Analysis of Ethiopia for Business Opportunities

Analysis of Ethiopia for Business Opportunities 1. Introduction 1.1 The Country Ethiopia is almost five times bigger in the size of the United Kingdom and 27 times in the size of the Netherlands, is geographically located in the east of Africa with border line Somalia(1626 km) from east , Eritrea(912km) on north ,Sudan(1606 km) from the west and Kenya (830 km from the south. Ethiopia has geographically importance due to easy access to reach the Middle East and Europe, increase its importance in international trade. Geographically having an area of approximately 1.12 million square kilometers (444,000 square miles) out of which land is on 1,119 million square kilometers and water is on 7444 square meters. Ethiopia is high plateau with central mountain ranges almost over the country is divided by Great Rift Valley. The major rivers in Ethiopia are Blue Nile, Awash, Baro, Omo, Tekezie and Wabe Shebele. Ethiopia has also small amount of natural resources with small reserves of platinum, gold, potash, copper, hydropower and natural gas. 1.2 The People Ethiopia is country with around 80 million people, and in comparison to other country it comes on 14th rank in world. Almost more than 80 percent of the population still lives in the rural areas. The age structure in Ethiopia is 0-14 years are (46.1%),15-64 years are (51.2%) and 65 years and over are (2.7%).Ethiopia has average birth rate of 2.7%. In Ethiopia is total freedom of religious practice, and the Christianity and Islam are the two main religions in Ethiopia with other religions which are in very number most of them are located in south side. Almost two-third of the population used the three main languages Amharic, Oromiffa and Tigrigna the official language of the Ethiopian government is Amharic. In schools, colleges and university teaching and medium of instruction are in English, also used mostly in the banking, insurance and business transactions, Arabic and Italian languages are also widely used in Ethiopia. Almost the 42.7 % of over 15 years old people can read and write mean having basic literacy rate. The Ethiopian government is spending almost 5.5 percent of their GDP in education programs. 1.3 The Government Ethiopia is conventional short form of name, and conventional long form of name is Federal Democratic Republic of Ethiopia. The first time election was held in 1995 and country adopted a new constitution and the government there is known as the federal republic government. The government involves in the foreign policy and relations, defense system and common interest benefits. The Federal State divisions are in nine ethnically based states vested with powers for self administration. The FDRE represent the common peoples interest and peoples of the states, the federal government is structured as a lines of bicameral parliament, with the Council of Peoples representatives being the highest authority of the Federal Government the representative of Councils Members are elected democratically for six year term. 1.4 Cities and Towns Addis Ababa, the largest city and capital of the Ethiopia, also is the seat of the Federal Government of Ethiopia. The capital city was founded in 1887 and population of around about 3 million. Addis Ababa is the host city for Organization for African Unity and the United Nations Economic Commission for Africa; also there is more international organization with their headquarters and branch offices. Addis Ababa I also centre point for business, commerce and industries. In Addis can find different manufacturing plants located in and around the city. There are lots of entertainment and sport facilities in the city, with national parks. The main centre of point are resort centers with hot springs and lake, all of them are easily accessible through road. The other important and big cities in term of trade and industries having potential of expansion are Awassa, Dire Dawa, Gondar, Dessie, Nazareth, Jimma, Harar, Bahir Dar, Mekele, Debre Markos and Nekemte. All of them are interconnected with Addis through road,most of them have their historical importance with good infrastructure facilities. 1.5 THE ECONOMY The Ethiopian economy is totally dependable on agriculture which has 45% of the Gross Domestic Product (GDP), 65 % of total exports and 85% of employment. Coffee is the main export product and its alone having a share of over 85 % of total agricultural exports. In Ethiopia different crops in different area of the country cultivated but the main crops are cereals, pulses, coffee, cotton, tobacco, fruits, sugarcane and oil seeds. The industrial sector plays also big role in economy and having almost 11% of share in total GDP, which provides their product to local and global markets. The most important products in term of local market and export are textiles, foodstuffs, tiles, paper, beverages, cement, semi- processed leather, finished leather products and non-metallic products. In Ethiopia even it is small reserve amount of natural resources and it contribute only 1% to the total GDP, but still there are lots of opportunities in mining to explore and contribute in Ethiopian economy. Communications There is total monopoly of Ethiopian Telecommunications corporations over the telephonic services open-wire, microwave radio relay; radio communication in the HF, VHF, and UHF frequencies; 2 domestic satellites provide the national trunk service. Ethiopia has only 1 public TV broadcast station which broadcasting it nationally and only 1 public radio broadcaster with stations in each state, there are some commercial and dozens of community radio stations. Transportation Till 2010 in Ethiopia there 61 airports, out of which 17 airports are with paved runways and 44 airports are unpaved. The railway is under joint control of Ethiopia and Djibouti, but most of it is inoperable and need lots of improvement and expansion to improve the transportation. The conditions of Ethiopian roads are also not in very good conditions out of 36469 km long road only 6980 k are in better conditions other are unpaved around about 29849 km. Ethiopia has 9 merchant marine 8 cargo and 1 roll on/ roll off, they are landlocked and uses the ports Djibouti in Djibouti and Berbera in Somalia. In Ethiopia transportation is a big problem and effects also in the business. Ethiopian government takes this problem very seriously and many projects are on progress for improvement and modernization of Ethiopian transportation system. 1 .6 Banking Systems 1.6.1 Introduction In Ethiopia banking system was introduced in 1905 with the coordination of Bank of Egypt and the first name of bank was Bank of Abyssinia which is controlled by private company in Ethiopia. Later in 1931 it was replaced by the Bank of Ethiopia. During the Italian invasion period and subsequent British occupation Ethiopia become one of the important places for East Africa Currency Board. Later again it is renamed as State bank of Ethiopia having two active departments involves in the process of separate function of issuing banks and commercial bank. In 1963 the bank is divided into two parts two new bank national Bank of Ethiopia involves in the process of centralizing and issuing bank and the second one the commercial bank of Ethiopia. In 1974 there was merging of maximum of financial institutes available tat time including state owned also some of them are The Agricultural and Industrial Development Bank The Savings and Mortgage Corporation of Ethiopia The Imperial Savings and Home Ownership Public Association The Addis Ababa Bank The Banco di Napoli The Banco di Roma In 1975 change in government policy and change into Marxist government bring again lots of changes in banking system like nationalization of private financial institutes and insurance companies. The big and important commercial bank of Ethiopia is now known as Addis Ababa bank and the total control of all banks and financial institutes are under supervision of National Bank of Ethiopia. The Ethiopian Insurances corporation take all power and control for the all insurance companies and for the home loan and renovation loan is provide by the new Housing and savings bank. 1.6.2 Current Conditions The whole banking system condition is still undeveloped and need lots of improvement and development. In Ethiopia there is also no stock exchange and foreign bank as the banking system is still not globalized, while higher government authorities are afraid of losing control over the economy because of globalizing the banking system. Thats why they have full control over the banking system even they decide the interest rate as per the high inflation rate. Below provided table to have a look on the condition of ease of doing business in Ethiopia. Table 1 Business Climate of Ethiopia As National Bank of Ethiopia is Ethiopian central bank and the state owned Commercial Bank is one of the biggest and largest bank in Ethiopia having approx. control of more than 75% of total banking assets in Ethiopia, tables 2 tried to explain the banking system in Ethiopia. Table 2 Value of Ethiopian Bank Assets Insurance companies and other financial institutions In Ethiopia the Ethiopia Insurance Corporation controls 10 insurance companies performing business in more than 200 branches all over the country Below in the table the number of branches and their capital are explained figures available are from 2007 and till then only nine insurance companies are in business the 10th company (Lion Insurance Company) comes in business after 2007 thats why it is not mention in table. Table 3: Branches and Capital of Insurance Companies in Ethiopia (Capital in Millions of Birr) Stock Market No stock exchange exists Other Types of Finance/Financial Market Micro finance After the establishment of the government in 1994/1995. It started also and supporting for the development of microfinance industry, the purpose of Ethiopian government to developed the microfinance industry to help poor people in both rural and urban area. According to the 2005 microfinance industry report in Ethiopia that there are 23 microfinance industries and around about more than 1 million peoples are connected directly to the industry. As from above it is cleared that government had totally prohibited any kind of foreign company involved in the process of financial or banking services in country. In Ethiopia microfinance industry can be opened by people having Ethiopian nationality and having full 100% share in company or by those organization which are totally settled and have their registration under the law and having their head office in Ethiopia. As in country most of the microfinance initial capital comes from the foreign investors and which leads to the not clear transparency of microfinance industry, normally person investing in the microfinance industry local or foreigner must enlist as a shareholder. As government authorized high authorities decided interest rate according to the high inflation rate, and in microfinance industry there is no fixed interest rate on credit according to law minimum interest on credit is 3%, which is a loss for those people wants to open microfinance industry in rural areas because of added administrative cost in capital of investment. Top ten reasons to do business in Ethiopia Political and social stability; Macro-economic stability and growing economy; Adequate guarantees and protections; Transparent laws and streamlined procedures; Ample investment opportunities; Abundant and trainable labor force; Wide domestic, regional and international market opportunity; Competitive investment incentive packages ; Welcoming attitude of the people to FDI; and Pleasant climate and fertile soils. 2. Foreign Market Entry Strategy 2.1 Introduction 2.1.1 Strategy Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. 2.1.2 Strategic Decisions Strategic decisions are likely to be complex in nature. This complexity is a defining feature of strategy and strategic decisions and is especially so in organizations with wide geographical scope, such as multinational firms, or wide ranges of products or services. Strategic decisions may also have to be made in situations of uncertainty about the future. Strategic decisions are likely to affect operational decisions: for example, an increased emphasis on consumer electronics would trigger off a whole series of new operational activities, such as finding new suppliers and building strong new brands. This link between overall strategy and operational aspects of the organization is important for two other reasons. First, if the operational aspects of the organization are not in line with the strategy, then, no matter how well considered the strategy is, it will not succeed. Second, it is at the operational level that real strategic advantage can be achieved. Indeed, competence in particular operational activities might determine which strategic developments might make most sense. Strategic decisions are also likely to demand an integrated approach to managing the organization. Managers have to cross functional and operational boundaries to deal with strategic problems and come to agreements with other managers who, inevitably, have different interests and perhaps different priorities. Managers may also have to sustain relationships and networks outside the organization, for example with suppliers, distributors and customers. Strategic decisions usually involve change in organizations which may prove difficult because of the heritage of resources and because of culture. These cultural issues are heightened following mergers as two very different cultures need to be brought closer together or at least learn how to tolerate each other. Indeed, this often proves difficult to achieve a large percentage of mergers fail to deliver their ‘promise for these reasons. 2.1.3 Levels of Strategy Corporate-level strategy: Itis concerned with the overall purpose and scope of an organization and how value will be added to the different parts (business units) of the organization. Business-level strategy: It is about how to compete successfully in particular markets. Operational strategies: These are concerned with how the component parts of an organization deliver effectively the corporate and business-level strategies in terms of resources, processes and people. 2.1.4 Strategic Management Strategic management includes understanding the strategic position of an organization, strategic choices for the future and turning strategy into action. The strategic position is concerned with the impact on strategy of the external environment, an organizations strategic capability (resources and competences) and the expectations and influence of stakeholders. Strategic choices involve understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development. Strategy into action is concerned with ensuring that strategies are working in practice. Strategy development processes are the ways in which strategy develops in organizations. 2.2 Environment The most general ‘layer of the environment is often referred to as the macro environment. This consists of broad environmental factors that impact to a greater or lesser extent on almost all organizations. It is important to build up an understanding of how changes in the macro-environment are likely to impact on individual organizations. A starting point can be provided by the PESTEL framework which can be used to identify how future trends in the political, economic, social, technological, environmental and legal environments might impinge on organizations. This provides the broad ‘data from which the key drivers of change can be identified. These will differ from sector to sector and from country to country. Therefore they will have a different impact on one organization from another. If the future environment is likely to be very different from the past it is helpful to construct scenarios of possible futures. This helps managers consider how strategies might need to change depending on the different ways in which the business environment might change. Within this broad general environment the next ‘layer is called an industry or a sector. This is a group of organizations producing the same products or services. The five forces framework and the concept of cycles of competition can be useful in understanding how the competitive dynamics within and around an industry are changing. The most immediate layer of the environment consists of competitors and markets. Within most industries or sectors there will be many different organizations with different characteristics and competing on different bases. The concept of strategic groups can help with the identification of both direct and indirect competitors. Similarly customers expectations are not all the same. They have a range of different requirements the importance of which can be understood through the concepts of market segments and critical success factors. 