Oil and Gas Industry in Kazakhastan

Kazakhstan is one of Central Asia’s most successful and dynamic economies. More than hundred U.S. companies are operating in this country, through subsidiaries, JVs, liasion offices or as contractors. While most of them are found in the energy sector, many of them are service sector firms (e.g. international law firms, accounting firms, Banks like Citibank, American Express bank etc.). There are companies in telecom, sector, consumer goods and others. Kazakhastan provides excellent business opportunities in the fields of Oil and Gas, Power, Telecom, Medical instruments, Controlling Pollution, Agro-Machinery, Food, Construction and Mining.Kazakhstan has implemented important structural reforms during the past few years with an objective to transform its economy into a robust, market-driven business environment. However, some of the issues concering the development are- corruption, inconsistent customs regulations, inconsistency in interpretation of law, red tapism, work permit limitations for managerial and technical staff, amendments in laws increasing government interference etc. Many of these concerns are on legal innovations, which are aimed at creating changes in prevailing contracts e.g. â€Å"the Government has recently adopted legislation giving it preemptive rights in both existing and future contracts in the event that shareholders in oil field consortia want to sell shares, even if other partners have a contractual right of first offer†. Similarly, the Government adopted a telecom regulation that limited foreign equity in telecom companies to forty-nine percent.   (http://www.buyusa.gov/kazakhstan/en/doing_business_kazakhstan.html)Kazakhstan is perceived as an evolving economy surmounting the heritage of the Soviet economy through constant dedication to economic liberalization and upholding a striking investment climate through practical policy choices and support with the West. The IMF called Kazakhstan's firm macroeconomic stabilizat ion actions â€Å"appropriate and far-sighted.† Of all the ex-Soviet economies, Kazakhstan is rated first in FDI as a percentage of gross domestic produce and next only to Hungary in per capita foreign direct investment. Because of its thriving reforms, liberal trade practices, and capability to draw external financing, the economy is booming. Kazakhstan is a signatory to the World Trade Organization.(http://www.kazakhembus.com/Stable_Free_Market_Economy.html)Kazakhstan's economy registered a growth rate of 8.5% in 2006. GDP grew by 9.4 percent in 2005, by 9.1 percent in 2004, by 9.2 percent in 2003 and by 9.5 percent in 2002. Kazakhstan's financial policy has been well administered. Since 2001, the inflation has been under check and well controlled. In 2006, it was 8.6 percent, 7.5 percent in 2005 and during 2001-2003 it was 6.4 percent, 6.6 percent and 6.8 percent respectively. Due to strong macroeconomic show and financial strength, Kazakhstan became the first former Sovie t country to settle all of its debt to IMF in 2000, seven years before schedule. The U.S. Department of Commerce has recognized Kazakhstan as a market economy under U.S. trade law since 2002. This is the result of effective market economy reforms in the domains of â€Å"currency convertibility, wage rate determination, openness to foreign investment, and government control over the means of production and allocation of resources†.Kazakhstan became the first economy from the ex- Soviet Union to get an â€Å"investment-grade† credit rating from a leading global credit rating agency in 2002. Projected external borrowings in 2005 were $41.66 billion. In 2004, Kazakhstan's gross foreign borrowings were approximately $26.03 billion. Kazakhstan has been able to check the ratio of borrowings to Gross Domestic Produce in recent years. In 2005, total governmental debt was 8.9 percent of GDP whereas this ratio in 2000 stood at 21.7 percent of GDP.Kazakhstan has copious natural we alth with a whole prospective value projected at $8.7 trillion. Specially, Kazakhstan's hydrocarbon reserves are enormous and are expected to be next only to Saudi Arabia and Iraq. Oil and gas is the most important economic sector. Oil exports have pushed the economic development and have already drawn considerable international investment of over US$ 8 billion since 1993. The Tengiz oil field, was promoted by the TengizChevrOil a joint venture company established by the Kazak government and Chevron in 1993. Exxon Mobil and LukArco have also joined the venture to further develop the said project. TegizChevrOil is the major foreign venture in Kazakhstan. Though Kazakhstan’s present oil output of nearly 1.2 million barrels/day is comparitively small, oil reserves found offshore in the North Caspian, together with onshore sites currently being developed, put it among major oil exporter over the medium term.The total output of oil and gas condensate in the country totaled to 61.9 million tons in the year 2005 registering a growth of 4.3 percent over 2004. Total exports of oil and gas condensate were 52.4 million tons per annum in both 2004 and 2005. The total output of natural gas in Kazakhstan in 2005 equaled 14.5 billion cubic meters, registering a growth of 25 percent over the same in 2004. Kazakhstan has reserves of about 4 billion tons of confirmed recoverable oil and 3 trillion cubic meters of gas.Industry forecaster consider that planned development of oil production, together with the expansion of new fields, will facilitate the country to generate as much as three million barrels per day by the year 2015, elating Kazakhstan into the position among the world's top ten oil-producing countries. Kazakhstan's exported oil valued at US$17.4 billion in 2005, which constituted 70% of total exports from the country.In Kazakhstan, most important oil and gas fields and their producible oil reserves are: â€Å"Tengiz (7 billion barrels); Karachaganak (8 billi on barrels and 1,350 billion cubic meters of natural gas); and Kashagan (7-9 billion barrels)†. From 2004, the Government of Kazakhstan augmented its catch of oil deals by rising levy of new oil projects. (http://www.kazakhembus.com/Enormous_Energy_Reserves.html)It was in 1899, when oil was first revealed in Atyrau. Since then, the affiliation with the West has been essential to energy resource growth in Kazakhstan. The first oil well, â€Å"Karachungul well†, had a depth of about forty meter and daily produced approximately 150 barrels. Alfred Nobel had developed it in association with Russian industrial companies. This grew to fifteen operating wells 1912, and each well generated about 306-346 barrels per day usually. The new development also included a transit system for transporting 5,453 barrels of oil to Baku per annum through barge. While the appropriate progress of Kazakhstan's vast oil reserves has been sporadic due to two world wars, a uprising and the conclus ion of the Soviet Union, the reality of deep wells and the growth of shipping solutions have remained fundamental to Kazakhstan's energy equation.Apart from the major oil reserves, â€Å"Karachaganak also has 500 billion cubic meters of natural gas†. The potentially biggest recent discovery of major hydrocarbon reserves is the offshore â€Å"Kashagan† structure. The reserves at this site are expected to be three times more than Tengiz. The group, developing this two thousand  square mile block fourteen thousand feet below the Caspian sea bed comprises of nine companies: â€Å"BP Amoco, ENI, British Gas, Mobil, Shell, Total Fina Elf, Phillips, Statoil and Inpex†.The forecasted extractable reserves of oil are projected to be 7.8 billion tons, and those of natural gas 7.1 billions cubic meter. About seventy percent of these resources are gathered in the western parts of Kazakhstan, and the greater part of the reserves are associated with salt fields and have been found at depths of over 5000 meters.The envisaged reserves of the Kazakhstan part of the Caspian shelf are projected to be around thirteen billion tons of standard fuel but the successful expansion of the Caspian fields necessitates a considerable amount of investment. According to industry experts, the total required investment could be as high as $160 billion, which includes an amount of about $10 billion for the preliminary stage of exploration, including field assessment. As on now, western companies have already pumped in more than US$7 billion.Some limitations to getting investments for discovering the Caspian shelf had been the need of a clarification to the status of Caspian Sea. With signing of the agreement between Kazakhstan and Russia to partition the seafloor of the Caspian along the midline between the two countries, the issue appears to have been resolved. Similar agreements have been signed between Kazakhstan and Azerbaijan, and Azerbaijan and Russia.Envisaged reser ves of the Aral basin stand for about two billion tons of standard fuel. The high gas and oil prospective and encouraging geographic location in respect of the basic transportation of groundwater routes makes the Aral basin one of the most significant area with respect to the prospective oil discovery operations.In spite of Kazakhstan’s considerable oil and gas resources, the production and export of hydrocarbons has been inhibited by Kazakhstan’s land-locked position and its considerable reliance on domestic and Russia’s shipping networks for export routes. Kazakhstan is dedicated to the expansion of multiple oil export routes, in order to sustain its impending oil resources of 100-110 billion barrels.   A wide-ranging understanding with the national pipeline operator, Kaztransoil CJSC can be made in order to gain access to the main pipeline system by agreeing to   shipment schedules by the Kazakhstani oil producers.Due to the inadequate capability of the K azakhstani pipeline system, right to use to the pipeline is established as per the ratio of a particular oil producer’s contribution in the total quantity of oil to be produced in Kazakhstan in a given year. Presently, there are only two in service pipelines: â€Å"the Atyrau-Samara pipeline connects Kazakhstan to the Russian export network, while the CPC pipeline (Tengiz-Novorossiisk) connects the Tengiz field with the Russian port of Novorossiisk on the Black Sea†. Although there are it is largely privately owned pipeline but Russia reserves the right to suspend and enforce limitations on the stream of Kazakhstani oil from the Atyrau-Samara pipeline into Russian transportation network. More importantly, Russian organizations usually have priority access to their export terminals. By becoming a partner to the international BTC (Baku-Tbilisi-Ceyhan) Consortium that have built a 1,730-kilometer export pipeline with an annual capacity of 50 million tones, Kazakhstan can improve the scenario. (http://www.kazakhembus.com/Oil.html)The services of nationals and foreign nationals in Kazakhstan are monitored by the Labor Laws, labor relations are monitored by individual employment agreements and, if applicable, collective labor contracts. Employment agreements must be in writing and must obey the rules to the minimum standards prescribed by the Labor Law. Companies usually face problems in hiring managerial and technical staff. Further, they even have to obtain permits to get overseas workers.Kazakhstan has delivered continueous economic development for several years, particularly given the increasing significance of the Caspian Basin as a source for petrochemicals. While the rate of its economic reforms has recently slowed down,   Kazakhstan’s promise to continue and further push the structural transformations aimed at changing its economy into a more market-driven business climate remains of vital importance. Prospective international investor s and exporters will prefer to see more repeated and many more success stories in this market in order to invest in the Kazakhstan’s economy. In spite the several issues that still need to be addressed, in this Central Asian country, an increasing number of the U.S. enterprises is of the opinion that Kazakhstan deserves a serious thought by the U.S. exporters. More importantly, considering the strategic significance of the country, it is important for them to be here for being competitive in Central Asia.Resourceshttp://www.kazakhembus.com/Oil.htmlhttp://www.allbusiness.com/mining/oil-gas-extraction-crude-petroleum-natural/235547-1.html?yahss=114-2974554-235547http://www.state.gov/r/pa/ei/bgn/5487.htmhttp://www.bakernet.com/NR/rdonlyres/1E007228-ED7E-4475-8ED7-0BDBA7B76FD3/38334/DBIKazakhstanJan2005.pdfhttp://www.buyusa.gov/kazakhstan/en/doing_business_kazakhstan.htmlhttp://www.cioc.com/http://news.bbc.co.uk/1/hi/business/7015361.stm

