In the same year, the Chinese government announced its intention to adopt the strategy of socialist market economy and improve the economic framework for standard market Operations. Following are the series of laws and regulations related to market operations were passed during 1992 and 1993, which included: Adoption of Trade Union Law (1992) Company Law (1993) Provision regulations of value-added tax, consumption tax, business tax and Enterprise income tax (1993) Adjustment Stage (1994 2000) After 1994, the growth rate of FDI in China went down to a steady level from the relatively high rate in past two years, which indicated that a new stage had arrived. 1995s Provisional Guidelines for Foreign Investment Projects provided preferential treatment to various enterprises in various industries. The directory of the Guidelines categorized all the FDI projects into four types: encouraged, restricted, prohibited and permitted (Yuan, 2006). The projects in infrastructure or underdeveloped agriculture and with advanced technology or manufacturing under-supplied new equipment to satisfy market demand fell into the encouraged category. Those whose production exceeded domestic demand and those who engaged in the exploration of rare and valuable resources were put into restricted. The prohibited category included projects that would risk national security or public interest, or those endangering military facilities.. The last one is classified as permitted. Annual utilization of FDI reached to its peak in 1997 and 1998 but then moved downward in the following two years. Post-WTO Stage (2001 present) November 11, 2001, saw Chinas admission as an official member of the World Trade Organization (WTO), after a 15-year negotiation. It was after accession to WTO, China started to fulfil its obligation such as basic principles of non-discrimination, pro-trade and pro-competition. This historic event had significant Impact on FDI inflows to China. This gave incentives to more export-oriented FDI. Chinas export market becomes larger and more predictable. Also, Chinas domestic market attracts FDI in industries where there is large market potential. Usually, these industries used to be dominated by relatively inefficient state-owned enterprises, such as telecommunication, banking and insurance. Foreign investors, especially large multinational companies (MNCs), have now growing interest in these industries. Becoming a WTO member, China had to restructure its legal framework. This, in consequence, improves Chinas business environment and helps attract more foreign investment. Yuan (2006), in his literature has revealed, throughout the years, China has steadily reduced its industrial tariffs in a wide range of sectors. Foreign firms are granted direct trading rights for the first time, which means they can import and export themselves without going through a Chinese state-owned trading firm. Clearly, Chinas acquiring WTO membership boosts investors confidence the Chinese economy and its market and thus attracts more FDI inflows. FDIs: Critical Analysis FDIs in other countries are now been continuously studied. There are numerous factors and studies motivating this type of investment for the benefit of source and host countries. There has been a substantial change in policies and attitudes towards FDI on the part of most developing countries in recent years. Disbelief and suspicion of FDIs in the past now appears to have given place to a new found faith in its ability to encourage growth and development for the investing firm and host countries. This perception is due to number of factors: steep fall in alternative sources of finance such as bank credit in the wake of the debt crisis, the self-evident success of Asian countries like India and China, and growth in Knowledge and understanding of the nature and operations of multinational enterprises (Balasubramanyam Mahambare, 2004). In regards to stability aspect of FDI toward the growth of investing firm and host countries, empirical studies have found FDI to be more stable than ot her forms of capital (UNCTAD, 1998, World Investment Report, Geneva). Examination of a variety of capital flows in developing countries during East Asian financial crisis revealed FDI was more stable than other capital flows past studies analysis that FDI is the result of certain competitive advantage. Paul et al. (2002), revealed in their book; many developing countries like India favour FDI over other capital inflows and there is a substantial benefit that such investment benefit the host country and thereby attracting more foreign firms for investment as the benefits in this form of investment is both ways. Knowing the benefits of FDI in host countries would make the legislation system clear and simple and would enable foreign firm for investment based on long-term profits. Swamy (2000) in his book has done calculation the rate of return of FDI in India. His results revealed the rate of return on FDI in India higher than the rate of return obtained on global outward FDI. To quote from his studies, FDI Enterprises were able to earn relatively higher profit rates in India, despite higher level of taxation and tariffs etc. Thus the low level of FDI Inflows until the end of 1980s seems to have been caused restrictive policy environment rather than profitability considerations. Pradhan (2000) has scrutinised the various aspects of FDI from source as well as Host countries point of view, with a focus on the risk from the firms perspective and on the strategies to attract FDI to be adopted by host countries. His study thereby revealed that the higher rate of return for an MNC comes with FDI is, in fact, the result of existing market opportunities combined with the host countries policies towards FDI. Thereby, Indicating strong signals of overall growth of Host countries (developing) in conjunction with FDI and higher rate of return for MNCs. Lensink Morrissey (2001), literature suggests that FDI by MNCs is one of the major channels in providing LDCs (least developed countries) with access to advanced technologies and generating high revenue for MNCs involved in investment for them. The underlying theory differs illustrates the benefits of FDI for MNCs and host countries. The imitation channel is based on the view that domestic firms may become more Productive by imitating the more advanced technologies or managerial practices of Foreign firms for foreign firms and at the same time adding to GDP for their own country. Also, the competition channel emphasises that the entrance of more foreign firms from abroad intensifies competition in the domestic market, thereby encouraging domestic firms to become more efficient and productive by upgrading their technology base. The linkages channel stresses that foreign firms may relocate new technology to Domestic firms through transactions, and would develop buyer-seller relationship. This would necessities Training from the foreign firm to the domestic firm. Hence the training channel needs to be enforced on new technologies. This can only be adopted when the labour force feels comfortable to work with their foreign partner and when embraced works for the benefits of foreign firms as well. Beside these studies, in some of the literature the contribution of FDI to foreign firm and host countries economic growth has been debated quite extensively. Findings reveals that FDI has both benevolent and a dangerous impact. Empirical evidence that FDI generates positive spillovers for firms is mixed. Few studies have found positive spillover effects, few finds no effects and few even conclude that there are negative effects (see Aitken and Harrison, 1999). The conventional argument is that an inflow of FDI positively contributes as; it brings technology, know-how and management techniques. It integrate the operation of local firms into the networks of foreign investors, it helps to place local production on international markets and integrates the national economies into worldwide production and distribution systems. Hence, concluding that FDI can contribute positively and increase the export activity of the host economy (Adam 2002). On the other hand, some of the recent literat ure points to the role of FDI as a channel of international technology transfer. It can deliver rather controversial effects. Foreign firms can out-compete local producers, reduce local production capacities close down research and development units, break up traditional subcontractor relationships and substitute them with imported goods, and repatriate profits thus deteriorating the balance of payments position of the host economy. Sometimes, could lead to absolute shut-down of foreign firms when opposed by local people of host countries. For example Coca-Cola Company had shut down bottling plant in India during a community-led campaign that demanded the closure of the Coca-Cola bottling plant because of indiscriminate pollution as well as illegal occupatio