2.2.1 Key driver of change Key drivers of change are forces likely to affect the structure of an industry, sector or market. There is an increasing trend to market globalization for a variety of reasons. In some markets, customer needs and preferences are becoming more similar. For example, there is increasing homogeneity of consumer tastes in goods such as soft drinks, jeans, electrical items (e.g. audio equipment) and personal computers. The opening of McDonalds outlets in most countries of the world signaled similar tendencies in fast food. As some markets globalize, those operating in such markets become global customers and may search for suppliers who can operate on a global basis. For example, the global clients of the major accountancy firms may expect the accountancy firms to provide global services. The development of global communication and distribution channels may drive globalization the obvious example being the impact of the internet. In turn, this may provide opportunities for transference of marketing (e.g. global brands) across countries. Marketing policies, brand names and identities, and advertising may all be developed globally. This further generates global demand and expectations from customers, and may also provide marketing cost advantages for global operators. Nor is the public sector immune from such forces. Universities are subject to similar trends influenced by changing delivery technologies through the internet. This means, for example, that there is developing a genuinely global market for MBA students particularly where the majority of ‘tuition is done online. Cost globalization may give potential for competitive advantage since some organizations will have greater access to and/or be more aware of these advantages than others. This is especially the case in industries in which large volume; standardized production is required for optimum economies of scale, as in many components for the electronics industry. There might also be cost advantages from the experience built through wider-scale operations. Other cost advantages might be achieved by central sourcing efficiencies from lowest-cost suppliers across the world. Country-specific costs, such as labor or exchange rates, encourage businesses to search globally for low cost in these respects as ways of matching the costs of competitors that have such advantages because of their location. For example, given increased reliability of communication and cost differentials of labor, software companies and call centers are being located in India, where there is highly skilled but low-cost staff. Other businesses face high costs of product development and may see advantages in operating globally with fewer products rather than incurring the costs of wide ranges of products on a more limited geographical scale. The activities and policies of governments have also tended to drive the globalization of industry. Political changes in the 1990s meant that almost all trading nations function with market-based economies and their trade policies have tended to encourage free markets between nations. Globalization has been further encouraged by technical standardization between countries of many products, such as in the automobile, aerospace and computing industries. It may also be that particular host governments actively seek to encourage global operators to base themselves in their countries. However, it is worth noting that in many industries country-specific regulations still persists and reduces the extent to which global strategies are possible. Also, the early 2000s have seen a rise in citizen activism about the impact of globalization on developing countries most notably at meetings of the World Trade Organization Changes in the macro-environment are increasing global competition which, in turn, encourages further globalization. If the levels of exports and imports between countries are high, it increases interaction between competitors on a more global scale. If a business is competing globally, it also tends to place globalization pressures on competitors, especially if customers are also operating on a global basis. It may also be that the interdependence of a companys operations across the world encourages the globalization of its competitors. For example, if a company has sought out low-cost production sites in different countries, these low costs may be used to subsidize competitive activity in high-cost areas against local competitors, thus encouraging them to follow similar strategies. 2.2.2 Industries and sectors The macro-environment might influence the success or failure of an organizations strategies. But the impact of these general factors tends to surface in the more immediate environment through changes in the competitive forces on organizations. An important aspect of this for most organizations will be competition within their industry or sector. Economic theory defines an industry as ‘a group of firms producing the same principal product or, more broadly, ‘a group of firms producing products that are close substitutes for each other. This concept of an industry can be extended into the public services through the idea of a sector. Social services, health care or educations also have many producers of the same kinds of services. From a strategic management perspective it is useful for managers in any organization to understand the competitive forces acting on and between organizations in the same industry or sector since this will determine the attractiveness of that industry and the way in which individual organizations might choose to compete. It may inform important decisions about product/market strategy and whether to leave or enter industries or sectors. It is important to remember that the boundaries of an industry may be changing for example, by convergence of previously separate ‘industries such as between computing, telecommunications and entertainment. Convergence is where previously separate industries begin to overlap in terms of activities, technologies, products and customers. There are two sets of ‘forces that might drive convergence. First, convergence might be supply-led where organizations start to behave as though there are linkages between the separate industries or sectors. This is very common in the public services where sectors seem to be constantly bundled and un-bundled into ministries with ever-changing names (‘Education, ‘Education and Science, ‘Education and Employment, ‘Education and Skills etc.). This type of convergence may be driven by external factors in the business environment. For example, governments can help or hinder convergence through regulation or deregulation a major factor in the financial services sector in many countries. The boundaries of an industry might also be destroyed by other forces in the macro-environment. For example, e-commerce is destroying the boundary of traditional retailing by offering manufacturers new or complementary ways to trade what are now being called new ‘business models12 such as websites or e-auctions. But the real test of these types of changes is the extent to which consumers see benefit to them in any of this supply-side convergence. So, secondly, convergence may also occur through demand-side (market) forces where consumers start to behave as though industries have converged. For example, they start to substitute one product with another (e.g. TVs and PCs). Or they start to see links between complementary products that they want to have ‘bundled. The package holiday is an example of bundling air travel, hotels and entertainment to form a new market segment in the travel industry. 2.2.3 Competitors and market An industry or sector may be a too-general level to provide for a detailed understanding  of competition. For example, Ford and Morgan Cars are in the same industry (automobiles) but are they competitors? The former is a publicly quoted multinational business; the latter is owned by a British family, produces about 500 cars a year and concentrates on a specialist market niche where customers want hand-built cars and are prepared to wait up to four years for one. In a given industry there may be many companies each of which has different capabilities and which compete on different bases. This is the concept of strategic groups. But  competition occurs in markets which are not confined to the boundaries of an industry and there will almost certainly be important differences in the expectations of different customer groups. This is the concept of market segments. What links these two issues is an understanding of what customers value. Strategic groups are organizations within an industry or sector with similar strategic  characteristics, following similar strategies or competing on similar bases. These characteristics are different from those in other strategic groups in the same industry or sector. For example, in grocery retailing, supermarkets, convenience stores and corner shops are three of the strategic groups. There may be many different characteristics that distinguish between strategic groups but these can be grouped into two major categories .First, the scope of an organizations activities (such as product range, geographical coverage and range  of distribution channels used). Second, the resource commitment (such as brands, marketing spend and extent of vertical integration). Which of these characteristics are especially relevant in terms of a given industry needs to be understood in terms of the history and development of that industry and the forces at work in the environment. 2. Market segments The concept of strategic groups discussed above helps with understanding the similarities and differences in the characteristics of ‘producers those organizations that are actual or potential competitors. However, the success or failure of organizations is also concerned with how well they understand customer needs and are able to meet those needs. So an understanding of markets is crucial. In most markets there is a wide diversity of customers needs, so the concept of market segments can be useful in identifying similarities and differences between groups of customers or users. A market segment is a group of customers who have similar needs that are different from customer needs in other parts of the Market 2.2.4 Opportunities and threat The critical issue is the implications that are drawn from this understanding in guiding strategic decisions and choices. There is usually a need to understand in a more detailed way how this collection of environmental factors might influence strategic success or failure. This can be done in more than one way. This identification of opportunities and threats can be extremely valuable when thinking about strategic choices for the future. A strategic gap is an opportunity in the competitive environment that is not being fully exploited by competitors. By using some of the frameworks described in this chapter, managers can begin to identify opportunities to gain competitive advantage in this way: Opportunities in substitute industries Organizations face competition from industries that are producing substitutes. But substitution also provides opportunities. In order to identify gaps a realistic assessment has to be made of the relative merits of the products/technologies (incumbent and potential substitutes) in the eyes of the customer. An example would be software companies substituting electronic versions of reference books and atlases for the traditional paper versions. The paper versions have more advantages than meet the eye: no hardware requirement (hence greater portability) and the ability to browse are two important benefits. This means that software producers need to design features to counter the strengths of the paper versions; for example, the search features in the software. Of course, as computer hardware develops into a new generation of portable handheld devices, this particular shortcoming of electronic versions might be rectified. Opportunities in other strategic groups or strategic spaces It is also possible to identify opportunities by looking across strategic groups particularly if changes in the macro-environment make new market spaces economically viable. For example, deregulation of markets (say in electricity generation and distribution) and advances in IT (say with educational study programs) could both create new market gaps. In the first case, the locally based smaller-scale generation of electricity becomes viable possibly linked to waste incineration plants. In the latter case, geography can be ‘shrunk and educational programs delivered across continents through the internet and teleconferencing (together with local tutorial support). New strategic groups emerge in these industries/sectors. Opportunities in the chain of buyers It was noted that this can be confusing, as there may be several people involved in the overall purchase decision. The user is one party but they may not buy the product themselves. There may be other influencers on the purchase decision too. Importantly, each of these parties may  value different aspects of the product or service. These distinctions are often quite marked in business-to-business transactions, say with the purchase of capital equipment. The purchasing department may be looking for low prices and financial stability of suppliers. The user department (production) may place emphasis on special product features. Others such as the marketing department may be concerned with whether the equipment will speed throughput and reduce delivery times. By considering who is the ‘most profitable buyer an organization  may shift its view of the market and aim its promotion and selling at those ‘buyers with the intention of creating new strategic customers. Opportunities for complementary products and services This involves a consideration of the potential value of complementary products and services. For example, in book retailing the overall ‘ Analysis of Ethiopia for Business Opportunities Analysis of Ethiopia for Business Opportunities 1. Introduction 1.1 The Country Ethiopia is almost five times bigger in the size of the United Kingdom and 27 times in the size of the Netherlands, is geographically located in the east of Africa with border line Somalia(1626 km) from east , Eritrea(912km) on north ,Sudan(1606 km) from the west and Kenya (830 km from the south. Ethiopia has geographically importance due to easy access to reach the Middle East and Europe, increase its importance in international trade. Geographically having an area of approximately 1.12 million square kilometers (444,000 square miles) out of which land is on 1,119 million square kilometers and water is on 7444 square meters. Ethiopia is high plateau with central mountain ranges almost over the country is divided by Great Rift Valley. The major rivers in Ethiopia are Blue Nile, Awash, Baro, Omo, Tekezie and Wabe Shebele. Ethiopia has also small amount of natural resources with small reserves of platinum, gold, potash, copper, hydropower and natural gas. 1.2 The People Ethiopia is country with around 80 million people, and in comparison to other country it comes on 14th rank in world. Almost more than 80 percent of the population still lives in the rural areas. The age structure in Ethiopia is 0-14 years are (46.1%),15-64 years are (51.2%) and 65 years and over are (2.7%).Ethiopia has average birth rate of 2.7%. In Ethiopia is total freedom of religious practice, and the Christianity and Islam are the two main religions in Ethiopia with other religions which are in very number most of them are located in south side. Almost two-third of the population used the three main languages Amharic, Oromiffa and Tigrigna the official language of the Ethiopian government is Amharic. In schools, colleges and university teaching and medium of instruction are in English, also used mostly in the banking, insurance and business transactions, Arabic and Italian languages are also widely used in Ethiopia. Almost the 42.7 % of over 15 years old people can read and write mean having basic literacy rate. The Ethiopian government is spending almost 5.5 percent of their GDP in education programs. 