Child and young persons development

Understand the kinds Of influences that affect CYP's development Criteria Describe with examples the kinds of influences that affect CYP's development including d) background e) health f) environment 3ackground: The children I'll be working With Will come from a wide range Of backgrounds that will have an impact on their development, such as family composition, culture and beliefs etc.If a child iS from a different culture or belief from most of the other children in the class, then here may be certain rules in that belief that may stop them being involved in a play activity the other children may be taking part in. The child may feel excluded and lonely their physical development could be affected but also their social development could be affected. Health: The children and young people come across may have a number of health issues or disabilities.If a child has a disability that restricts them participating n activities this may have an effect not only primarily on their physical development but also their social development. To avod this, the child must be included as best they can and for them to feel valued. Also Is a child is from a low income family they may not nave the correct diet and nutrition to help them to grow. This may also affect their physical development. Environment: The main environments where a CYP develops Will be their school and home. Both at home and atschool if a child is nurtured and given time then they will develop faster and to a higher level.At home whether the CYP is cared for by parents. grandparents or arers then they will be the first people that the child will develop a bond with. Activities such as read too, and with them and letting them know that their opinion matters will help develop positive growth. A child that is sat in front of a computer playing games may not develop and learn key skills as quickly as a child that has lots of interaction with parents/carers, The surrounding area of the home and school can also hav e an effect. Their development will grow if there are libraries. arks, community centres for Sport and other activities. There they will interact With peer and adults developing a range Of skills. criteria describe with examples the importance of recognising and responding to concerns about children and young people's development. Recognising an Issue with a CYP's development Is Important and responding to any concerns is vital! If during work In a school I have a concern about a pupil's development I would first raise It with the class teacher. I may be asked to record my concerns In-case actions are needed to be taken later.I would need to be sensitive to both the child's and their parent's teelngs and even It others have already raised an issue I should still intorm scrTleone senior in the school. An example that may tind of a child's development being compromised could be a pupil that is new to a school that struggles with English as they may have recently moved to the 13K. This could have an effect on not only their intellectual development through not being able to complete the work done in class, but also their social development. If the pupil has trouble Child and young persons development Understand the kinds Of influences that affect CYP's development Criteria Describe with examples the kinds of influences that affect CYP's development including d) background e) health f) environment 3ackground: The children I'll be working With Will come from a wide range Of backgrounds that will have an impact on their development, such as family composition, culture and beliefs etc.If a child iS from a different culture or belief from most of the other children in the class, then here may be certain rules in that belief that may stop them being involved in a play activity the other children may be taking part in. The child may feel excluded and lonely their physical development could be affected but also their social development could be affected. Health: The children and young people come across may have a number of health issues or disabilities.If a child has a disability that restricts them participating n activities this may have an effect not only primarily on their physical development but also their social development. To avod this, the child must be included as best they can and for them to feel valued. Also Is a child is from a low income family they may not nave the correct diet and nutrition to help them to grow. This may also affect their physical development. Environment: The main environments where a CYP develops Will be their school and home. Both at home and atschool if a child is nurtured and given time then they will develop faster and to a higher level.At home whether the CYP is cared for by parents. grandparents or arers then they will be the first people that the child will develop a bond with. Activities such as read too, and with them and letting them know that their opinion matters will help develop positive growth. A child that is sat in front of a computer playing games may not develop and learn key skills as quickly as a child that has lots of interaction with parents/carers, The surrounding area of the home and school can also hav e an effect. Their development will grow if there are libraries. arks, community centres for Sport and other activities. There they will interact With peer and adults developing a range Of skills. criteria describe with examples the importance of recognising and responding to concerns about children and young people's development. Recognising an Issue with a CYP's development Is Important and responding to any concerns is vital! If during work In a school I have a concern about a pupil's development I would first raise It with the class teacher. I may be asked to record my concerns In-case actions are needed to be taken later.I would need to be sensitive to both the child's and their parent's teelngs and even It others have already raised an issue I should still intorm scrTleone senior in the school. An example that may tind of a child's development being compromised could be a pupil that is new to a school that struggles with English as they may have recently moved to the 13K. This could have an effect on not only their intellectual development through not being able to complete the work done in class, but also their social development. If the pupil has trouble

Beazer Homes Case

Investors were lead to believe that the company financials were healthier than they actually were, as evidenced by the changes noted when the financial statements had to be restated. As a result of doing this, investors who were under the impression of a healthier position, continued to invest in an organization that was essentially doing nothing more than stealing their money; money which could have been invested into a different enterprise rather than padding the pockets of executives that didnt earn it. As a result of having to restate financial statements, the per share price of Beazer Homes dropped from the $35/share price level in may, to approximately $11/share by the end of July. This is a significant loss in wealth for investors. In addition to the allegations against Mr. Rand for possible accounting fraud, allegations were also brought against Beazer Homes for mortgage fraud. To address the question as to which is a more serious offense, it would be our opinion that both would carry an equal weight of seriousness. On the one hand, investors were misled, as noted above, and this led to a significant loss of wealth for many, especially those individuals and/or institutions that may have held a large position. On the other hand, to address the issue of mortgage fraud, new homeowners were oftentimes cheated out of money that they paid to Beazer Homes. A example of this is when Beazer Homes would require purchasers to pay a fee for interest discount points at closing. Then Beazer Homes would keep the cash received and not lower the interest rate. This is just one example, but it can be an extremely costly one when you look at how much a . 25 percent or . 5 percent reduction in an interest rate can be over the life of a 20 or 30 year fixed rate mortgage; thats if Beazer Homes wasnt trying to convince people that an adjustable rate or hybrid mortgage would be better for their situation. Additionally, Beazer Homes ignored income requirements when making loans to unqualified purchasers, which not only put the purchaser in jeopardy of having the income needed to make their ayments, but in the event of default or foreclosure, it can have a significant impact on the home values of the neighborhood. As a result of these legal issues with Beazer Homes, the SEC issued a notice to the Beazer Homes CEO called the Wells notice. The Wells notice was created under the Sarbanes-Oxley Act of 2002, which states that if a firm has to restate their financial statements, the SEC can require the CEO and CFO to return any and all bonuses that were received during the period of restated financial statements. Additionally, the CEO and CFO do not need to have any knowledge of errors. The SEC issued the Wells notice to the Beazer Homes CEO, Ian J. McCarthy, on 13 November 2009, indicating that the SEC would be brining a civil case against him to collect incentive compensation. In the notice issued to the CEO, there was no indication or allegations of cover-up, or misconduct, on the part of Mr. McCarthy with respect to the financial statements or other disclosures that were published during the period in question.

Creativity and Innovation week 1 Essay Example | Topics and Well Written Essays - 500 words

Creativity and Innovation week 1 - Essay Example One of the organizations that have undergone an innovation is the California Institute for Regenerative Medicine (CIRM). California Institute for Regenerative Medicine is an organization that improved the development of therapies and potential cures based on the stem cell science (Michael & Panetta, 2005). In order to meet this mission that had been set, the organization had to focus on innovations both internal and external by carrying out research, product development and clinical trials. In order to be more successful, the CIRM developed a collaborative network that consisted of funding entities in 2 international states, 2 foundations, 12 countries and one domestic state. Additionally, the National Institute of Health also entered a collaborative relation with the CIRM. Through a good external collaborative network, California would be able to collaborate with several people from outside the state on several projects of innovation that would help in identifying solutions to diffe rent conditions such as HIV/AIDS, Parkinson’s disease, childhood neurological disorders, cancer and genetic diseases( Chesbrough, 2003). The Main inspired idea that led to the innovation was to successfully fulfill the various objectives that were laid by the organization. The objectives include; increasing the development of stem cell therapies, implementing the recommendations of the external review panel. With the objectives set, the project came out with a more valuable result that would help in fulfilling the mission and improving people’s health status with most chronic conditions. Self expression can be referred to as an expression of one’s personality or feelings such as in poetry, painting or any other creative work or activity (Slowinski, 2005). The development of creativity and self-expression involves the use of technological tools in order to produce a range of creative works. The activities

The Philippines' Problems And Possible Policies Essay

The Philippines' Problems And Possible Policies - Essay Example Robert Babe (37) emphasized "Economists, after all, are inclined to limit their professional attention to those human interactions or exchanges mediated by money, barter being a notable but minor exception. Discursive Acts, in contrast, focuses on non-monetized, verbal, symbolic interactions, thereby calling attention to a bifurcation of the field of human interaction -- into the realms of the "economic" and the "no economic" (or what I will term here the "purely communicator")." The quote clearly shows that the economy of, including the Philippine human relations, is grounded on economic factors, which includes gross domestic product.To resolve the inflation issue of the Philippines, Don Paarlberg (159) states â€Å"A small group of economists, chiefly libertarians, propose taking the monetary system out of the hands of government and leaving it to private enterprise. Theoretically, the market would discipline the supply of money to keep its value at a stable level. This proposal h as won acclaim from only a few. "Money cannot manage itself," said Bagehot, a nineteenth-century economist†. The government has the power to reduce the inflation rate by increasing the supply of money into the economy. Inflation is the increase in the prices of goods and commodities. Microeconomics also states that a decline in the demand for the products will reduce the demand and price of the product. Second, the ethnic issues include a major portion of the country's population wallowing in poverty. Only a small percentage of the ethnic population is living in rich levels. The Philippines' ethical structure is 92 percent, Christian Malay, 4 percent Muslim Malay, 3 percent other ethnic groups, and 1% Chinese ethnic group. The economy is run by a majority of Christian Malays. Third, the political issues include a democracy that is filled with many contradicting forces. The government is beset by allocating its scarce financial resources. The democratic government is patterned on the United States political government. Elections are made for the President, Vice President, Senators, Congressmen, Mayors, Governors, and other political leaders for a fixed term. With the democratic government, some persons use goons to force the people to elect the goon leaders as the elected government officials. Likewise, the democratic political system allows any person to use the money to buy votes from the people. Some of the poor residents accept the tradition of accepting money for their votes. 2. Projections: There are many positive prospects for this country and its economy. First, the country’s being a former colony of the United States gives it the American educational and societal advantage. The Filipinos can apply for jobs in other countries where the main language is English. Many

Business Overview of Amway Essay Example | Topics and Well Written Essays - 1250 words

Business Overview of Amway - Essay Example This has been a prudent approach in business as it has enhanced its performance all over the world (Jones 23). Apparently, the company has been recording a positive growth over the last seven years. In the recent reported sales, it was declared that the company made sales amounting to over 11 billion USD. This shows that it is a company that is on the helm of attaining greater performance. According to Forbes, the company was ranked as one of the largest private companies in the United States clinching number 25 in 2012. Similarly, Deloitte ranked it number 114 among the largest global retailers in the year 2006. Market Advantages. Amway is a company that has been appreciating a larger market share with each passing year. This poses an advantage to the company as it accrues greater sales. This is a market advantage for the company as it increases its sales (Deangelo 12). Due to globalization, the company has spread its company affiliations in many other countries. This is an added ad vantage as it gets greater demand for its products. For instance, the company has spread its market share in over 100 countries and territories in the world. This creates a substantial demand for its products since there are many people that will create a demand for the products in all these countries. Similarly, the approach of using other companies to sell its products has been to the advantage, since it has many retailers and outlets (LLC Books 13). This creates a large supply chain of the products all over the market. As such, the company continues to make greater sales, which is an advantage over other retailers in the market. Amway is a company that has substantial amounts of capital for investments, mergers and takeovers. As such, it has the resources that are needed to extend its market share. This has made it possible for the company to make international expansion. This poses an advantage to the company as it increases the demand market for its products. When there is suff icient capital, the business makes initiatives of investing in providing other products that enhance its performance. Similarly, the company has a vital resource which is labor (Jones 32). It has more than 20, 000 employees who are vital in fostering development. With such a large number of employees, the company is likely to make a positive accrual in its business. This is due to the efficient and sufficient labor that is available. This states the reason why the business has been marking an improving in a seven year streak. Amway is headed by a competent management team. The performance of a company is dependent on the management team. Therefore, a company that has a competent management team is likely to make greater performance in the market. This is one of the strategies that are used by Amway (LLC Books 11). Through the leadership of Andel and Devos, the company has been able to incorporate a perfect management team that deals with its operations. As such, the company has been making positive performance and an improvement over time. Similarly, it has its headquarters in Michigan, which is a strategic place. This makes operations easier as the company focuses more on making an improvement. Branding. A business is determined by the performance of its brands in the market. Strong brands in the market reflect a positive accrual to a business as they attract a larger market niche. To begin with, Amway has a number of well performing brands in the m

Questions on Eu Law Essay Example | Topics and Well Written Essays - 2000 words

Questions on Eu Law - Essay Example Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 48, under the conditions laid down for its own nationals by the law of the country where such establishment is effected, subject to the provisions of the chapter relating to capital. On the other hand, Article 49 of the EC Treaty reads as follows: Within the framework of the provisions set out below, restrictions on freedom to provide services within the Community shall be prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended. The Council may, acting by a qualified majority on a proposal from the Commission, extend the provisions of the Chapter to nationals of a third country who provide services and who are established within the Community. The fundamental difference between the freedom of establishment and the freedom to provide services with respect to nationals of an EU member state working in another EU member state is that the former contemplates â€Å"permanent installation† in order to pursue an economic activity, whilst freedom to provide services means the freedom simply to perform services for profit without the primary place of business being in the country where the services are being performed. However, both freedoms require that the country in which the services are being rendered impose no discrimination on the individual and furthermore, that the authorities and the courts country in question amend its domestic legislation and policies so that it conforms to the treaty standards. A key... The fundamental difference between the freedom of establishment and the freedom to provide services with respect to nationals of an EU member state working in another EU member state is that the former contemplates â€Å"permanent installation† in order to pursue an economic activity, whilst freedom to provide services means the freedom simply to perform services for profit without the primary place of business being in the country where the services are being performed. However, both freedoms require that the country in which the services are being rendered impose no discrimination on the individual and furthermore, that the authorities and the courts country in question amend its domestic legislation and policies so that it conforms to the treaty standards. A key distinction is that there must be a contribution to the economic life of the host state, in the case of established persons. As stated in the case of Gebhard â€Å"The concept of establishment within the meaning of the Treaty is therefore a very broad one, allowing a Community national to participate, on a stable and continuous basis, in the economic life of a Member State other than his State of origin and to profit therefrom, so contributing to economic and social interpenetration within the Community in the sphere of activities as self-employed persons.† If there is no such participation, or if the participation is not on a stable and continuous basis, then it cannot be said that establishment attaches.

Marketing case Study Example | Topics and Well Written Essays - 500 words

Marketing - Case Study Example The market estimates were most informative to the company because it was a new market they were venturing in and the estimates were going to help them with making the final decision about potentiality of profits before making the big move. The research was really effective as it unveiled from the discharge permits of the two states information about the water and sewage released from the city and municipality. The information the company lacked earlier about the number of pumping stations for the waste water and their growth rate which was the most important information of all was obtained from the research and this sealed the deal about the market potential in the two states and that the company would make a profit with the move based on these statistics. The sample size used was too small and lacked utility managers and engineers from New York only those from Pennsylvania. It therefore paid much concentration to the individuals as opposed to the technocrats. In the research, there also lacked information about the competitors in the business or what their marketing tactics and strategies might be and this was really important information. There is still much which is unknown about the market in the US and especially whether expansion from these two cities of New York and Pennsylvania is possible or it will prove to be a lost cause. The lack of enough information about the competitors is a huge risk because this might lead to Dillon not making enough profit to break even. On the other hand, the US was a new market and many new markets are fairly high on potentiality. Based on the information from Pennsylvania, the computerized system was highly appreciated by the residents and even utility managers and engineers were positive about the new system and were eager to have it as it would save the city costs. Lack of growth of the business is one recipe for

Velocity of Sound Lab Report Example | Topics and Well Written Essays - 1000 words

Velocity of Sound - Lab Report Example Sound is often part and parcel of our entire surrounding and has great significance in our daily life. Generally, sound is a form of energy that is majorly produced and propagated through the longitudinal waves. They can also be termed as being elastic waves that requires a medium for transmission. The other fact is that, sound cannot be transmitted through a vacuum. It basically travels in liquids, solids and gases. The rate of velocity of sound varies from one medium to the other. For instance, it is higher in solids as compared to liquids and gases respectively (SpinART, 2002). Sound can be classified as being either musical, noise, high pitched, among other categories. In the undertaken lab experiment, the velocity of sound was measured using a method that is referred to as the Kundt’s tube technique. This was ascertained by allowing the sound to travel through a given metal rod, so as to determine its frequency as well as the speed. Sound is often propagated by longitudinal waves. These are waves whereby the particles movement consists of various oscillations to and fro within the direction and magnitude of propagation. Within a metal rod, sound can either be transmitted by transverse or longitudinal waves. In this lab experiment, longitudinal waves were produced in an air column and a metal rod. The sound frequency was then determined by use of wave motion concept. In this ultimate equation, f is taken as the frequency while  l  is the wavelength. When the rod set into vibration through proper stroking, the standing waves are hence produced within the vibrating rod. Due to the clamping of the rod at its mid- point, the clamped point is taken as a node with zero amplitude, whereas the ends that vibrates are taken as antinodes with maximum amplitudes. Vibration of the rod in such a manner means that its wavelength and fundamental frequency are twice the rod length (SpinART, 2002). After assembling

An Analysis on the Business Strategy of Sony Essay

An Analysis on the Business Strategy of Sony - Essay Example But, their profit was quite short lived. Sony Ericsson mobiles produced at low cost did not deliver the expected quality, leading to mass losses from 2006. Sony Company reported nearly 77% loss for the seventh consecutive year since then, on August, 2012 (BGR.com, 2012). Social Factors: Sony Eriksson’s affordable mobiles got an image such that they were for college students. The competition from the local Chinese company produced phones and the South Korean rival, LG electronics was very high. LG was financially stronger than Sony Ericsson and it kept introducing new luxury mobiles one after another. The targeted the well earning businessmen who had high potential to spend. Technological Factors: Sony was very quick to eliminate the quality issues when it came to technology. They introduced the W800 and W810 mobiles, the first in the Sony Walkman line to tackle the competition from the LG products. Sony Ericsson continuously proved they were superior to the other brands in tec hnology. They were the first to introduce mobiles with 1 megapixel and 2 megapixel camera. Sony Cyber-shot was the first of its kind with 45 minutes continuous video shooting. They designed the first Java based 3D gaming phones as well as the Bluetooth enabled phones. Most of the features found in modern day smart phones were first introduced only in the Sony Ericsson phones, making them one of the best MMS mobiles in the market. Legal Factors: The Company faced several legal complaints regarding their quality in the initial stages of collaboration, before they started producing technically enhanced mobiles. They made use of the stringent laws of the Chinese government to improve their technology and became one of the best companies to produce minimal...Political Factors: The Chinese government rightly predicted the invasion of foreign companies in their mobile market before a decade. This increased the production cost of the 3G handsets Sony Ericsson produced. Sony Ericsson mobiles produced at low cost did not deliver the expected quality, leading to mass losses from 2006. Sony Ericsson continuously proved they were superior to the other brands in technology. Sony Ericsson is now legally known only as Sony. Sony introduced the new Sony Xperia series in various models. This eliminates huge competition for the local market and reduces the headset production cost for the Sony Company. All the major smart phone companies in the world target the Asian especially Chinese market. The new Sony Xperia and Bravia series also contribute significantly to the company’s profits. Cash Cows: Sony Xperia J series, tipo and miro phones targetting the middle class market fetch good profits. Sony Ericsson established itself as the best multimedia phone and music phones in the market. Sony targeted the Asian market when the competition from other brands like LG was very high. It created a negative image for the company. Sony’s competitors like Nokia reduced their other involvements in consumer products industry and stared concentration only on the Smart phone market. This enables them to give superior mobiles at a cost lower than Sony. Sony Ericsson always placed their customers in front of others. The current Sony Company strongly believes it had lost nothing, compared to their initial profits.