1.3 The Government Ethiopia is conventional short form of name, and conventional long form of name is Federal Democratic Republic of Ethiopia. The first time election was held in 1995 and country adopted a new constitution and the government there is known as the federal republic government. The government involves in the foreign policy and relations, defense system and common interest benefits. The Federal State divisions are in nine ethnically based states vested with powers for self administration. The FDRE represent the common peoples interest and peoples of the states, the federal government is structured as a lines of bicameral parliament, with the Council of Peoples representatives being the highest authority of the Federal Government the representative of Councils Members are elected democratically for six year term. 1.4 Cities and Towns Addis Ababa, the largest city and capital of the Ethiopia, also is the seat of the Federal Government of Ethiopia. The capital city was founded in 1887 and population of around about 3 million. Addis Ababa is the host city for Organization for African Unity and the United Nations Economic Commission for Africa; also there is more international organization with their headquarters and branch offices. Addis Ababa I also centre point for business, commerce and industries. In Addis can find different manufacturing plants located in and around the city. There are lots of entertainment and sport facilities in the city, with national parks. The main centre of point are resort centers with hot springs and lake, all of them are easily accessible through road. The other important and big cities in term of trade and industries having potential of expansion are Awassa, Dire Dawa, Gondar, Dessie, Nazareth, Jimma, Harar, Bahir Dar, Mekele, Debre Markos and Nekemte. All of them are interconnected with Addis through road,most of them have their historical importance with good infrastructure facilities. 1.5 THE ECONOMY The Ethiopian economy is totally dependable on agriculture which has 45% of the Gross Domestic Product (GDP), 65 % of total exports and 85% of employment. Coffee is the main export product and its alone having a share of over 85 % of total agricultural exports. In Ethiopia different crops in different area of the country cultivated but the main crops are cereals, pulses, coffee, cotton, tobacco, fruits, sugarcane and oil seeds. The industrial sector plays also big role in economy and having almost 11% of share in total GDP, which provides their product to local and global markets. The most important products in term of local market and export are textiles, foodstuffs, tiles, paper, beverages, cement, semi- processed leather, finished leather products and non-metallic products. In Ethiopia even it is small reserve amount of natural resources and it contribute only 1% to the total GDP, but still there are lots of opportunities in mining to explore and contribute in Ethiopian economy. Communications There is total monopoly of Ethiopian Telecommunications corporations over the telephonic services open-wire, microwave radio relay; radio communication in the HF, VHF, and UHF frequencies; 2 domestic satellites provide the national trunk service. Ethiopia has only 1 public TV broadcast station which broadcasting it nationally and only 1 public radio broadcaster with stations in each state, there are some commercial and dozens of community radio stations. Transportation Till 2010 in Ethiopia there 61 airports, out of which 17 airports are with paved runways and 44 airports are unpaved. The railway is under joint control of Ethiopia and Djibouti, but most of it is inoperable and need lots of improvement and expansion to improve the transportation. The conditions of Ethiopian roads are also not in very good conditions out of 36469 km long road only 6980 k are in better conditions other are unpaved around about 29849 km. Ethiopia has 9 merchant marine 8 cargo and 1 roll on/ roll off, they are landlocked and uses the ports Djibouti in Djibouti and Berbera in Somalia. In Ethiopia transportation is a big problem and effects also in the business. Ethiopian government takes this problem very seriously and many projects are on progress for improvement and modernization of Ethiopian transportation system. 1 .6 Banking Systems 1.6.1 Introduction In Ethiopia banking system was introduced in 1905 with the coordination of Bank of Egypt and the first name of bank was Bank of Abyssinia which is controlled by private company in Ethiopia. Later in 1931 it was replaced by the Bank of Ethiopia. During the Italian invasion period and subsequent British occupation Ethiopia become one of the important places for East Africa Currency Board. Later again it is renamed as State bank of Ethiopia having two active departments involves in the process of separate function of issuing banks and commercial bank. In 1963 the bank is divided into two parts two new bank national Bank of Ethiopia involves in the process of centralizing and issuing bank and the second one the commercial bank of Ethiopia. In 1974 there was merging of maximum of financial institutes available tat time including state owned also some of them are The Agricultural and Industrial Development Bank The Savings and Mortgage Corporation of Ethiopia The Imperial Savings and Home Ownership Public Association The Addis Ababa Bank The Banco di Napoli The Banco di Roma In 1975 change in government policy and change into Marxist government bring again lots of changes in banking system like nationalization of private financial institutes and insurance companies. The big and important commercial bank of Ethiopia is now known as Addis Ababa bank and the total control of all banks and financial institutes are under supervision of National Bank of Ethiopia. The Ethiopian Insurances corporation take all power and control for the all insurance companies and for the home loan and renovation loan is provide by the new Housing and savings bank. 1.6.2 Current Conditions The whole banking system condition is still undeveloped and need lots of improvement and development. In Ethiopia there is also no stock exchange and foreign bank as the banking system is still not globalized, while higher government authorities are afraid of losing control over the economy because of globalizing the banking system. Thats why they have full control over the banking system even they decide the interest rate as per the high inflation rate. Below provided table to have a look on the condition of ease of doing business in Ethiopia. Table 1 Business Climate of Ethiopia As National Bank of Ethiopia is Ethiopian central bank and the state owned Commercial Bank is one of the biggest and largest bank in Ethiopia having approx. control of more than 75% of total banking assets in Ethiopia, tables 2 tried to explain the banking system in Ethiopia. Table 2 Value of Ethiopian Bank Assets Insurance companies and other financial institutions In Ethiopia the Ethiopia Insurance Corporation controls 10 insurance companies performing business in more than 200 branches all over the country Below in the table the number of branches and their capital are explained figures available are from 2007 and till then only nine insurance companies are in business the 10th company (Lion Insurance Company) comes in business after 2007 thats why it is not mention in table. Table 3: Branches and Capital of Insurance Companies in Ethiopia (Capital in Millions of Birr) Stock Market No stock exchange exists Other Types of Finance/Financial Market Micro finance After the establishment of the government in 1994/1995. It started also and supporting for the development of microfinance industry, the purpose of Ethiopian government to developed the microfinance industry to help poor people in both rural and urban area. According to the 2005 microfinance industry report in Ethiopia that there are 23 microfinance industries and around about more than 1 million peoples are connected directly to the industry. As from above it is cleared that government had totally prohibited any kind of foreign company involved in the process of financial or banking services in country. In Ethiopia microfinance industry can be opened by people having Ethiopian nationality and having full 100% share in company or by those organization which are totally settled and have their registration under the law and having their head office in Ethiopia. As in country most of the microfinance initial capital comes from the foreign investors and which leads to the not clear transparency of microfinance industry, normally person investing in the microfinance industry local or foreigner must enlist as a shareholder. As government authorized high authorities decided interest rate according to the high inflation rate, and in microfinance industry there is no fixed interest rate on credit according to law minimum interest on credit is 3%, which is a loss for those people wants to open microfinance industry in rural areas because of added administrative cost in capital of investment. Top ten reasons to do business in Ethiopia Political and social stability; Macro-economic stability and growing economy; Adequate guarantees and protections; Transparent laws and streamlined procedures; Ample investment opportunities; Abundant and trainable labor force; Wide domestic, regional and international market opportunity; Competitive investment incentive packages ; Welcoming attitude of the people to FDI; and Pleasant climate and fertile soils. 2. Foreign Market Entry Strategy 2.1 Introduction 2.1.1 Strategy Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. 2.1.2 Strategic Decisions Strategic decisions are likely to be complex in nature. This complexity is a defining feature of strategy and strategic decisions and is especially so in organizations with wide geographical scope, such as multinational firms, or wide ranges of products or services. Strategic decisions may also have to be made in situations of uncertainty about the future. Strategic decisions are likely to affect operational decisions: for example, an increased emphasis on consumer electronics would trigger off a whole series of new operational activities, such as finding new suppliers and building strong new brands. This link between overall strategy and operational aspects of the organization is important for two other reasons. First, if the operational aspects of the organization are not in line with the strategy, then, no matter how well considered the strategy is, it will not succeed. Second, it is at the operational level that real strategic advantage can be achieved. Indeed, competence in particular operational activities might determine which strategic developments might make most sense. Strategic decisions are also likely to demand an integrated approach to managing the organization. Managers have to cross functional and operational boundaries to deal with strategic problems and come to agreements with other managers who, inevitably, have different interests and perhaps different priorities. Managers may also have to sustain relationships and networks outside the organization, for example with suppliers, distributors and customers. Strategic decisions usually involve change in organizations which may prove difficult because of the heritage of resources and because of culture. These cultural issues are heightened following mergers as two very different cultures need to be brought closer together or at least learn how to tolerate each other. Indeed, this often proves difficult to achieve a large percentage of mergers fail to deliver their ‘promise for these reasons. 2.1.3 Levels of Strategy Corporate-level strategy: Itis concerned with the overall purpose and scope of an organization and how value will be added to the different parts (business units) of the organization. Business-level strategy: It is about how to compete successfully in particular markets. Operational strategies: These are concerned with how the component parts of an organization deliver effectively the corporate and business-level strategies in terms of resources, processes and people. 2.1.4 Strategic Management Strategic management includes understanding the strategic position of an organization, strategic choices for the future and turning strategy into action. The strategic position is concerned with the impact on strategy of the external environment, an organizations strategic capability (resources and competences) and the expectations and influence of stakeholders. Strategic choices involve understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development. Strategy into action is concerned with ensuring that strategies are working in practice. Strategy development processes are the ways in which strategy develops in organizations. 2.2 Environment The most general ‘layer of the environment is often referred to as the macro environment. This consists of broad environmental factors that impact to a greater or lesser extent on almost all organizations. It is important to build up an understanding of how changes in the macro-environment are likely to impact on individual organizations. A starting point can be provided by the PESTEL framework which can be used to identify how future trends in the political, economic, social, technological, environmental and legal environments might impinge on organizations. This provides the broad ‘data from which the key drivers of change can be identified. These will differ from sector to sector and from country to country. Therefore they will have a different impact on one organization from another. If the future environment is likely to be very different from the past it is helpful to construct scenarios of possible futures. This helps managers consider how strategies might need to change depending on the different ways in which the business environment might change. Within this broad general environment the next ‘layer is called an industry or a sector. This is a group of organizations producing the same products or services. The five forces framework and the concept of cycles of competition can be useful in understanding how the competitive dynamics within and around an industry are changing. The most immediate layer of the environment consists of competitors and markets. Within most industries or sectors there will be many different organizations with different characteristics and competing on different bases. The concept of strategic groups can help with the identification of both direct and indirect competitors. Similarly customers expectations are not all the same. They have a range of different requirements the importance of which can be understood through the concepts of market segments and critical success factors. 2.2.1 Key driver of change Key drivers of change are forces likely to affect the structure of an industry, sector or market. There is an increasing trend to market globalization for a variety of reasons. In some markets, customer needs and preferences are becoming more similar. For example, there is increasing homogeneity of consumer tastes in goods such as soft drinks, jeans, electrical items (e.g. audio equipment) and personal computers. The opening of McDonalds outlets in most countries of the world signaled similar tendencies in fast food. As some markets globalize, those operating in such markets become global customers and may search for suppliers who can operate on a global basis. For example, the global clients of the major accountancy firms may expect the accountancy firms to provide global services. The development of global communication and distribution channels may drive globalization the obvious example being the impact of the internet. In turn, this may provide opportunities for transference of marketing (e.g. global brands) across countries. Marketing policies, brand names and identities, and advertising may all be developed globally. This further generates global demand and expectations from customers, and may also provide marketing cost advantages for global operators. Nor is the public sector immune from such forces. Universities are subject to similar trends influenced by changing delivery technologies through the internet. This means, for example, that there is developing a genuinely global market for MBA students particularly where the majority of ‘tuition is done online. Cost globalization may give potential for competitive advantage since some organizations will have greater access to and/or be more aware of these advantages than others. This is especially the case in industries in which large volume; standardized production is required for optimum economies of scale, as in many components for the electronics industry. There might also be cost advantages from the experience built through wider-scale operations. Other cost advantages might be achieved by central sourcing efficiencies from lowest-cost suppliers across the world. Country-specific costs, such as labor or exchange rates, encourage businesses to search globally for low cost in these respects as ways of matching the costs of competitors that have such advantages because of their location. For example, given increased reliability of communication and cost differentials of labor, software companies and call centers are being located in India, where there is highly skilled but low-cost staff. Other businesses face high costs of product development and may see advantages in operating globally with fewer products rather than incurring the costs of wide ranges of products on a more limited geographical scale. The activities and policies of governments have also tended to drive the globalization of industry. Political changes in the 1990s meant that almost all trading nations function with market-based economies and their trade policies have tended to encourage free markets between nations. Globalization has been further encouraged by technical standardization between countries of many products, such as in the automobile, aerospace and computing industries. It may also be that particular host governments actively seek to encourage global operators to base themselves in their countries. However, it is worth noting that in many industries country-specific regulations still persists and reduces the extent to which global strategies are possible. Also, the early 2000s have seen a rise in citizen activism about the impact of globalization on developing countries most notably at meetings of the World Trade Organization Changes in the macro-environment are increasing global competition which, in turn, encourages further globalization. If the levels of exports and imports between countries are high, it increases interaction between competitors on a more global scale. If a business is competing globally, it also tends to place globalization pressures on competitors, especially if customers are also operating on a global basis. It may also be that the interdependence of a companys operations across the world encourages the globalization of its competitors. For example, if a company has sought out low-cost production sites in different countries, these low costs may be used to subsidize competitive activity in high-cost areas against local competitors, thus encouraging them to follow similar strategies. 2.2.2 Industries and sectors The macro-environment might influence the success or failure of an organizations strategies. But the impact of these general factors tends to surface in the more immediate environment through changes in the competitive forces on organizations. An important aspect of this for most organizations will be competition within their industry or sector. Economic theory defines an industry as ‘a group of firms producing the same principal product or, more broadly, ‘a group of firms producing products that are close substitutes for each other. This concept of an industry can be extended into the public services through the idea of a sector. Social services, health care or educations also have many producers of the same kinds of services. From a strategic management perspective it is useful for managers in any organization to understand the competitive forces acting on and between organizations in the same industry or sector since this will determine the attractiveness of that industry and the way in which individual organizations might choose to compete. It may inform important decisions about product/market strategy and whether to leave or enter industries or sectors. It is important to remember that the boundaries of an industry may be changing for example, by convergence of previously separate ‘industries such as between computing, telecommunications and entertainment. Convergence is where previously separate industries begin to overlap in terms of activities, technologies, products and customers. There are two sets of ‘forces that might drive convergence. First, convergence might be supply-led where organizations start to behave as though there are linkages between the separate industries or sectors. This is very common in the public services where sectors seem to be constantly bundled and un-bundled into ministries with ever-changing names (‘Education, ‘Education and Science, ‘Education and Employment, ‘Education and Skills etc.). This type of convergence may be driven by external factors in the business environment. For example, governments can help or hinder convergence through regulation or deregulation a major factor in the financial services sector in many countries. The boundaries of an industry might also be destroyed by other forces in the macro-environment. For example, e-commerce is destroying the boundary of traditional retailing by offering manufacturers new or complementary ways to trade what are now being called new ‘business models12 such as websites or e-auctions. But the real test of these types of changes is the extent to which consumers see benefit to them in any of this supply-side convergence. So, secondly, convergence may also occur through demand-side (market) forces where consumers start to behave as though industries have converged. For example, they start to substitute one product with another (e.g. TVs and PCs). Or they start to see links between complementary products that they want to have ‘bundled. The package holiday is an example of bundling air travel, hotels and entertainment to form a new market segment in the travel industry. 2.2.3 Competitors and market An industry or sector may be a too-general level to provide for a detailed understanding  of competition. For example, Ford and Morgan Cars are in the same industry (automobiles) but are they competitors? The former is a publicly quoted multinational business; the latter is owned by a British family, produces about 500 cars a year and concentrates on a specialist market niche where customers want hand-built cars and are prepared to wait up to four years for one. In a given industry there may be many companies each of which has different capabilities and which compete on different bases. This is the concept of strategic groups. But  competition occurs in markets which are not confined to the boundaries of an industry and there will almost certainly be important differences in the expectations of different customer groups. This is the concept of market segments. What links these two issues is an understanding of what customers value. Strategic groups are organizations within an industry or sector with similar strategic  characteristics, following similar strategies or competing on similar bases. These characteristics are different from those in other strategic groups in the same industry or sector. For example, in grocery retailing, supermarkets, convenience stores and corner shops are three of the strategic groups. There may be many different characteristics that distinguish between strategic groups but these can be grouped into two major categories .First, the scope of an organizations activities (such as product range, geographical coverage and range  of distribution channels used). Second, the resource commitment (such as brands, marketing spend and extent of vertical integration). Which of these characteristics are especially relevant in terms of a given industry needs to be understood in terms of the history and development of that industry and the forces at work in the environment. 2. Market segments The concept of strategic groups discussed above helps with understanding the similarities and differences in the characteristics of ‘producers those organizations that are actual or potential competitors. However, the success or failure of organizations is also concerned with how well they understand customer needs and are able to meet those needs. So an understanding of markets is crucial. In most markets there is a wide diversity of customers needs, so the concept of market segments can be useful in identifying similarities and differences between groups of customers or users. A market segment is a group of customers who have similar needs that are different from customer needs in other parts of the Market 2.2.4 Opportunities and threat The critical issue is the implications that are drawn from this understanding in guiding strategic decisions and choices. There is usually a need to understand in a more detailed way how this collection of environmental factors might influence strategic success or failure. This can be done in more than one way. This identification of opportunities and threats can be extremely valuable when thinking about strategic choices for the future. A strategic gap is an opportunity in the competitive environment that is not being fully exploited by competitors. By using some of the frameworks described in this chapter, managers can begin to identify opportunities to gain competitive advantage in this way: Opportunities in substitute industries Organizations face competition from industries that are producing substitutes. But substitution also provides opportunities. In order to identify gaps a realistic assessment has to be made of the relative merits of the products/technologies (incumbent and potential substitutes) in the eyes of the customer. An example would be software companies substituting electronic versions of reference books and atlases for the traditional paper versions. The paper versions have more advantages than meet the eye: no hardware requirement (hence greater portability) and the ability to browse are two important benefits. This means that software producers need to design features to counter the strengths of the paper versions; for example, the search features in the software. Of course, as computer hardware develops into a new generation of portable handheld devices, this particular shortcoming of electronic versions might be rectified. Opportunities in other strategic groups or strategic spaces It is also possible to identify opportunities by looking across strategic groups particularly if changes in the macro-environment make new market spaces economically viable. For example, deregulation of markets (say in electricity generation and distribution) and advances in IT (say with educational study programs) could both create new market gaps. In the first case, the locally based smaller-scale generation of electricity becomes viable possibly linked to waste incineration plants. In the latter case, geography can be ‘shrunk and educational programs delivered across continents through the internet and teleconferencing (together with local tutorial support). New strategic groups emerge in these industries/sectors. Opportunities in the chain of buyers It was noted that this can be confusing, as there may be several people involved in the overall purchase decision. The user is one party but they may not buy the product themselves. There may be other influencers on the purchase decision too. Importantly, each of these parties may  value different aspects of the product or service. These distinctions are often quite marked in business-to-business transactions, say with the purchase of capital equipment. The purchasing department may be looking for low prices and financial stability of suppliers. The user department (production) may place emphasis on special product features. Others such as the marketing department may be concerned with whether the equipment will speed throughput and reduce delivery times. By considering who is the ‘most profitable buyer an organization  may shift its view of the market and aim its promotion and selling at those ‘buyers with the intention of creating new strategic customers. Opportunities for complementary products and services This involves a consideration of the potential value of complementary products and services. For example, in book retailing the overall ‘

Effect Of Different Concentrations Of Vitamin C

Effect Of Different Concentrations Of Vitamin C This project was designed to investigate the effect of different concentrations of vitamin C solution on seed germination of Brassica parachinensis or Choy Sum. Seeds treated with vitamin C solutions of various concentrations were used and germination percentage was calculated. Seeds were soaked in vitamin C solutions of increasing concentrations for 12 hours, dried and then sown in germinating trays. The seeds were watered with the same amount of vitamin C solution of respective concentrations. After 36 hours, the number of germinated seeds was counted and the germination percentage was calculated and recorded. Results showed that the germination percentage increases as low concentration of vitamin C solution was used. It was shown that 1% of vitamin C solution gave the highest germination percentage. A statistical analysis using Pearson product-moment correlation coefficient showed a statistically significant negative linear relationship between concentration of vitamin C and germi nation percentage since the calculated r value was greater than critical value at 5% significant level. Introduction In order to increase productivity, it is important to improve overall growth and performance of agricultural crops. Germination rate in particular is crucial because an increase in germination rate is usually followed by an improvement of overall seedling performance   thus enhancing overall plant growth and productivity.(Parera and Cantliffe, 1991).   There are many factors affecting seed germination such as temperature, humidity, presence of light and seed dormancy. Recently, there is also evidence to support a link between certain biochemical characteristics and seed vigour.(Randhir and Shetty, 2003) Fast oxidation of fatty acids and proteins can reduce viability, vigour and germination percentage in seeds.11 Vitamin C or ascorbic acid is one of the most widely taken dietary supplement.5 It is an antioxidant which is an essential nutrient for living organisms as it protects the body against oxidative stress. Vitamin C is made naturally in plants but the amount depends on the variety of plant and external factors on which the plants grow.1 Ascorbic acid is an important metabolite involved in many cellular processes, including cell division (De Gara et al., 2003). Ascorbate has been shown to play multiple roles in plant growth, such as in cell division, cell wall expansion, and other developmental processes. It can act as a coenzyme for numerous metabolic enzymes and has recently been shown to be a potent antioxidant.12 Figure 1: The oxidation of ascorbic acid to dehydroascorbic acid 6 (410 words) Vitamin C interacts with oxidants in an oxidation reaction where ascorbic acid is oxidised to dehydroascorbic acid through an ascorbyl radical intermediate.8 The oxidized forms of ascorbate are relatively unreactive, and do not cause cellular damage. They can be converted back to ascorbate by cellular enzymes.4 Application of ascorbic acid exogenously may influence various processes in plants including seed germination, ion uptake and transport, and membrane permeability.12 Structure of vitamin C or L-ascorbic acid  or Dehydroascorbic acid   L-ascorbate 4 (nominal oxidized form  of Vitamin C) 4 Previous reports show some conflicting evidence about the effect of vitamin C towards seed germination. While some researchers say that vitamin C can promote seed vigour as in pea (Pisum Sativum) seeds, 12 some state that its presence will inhibit seed germination as in soybean seed.13 Defined in the qualitative term, seed vigour is the sum of those properties of the  seed  which determine the potential level of  activity and performance of the  seed or seed  lot during germination and seedling emergence.12 Seeds of genus Brassica are used in this experiment because the seeds are small and have a short life cycle. Therefore, experiment can be done within few days and the seeds can be used in large number with less space needed. Hence, this experiment was aimed to explore the benefits of vitamin C which is an antioxidant which may help to increase plant resistance that leads to enhanced crops. (647 words) Experimental Hypothesis The lower the concentration of vitamin C solution, the higher the germination percentage of Brassica parachinensis Null Hypothesis There is no correlation between different concentrations of vitamin C solutions and the germination percentage of Brassica parachinensis (685 words) Planning Trials Trial experiment was conducted to determine the best range of concentrations of vitamin C solution to be used and the reasonable methods and procedures so that good results are obtained. Methods Involved Preparing vitamin C solution of different concentrations Since the source of vitamin C used is the vitamin C tablet, the best method chosen is the serial dilation method. During trial, concentrations tested are 100%, 75%, 50%, 25%, 10% and 0%. The basic stock solution of 100% was prepared by dissolving 100mg of vitamin C tablet in 100ml distilled water in a 300ml beaker. Other concentrations were made by serial dilution method. To prepare 50% concentration of vitamin C solution, same amount of 100% solution and distilled water were added together. Equal amount of 100% and 50% concentrations were mixed up to make 75% concentration and so on. Sowing the seeds The seeds were primed in 6 different Petri dishes for 12 hours according to its respective concentration. Another 6 Petri dishes were labelled. Layers of cotton of the same thickness were put into Petri dishes and moisten with the same volume of vitamin C solution of different concentrations. Soaked seeds with similar size were chosen and took out of Petri dish using a pair of forceps. They are then dried using paper towels and were sown in labelled Petri dishes. (909 words) In the first trial, 25 seeds were soaked in different concentrations of vitamin C solution while another 25 seeds were not soaked before being sown. This is to determine whether it is necessary to soak seeds or not before sowing. 