Hyundai Motors Essay Example for Free

Hyundai Motors Essay Hyundai Motor Company (hereafter, HMC) formed in 1967, was a part of the South Korean Chaebol the Hyundai Group. In the last four decades, HMC managed to establish itself as a most prominent automaker producing reliable, technically sound and stylish automobiles and commercial vehicles. Headquartered in Seoul, South Korea, HMC opened a new chapter in the history of the Korean automotive industry by exporting its first proprietary model, the Pony, to Ecuador in 1976. In the 1980’s, HMC exported the Excel to the U. S. In 1991, HMC achieved technological independence by developing the first propriety engines and transmissions. Currently HMC has 78,539 employees around the world working in eight manufacturing plants, 12 RD centers, 5,300 dealerships and sales companies, and CKD plants. As of 2010, HMC established as a global automaker that produces more than three million high-quality passenger and commercial vehicles for sale in 190 countries each year. By enhancing Brand image through high quality products and unique marketing initiatives, once again, HMC is the first and the only Korean automaker to be listed in the Top 100 Global Brands in 2010 by Business Week and Inter-brand since it first entered the Top 100 Global Brands in 2005. Revenue and Profit: In spite of the persistent uncertainties in recent business conditions, HMC achieved some significant milestones in automaker markets in the past few years. In 2009, HMC succeeded in selling 2.4 million vehicles overseas, a meaningful accomplishment considering the global economic crisis. In particular, Elantra, Genesis, Genesis Coupe, Santa Fe, and Veracruz were recognized as the best sales and safest cars in their categories by leading agencies and the media in the US, also, HMC achieved cumulative export sales of 1 million cars in Africa. HMC pledges continuous growth by maximizing brand value in developed markets and expanding its sales capacity in emerging markets. In 2009, HMC posted 31,859 billion KRW in sales. Operating profits increased by 19% to 2,235 billion KRW. The operating profit margin increased by 1.19% to 7.02%. Net profit surged by 104.5% to 2,962 billion KRW and HMC’s total assets increased by 12% to 22,029 billion KRW. Despite increased sales and profits, tax payments to the central and regional government decreased due to corporate tax cuts and increased tax exemptions associated with increased RD investments. (Source: 2010 Sustainability Report, Based HMC operation result only, * EBITDA =EBIDTA : Earnings before interest, taxes, depreciation and amortization) In 2009, HMC jumped to third on the list of Fortune Korea Top 20 Korean companies and generated 91.46 trillion won in revenue, up 14.7 percent from the year 2008 and 2.97 trillion won in net profit, up 246.7 percent (Source: www. koreatimes.co.kr). In 2010, HMC announced global sales of 3,612,487 units (domestic plants: 1,730,682, overseas plants: 1,881,805). Sales revenue rose 15.4 percent to 36.8 trillion won from a year earlier as the company sold more cars and improved its product mix, while operating profit also rose 44.4% to 3.2 trillion won. Net profit increased 77.8 percent to 5.3 trillion won. Hyundai aims to increase sales and enhance brand image in 2011 by introducing new models specifically designed for local customers. In the next decade, HMC will continue in its endeavor to become a leading global automaker company through driving growth the development of world-class eco-friendly vehicles. HMC is striving to develop environmentally friendly vehicles including hybrid electric vehicles; fuel cell electric vehicle and pursuing two-prolonged â€Å"Blue Drive† initiatives which focus on fuel efficiency and the development of alternative fuel vehicles as a fundamental solution for climate change energy security. In the future, HMC focus on vehicles that run on various bio fuels. For the U.S. and Brazil markets, HMC develops flex-fuel vehicles that run on a mixture of ethanol and gasoline. In Europe, where diesel cars are sold in great proportion, the EU has a set of technical standards for diesel fuels with biodiesel content made of palm, rapeseed, soybean and other plant resources, and all HMC’s models are capable of running on diesel fuel mixed with biodiesel. Remarkable success since 2007: In 2007, HMC received National Environmental Management Awards President’s Prize and sales in US exceed 5 million units; its products i30 selected as Car of the Year in Australia; Accent (Verna) selected as Best Car of the Year by the Indian automobile magazine Overdrive; Azera (Grandeur) ranks first in J.D. Power and Associates’ consumer satisfaction survey. In 2008, HMC received Global Green Management Excellence Award, Global Reporting Initiative Award; it ranked first in National Customer Service Index (NCSI) for eighth year in a row, Avante (Elantra) exceeds 5 million units in accumulated sales; In 2009, HMC was selected as Best Company in terms of customer satisfaction in the automaker category by a consumer research group in China; it ranked Top 60 in Global Brand Value by Business Week and selected as Best Marketer of the Year in the US; Its product i30 and Grand Starex awarded as Best Cars in Australia for the second consecutive year; TAU engine selected as winner of US Ward’s AutoWorld 2009 10 Best Engines for the second consecutive year; received Presidential Prize at the 2009 Korea New Technologies Award. In 2010, HMC placed in the Top 100 Global Brands in 2010 based on a joint study conducted by Business Week and Interbrand and was named Carmaker of the Year by AM, UK’s leading auto trade magazine, in the AM Awards 2010. The TAU 4.6 engine was selected as a winner of the 2010 10 Best Engines of the US automotive media Ward’s AutoWorld for the second consecutive year. Corporate Responsibility Corporate Social Responsibility (CSR) was the key issue in company society relations. CSR has taken a core position of Hyundai Motor included three areas: trust-based management, environmental management, and social contribution. For trust-based management, HMC focused on labor relations enhancement, mutually beneficial cooperation with suppliers, ethics management and transparent management. As for environmental management, HMC proactively responded to global trends and environment regulations. For social contribution, HMC enlarged its capacity and obtained expertise to effectively carry out global social contribution projects and participated in volunteering programs, contributed to development of local communities. In 2007, HMC established the Hyundai Motor Global CSR Network with primary production and sales subsidiaries around the world and also laid foundations by promoting global CSR activities and by developing and opening the Global CSR Web site for information exchange. Challenge of sustainability: â€Å"Sustainable development satisfies the needs of the present generation without compromising the chance for future generations to satisfy theirs† Brudtland Report (1987). Enhancement of stakeholder value through achieving economic profits, environmental soundness, and the fulfillment of social responsibilities in corporate activities with a long-term perspective is the goal of sustainable management. To social and political sustainability, HMC has increase value to stakeholders through engagement and collaboration. To economic sustainability, HMC has responded to fast-changing demands of global customers by fully utilizing strategically placed production and RD facilities and fulfilled fundamental responsibility as a corporation by sharing economic value with various stakeholders including shareholders, investors, employees and suppliers. To environmental sustainability, HMC has tackled the twin challenges of climate change and energy security by developing green technology. HMC develops environmentally-friendly vehicles and the establishment of low carbon value chains to achieving reductions in greenhouse gas emissions. In addition, HMC has established a comprehensive hazardous materials management system and making effort to minimize impact on air quality. Climate change: Climate change is the most important issue to be tackled among five core Environmental Management Areas including Recycling and reuse, Air pollution, Hazardous materials, Environment Management System, Climate change. Since increased consumers’ preferences for low carbon products, therefore, HMC has invested a large amount of resources into the vehicle energy efficiency improvement technologies. HMC has established and implemented a comprehensive environmental strategy throughout the entire lifecycle of products. Its ‘Blue Drive’ is a strategy that focuses on fuel efficiency improvement of vehicles power by internal combustion engine and the supply of zero emission vehicles in the future. Facing to multiplied challenges of climate change, HMC has striving to develop vehicle that run on various bio-fuels and hybrid electric vehicles, fuel cell electric vehicle, environmentally –friendly vehicles and the establishment of low carbon value chains to achieve reduction in green house gas emission. As a first achievement, HMC is the world’s first LPG – Hybrid vehicle using proprietary technologies in July 2009 and release in the North American market and the domestic market in 2010. Engages with external stakeholders: HMC conducts business in an open transparent manner to earn and maintain the trust of all relevant stakeholders including shareholders and investors, customers, suppliers, government and communities. HMC have been sharing relevant information with all stakeholders via its sustainability report since 2003. HMC also tries to promote fair trade, mutually beneficial transaction with business its partners. With customers, HMC has been operating a customer service center that handles customer complaints and inquiries for improving customer satisfaction, reflect customer opinions about product and service by means of including regularly scheduled customer satisfaction surveys, customer services hotlines. The success of a surprisingly bold campaign with a new assurance program, which guaranteed customers to be able to return newly bought cars with no credit damage in the case they lose their income amid the still prevailing financial crisis. For suppliers, HMC created the Mutually Beneficial Cooperation Fund and a number of win-win supplier support programs designed to ensure shared growth with suppliers. In 2008, HMC signed a fair trade agreement with approximately 2,400 suppliers to further increase fairness and transparency collaboration with parts suppliers its essential in achieving high product quality in automobiles. HMC has made a sustainable effort to maximize shareholders and investors value through the increasing value of HMC by cash dividends – most important means of sharing company profits. In 2009, HMC declared cash dividends of 1,150 billion KRW per each common share. HMC also paid taxes to central regional government, local community and social distribution expense and launched tailored social contribution activities, organized an active employee volunteer service program which serves as the driving force for ‘Moving the world together’ social contribution campaign. In 2009, 25,851domestic employees participated in volunteer community service. In conclusion, HMC is more likely to achieve success in the long term by taking responsibility for the economic, social, ethical and environmental impact of its activities. Crisis Management In 2007, the antitrust agency of Korea fined HMC an amount of $ 25 million for violations in businesses. At the same time, Hyundai chairman Chung Mong-koo came before the court for corrupting from funds $ 96 million and damage more than $ 224 million from 2000 to 2006 to bribe officials for Hyundai facilitate urban expansion in southern of Seoul. This incident influenced a lot to the company, especially in long-term strategy, reputation and revenue. The global automotive markets which expanded rapidly over the past five years from 2002 to 2007 had sharply declines from the fall of 2008 in consequence of the financial crisis. Under extremely severe