36 hours after sowing seeds Concentration/% Number of seeds germinated Soaked seeds 0 15 10 16 50 1 Table 1 shows the number of soaked and unsoaked seeds after 36 hours In the second trial, each group of 25 seeds were soaked in different concentrations before being sown. This is to determine the best range of concentrations of vitamin C for main experiment. 36 hours after sowing seeds Concentration/% Number of seed germinated Trial 1 Trial 2 Mean 0 15 16 16 10 18 16 17 25 5 5 5 50 1 3 2 75 2 1 2 100 1 0 1 Table 2 shows germination percentage of seeds soaked in different concentrations (1075 words) Results After 36 hours of sowing, the number of seeds germinated was counted and germination percentage was calculated. Germination is claimed to have occurred when the radicle was visibly extended from the seed, protruding through a fracture in the seed coat. The result was tabulated. Based on the results obtained after trials were carried out, there were a few things that could be done to improve result. Firstly, more seeds should be used so that the result will be more significant. For the real experiment, 50 seeds were used instead of 25 seeds. Seeds were primed for 12 hours because priming is important as seed coat contains some chemicals that inhibit germination. Seed priming is a common agronomic technique shown to cause an increase  seed vigour,  as well as synchronize and accelerate  germination, improve stress resistance, and enhance overall  plant  growth and productivity.12 However, some of the seeds start to germinate and fractures on seed coat could be observed if the seeds were primed for too long. Besides, the range of concentration to be used in real experiment was determined to be between 0% to 10% concentrations because both showed high percentage of seed germination with only slight difference in value. Seeds soaked in 100% concentration showed the lowest germination percentage. The germination of seeds was almost totally inhibited in this solution. Fractures on the seed coats were observed but radicles were not extended significantly. Besides, after carrying out trial experiment, I realized that it was better to sow seeds in germinating tray rather than in Petri dishes as Petri dish is round-shaped which made it difficult for me to count the number of seeds germinated. (1351 words) Main experiment Variables Manipulated: Concentration of vitamin C solution Different concentrations of vitamin C are prepared using the same serial dilution technique as in trials. But this time using smaller range of concentrations of 10%, 7.5%, 5%, 2.5%, 1% and 0% (distilled water). But for smaller concentration, micropipette is used instead of measuring cylinder to make up the total volume of 100ml. Responding: Germination percentage (%) Germination percentage is calculated using the following equation; Germination is said to occur when radicle emerges (>2mm) after 36 hours. Constant: mass of vitamin C (100mg/tablet), volume of solution used for soaking seeds (20ml/Petri dish) and volume of solution used to moisten cotton (60ml/tray) and environmental factors (light intensity, temperature, and humidity), period of soaking, type and number of seeds. All trays were placed under normal white fluorescent lamp and on a laboratory table at 28ËÅ ¡C. Apparatus and materials Apparatus: 300ml beakers, Petri dishes, measuring cylinders, germinating trays, stirring rod, micropipette, and pestle and mortar. Materials: Distilled water, 100mg vitamin C tablet, cotton, choy sum seeds, and paper towels. (1535 words) Safety precautions Gloves were worn when handling vitamin C tablet to prevent tablet from contamination. Micropipette was used with care. The tip of micropipette was always checked to ensure that there is no air bubbles inside it as this may reduce the actual volume required for each concentration. Glass wares like beakers and measuring cylinders were handled gently since the apparatus may break easily. This may lead to injuries. Soaked seeds were transferred gently using forceps as they are very fragile. Data collections of main study Number of seeds used in every concentration: 50 Soaking for 12 hours Observations after soaking seeds for 36 hours Concentration (%) Number of seeds germinated Mean number of seeds germinated Replicate 1 Replicate 2 Replicate 3 0.0 45 44 43 44 1.0 48 48 47 48 2.5 42 39 38 40 5.0 41 42 43 42 7.5 35 35 34 35 10.0 34 33 33 33 Table 2 shows the germination percentage for seeds treated with different concentrations (1712 words) Sample calculation (taken values from 0% concentration) Germination percentage: =44/50 x 100 =88% (1749 words) Statistical analysis For this experiment, Pearson product-moment correlation coefficient (PMCC) was used to measure the strength of linear dependence between the two variables; the different concentrations and the germination percentage. The values obtained are normally distributed. The correlation coefficient, r ranges from -1 to 1. A value of 1 implies that a linear equation describes the relationship between X and Y perfectly for which Y increases as X increases. A value -1 implies correlation in which Y decreases as X increases. A value of 0 implies that there is no linear correlation between the variables. x 0.0 1.0 2.5 5.0 7.5 10.0 ÃŽ £x=26 y 88 96 80 84 70 66 ÃŽ £y=484 x2 0.0 1.00 6.25 25.0 56.25 100.0 ÃŽ £x2=188.5 y2 7744 9216 6400 7056 4900 4356 ÃŽ £y2=39672 xy 0.0 96 200 420 525 660 ÃŽ £xy=1901 Table 3 shows the calculations done in calculating the values of r Sx = x2 = 188.5 (26)2/6 = 75.833 Sy = y2 = 39672 (484)2/6 = 629.33 Sxy = xy = 1901 [(26) (484)]/6 = -196.33 (1933 words) To find correlation coefficient, r r = r = -196.33/ (75.8331/2 x 629.331/2) r = -0.899 (negative sign indicates negative correlation between variables) Degree of freedom = n -2 n = # of pairs of data = 6 2 = 4 Level of significance for two-tailed test .10 .05 .02 1 .988 .997 .9995 2 .900 .950 .980 3 .805 .878 .934 4 .729 .811 .882 5 .669 .754 .833 6 .621 .707 .789 Table 4 shows the critical values for PMCC The value of r obtained was compared with the critical value from Table 4 at 5% significance level. r = 0.899 > 0.811 (critical value) at 5% significance level An analysis using PMCC demonstrated a statistically significant negative linear relationship between concentration of vitamin C and germination percentage since calculated r value was greater than the critical value at 5% significance level. Therefore, null hypothesis can be rejected. (2093 words) Data analysis Based on the data collected in Table 2, it was shown that low concentration of vitamin C did promote germination of choy sum to a certain extent. The statistical analysis using PMCC further verified the correlation. The table also revealed that only low concentration of vitamin C was needed to hasten germination since under 10% concentration, seeds germinated at a lower rate (66%). Graph 1 illustrates clearly the general trend and relationship between the variables, the lower the concentration of vitamin C, the lower the germination rate of choy sum. The highest germination rate (96%) was recorded by seeds sown in 1% vitamin C concentration which was the lowest concentration used. However, it can be seen that the line is fluctuating downwards and there is a linear graph showing that the values obtained were due to certain errors that lead to some anomalous results. At 5% concentration of vitamin C, we can see that the germination rate is slightly higher than that of 2.5% but it is not supposed to be so. Some of errors that may occur during experiment are Mixing error when preparing solutions of different concentrations by serial dilution. The thickness of cotton layer in germinating tray may not be constant throughout the tray so vitamin C solution with thinner cotton layer may get evaporated faster thus absorption of solution is less for the seed in that tray Some of seeds may have been initially damaged so germination may not happen (2342 words) The germination percentage was compared with the result from other published academic journals. The germination percentage against day graph below shows the results from journal titled Effect of vitamin C and folic acid on seed vigour response and phenolic-linked antioxidant activity from source 12. It shows that the optimum concentration of vitamin C for pea seed to germinate is 500micromol/dm3. Using appropriate calculations, it can be calculated that 10% concentration is approximately equal to 500micromol/dm3.9 Thus, the germination percentage of pea seed in 10% concentration is highest compared to other concentrations. However, the result I obtained for highest germination percentage for Brassica parachinensis was different. This can be due to some errors and limitations occurred during experiment or the fact that they are of different types of seed which is further discussed in limitation and modification part. In this experiment, the constant or controlled variable is the use of distilled water (0% concentration). Since the results showed that the difference between germination rate between 0% and 1% concentration was very small (only about 8%), this indicated that the effect of vitamin C on seed vigour may be too little. Even though the effect is little, it cannot be denied that this little help from vitamin C can give a huge impact on agricultural sector as it is able to promote seed germination therefore improving mass production of plants rather than watering seeds with water only. (2577 words) Evaluation Seeds are exposed to various biotic and abiotic stresses during germination. Oxidative stress for example, caused by the production of high level of reactive oxygen intermediates such as O2, O2-, H2O2, and HO- can lead to the destruction of cells.4 Presence of low concentration of exogenous vitamin C stimulates seed vigour as it minimises oxidative stress by scavenging these reactive oxygen species. Many oxidants contain an unpaired electron so they are highly reactive. These free radicals are damaging because they can interact with other molecules resulting in a whole chain of free radical reactions. Ascorbate can terminate these chained radical reactions by serving as a stable (electron + proton) donor in interactions with free radicals.4 However, high concentration of vitamin C solution inhibits seed germination because as solution becomes more concentrated, more water from cells diffuse out causing cellular membrane leakage.3 Besides that, being a good electron donor, excess ascorbate in the presence of free metal ions can not only promote, but also initiate free radical reactions, thus making it a potentially dangerous pro-oxidative compound in certain metabolic contexts.8 We hypothesize that whether vitamin C has a net pro oxidant or antioxidant effect depends on the concentration of vitamin C solution.8 With relation to improving  seed vigour  through stimulation of  phenolic  synthesis, it has been suggested that exogenously applied  phenolic antioxidants may be able to stimulate endogenous  phenolic  content in plants  (Randhir and Shetty, 2003  and  Randhir et al., 2002). Due to its inherent  antioxidant  potential, vitamin C seems to be a suitable growth regulator in increasing  seed vigour and phenolic  elicitation. In this study, we have hypothesized that the treatment of plants with  vitamin C  as exogenous  seed treatments may result in an increase in both biochemical and traditional agronomic indicators of  seed vigour.11 (2873 words) Limitations and modifications One of the limitations in this experiment is the changing surrounding temperature. The seeds were left in laboratory room where the temperature may fluctuate over time. This may affect the germinating time of the seeds and the number of germinated seed after 36 hours. Besides temperature, humidity and light intensity were also uncontrolled. Since all seeds were exposed to the same environmental factors, the result is considered to be reliable. Besides that, some seeds may have been initially damaged before soaking or sowing. Therefore, vitamin C solution may not be the actual cause of inhibition of seed germination. The seeds are chosen only by physical measures such as similarity in size, shape and colour and seed coat is not broken. However, limitations can be overcome by using a large number of seeds and the experiment is repeated for a few times to ensure that result obtained is reliable and enough to support conclusion. This investigation tests only on the effectiveness of vitamin C solution on seed germination without exposing seeds to other biotic stress such as salinity or abiotic stress such as exposure to sunlight. Modifications could be made by introducing a biotic or abiotic stress to the seed and observe if vitamin C still stimulates seed germination or otherwise. Different types of seed may have different result with vitamin C solution. So, using seeds from one type of plant may not be able to indicate how vitamin C actually acts on seed. As vitamin C may enhance seed vigour in certain species, it could do otherwise to other species. Hence, the same experiment should be done to seeds from other species to see how they are affected by vitamin C solution. Conclusion The lower the concentration of vitamin C, the higher the germination rate of Brassica parachinensis seeds. This is due to the antioxidant properties of vitamin C which acts against the oxidative stress. The optimum vitamin C concentration for seed germination is 1%. (3200 words) Source Evaluation I have referred to various sources in conducting my research. Sources 1, 2, 3 and 4 are from Wikipedia which has been the largest and most popular general  reference work  on the  internet. Although many have doubts over its reliability as it can be edited by anyone with access to the site but it is cited and linked to many other literatures and academic researches around the globe. Source 5 is a website written by health experts on health and medicine. Source 6 is a website that provides information written by university scholars with reference to other academic researches. Source 7 is reliable as it is written by  Dr. Bryan D. McKersie of  University  of  Guelph and is posted on the internet in 1996. Source 8 is a reliable source as it is an article by The American Society for Nutritional Sciences and was published in The Journal of Nutrition website in 2004. Source 9 has been a referral site to many people around the world. The information seems reliable as it is written by experts. Source 10 is a published book thus the information is reliable. Source 11 is a journal from ScienceDirect which I have accessed from my campus library. ScienceDirect is a leading full-text scientific database offering journal articles and book chapters from more than 2,500 peer-reviewed journals and more than 11,000 books. There are currently more than 9.5 million articles/chapters, a content base that is growing at a rate of almost 0.5 million additions per year. It is operated by the publisher Elsevier. Source 12 is a journal advised by an international Editorial Board and is abstracted or indexed by various research databases like the EBSCO and Elsevier. Source 13 is an article from the Journal of Biological Chemistry.

Comparison of Ethiopia and Mali Essay -- essays research papers fc

A Brief Overview of the History of Ethiopia Ethiopia is one of the most unique among African countries for maintaining its freedom from colonial rule, with the short exception of an occupation by the Italians from 1936-1941. A socialist state was established in 1974 with the overthrow of Emperor Selassie, who had been in control since 1930. A junta or group of military officers called the Derg was responsible for the coup. Yet, this corrupt administration has lead only to warfare and wide scale public suffering. In 1991, the junta was finally brought down by a combination of revolutionary forces who called themselves the Ethiopian People's Revolutionary Democratic Front. In 1994, a constitution was drafted and 1995 marked Ethiopia’s first multiparty elections. Recently, a boarder feud with Eritrea, that lasted over 2 years, was ended in December of 2000; yet recent objections by Ethiopia have delayed a final declaration of border. The landlocked country of Ethiopia is located in east Africa, just west of Somalia, and is roughly twice the size of Texas . Ethiopia’s natural resources include platinum, copper, and small reserves of gold. Only .65% of the land is suitable and allotted for permanent crops. Ethiopia is currently facing several environmental concerns including deforestation, overgrazing, soil erosion, and water shortages due to poor management of water-intensive farming. Ethiopia’s population is in excess of 66 million. Ethiopia is home to numerous ethnic groups, the largest being Oromo, which accounts for 40% of the population. About half of the Ethiopian population is Muslim, with the majority of the other half practicing Ethiopian Orthodox. Ethiopia’s government is a federal republic which grants its citizens voting rights at 18 years of age. Currently, Ethiopia faces the problem of attempting to control the illicit drugs that come through the country, as it acts as a hub for the transportation of heroin and cocaine. A Brief Overview of the History of Mali Mali became a French colony in 1904 and was renamed French Sudan. In June of 1960, it gained its’ independence and became known as the Sudanese Republic. The Sudanese Republic associated with the Republic of Senegal under one federation. In August of 1960, Senegal broke off connections with the federation, and the Sudanese Republic changed its name to The Republic of Mali.... ... use their homes as collateral for startup capital to create businesses or invest, promoting economic expansion. It was also interesting to read about the history of each country, and I was surprised when I realized that Ethiopia is one of the oldest independent countries. This report was extremely fascinating and helped me get a better grasp on events outside of the United States. I feel that a worldview is increasingly important in our day and age to help people better understand the problems and solutions in developing nations. Works Cited 1.  Ã‚  Ã‚  Ã‚  Ã‚  The CIA, http://www.odci.gov/cia/publications/factbook/index.html 2.  Ã‚  Ã‚  Ã‚  Ã‚  The formal HDI Report, http://hdr.undp.org/reports/global/2003/indicator/pdf/hdr03_indicators.pdf 3.  Ã‚  Ã‚  Ã‚  Ã‚  The European Union, http://europa.eu.int/index_en.htm 4.  Ã‚  Ã‚  Ã‚  Ã‚  The World Bank, http://poverty.worldbank.org/library/view/8702/ 5.  Ã‚  Ã‚  Ã‚  Ã‚  http://www.geographia.com/mali 6.  Ã‚  Ã‚  Ã‚  Ã‚  http://www.nationsonline.org/oneworld/mali.htm 7.  Ã‚  Ã‚  Ã‚  Ã‚  http://www.nationsonline.org/oneworld/ethiopia.htm

HIPPA and the Privacy of Medical Records Essay examples -- Healthcare

HIPPA and the Privacy of Medical Records Previously, healthcare information has been protected by state law. However, since this information crosses state lines, the need for federal protection has been warranted. In 1996, Congress passed the Health Insurance Portability and Accountability Act (HIPAA). HIPAA provides the first federal protection for the privacy of medical records (Burke & Weill, 2005) HIPPA encourages the use of electronic medical record and the sharing of medical records between healthcare providers, because it can aid in saving lives. HIPAA requires that patients have some knowledge of the use of their medical records and must be notified in writing of their providers' privacy policy. HIPAA has technical requirements which a healthcare provider, insurer, or service provider, unless exempt under state law, must provide. An organization must conduct a self evaluation to learn what threats its records face, and develop techniques needed to protect the information (HIPAA, 1996). HIPAA's purpose is to protec t the privacy of the consumers. The Security Rule of the HIPAA law affects technology the most in a Healthcare or Human Service organization. The Security Rule deals specifically with Electronic Protected Health Information (EPHI). The EPHI has three types of security safeguards that are mandatory to meet compliance with HIPAA regulations. Administrative, physical, and technical. There is constant concern of different kinds of devices and tools because of their vulnerability: laptops; personal computers of the home; library and public workstations; USB Flash Drives and email, to name a few. These items are easily accessible for those attempting to breach security. Workers of the healthcare area have complet... ...explains and clarifies key provisions of the medical privacy regulation, this is a reliable source of information which was published last December (HIPAA, 1996). Guaranteeing the accuracy, security and protecting the privacy of all medical information is crucial and an ongoing challenge for many organizations. References American Medical Association (2005) Retrieved December 7, 2008, from http://www.ama-assn.org/. Burke, L. and Weill, B. (2005). Information Technology for the Health Professions Retrieved December 6, 2008, from Axia College, Week Two reading, aXcess, HHS 255 Technology in Health Services Course. United States Department of Health and Human Services office for civil Rights (HIPAA). Retrieved on December 7, 2008, from http://www.hhs.gov/ocr/hipaa/.

Mall Culture In Cities

City outskirts are sprouting malls. Will they help decongest Bangalore? Mall culture is here to stay and new malls coming up on the city outskirts seem to be offering a ray of hope to the jam-packed city centre. Hopefully, these will cater to the lifestyle needs of people living beyond the Outer Ring Road. But will it be a boon? Expert opinion has it that if planned and executed properly, malls can keep people from travelling into the city for their leisure. This will reduce traffic within the city, many feel.According to town planner Swati Ramanathan, â€Å"It is a fact that we do need more malls. The purchasing power of people has increased and malls do provide people with several options. But they have to be strategically positioned and they can't afford to have poor facilities just because they are on the outskirts.† Says traffic expert MN Sreehari, â€Å"Malls in the outskirts will definitely give relief to clogged streets in the city.†He believes that Bangalore as a city needs and can house around 70 malls. â€Å"The correct ratio is one mall for one lakh people. This is how it has been done in the west,† he says. But architect Kevin Ross says, â€Å"When people put up structures like malls, theatres and restaurants in the outskirts, they normally cut corners. They wouldn't try it within the city because market needs demand the next structure is better than existing one. If the malls coming up in the outskirts are not upto the mark, they will fall flat and fail to attract crowds.You will still have people coming all the way from Yelahanka and Hebbal and going to Koramangala for a mall experience.† There's the case of a city multiplex that opened with a lot of promise in the outskirts, but once other multiplexes opened up in the city centre, people didn't mind travelling the distance for a more swanky experience.Swati cautions, â€Å"We can't have the market dictate where and how the malls should be. Government agencies need to be activated to look into permits for these malls. Otherwise we'll be Gurgaoned.Every third building is a mall in Gurgaon. This will result in ghost malls. One mall will attract everybody and We'll have the same problems of congestion and road blocks all over again.†She feels that it is the government agencies which need to look into the density of population in various areas and allow for malls to come up in the right zones. †¦Says Ramesh Reddy, who's invested in a mall, â€Å"Colleges, IT companies and even hospitals have gone to the outskirts. I feel if malls are put up just outside residential areas, they will have takers.†Leena M, a young professional, says, â€Å"We need to follow the Mumbai model. The city is spread out and each suburb has it's own mall nucleus.† But for this to happen in Bangalore, it will take some time, she says.Swathi adds that town planners need to have the foresight to plan for this sort of growth. It needs detailed planning. à ¢â‚¬Å"In our governance, forget about detailed planning, there's no planning at all,† she says.Sreehari believes that malls need to operate for at least 20 hours a day. He adds that in cities like Singapore, malls are open 24 hours. This has to happen eventually for malls to be really successful.

Godiva Hong Marketing Plan

Marketing Plan for GODIVA HONG in the Netherlands GODIVA HONG Chocolate therapy   Introduction This report consists of a situational analysis and a potential market analysis of Godiva Hong. This report is prepared by the RBS Marketing Consulting Firm. RBS is the only authorized marketing strategic partner of GODIVA in Europe.The purpose of this report is to attain insight into the success-increasing factors (strengths) and the value-decreasing (weaknesses) factors of introducing Godiva Hong to the Netherlands, and produce a feasible marketing strategy with which the product can be introduced. The analysis is done with the help of a SWOT-analysis. The market environment consists of both the macro environment and the micro environment. The structure of this marketing plan is based partly on the structure presented in Export business plan The Netherlands (2009). 2] Other academic books referenced for this report’s structure and data will be stated in the reference. 1. Profile 1 . Company Profile The Godiva Company was founded in Belgium in 1926 for the production and retail confectionary products. The company was founded by Joseph Draps and was named after Lady Godiva; â€Å"a woman of great generosity and beauty left an indelible impression upon the people she reigned over in Coventry† (Godiva: 2012). [3] Since its inception the company has kept to its tradition of making chocolates with â€Å"a unique formula of rich chocolate with unparalleled smoothness† (Godiva: 2012). 3] The company has maintained its image of confectionery excellence by paying careful attention to quality, innovation and design, evidence of the latter can be seen through their exquisite European-style gold ballotins and handcrafted seasonal packaging. Till date the company owns and operates over 450 retail shops and boutiques worldwide and issues out six seasonal mail order catalogs yearly (Godiva: 2012). [3] 2. Company Product Godiva offers a wide range of products fr om chocolate assortments and truffles; chocolate bars; chocolate treats; biscuits, coffee, and cocoa; dark, milk, and white chocolate gifts to baked desserts.The company just recently started producing a line of cocktails called Godiva Liqueur (Godiva: 2012). [3] The company Godiva, plan on introducing a new line of chocolates onto the Dutch market in 2012. The new product is called Godiva Hong. The product is a special blend of Chinese red bean paste with a rich dark chocolate coating. The product seeks to blend the traditional exquisite look, smell and delicious taste of Godiva chocolates with an equally tasty red bean paste that has health benefits. The name â€Å"Hong† was given to give the product an oriental feel. Hong means red in Chinese and the color symbolizes luxury and joy. 3.Company Mission â€Å"A passion for innovation and luxury combined with a truly memorable experience contained in each mouthful has made Godiva legendary. † (Godiva 2012) [3] 2. DESTEP analysis 1. Demographic Analysis: According to CBS, the Netherlands is the 27th most densely populated country in the world. The 16 million Dutch men and women are concentrated on an area of 41, 52 km?. This means that the country has a population density of 397 per km?. The emigration rate in the Netherlands is high, for this reason the population growth is expected to decrease while the aging of the population is expected to increase. Education levelAccording to the OECD Health data, the Netherlands has a relatively the high education rate compared to other countries in Europe. 21 % of the educated population has university degrees. Eating and buying habits Dutch consumers have diverging eating and buying habits, consumers are paying more and more attention to having a healthier lifestyle. They are eating healthier, exercising more and as a result of globalization are welcoming healthy foods and trends from other cultures (Terry B. , 2012) 2. Economic Analysis. The economical str ucture of The Netherlands is characterized as open, outward-looking and thinking out of the box.The Dutch economy has a strong international focus, as the Netherlands is one of the European Union's most dynamic centers of trade and industry. Owing largely to its favorable location by the North Sea, it plays a key role as a main port and distribution centre for companies operating worldwide. Amsterdam's Schiphol Airport is one of the largest airports in Europe. For these reasons the Netherlands is often called, the Gateway to Europe. (Diane L. , 2011). [3]On the other hand economic growth declined in by 0. 9% in the 4th quarter of 2008. According to CBS, the economy declined a further 3. 50 % in 2009 and another 0. 5 % in 2010. (Svend H. , 2008) Purchasing power In figure 1 shows a chart of consumer purchasing power in the Netherlands. It can be observed from this chart that before the recession consumers had a high purchasing power. (Terry B. , 2011) Fig. 1 Purchasing power of consu mers in the Netherlands | |Purchasing Power developments | |Periods |% | |2004 ~ 2005 |-0. | |2005 ~ 2006 |3 | |2006 ~ 2007 |3. 1 | |2007 ~ 2008 |0. 3 | |2008 ~ 2009 |1. | |CBS, 7-12-2009 | | 3. Social and environmental Analysis Dutch people are open-minded; they are adaptable and welcome or often embrace new cultures from all over the world. (Diane L. , 2011). [2]Majority of the people in the Netherlands speak English and more often than not other European languages. Dutch people tend to be very private; this however does not mean they are not welcoming simply value their privacy and respecting the privacy of others.The Dutch are also not known for their display of wealth for this reason it is very hard to distinguish between the well to do and poor in the Dutch society. 