conditions, automakers run a race for survival in the global market. To respond to the crisis, HMC and other automotive manufacturers must solve liquidity problems urgently and reduction in production cost. And they also have implemented creative marketing strategies to entice reluctant consumers. The global financial downturn in 2008–9 affected European and Asian automotive manufacturers. The automotive industry was weakened by a substantial increase in the prices of automotive fuels linked to the 2003-2008 energy crisis which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy. With fewer fuel-efficient models to offer to consumers, sales began to slide. By 2008, the situation had turned critical as the credit crunch placed pressure on the prices of raw materials. The result of the 2008-9 international financial crisis impact almost economic sectors and left a number of banks and other financial institution in severe difficulties, forcing some to collapse. As a result, inter-bank, corporate and personal lending was drastically reduces, share price fell, and all the companies found themselves in financial difficulty. The world economic downturn led to falling sale and profit, exchange rate and share prices and a shortage of credit finance for business and consumers, unemployment and social hardship. As a result, automotive industry is one of the first industries to suffer from the 2008-9 world recession. Clearly, consumers incomes were falling, business were cutting down on their purchases, credit was in short supply, thus consumers exercised caution and either bought a used car instead a new one. It is not therefore surprising that there was a significant fall in the demand for new cars. In some country, Government responded to the situation by offering financial incentives to persuade consumers to buy new cars. So HMC focused on making effort to make economizing fuel vehicles with minimize cost to respect customers need and have implemented creative marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sales. Although the world’s automotive market remains sluggish, and some of the world’s largest carmakers have been sorely tested on how to survive, HMC has weathered the global crisis relatively well. In the midst of the global crisis, Hyundai planned a standalone strategy, because their product line up is not expected to synergistic effects through MA. Despite difficult market conditions, in 2010, HMC succeeded in increasing its sales and strengthening its internal capacity. Strategy over the past few years HMC developed five mid–and long–term strategies: global management, higher brand values, business innovation, environmental management, and strengthening product competitiveness. Especially, HMC selected environmental management as to meet the needs of markets and to fulfill stakeholder expectations and the society. HMC also intends to promote sustainability development and preservation of the environment. Blue Drive is HMC’s low carbon green technology strategy designed to reduce CO2 emissions by boosting fuel efficiency. Blue Drive also stands for HMC’s technology development strategy focus on improving fuel efficiency of internal combustion engine-based cars, and with an ultimate goal of developing vehicles with zero CO2 emissions. HMC has focus on three technology areas for improving energy efficiency of the power-train energy efficiency improvement, minimizing energy loss, and creating renewable energy in order to lower CO2 emissions from vehicles. In Europe, HMC succeeded in low CO2 emissions products including the Blue Drive variant of the i30 diesel model, Blue Drive variants, the i10, the i20, the i30, and the Tucson ix blue. In the US, HMC is the most fuel efficient brand with an average combined (passenger vehicle-light truck) fuel efficiency. In the domestic market, a great number of vehicle models including the Click(Getz), the Verna(Accent), the i30, the Avante (Elantra), the Tucson(Diesel model), and the Santa Fe(diesel model) earned a first class energy efficiency. HMC has expanded its vehicle lineup by including more luxury sedans and eco-friendly cars in order to keep up its strong performance in the U.S. market. HMC sold more than 500,000 vehicles in the USA in 2010 and it is the highest number of cars it has ever sold in a single year since tapping into the U.S. market in 1986. HMC have been aggressively pushing into China as the country has become the world’s largest automobile market. As its first achievement, HMC launched the world’s first LPG-Hybrid vehicles, the Elantra LPi Hybrid, which is developed using proprietary technologies in 2009 and released the Sonata Hybrid in the North American market in 2010 and in the domestic market in 2011. HMC’s high product quality innovation was proven in engine technology—the heart of an automobile. Its technical capabilities and the development of high fuel efficiency-related technologies become a true global environmental leader. Under the philosophy of putting quality first, over 5% of its revenues are invested into RD to secure world-leading quality, marketability and technology. HMC has already taken environmentally-friendly investments and research that have resulted in a range of innovative breakthroughs from fuel-saving technology to new materials and responsible treatment of end-of-life vehicles. By adding blast furnaces to its operations, HMC was able to complete what it calls â€Å"resource circulating business structure† that goes from molten iron to automobiles, and from scrap back to unprocessed steel. Since its first concept model â€Å"Blue Will† in 2009 with light-weight bodies made of carbon-fiber, a panoramic sunroof with solar cells minimizing power loss, HMC will launch plug-in hybrid (PHEV) and electric vehicle (NEV) are optimized for in-city use, especially well-fitted for commutes and short trips. Innovative vehicles that pioneer changed in the auto industry through continuous investment in RD and advanced dealer network programs and highly recognized for its sharp sales increase, first-rate dealership programs, and growth in brand awareness. HMC beat other candidates including Ford, Jaguar, and Landrover to be selected as the winner of the coveted title. Vision, Mission, Goals Hyundai Motor Company has grown rapidly to become one of the largest automobile companies with global top five production capability and superior quality, reaching a tipping point the qualitative approach, bringing bigger ideas and relevant solutions to its customers. At this opportunity to move ahead, HMC have developed a new brand slogan that encapsulates the willingness to take the next big step up. Led by new slogan and the thinking behind, HMC will become a company that keep challenging ourselves to open up new possibilities for people and the planet. HMC established a long-term vision of â€Å"Innovation Humanity† and selected five core strategies directions including a global orientation, respect for human values, customer satisfaction, technology innovation and cultural creation. HMC desires to create an automobile culture of putting customer first via developing human–centered and environment–friendly technological innovation. HMC vision is to secure world-best innovations and raise its profile as a premium automaker. Its quest also includes making this world a better place for all by popularizing next generation eco-friendly technologies and creating a new auto-culture through people-centered technologies that move customers hearts. HMC goal is to become a respected global company that contributed the creation of an automobile consumer culture that respects customers need and innovation in environmental technology that minimize the environmental impact of automobile. HMCs success, watched closely worldwide, is a result of continuous and aggressive innovations that have been implemented on behalf of our customers. HMC considers its most important mission to bring the enjoyment of elegance and confidence to its customers, rather than just selling products. Hyundai strives to bring its customers luxury and style. Therefore, Hyundai will continue to stabilize its global management by establishing an effective cooperation system among production bases around the world. HMCs management goal is customer–oriented management and continuous execution of global management. Motivation employees HMC has human resource management policy with fairness and reasonableness as the guiding principle, ensuring protection of human right and maximizing employees’ satisfaction at the work place. HMC does not discriminate against its employees or job applicant on the basis of race, age, religion, sea, nationality, physical characteristic or any other facture for all personal decisions including recruitment, placement, evaluation, compensation, training, rank or promotion. HMC respect the Universal Declaration of Human Rights and fully comply with related laws and international labor practice norm including the UN Global Compact principles and ILO guidelines. HMC provide fair compensation for all work at our business sites according to the work guidelines, compensation policy and relevant laws. Also, HMC have created an ethics charter that calls for respect of the right of all workers. HMC focus in increasing health service for workers in the older age group, implementation of policies to recruit and support female employees and provision of more employment opportunity to non-Korean nationals and people with disability improve working conditions for female workers, HMC offer benefits including monthly days off and 90 day maternity leave. Some operation sites offer childcare centers for working mother as well. HMC ensures employees safety pre-assessment, accident prevention activities, increased investment in safety-related facilities and safety training. Therefore, HMC pursue a long-term relationship that is mutually beneficial to both employees and management. Desirability as an employee I would like to work for HMC because HMC is a leading global automaker with competitive edge in product quality, innovation, appealing to the ever-growing emerging markets, as well as the rapidly changing global market. Moreover, it contributes to society, as part of our global corporate responsibility, as well as to secure leadership for future growth through environmental management, forging the way for green growth and the development of world-class eco-friendly vehicles. Actually HMC is an ideal work place, safe and healthy working environment because of its human resource management policy with fairness and reasonableness to ensure human right protection and maximizing employees’ satisfaction. HMC regards employees as important assets for corporate growth so it has established the HMC ethics charter, the employee code of conduct, and the Guideline on Ethical Business Practices to help employees make the correct decision in the business conduct. It endeavors to provide all employees with environment training program. HMC is stepping up efforts to ensure fairness in HR decisions, to introduce a rational compensation system, to collaborate with the UN Global Compact for human rights protection, talent development, welfare improvement, and health and safety enhancement. References: Main sources: Hyundai Motor Company. Available from http://worldwide.hyundai.com [Accessed 4th March 2011] The road to Sustainability-Hyundai. Available from www.worldwide.hyundai.com/Web/C_Sustainability_down/2010_reports.pdf [Accessed 8th March 2011] The road to sustainability Hyundai. Available from worldwide.hyundai.com/Web/C_Sustainability_down/2010_reports.pdf [Accessed 8th March 2011] Global Crisis Enables Hyundai to Grow Bigger, 04-21-2010 19:37, Available from http://www.koreatimes.co.kr/www/news/biz/2010/11/294_64620.html [Accessed 9th March 2011] Hyundai Motor joins top 3, in Fortune Korea 500; 10-24-2010 18:54. Available from http://www.koreatimes.co.kr/www/news/biz/2011/02/123_75131.html [Accessed 9th March 2011] PART 2: Critically discuss the contention that â€Å"Leaders are born not made† â€Å"Leadership is the process of influencing people towards achievement of organization goals† (Naylor J. (2004) 2nd ed. Management, Harlow. Prentice-Hall)