4. Technological Analysis Modern technology has been a major cause of the change in living standards in most countries. The Netherlands like many other developed countries has taken full advantage of this phenomeno n to create a seemingly comfortable life for its citizens. One of the key tools that have played a monumental part in this transformation has been the internet.Since the creation of the World Wide Web in the early 1990s, the Internet has been transformed from a mere communication tool into an undeniably incredible technology. The internet has since single handedly managed to revolutionize the way communication, business is done in today’s world. Since its inception, many tools have been developed to enable the conduction of business through the internet; one of which is e-commerce. E-commerce is a collective term used to describe the various methods of making online payments. E-commerce makes trading convenient and substantially reduces the costs involved in making trades. . Ecological Analysis The ecological rules for doing business in the Netherlands have been tightened in recent years; environmental health and safety have become very important. Businesses that wish to oper ate in the Netherlands have to adhere to these strict rules (HACCP rules) or face sanctions and fines. The ISO standard was introduced in the Netherlands in 2005. The ISO standards have a lot of requirements for management systems for the food industry in the Netherlands, these help to ensure safety in food chains. Alternative packagingAlternative packaging is a hot topic in the fast consuming goods industry. Paper, tinned paper, paper box and plastic box are still frequently used in chocolate industry. However, in recent years, moves have been made to replace paper with PP material, which is cheap and excellent at protecting chocolate from heat. On the other hand PP material ages easily and has a tendency to break in low temperatures. 6. Political The Dutch government is what one calls a â€Å"monarchical government†, meaning that it is not only comprised of the ministers and the state secretaries, but also the monarch, Queen Beatrix.Another term for describing this is: a co nstitutional monarchy with a parliamentary system, whereby the constitution has determined how the powers are divided between the Queen and the other institutions of the government. (Holland Handbook, 2011) [2] The cabinet’s responsibilities are: preparing and implementing legislation, overseeing the local government, carrying out the day-to-day business of government and maintaining international relationship. There are two houses (the Lower House and the Upper House) in the Parliament.The Lower House is elected directly by people and the Upper House are elected by the members of the provincial councils. The two Houses of Parliament have been given 4 rights: the right to set a budget; the right of interpellation; the right to put questions to ministers and state secretaries; and the right of inquiry. Furthermore, the Lower House has been given two additional rights: the right of amendment and the right to propose legislation. (Holland Handbook, 2011)[2] The Netherlands not o nly has a central government, but also provincial and municipal government and the water boards.The central government is responsible for national interest. The provincial government concerns social work, cultural events, environmental management, energy and sports. The municipal governments occupies traffic, housing, social services, health care, water supply, education and recreation. In order to secure these activities, the provincial government and the municipal government receive fund from the central government and levy tax. The aspect is deserve to be noticed before launching a marketing plan is the Netherlands operates the same taxation system as all European countries.Currently, the standard VAT rate is EU is 19% with a reduced rate of 6% only applying for certain goods and Service. (Government Profile: 2011) Upon business-based aspect of Dutch politics, a change of government does not usually impact domestic and international business dramatically. All in all, the Netherla nds, as a the gateway to Europe, the government protects and supports its development by emphasizing strongly on tax law, health, labor, company , commercial, civil, environment and intellectual property matters. 3. Competitive Analysis-Applying Porter’s five forces . 1 Threat of new entrants The threat of new entrants to Godiva can be analyzed from the following aspects: Supply-side economies of scale; Godiva chocolates are produced in Belgium and the USA to satisfy demand worldwide. However, the company’s products which are specialty goods are not produced on a large scale, this results in the fixed costs per unit being relatively high. A new entrant could use this to their advantage by producing relatively more and competing on price. Capital requirement; a large sum of money is needed to establish a complete producing line.A new entrant will have to fund, fixed costs such as factory and machines, variable costs such as raw material, labor force, and advertisements. In addition, chocolate distribution is not easy. Special considerations like the temperature, and damage during transportation, will need to be taken into consideration. This will demand more requirements from a Third Part Logistics provider which will result in a high distribution fee. When all these factors are considered, the threat of new entrants to Godiva is not high. 3. 2 Bargaining power of suppliers The bargaining power of Godiva’s supplier is high.The reasons are numerous. The key raw material for the production of chocolates is cocoa beans; these are grown in South America, Africa, and Middle East Asia. However, Godiva uses only high quality cocoa beans in the production of its chocolates and these are hard to come by, so once a supplier is selected, a corporative relationship is cultivated in order to maintain a long business relationship. The bargaining power of raw material supplier is therefore high; since the supplier can easily decide to sell his cocoa beans to Godiva’s competitors. 3. 3 Bargaining power of buyersThe diversity and highly differentiated chocolate products of Godiva keep the bargaining power of customer at a low level. As one of the most famous Belgian chocolate producers with loyal customers worldwide, when buyers think of buying chocolate with wonderful flavors and elegant packaging, they think Godiva. Same as Victoria’s secret and Starbucks, Godiva mainly focus on creating surprise, passion, and excitement around its brand (Philip Kotler, 2008). [9] It is also difficult for buyers to integrate forwards into Godiva due to its special handmade product line.The bargaining power of buyers is therefore low. 3. 4 Threat of substitutes Although current market full of hundreds of chocolate producers with very competitive products, Godiva still has a stable market share. Godiva achieved this by positioning its self away from mass markets and associating its brand with other luxury brands like Armani Exchange, Vic toria’s secret, Bose, Tiffany & Co, Coach, and so on. These companies share common characteristics, such as portrayal of desirable luxury in their product design or taste and their high, but not too expensive price range.Godiva does not consider mass market products like Mars and Snickers its substitutes but rather luxury gift items like champagne, expensive jewelry or products from other high-end chocolate brands like Guylian, Neuhaus, and Leonidas, when these other product are considered the potential threat is high. 3. 5 Industry competitors The industry competitors at the same level as Godiva are few. However, Godiva’s product assortments are more deeply differentiated than that of the others. The cost of switching from other brands to Godiva for a customer is relatively low.Godiva spreads its fixed costs per unit by producing large quantities compared to its competitors; because of this Godiva’s prices have remained competitive. In addition, Godiva has over 450 special stores and more than 1000 retail shops, which have already taken up a sizeable market share. All these factors considered makes Godiva’s, exit barrier relatively low. However, rivalry is expected to intensify when competitors launch marketing strategies such as price changing, publishing new products, and improving customer service.Especially during special holidays like Easter, each company will launch new product to attract more market segments. 4. Competitor’s analysis Among the competitor’s list, the strong competitors of Godiva in the Netherlands are: Neuhaus, Leonidas and Guylian 1. Competitor one: Guylian Guylian chocolates are sold in over 100 countries across Europe, Asia, Australia and America. It is one of the top ten best selling boxed chocolate brands, and often seen on  Valentine’s day, Mother's day, Easter, Christmas and other popular holidays. 17] Products: Guylian's chocolates range includes the world famous chocolate Sea S hells, truffles, assorted pralines, bars and many other gourmet creations. All made in  Belgium with the finest Belgian chocolate. Strengths: †¢ Strong brand names; †¢ High quality chocolate made by pure cocoa butter; †¢ Highly distinctive chocolate like Sea shells and sea horse, sugar-free dark chocolate ; †¢ Available in most major high street retailers, including supermarkets, hypermarkets, department stores, specialty food stores, petrol stations, duty free shops. Weaknesses online-shop are not available Marketing strategy: †¢ Constantly launching new accessories to meet customer’s special requirement. Special holidays, for instance, Guylian designed new greeting cards and chocolate boxes to enrich their product display. †¢ Enhance product line by producing luxury sea shells and sea horse chocolate. †¢ Enhance public realization through taking part in different product exhibitions and social activities. 4. 2 Competitor two: Neuhaus The Neuhaus group is an independent manufacturer of pralines and other chocolate delicacies in the luxury chocolate sector.It is established in over 50 countries with 1500 sales outlets. [10] Products: Neuhaus’s chocolate products consist of Pralines, Ice Cream, Confectionery, Boxes, and other chocolate. Strengths: †¢ Very strong brand name which has over 100 years Belgium Royal chocolate; †¢ Deeply differentiated product line; Concentrated on their core products; †¢ Neuhaus products are available in many boutiques, department stores, shopping centers, airports and online-shopping center. †¢ Favorable access to distribution networks; Well organized online customer service Weakness: †¢ Fewer specialty stores in the Netherlands. †¢ Price is comparatively high. †¢ Niche market share Marketing Strategy: †¢ Focus on their core business; †¢ Special customer service: offer corporate discounts starting for order of $1000 or above; Provide fre e customize gift card with logo ; †¢ Use newsletter to receive customer’s feedback and improve their products. Guarantee customer’s buying chocolate will be delivered next morning. 4. 3 Competitor three: LeonidasLeonidas is a world-renowned chocolate maker. It is famous for its freshness, generosity and traditional taste. It’s selling over 100 different kinds of Belgian chocolate through 1,400 outlets around the world. [11] Product: Butter cream chocolates; Special cream chocolates; Ganache chocolates; candied fruit; Marzipan; Liqueur cream chocolates; Cream caramel chocolates; Pralines; Plain chocolate Strengths †¢ Clarify assortment of products according to ingredients, design, occasions and taste. †¢ Good reputation among customers With 250 specialty stores in the Netherlands, customers can buy their products at any city †¢ Price is acceptable even for personal consumption Weaknesses †¢ Online shop is not available; †¢ European m arket too saturated Marketing Strategy †¢ Launched a new premium product line â€Å"L†, smaller and more refined chocolate, similar to Godiva’s ‘G’ collection (Chang Sub Kim, Deyeon Kim, March, 2008) †¢ Clear organization mission: A century of freshness, generosity and tradition †¢ Large number of shops to create a sense of â€Å"A word of chocolate is closer than you think† for customer . SWOT ANALYSIS | |Strengths |Weaknesses | |Environme| | | |ntal | | | | | | | | |.Efficient and effective distribution channels and | ·New taste | | |systems | | | | ·High-quality product | | | | ·Healthy product | | | |. High market share | | | |.Unique taste | | | |. Unique design | | | |. Product specialty | | | |. Existing marketing policy | | | |. High market share | | | |.New Marketing policy | | |Organizat|Opportunities |Threats | |ional | | | | | | | | | | | | | ·Expanding the market |.Substitute product | | |. Product Diversification |. Competitors | | | |. Product extension | 5. 1 Strength: Healthy product: Godiva Hong is has health benefits; according to Chinese medicine the red beans that we will used in the new chocolates have health improving effects. Scientific research has proven that the red beans are a good source of protein, soluble (and insoluble) fiber, folate (vitamin B12), magnesium, potassium and a number of other health promoting nutrients.The researchers concluded that it reduces heart attack by more than 80% [16]. According to USDA researcher Ronald Prior, red beans contain even more proanthocyanidins than blueberries, cranberries, and small beans [16]. So it is one of our most important strong points that we will be providing health with taste. High quality: Godiva is already famous for its high quality products. Godiva Hong, will offer customers the same quality in taste and exquisite design of its packaging. Godiva considers its quality as one of its strengths because it already has a satis fied amount of targeted consumers; its experience in this field becomes its strength.Efficient and effective distribution channels and systems: Godiva has a very efficient and effective distribution system. Godiva Hong can be ordered online from Godiva’s official website or other websites. It can also be ordered via telephone. Existing marketing policy: Godiva has various strategies for marketing its products. The company has its own website that has a web shop, they also have a catalogue system; their catalogs are released usually in the fall, holiday, Valentine's Day, Easter, spring, Mother's Day and summer periods. During the holidays 10 million books are circulated. Godiva's most recent data card lists 35,200 catalog buyers from the last 12 months.They are also well equipped with seasonal promotional offers and strong media coverage policy. [13] This existing marketing policy will be used to help promote Godiva Hong. Unique taste: The new product has a rich chocolate coat ing outside with traditional Godiva flavor and a red bean paste inside. It will have an aroma that evokes interest, curiosity. The product will merge the unique taste of sweetened red bean with the traditional rich taste of Godiva dark chocolates. Unique design: The packaging for Godiva Hong will be an elegantly designed bamboo box covered in red silk. In Chinese tradition the color red symbolizes warmth, passion and luxury.The design and color of our package is to stir up these feelings in our clients. The use of Chinese materials in the packets of Godiva Hong will give it a unique texture [pic] Product specialty: The color and all other materials that will be used for Godiva Hong will represent the brand’s luxury and excellence. Color, design, materials of Godiva Hong will be a perfect representative of Chinese culture also. High market share: According to the annual report of 2006 Godiva’s market share is in good position and its increasing [15]. So it is a strong p oint for the new product. Well organized Godiva boutique established its image as a luxury good; it attracts a huge amount of customer.We will make it stronger using our effective marketing policy. New Marketing policy: Godiva has media plans including image and tactical print in various magazines such as Vogue, In Style, Harper's and Vanity Fair, and also regional newspapers during the holidays. Direct mailing is done to support some product launches [13]. Exhibitions will also be organized in several shopping centers and our boutiques, free samples will be given to current customers when they visit our boutiques to buy our other well-known products. Godiva Hong will also use product placement and sponsorship to meet its objectives. 