Tax Office Operation Transformation Essay Example for Free

Tax Office Operation Transformation Essay Governments of developing countries are constantly scrambling to raise the revenues required to finance higher service demands expected by their citizens and the infrastructure (economic, social and environmental) that will enable them to grow the nation towards being industrialized. And to sustain the all imperative comparative advantage over neighbouring nations. Taxation revenues continue to be the main source of revenue for Government spending. This in turn requires well-designed tax policies (new taxes and tax reform) that are translated into clear legislation and are administratively feasible. Perhaps the greatest challenge facing these countries is to improve the effectiveness of their tax administrations.[1] Common Challenges Tax Administrations in developing country contend with the same range of challenges with developed nations, although the significance of typical collection issues may be greater. As a result these countries suffer significant losses in revenue collection. Introducing tax initiatives such as self-assessment and GST does alleviate the revenue leakages to certain extent, however the agencies capacity and capability to administer an effective and efficient taxation system is the ultimate determinant to maximizing collections. It has longed been realized that the existence of widespread tax evasion as part of the hidden economy is a critical concern to developing countries, as it is with developed nations. Hidden income can be defined to include legitimate earnings which are hidden actively or passively to evade tax, as well as illegal earnings derived from non-lawful operations and services. Without trivializing the complexity in dealing with the later type of evasion, the taxpayer’s perception of the administration influences their obligation behaviour. It’s more so evident in developing countries where the administration may not be seen by taxpayers as service organization nor as an active enforcer. For example, common trends include: Â  Inability for taxpayers to get information from or transact with the agency, either low responsiveness, inconsistent advice, multiple hand-offs, huge queues at the service counters etc. Assessments and refunds taking months to process, often taking over six months to make a refund No urgency for Taxpayers to get registered, especially with small to medium enterprise and self-employed Lodgments and payments not pursued actively by the agency, often resulting in over 30% of non-filers Accumulating Debt not pursued in a timely manner by the Agency. Over the years can amount to considerable loss in non-recoverable debt (ie. timing issue). Low level of compliance actively, in terms of education and enforcement. Taxpayer being audited is seen as just bad luck. The Problem The common complaint of the developing country’s tax administration is the lack of resources. In terms of priority, these agencies are more focused on transaction processing activities which are largely manually driven. They are constantly bogged down dealing with never ending processing back-logs, including low turn-around in assessments, refunds, audit cases, appeals, rulings and so on. A large portion of the administration’s staff would be devoted to these low-value activities, which actually does not grow the revenue. The executive management of these administrations is well connected to the best-practices being adopted elsewhere, and understands the positive application to their own environment. They are challenged by the expected rate of change imposed on their agency, constantly battling the needs of Government to collect more and implement new policies quickly, at a lower operational cost. Taxpayers who demand the same levels of services they come to expect from the commercial sector Employees who are frustrated no having the revenue-agency tools to deliver superior services or for effective compliance enforcement. In this hast to modernize the tax agency often turns to automation and Information Technology as the savior and try to implement large amounts of innovation in a short period. As examples, interactive internet service, imaging for data capture, data warehouse, mobile audit workbench, IVR/CTI. All of these are essential IT enablers for the business; however, they often fall short of delivering the benefits in improving service and compliance enforcement in developing countries. The solution Lesson learnt elsewhere tell us that certain characteristics of an agency are central to support business innovation (new ways of doing business) using IT. Without these characteristics, the agency would cripple its efforts to modernize. These characteristics are: Having the building blocks for tax processing, Registration, Lodgment, Payment and Policing. High level of data quality Effective Change Management ability Building Blocks for Tax Processing The main functions of a tax administration, in dealing with taxpayers, aside from actual tax collection or sanctioning non-compliance, largely involve gathering and processing information. The four interrelated blocks are: Registration: Identify potential taxpayers and register taxpayers. Each taxpayer would be identified via a tax identification number and contact details are maintained. This information is core all business activities and imperative to maintain accurate and completed details. Lodgement: Capture, quickly process and record information to assist taxpayers in meeting their tax obligation. Non-lodgment needs to be managed [1] Developing The International Dialogue on Taxation, A Joint Proposal by the Staffs of the IMF, OECD and World Bank, 13 March 2002.

Four Seasons Change Management

Four Seasons Change Management Introduction This report is about Four Seasons Hotels, their outstanding management principles and core values, which played a crucial role in the legendary breakthrough in the hospitality industry. It describes also a big challenge of entering a new country, new market and facing completely different mentality and environment. It represents how core principles and values of Four Seasons were implemented during this establishment. It also describes gradually the process of adaptation, along with profound managerial decisions which were made and management strategies, which were applied during this process. Executive management of Four Seasons had set an ambitious goal to enter French market with an opening the first hotel in Paris under their brand. They were aware and have predicted the difficulties they might face with French culture and especially in Paris. On the early stage of Four Seasons development they have applied a core principle of flexibility, which leads to success and they were learning across borders, from each country and property1 as well. The senior managers of Four Seasons claimed: Our strengths is our diversity and our singularity, while the essence of culture may vary2, by stating that they were building new management principles. In general the report covers crucial managerial tactics and decisions, aimed to adapt to a new culture and environment as well as to manage difficulties in a highly effective and entrepreneurial manner. Cultural awareness and adaptation Before entering French market, Four Seasons Hotel Corporation had managed challenges related to entering new markets in different countries. From theoretical perspective they were prepared and experienced to admit that every culture is different and there are many distinctions in preferences of customers and the way service is expected to be provided. Based on their acknowledgement, they have stated a pattern, which says Italian in Italy, French in France3 that will lead to the target result Each hotel is a tailor made and adapted to its national environment; each property represent its location4. Based on the previous statements, Four Seasons had drawn a creative, internationally-based and worthwhile approach, variable from country to country,- creating cultural destinations4 and allowing those cultures be distinctive with clearly highlighted features of each of them. Their success lies in the knowledge and awareness of a simple principle of flexibility that one should adapt a management style and service delivery to each country. The standards were designed according to each destination, allowing the local flexibility and encouragement of doing something beyond5 the core standards and values. In terms of cultural awareness globally, Four Seasons regional management structure was considered to be a key component of its ability to deliver and maintain the highest and most consistent service standards at each property6 as well as to adapt to every culture effectively and efficiently. One of the key challenges and difficulties to launch Four Seasons Hotel George V Paris was adaptation to the cultural differences and national mentality of the people. Although executive management was aware of cultural diversity issue, what is proved by their statement: If you are going global you cannot be one way7, it still seems not enough to manage all internal and external environment affects at the beginning. Cultural differences were the major barrier for Four Seasons management, on the grounds that they were part of several problematic issues among employees, such as postponement of responsibilities, exaggeration of self inability to solve challenging situations and needless of reference to existing standards. Previously mentioned facts are the sign of low level of responsibility and accountability of decisions among middle and front-line managers. Problematic issues had also involved unreasonable scepticism of Four Seasons in the society and employees without actually knowi ng it. Management Change One of the greatest and crucial management change was new General Manager Le Clavez, who was an ideal candidate for this position. Firstly, he was French and that was beneficial for employees perception and understanding of their needs. Secondly, Le Clavez had a lot of experience in Four Seasons in the US, so that he knew the core values and standards by heart. Thirdly, he had willingness to return in France, which plays a critical role and affects the future performance. Le Clavez has established a lead by example tactic through Apples and Oranges approach which is a part of Total Quality Management and says if one rotten apple can ruin the barrel, then you have to seed the organization with oranges8. According to this fair approach, people with the right attitude were promoted, what shows loyalty and tolerance of management. In the same time it was a smart and wise adaptation measure, avoiding violence, restrictions and negative-effects. Nowadays the importance of cultural awareness is critical for a success, especially in the times of globalization9. Overall it is seen that hospitality managers are searching for patterns in order to fix cultural problems. The topic of cultural diversity and management is relevant and described in details in many books, where authors and professionals state that cultural identity is multidimensional, involving far more than nationality alone10. It also a big issue and the greatest challenge in intercultural interactions to decide who adapts whom and how11. Based on the last argument Four Seasons management in Paris has done an attempt for mutually beneficial solutions and suggested compromises for both sides, by accepting an existing situation and features of French culture. 2. Four Seasons success is owed to an excellent core values and management system which ensures compliance of family structure in the hotels. The Golden Rule of Four Seasons is the greatest approach among the all, because it is fairly simple, functional and says: One should treat others as one would like to be treated12. The Golden Rule puts all 270 core worldwide operating standards into practice, unlike many other organisations, which have it on paper only. In addition the perception of standards among executive managers is equally spread worldwide. Another distinctive value of Four Seasons is personalized service and flexibility with a help of which management allows employees to go beyond the standards in order to satisfy and over fulfil guests needs, whenever it is possible. From my point of view, the main focus has to be held on people, and Four Seasons Hotel policy had proved my assurance, by drawing to the attention the fact that people make the strength of the company. I am convinced that as easier for understanding the value or rule is, than more effectively it will be sustained in reality, and people are those priceless resources, who build and compose any company and its future. One more overwhelming factor, which highlights Four Seasons among others, is maintenance of all standards and core policies all staff all over the world at all times. For this particular reason a key word SERVICE states for Smile, Eye, Recognition, Voice, Informed, Clean and Everyone13. An impressing simplicity of this policy has created a ground for installation core values and principles of Four Seasons worldwide. A performance of Four Seasons on a global arena wouldnt have been outstanding, without the leading figures who were driving the process of development to inevitable success. Outgoing persons such as the founder, chairman and CEO Isadore Sharp and executive vice president John Young are the biggest shareholders of Four Seasons. Owing to them and many more local talented executive managers, like Le Clavez in Paris, core values and standards were successfully instilled in the hotel operation worldwide. One of the profound values, appraised in Four Seasons are human values of employees and The Golden Rule is the best proof of it. John Young commented about The Golden Rule: We recognize that the only way to assure that guests are treated well is to treat employees well14. According to the last statement, Four Seasons provides everything necessary for its employees, including spare uniform, trainings top-notch equipment, feedbacks and all the necessary information.14 270 core worldwide operating standards have several exceptional characteristics, which make them operating globally. First is their allowance of local flexibility, so that service will be provided according to local preferences. Second is a profound awareness of core standards and principles, so that some executive managers perceive standards as a religion! Cultural awareness made another beneficial input to the company, which designed the Apples and Oranges approach, which was instilled in hotel in Paris following by a s alutary and desirable effect. Another significant step of cultural renovation of Four Seasons property in Paris which Le Clavez has applied was The Task Force approach, which was instilled in every new property previously. This approach has a worthwhile deep impact on employees, because it uncovers underlying philosophy of the company and helps getting the property running. It is also considered as a strong symbol and highly effective approach from a human resource perspective.15 General Manager of F.S. George V has also instilled trustworthiness and reliability among employees, by simply keeping the promises and decisions made, when implementing The Golden Rule. With time staff members has realized that management of the hotel is supporting them in all different ways. It also tries to follow the tide with an intention to improve employees personal lives, by changing working shifts in favour of their interests. In my opinion, Le Clavez played a primary role in the establishing of hotel in Paris and especially in bringing into it a Four Seasons flavour. His entrepreneurial and effective decisions contain the half of successful installation of core values and standards. Le Clavez did not limit himself on applying common strategies and approaches; he took a risk to go beyond ordinary practices and brought worthy changes into French business. 3. Entrepreneurship is a necessary measure to apply in unstable conditions of internal and external environment. The decisions and new approaches that Le Clavez had instilled into the management structure were reasonable and innovative. The strategy of general manager was in compliance with The General Principles for Successful Cultural Change16, where the first step is acceptance of existing behaviours, based on values and underlying assumptions within the organisation and encouragement of those, who meet organisational objectives. Le Clavez first has announced the Commitment of good environment17, he was communicating ideas and organisational objectives and in an open manner to employees. Secondly, the means of Apple and Oranges approach is perfectly matches The General Principles for Successful Cultural Change. And finally, as a result all entrepreneurial measure which he had taken worked out in the best case scenario. External environment in France was unusual for American, from the legal perspective, affecting design, work pattern and laws in favour of employees, regarding to the working hours, hygiene and right-to-light. Internal environment factors are closely linked to external in the way that mentality and French pride of personnel was interfering the working process and law were creating termination difficulties. The major differences refer to cultural, where monochronic American culture with its scheduling, code of behaviour and stability states versus polichronic French culture, to which instability in employees attitude is typical. Regarding to these cultural inequality, several difficulties related to the job and professional performance can be emphasized, they include: limited selling activities, inability to apologize, accept ones fault or responsibility, and many others. An absolute difference between American and French cultures had created a detrimental barrier, which had an adverse impact on the business until the critical entrepreneurial practices were applied. Le Clavez was on the right path of improvement by instilling several unusual for France communication approaches. One of it was a Direct line approach, which was a turning point of qualitative and effective communication among different managerial levels. Another innovation in communicative process was an open door event, which involved families of employees to spend time in the hotel and to break down existing barriers18. In order to reward employees, Le Clavez has introduced uncommon in France employee-of-the-month and employee-of-the-year program along with annual evaluations. These programs were settled on the fair basis of meritocracy and aimed to avoid favoritism. On the external level, Le Clavez was straight-forward and open minded when dealing with press and publicity, which had helped to create a transparent and beneficial image of the hotel. As a result of managing cultural diversity, Le Clavez had created A Cultural Cocktail or in other words a truly international environment with a French flavor and several entrepreneurial innovations. The process of development wasnt easy in the beginning and It is understandable that people tend to be resistant to change19 because of their comfort zone, which is familiar to them. One of the new HR trends says that the measurable result and target is to create a win-win situation for both the employer and employee20 that is exactly what Le Clavez had achieved in Paris. At present cultural awareness plays a particular role in Hospitality management during an increasing globalization process. People understand importance of cultural diversity and create new approaches to manage it efficiently and effectively in their businesses. Management of change gains its popularity and appraisal in todays industry. Executive management understands values and significance of flexibility in managing external and internal environment, cultural differences. Building workplace equality through the cultural borders is crucial success factor nowadays. We can observe a variety of approaches in management regarding to previous subjects, they include: Cultural-Cocktail simulation21, focus groups observations and countless number of cultural diversity trainings, books, materials, researches and practical case studies. It all monitors an actual tendency to make organizations more accommodating to diverse groups of people22 and to react on unexpected situations in external environment. Conclusion The senior management was anticipating a great challenge and triumph, although they could not know in advance what exactly they are going to face with. The report provides analyses of the process of installation of core Four Seasons values into the French environment. It also compares Four seasons experience, management tactics and approaches of that time with todays reality. Every remarkable success is inseparable from stability and maintenance of quality, in other words it is not enough to reach a high level of service, standards and quality, one should sustain it on that high level constantly. Common understanding of core principles and values of Four Seasons management worldwide, as well as common culture of providing a luxury service, supported with simplicity of standards and its actual implementation, has been recognised and appraised globally. I would like to admit an outstanding professional performance and management of Le Clavez and the whole Four Seasons organization on the global arena. The core managerial principles which were innovated that time are still relevant and serve a base for future technologies. The story of hotel George V in Paris analysed in this report can be considered as a tutorial guide full of entrepreneurial and innovative ideas, as well as logical steps, which were intended to modify the current environment and to handle cultural diversity issues effectively. It is also an illustrative description, which reveals key managerial principles for the success, quality and sustainability of Four Seasons.

Economic Impact of the Added Worker Effect :: essays papers

Economic Impact of the Added Worker Effect 1. Income Effect: the income effect is the response of desired hours of leisure to changes in one’s income. If wages are held constant and income increases then the desired hours of work will decrease. The relevance of the income effect in regards to the study of labor economics is very important. Employers, economists and Government institutions have the ability to determine the amount of time workers’ will seek to either choose more hours of work or more hours of leisure. This can be used to estimate the average number of work and leisure hours a sample of workers will utilize in a year or during a trend. 2. Added Worker Effect: The added worker effect occurs when there is a family that has only one bread winner that loses his or her job. Because of the lost income the family may choose for the recently unemployed family member to stay home while the other family member seeks employment. This then produces a new worker in the work force which is the added worker effect because the person was not already in the work force or seeking employment. The added worker effect is crucial to economists and the Government to determine the unemployment rate during times of recession as well as the rate of new entries into the work force. 3. Compensating Wage Differentials: Compensating wage differentials determines the level of risk an employee and employer chooses to offer. If an employer has an unsafe work place then their cost of reducing risk is relatively low compared to an employer who already has a safe work environment. At the same point, a worker chooses the level of risk he/she will assume in relation to the offered rate of pay. This is very important in the study of labor economics as it shows how workers and employers are affected when the state and Federal government pass job safety laws that demand higher levels of safety measures implemented in the workforce. Short Problems 1. 2. a) Limnologist 472000 = 449523.81-15000 = 434523.81 1.05 Chef 500000 = 476190.48- 40000 = 436190.

Half-Caste by John Agard How effective is the light-hearted ridicule :: English Literature

Half-Caste by John Agard How effective is the light-hearted ridicule in this poem? In the poem Half-Caste by John Agard the poet uses ridicule to put his point across, he uses this technique very effectively and many times and by the end of the poem you realise how stupid the fact of someone being a Half Caste is. The poem is about a man from the West Indies and is called Half Caste, which means of mixed race. The poem starts off with a verse off three lines all written in Standard English. Even in this very short part we can see the way the poet is using ridicule when he says ‘standing on one leg’, this is inferring that because he is a ‘half-caste’ he is only standing on one leg and that only one half the white half of him means anything to most people. It may seem like a ridiculous idea that he should stand on one leg but it does show how stupid the idea that someone can only stand on one leg because he is off mixed race. The poem then goes into a West Indian accent and it then makes another example like mixing colours makes him a half-caste. It then says ‘explain yuself’ again as it did at the start of the verse, this is repeated many times through the poem and becomes a sort of chorus. It is then always followed by an example, in this case comparing light and shadow to black and white. Light and shadow is a euphemism for black and white. The poem then goes onto a line, which really uses ridicule to get the point across, but whilst adding a little humour it shows an extremely vital point that we all as individuals should think about, it says about English weather being half caste. We all know the joke about English weather being bad and traditionally always cloudy and rainy. When we say that the weather is half-caste we are really saying it is not as good as it should be, do we also mean this when we call a person of mixed race a ‘half caste’. That line has double intentions as well as saying about English weather not being very good it also questions our thoughts on people of mixed race and whether we look down on them. The poet then uses light hearted ridicule again when he says about Tchaikovsky using the black and white key on a piano this is saying that he is not half caste but what about someone who only uses white keys does that make them a racist.