5. 2 Weakness New taste: Our main weakness is the new unfamiliar taste.This taste is familiar with Chinese people but for European people it will be a totally new taste. It is a weakness that we need to overcome by promoting this new taste in an attract ive manner: Well organized promotion, attractive packaging and designing. We will also maintain and combine the existing taste with the new product and also the same aroma so that the existing customer can identify this new product as a part of Godiva. 5. 3 Opportunities Expanding the market: After Godiva Hong has gained enough recognition with the current customers of Godiva, the target market will be expanded to include young customers (20-30) to expand our customer segment. Product Diversification:We will diversify our product portfolio in future by promoting more new taste inside Godiva chocolate. This will open an opportunity for us to enrich our market share. Product extension: In future we will look forward to extend our product to more diverse product line. We will make Ice-cream Hong, Candy Hong and more. 5. 4 Threats Substitute product: Godiva Hong is a luxury product, the company considers other luxury products like Champaign or flower bucket its substitute. The relative price and performance of these substitute products are a threat. Still we can overcome this threat by maintaining our customer oriented marketing policy. Competitors:In Netherlands competitors like Neuhaus, Leonidas and Guylian are able to cause great threat to Godiva because of their brand positioning and quality production. Still we can overcome this threat by establishing the uniqueness of the new chocolates with the new unique taste and its strong brand positioning policy. 6. Marketing Strategy 6. 1Marketing Objective 6. 1. 1 Awareness Objective In 2012, Godiva will embark on a campaign to introduce its customers in the Netherlands to a new line of oriental themed chocolates called Godiva Hong. 6. 1. 2 Sales Objectives †¢ Increase overall brand sales by 3% with the introduction of Godiva Hong by the second quarter of 2014. Widen target market for Godiva Hong by focusing mainly on young adults (ages 20 – 30) by 2016. 6. 2 Marketing Strategy Since Godiva Hong is a new product, creating awareness for it will take a front seat in the company’s promotional activities. The product will be introduced through Advertisements, Exhibitions and Social Media. The product will primarily be introduced on the company’s website and its customer catalogs. The advertising for Godiva Hong will focus on staying true to Godiva’s position as a high end chocolate brand that is unique and glamorous. The adverts will appeal to the customer’s emotions by branding the product as a luxury treat.The adverts will be telecast on all major Dutch television channels at prime times. There will also be adverts about Godiva Hong placed in luxury magazines the company already advertises in; they include Vogue, Forbes, In Style, Harper's and Vanity Fair. The company will strike a deal with KLM to distribute free samples of Godiva Hong to their first class passengers. A similar deal will be struck with some 5 star hotels in the Netherlands to put free samp les of Godiva Hong in welcome baskets. Exhibitions will also be organized in several shopping centers and our boutiques, free samples will be given to current customers when they visit our boutiques to buy our other well known products.These exhibitions will also be used to attract new customers, and will give the company the opportunity to get feedback from our customers on what they think of the new product. The sales objective will be achieved with the aid of social media. Through data and tests conducted in the past the company has managed to form a very good picture of who its current customers are. Through these tests they know demographic figures such as, 75% of our current customers are over the age of 32, 60% have children; more than 85% have completed college. They also gathered some psychographic information such as these customers love to indulge but are still health conscious.With the aid of this data, the company will communicate individually with these clients through social media (Face book, Twitter and blogs). The new product Godiva Hong will be introduced to them, as a treat with exquisite taste, the health benefits of the new product will also be emphasized while asking them questions and using their responses to improve on the marketing strategy. Godiva will also use product placement and sponsorship to meet its market expansion objectives. The company will hire the services of popular Dutch celebrities like artistes Nick and Simon by placing the new Godiva Hong in some of their videos. This strategy is to help make Godiva Hong attractive to young adults.These are the tools Godiva will use to meet its marketing objectives for Godiva Hong. The company will focus first on its current clients and when enough attention has been created on the product in that domain it will widen its target market to include young adults. 6. 3 Target market and Positioning The people of Netherlands like other European countries will continue to embrace the consu mption chocolates in search of indulgence. In recent years, chocolate consumption is being enhanced by a growing demand for healthier, higher quality products that incorporate new tastes. These circumstances in the Dutch market offer a good opportunity for confectionery products like Godiva Hong.When Godiva Hong is introduced its primary target market will be the current customers of Godiva products in the Netherlands. After the product has gained recognition and acceptance from the current flock of Godiva customers the target market will then be widened to include young adult (people between the ages of 20 and 30 who have just started working careers). Godiva Hong like all other Godiva products is an upscale luxury product, and like the other products will be positioned as such. The aim is to strengthen the products position as a high-end product that customers will be proud to buy. 7. Marketing action plan 7. 1 Description of productGodiva Hong is an oriental themed chocolate with sweetened red bean paste and a rich dark chocolate coating. Instead of traditional nut, alcohol, walnut or jam filling, GOVIDA is going to use sweetened red bean paste. It is a healthy traditional Chinese filling in Baozi, Zongzi, Yuanxiao, moon cakes and other snack. It is sweet, soft and melts smoothly in the mouth. The packaging for Godiva Hong is an elegantly designed bamboo box covered in red silk. 7. 1. 1 Product Classification Godiva already has several different product lines: chocolate assortments and truffles; chocolate bars; chocolate treats; biscuits, coffee, and cocoa; dark, milk, and white chocolate gifts; and baked desserts.Godiva Hong is a new product with a brand extension strategy that appeals to existing market. It is a new product in the chocolate collections& treats product line. In addition to chocolates, Godiva also sells truffles, coffee, cocoa, biscuits, dipped fruits and sweets, chocolate liqueur, shakes, wedding and party favors and other items arranged i n gift baskets. Godiva's signature package is the Gold Ballotin (French for â€Å"small, elegant box of chocolates†). Godiva also produces seasonal and limited-edition chocolates with special packaging for all major holidays. Godiva also has license for the production of ice cream, cheesecake, coffee pods and liqueur that comes in several chocolate-related flavors. (Godiva, 2012) 7. 1. Package Because the target market of Godiva Hong is middle and high class people, the packaging was designed to unique and elegant in order to evoke a sense of luxury. Chinese elements were added to the design in order to give an inclination to the origin of the product: †¢ On the wrapping paper or baskets, the Chinese knotting will be presented. †¢ Also environmentally friendly, materials such as bamboo will be used in the design for the packaging †¢ So our traditional package for present product line is better changed as red for main color. 7. 1. 3 Service Several special servi ces are provided as follows: †¢ Online and telephone order.Customers can order Godiva Hong online or via telephone, due to a standing contract the Godiva company has with UPS they can be assured of a timely delivery. †¢ Gift card. Beautiful gift cards and exquisitely-designed packages can be sent with every order at the customers’ request. †¢ Unique design. Customers can get involved in the production of their chocolate orders by designing the chocolate shapes themselves with the aid of our chocolate design software online. †¢ Name and blessings. Names and blessings can be carved into the chocolates or the packaging upon the customer’s request. 7. 2 Price The main purpose of price strategy is to price Godiva Hong at an acceptable level, while aiding in the promotion of the product 7. 2. 1 Pricing strategy for GodivaGodiva Hong seeks to attract customers who are willing and proud to pay a little more for high quality product. Our target customers are the current Godiva customers; mainly middle and high class people who are looking for high quality chocolates as gifts for birthday, wedding, special events and business purposes. The price of Godiva products has stayed stable over many years. This proves Godiva has a strong brand image that does not compete on price. 7. 2. 2 Pricing for Godiva Hong Godiva Hong is a new product with a brand extension strategy that appeals to existing market. So, the price of our new product will be set to meet the consistency of existing product in the chocolate collections& treats product line.Price for Godiva Hong |Beaded Easter Egg |â‚ ¬25 | |Enchanted Easter Gift Basket |â‚ ¬90 | |Signature Chocolate Truffle Assortment |â‚ ¬40 | |Gift Box |â‚ ¬30~â‚ ¬70 of different sizes | |Delights Gift Basket with Spring |â‚ ¬75 |Price for Godiva Hong and competitors (cooperation as small size gift box) |Godiva Hong |â‚ ¬40 | |Neuhaus |â‚ ¬48 | |Leonidas |â‚ ¬36 | |Guylian |â‚ ¬ 20 | [10][11][17] 7. 3 Place The main purpose of our place strategy is to choose the best distribution channels to sell Godiva Hong. 7. 3. 1 Traditional distribution channel:local malls Thanks to our existing local malls which provide maturity distribution channels, Godiva Hong can be bought wherever and whenever the customers want to purchase it. 7. 3. 2 New distribution channel: online and telephone orderIn recent years, online and telephone orders have attracted a lot of attention. According to Godiva’s last marketing report, the quantity of orders through these two new distribution channels is increasing year by year. So, it is a good choice to sell Godiva Hong also through these two new distribution channels. The customer can just log in our online order website to buy chocolate as the follow: http://www. godiva-online-store. eu/index-en. htm. Due to the contract with UPS a timely delivery is assured. Other services provided on the website are gift cards. The customers c an just buy it on the website. It has â‚ ¬30, â‚ ¬50, â‚ ¬100 different choices. 7. 3. 3 New distribution channel: co-worker websiteThe customers can also buy Godiva Hong on other websites as follows: †¢ Gift for euro †¢ Pick up flowers †¢ Gifts n ideas These website are co-operating with our company. So the customers can buy Godiva Hong from these websites when they buy some other gifts and flowers. 7. 3. 4 New distribution channel: Fashion event& business press release Godiva is co-operating with event organizers for fashion shows and business press releases. Association with these events is to aid in the extension of Godiva Hong’s the popularity as a luxury brand. Also, the patrons of these events make up our core clients so, sales could also be generated by selling Godiva Hong at these events. 7. 4. PromotionThe main purpose of our promotion strategy is to introduce Godiva Hong to existing customers and potential consumers. 7. 4. 1 Marketing channe l: advertisements Advertising is Godiva’s traditional marketing channel. Advertisements have had tremendous impact on sale of Godiva products. So we will still adapt this marketing channel. The commercial advertising will be concentrated in following Medias: †¢ Television. The period of time that we will advertisement will be related to special event such as Easter, Queen's Day. †¢ Magazine. The magazines that we will consider are included Vogue, Forbes, In Style, Harper's and Vanity Fair this kind of high-fashion magazines. †¢ Internet including social media.Social Media channels such as face book or twitter will be used to communicate to our clients individually on the merits of Godiva Hong. 7. 4. 2 Marketing channel: The shopping center exhibition Promotional exhibitions are also an important marketing channel for Godiva. It is soon April. Several holidays, such as Easter, Queen's Day, are in the April. We will have promotional events in shopping centers whe re our shops exist. The customers can have tasting sessions for Godiva Hong in our shop for free. Feedback will be gathered from them on how to further improve the product or its marketing strategy 7. 4. 3 Free sample delivery Several main strategies are implemented to improve the popularity of Godiva Hong for the first three months. Strategy one:Existing customers, who will buy our traditional products, will have a small Godiva Hong sample for free. Strategy two: According to the last six months order records, the Godiva Hong sample will be sent to those customers as a gift, who ordered other products of chocolate gift baskets, seasonal gifts, gifts by occasion and business gifts product lines. Strategy three: In the airport, the Godiva Hong sample will be provided in the first class of KLM. Strategy four: In some international 5-star chain hotels, the Godiva Hong sample will be provided as a gift in the welcoming basket. 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