Salem Witch Trial :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Between the months of June to September of 1692, the infamous witch trials in Salem, Massachusetts resulted in the deaths of twenty men and women as a result of witchcraft charges. Hundreds of others faced accusations and dozens were jailed for months during the progress of the trials. There are an numerous number of explanations for the hysteria that over took the puritan population of Salem. This year marked a very disturbing time in the history of the Salem that is unique in the entire history of the United States of America and, in some respect, also in the history of all over the world.   Ã‚  Ã‚  Ã‚  Ã‚  The maps show the locations of major landmarks, farms, land grants, physical features, and the dwellings of prominent and important residents in Salem during 1692. For example the maps claimed that accusers came mainly from families who lived in the western part of the village, while the accused witches came predominantly from families living nearer to Salem Town. The following persons are not included on the map: the â€Å"afflicted girls† Sarah and Dorcas good, who had no fixed residence; Mary DeRich; and the five Villagers who were both accusers and defenders in 1692. The charts reveal older women were accused of witchcraft because of their economic vulnerability and because they were liable to senility, depression, or both. They also indicate that most of the accused witches were both young and old women. The men fall highest in the category as witnesses.   Ã‚  Ã‚  Ã‚  Ã‚  Church was the cornerstone of 17th century life in New England. Most people in Massachusetts were Puritans. Puritans are colonists who had left England seeking religious tolerance. But the strict Puritan code was far from tolerant. It was against the law not to attend church, where men and women sat on opposite sides through long services. The Puritan lifestyle was restrained and rigid. People were expected to work hard and repress their emotions or opinions. Individual differences were frowned upon. Even the dark, somber Puritan dress was dictated by the church. Since Puritans were expected to live by a rigid moral code, they believed that all sins from sleeping in church to stealing food should be punished. They also believed God would punish sinful behavior. When a neighbor would suffer misfortune, such as a sick child or a failed crop, Puritans saw it as God’s will and did not help. Puritans also believed the Devil was as real as God.

The History of Establishment of Bank of Lebanon

Following the downfall of the Ottoman Empire in September 1918, the Turkish Pound was replaced by a Sterling based Egyptian currency as legal tender in the states under the French and British mandate. The Egyptian Pound was issued by a private British institution, the National Bank of Egypt, and had been previously used by the British, since much of their supplies were from Egypt. After taking Lebanon and Syria under its mandate, the French government sought the substitution of the Egyptian currency in order to alleviate the burden on the French Government in covering its expenditures in Egyptian Pound, and to assert its independence from the British. However, the use of the post war French Franc would have further exhausted the French Treasury. The alternative was to grant a commercial bank the exclusive right to issue a currency for the States under Mandate. The Banque de Syrie, a French company affiliate of the Ottoman bank, was established in 1919 with an initial capital of FF. 10 million, later increased to FF. 25.5 million. Of its 51 thousand shares, about 22% were owned by the Ottoman bank and 78% by French shareholders. 1924-1964: The Banque de Syrie et du Liban In January 1924, a convention was signed between the Banque de Syrie, and Lebanon and Syria as States under the French Mandate, following the constitution of their national government. As the political status of Lebanon evolved, the Banque de Syrie, which was to act as the official bank of the states under the French Mandate, was renamed the Banque de Syrie et du Liban (BSL). BSL was granted the following privileges by the 1924 Convention including: The sole right to issue the French-based-Lebanese-Syrian currency in Lebanon and Syria for 15 years, at FF. 20 to the pound. These could be redeemed at the main office in Paris or its branch in Marseilles. Special rights regarding securities pledged as loan guarantees The sole custody of government funds Preference for its services with local governments The issue of the Lebanese-Syrian currency were governed by the 1924 Convention and covered by: Gold and convertible foreign government bonds Mandatory French Franc interest earning deposits Other (optional) French Franc demand deposits Claims drawn on or guaranteed by the French government Two years before the expiry of the 1924 Convention, BSL's privilege to note issue a Lebanese currency in Lebanon, separate from the Syrian currency, was extended for another 25 years by the 1937 Convention, ending in March 1964. The notes issued by BSL were no longer subject to a ceiling but were subject to an obligatory and optional coverage. They were of two series; one carrying the name â€Å"Lebanon† and the other â€Å"Syria†, but both could be used indiscriminately in either state. Although the currency was Lebanese in name, it remained a disguised French Franc, until 1941 when it was linked to the Sterling Pound after the defeat of France and the invasion of Lebanon by the allied forces. However, the coverage of the Lebanese Pounds issues was still in French Francs, which was constantly depreciating or devaluated. Lebanon was to collect any loss in the value of its assets in French Francs covering the issue of Lebanese notes by the Franco-British agreement of 1944. The corresponding burden on France and Lebanon's will to achieve monetary independence, necessitated a dissociation between the Lebanese Pound and the French Franc. Following its independence in 1943, Lebanon concluded a monetary agreement with France in 1948 separating its national currency from the unstable French Franc, and asserted the independence of its monetary system by promulgating the Monetary Law of 1949.Concurrently, the distinction between the Issue Department and the Commercial Department was fully effected. In April 1963, a commercial bank, the Societe Nouvelle de la Banque de Syrie et du Liban s.a.l. was created to replace the Commercial Department, and in April 1964, the Issue Department was transformed into the Banque du Liban. Banque du Liban (BDL) was created by the Code of Money and Credit enacted by decree no. 13513 dated August 1, 1963. It started its effective operations on April 1, 1964. BDL is a legal entity of public law enjoying financial and administrative autonomy but is not subject to administrative regulations and supervisions applicable to the Public sector. Its initial capital was LL.15 million, an amount appropriated by the State. BDL is the sole custodian of public funds and is vested by law the exclusive privilege of issuing the national currency. BDL includes an administrative body and a managerial body, as well as other specialized entities. The Government Commissariat supervises it. As stipulated in article 70 of the Code of Money and Credit, the Banque du Liban (BDL) is mainly concerned with the safeguarding of the currency in order to ensure a basis for sustained social and economic growth. Its basic responsibilities specifically include: safeguarding the currency; maintaining economic stability; maintaining and safeguarding the soundness of the banking system; Developing the money and financial markets. To fulfill its major functions, BDL cooperates with the Government to ensure exchange rate stability, control liquidity, impose credit restrictions, and issue banking regulations. Cooperation with the Government involves coordination of fiscal and economic policy measures to ensure a certain harmony between its objectives and those of the Government, suggestions benefiting various economic variables to promote economic growth, and advice on issues regarding the Lebanese currency. Exchange rate stability entails the use of all measures BDL sees appropriate specifically intervention in the market to buy and sell foreign currencies. The control of liquidity involves changes in discount rates, loans granted to banks and financial institutions, intervention in the foreign exchange market, open market operations, imposition of reserve requirements on assets and/or liabilities as well as penalties for shortfalls in their formation, and/or the receipt of deposits from banks. It can also affect the volume of credit and the general credit situation by determining the volume of certain types of credits, credit granted for specific purposes, credit granted for specific sectors, and setting the terms and regulations of credits. BDL can issue regulations to ensure the soundness of the banking system. It can set, in consultation with the Lebanese Banks Association, regulations governing the relation of banks with their customers, and banks liquidity and capital adequacy. It has the power to regulate asset to liabilities ratios on all or selected banks to be met at a date specified by BDL. Banque du Liban (BDL), the central bank of the Republic of Lebanon, was created by virtue of Law No. 13513 dated August 1, 1963. Banque du Liban is a separate public legal entity – not a governmental department – and is vested with financial and administrative autonomy. The management of the BDL is undertaken by a Governor assisted by four Vice-Governors, all together constituting the Governorship of the BDL, as well as by a Central Board chaired by the Governor and composed of the Vice-Governors, the Director-General of the Ministry of Finance and the Director-General of the Ministry of Economy and Trade. The Banque du Liban is the sole custodian of public funds, supervises and regulates the banking system and is vested by law with the exclusive authority of issuing the national currency. The BDL†s primary role is to safeguard the currency and promote monetary stability, thereby creating a favorable environment for economic and social progress. The Banque du Liban also advises the Government on various economic and financial matters. In conducting its monetary management function, Banque du Liban utilizes a wide range of instruments, including reserve requirements on Lebanese Pound deposits with commercial banks, liquidity requirements on US Dollar deposits in commercial banks, Treasury Bill repurchase and swap agreements with commercial banks, as well as Lebanese Pound denominated certificates of deposits issued by the BDL. As a result of high inflation prior to 1992, the Lebanese economy became substantially dollarized. Since October 1992, monetary policy has been targeted at stabilizing the Lebanese Pound exchange rate and controlling the inflation rate and money growth. The return of confidence in monetary stability and the high returns on investment in LBP-denominated financial securities led to a significant decline of the dollarization of the economy and to a build up in foreign exchange reserves. The Banque du Liban is managed by the Governor who is assisted by four Vice-Governors, as well as by the Central Council. The Governor is the legal representative of the Banque du Liban, and has extensive authority on the management of the Bank. He is entrusted with the enforcement of the Code of Money and Credit, and the implementation of the Central Council's resolutions. Upon the proposal of the Minister of Finance, the Governor is appointed by decree sanctioned by the Council of Ministers, for a renewable six- year term. After the consultation with the Governor and upon the proposal of the Minister of Finance, the Vice-Governors are appointed by decree sanctioned by the Council of Ministers for a renewable five-year term. They assist the Governor in managing the Bank, carrying out functions specified by the Governor. In addition, they assume their duties as members of the Central Council. The Central Council sets the monetary and credit policies of the Bank, including money supply, and discount and lending rates. It discusses and decides, among other things, on issues concerning the banking and financial sectors, the establishment of clearing houses, the issuing of currency and on loan requests by the public sector entities. The Council decides also on the rules and procedures that govern the staff and operations of the Bank, and on its annual budget and accounts.